RSS
Aerostar Bacau estimates sales drop by 100 million lei, to 278 million lei this year
Aerostar Bacau, a company specialized in manufacturing aviation products, maintenance for commercial planes and defence systems, estimates a sales drop by 100 million lei to 278 million lei this hyear and a net profit drop by 33 million lei to 10 million lei, according to a report sent to Bucharest Stock Exchange (BVB) which shows that the return to the 2019 situation will last a few years, after the unprecedented economic crisis affected the aviation industry.
“The economic crisis affected the aviation industry at an unprecedented level. Big air operators in the European and world aviation drastically reduced their activity concentrating on cost reducing operations and ensuring survival to be able to benefit from the relaunch period after the crisis. Our present estimates lead to a significant reduction of the business figure of Aerostar in the field of part, subassembly and equipment manufacturing for big global programs for commercial planes and in the field of MRO services. That will lead to a sale reduction by 100 million lei to 378 million lei in 2020,”the document shows.
Company management says that general activity budget for 2020 as approved by General Shareholders' Assembly of December 11, 2019 was based on economic premises known in November 2019, when there were no indications of a possible future pandemic.
Aerostar management points out that the company will preserve production capacities unaffected and will maintain the staff but will partially use the technical management solution.
Aerostar, the former Airplane Repair Works, was set up in 1953 for airplane repairs. The activity of the company gradually evolved from repairs and maintenance to airplane manufacture, aviation parts, air, land and sea defense systems, artillery systems.
Aerostar Bacau has a capitalization of 624.3 million lei and 2,000 employees. The company had a business figure of 99.93 million lei in quarter 1, 2020.