Lufthansa Technik increases revenue and profit
Last year, Lufthansa Technik recorded a small increase in revenue and stable profits in spite of the decline in demand and earnings in the airline industry as a whole.
Revenue increased by 6.6 percent to EUR 4.0 billion. The 2009 annual report presented for the 20 consolidated companies in the Group shows profits of EUR 316 million, a year-on-year improvement of 5.7 percent. The operating margin retreated slightly by 0.5 percent to 8.3 percent.
“In view of another significant increase in cost pressure fueled by the economic crisis and the shrinking market for maintenance, repair and overhaul (MRO) as a whole, Lufthansa Technik closed 2009 with excellent results,” said August Wilhelm Henningsen, CEO of Lufthansa Technik AG. “The aviation crisis, which resulted in a reduction in the number of flights offered and sharply lower earnings, had an increasing impact on our operations – particularly in the second half of the year. But our broad product range, international strategic orientation, and great flexibility enabled us to further enhance our leading position in the world market.”
Winning 40 new customers and thus increasing its worldwide total to 691, Lufthansa Technik remained on a growth course in 2009. 456 new contracts were concluded – with total revenue of EUR 493 million for the year 2009 alone.
Revenue generated with Lufthansa Group companies increased by EUR 165 billion (+ 11 percent) to EUR 1.7 billion in 2009 as a result of an increase in the Group’s fleet size and a high number of orders. Revenue from non-Group customers was negatively affected by the slide of the dollar, but could nevertheless be increased by 3.7 percent to EUR 2.3 billion. As a result, its share of total revenue amounted to 58.0 percent (2008: 59.6 percent). The company’s operating margin was 7.4 percent in 2009.
Operating expenses climbed by EUR 230 million (+6.4 percent) to EUR 3.8 billion, mostly driven by the increase in the cost of materials, which rose by EUR 151 million (+8.3 percent) to EUR 2.0 billion. Personnel costs grew by 4.9 percent to EUR 1.1 billion. At EUR 679 million, other operating expenses were up 4.1 percent, due to higher provisions and greater use of temporary personnel.