Aero will show profit from January 2008

30/01/2007 | So far deeply loss-making company AERO Vodochody a.s. (AERO), which has so far been showing loss in the amount of approx. 40 million Czech crowns (CZK) monthly, will again show profit from January 2008.

So far deeply loss-making company AERO Vodochody a.s. (AERO), which has so far been showing loss in the amount of approx. 40 million Czech crowns (CZK) monthly, will again show profit from January 2008. “Our aim is to make AERO healthy, profitable and in all respect competitive company as soon as possible. AERO must not only become able to cover its current costs, but also ensure expected return of capital to its owner,” says Mr. Petr Ondro, AERO President. From January 2007, 100 % of the AERO shares are owned by the private equity group Penta.

The project of changes will be elaborated to the level of individual departments of AERO not later than March 31, 2007. Economies will be searched for in all spheres – indirect, material and personal costs as well as costs for energy and services must fall down. The Company will optimize and increase efficiency in all its activities, production will be joined in some workplaces. On the other hand, AERO will significantly mount up its investment volume this year. “We are planning to invest 150 million CZK into purchase of new and modification of current technology,” notes Peter Ondro. In 2006, the AERO investment reached 58 million CZK.

“I believe that we will succeed in filling AERO with work, that production and development capacity will be maximally occupied in the context of aerostructures growth, L-159 aircraft marketing on foreign markets and other projects. Together with new orders, re-increase of employment can be expected, in the production division of course,” says President Peter Ondro adding that AERO is negotiating with several entities interested in production in AERO. “This year, we are expecting increase in the volume of S-76C helicopter production by a fifth compared to 2006, the C-27J Spartan military transport aircraft center wing box production line will be launched, we will deliver four two-seat L-159 aircraft to the Czech Air Force,” Peter Ondro enumerated several production activities.