HAECO Group reports lower profit in first six months of 2015

The HAECO Group reported an attributable profit of HK$254m for the first six months of 2015. This compares with a profit of HK$283m for the equivalent period in 2014. Earnings per share decreased by 10.2% to HK$1.53. Revenue increased by 7.4% to HK$5,734m. Performance for line maintenance services of HAECO in Hong Kong was good. More extensive work scopes were conducted per aircraft which generated higher workload and revenue for the first half of 2015. More airframe services work was done. Capacity increased as the workforce grew. Component services in Hong Kong were adversely affected by the costs of capability development. HAECO ITM Limited recorded a higher profit. This reflected higher utilisation of rotable parts as operations increased. The profits of Hong Kong Aero Engine Services Limited decreased. Fewer engines were overhauled reflecting the retirement of aircraft operating Trent 500 engines and a reduction in the required frequency of scheduled maintenance of Trent 700 engines. HAECO USA recorded a higher loss in the first half of 2015 than in 2014. The higher loss principally reflected lower airframe services operating results. The profit of Taikoo (Xiamen) Aircraft Engineering Company Limited decreased. This reflected reduced demand for its airframe services.