The HAECO Group reported profit of HK$464 million in 2015

The HAECO Group reported an attributable profit of HK$464m in 2015, compared to a profit of HK$573m in 2014. Manhours sold by HAECO in Hong Kong (HAECO Hong Kong) for airframe services increased by 13.8% in 2015. This reflected continued good demand and an increase in staff numbers. Manhours sold for line services in Hong Kong also increased in spite of a reduction in aircraft movements handled, as more work was done per movement. Manhours sold for components and avionics work in Hong Kong decreased. This reflected the retirement of Boeing 747-400 aircraft. The profit of HAECO ITM Limited (HAECO ITM) increased. This reflected higher utilisation of rotable parts as operations expanded. The profits of Hong Kong Aero Engine Services Limited (HAESL) decreased. Fewer engines were overhauled. This reflected the retirement of aircraft operating Trent 500 engines and a reduction in the frequency of scheduled maintenance of Trent 700 engines.
HAECO USA Holdings, Inc. (HAECO Americas) recorded a higher loss in 2015 than in the 11 months following its acquisition in 2014. This principally reflected completion of large, high work scope airframe services contracts and their replacement with smaller work scope contracts. HAECO Americas also shipped fewer seats. Demand for its old seats declined and the replacement seats were not yet in commercial production.
The profit of Taikoo (Xiamen) Aircraft Engineering Company Limited (HAECO Xiamen) decreased in 2015. Fewer airframe maintenance manhours were sold and there was very little private jet work. Taikoo Engine Services (Xiamen) Company Limited (TEXL) overhauled more engines. However its after tax profits fell, as it no longer had tax losses to utilise. The losses of Taikoo (Xiamen) Landing Gear Services Company Limited (HAECO Landing Gear Services) were slightly smaller than those of 2014. It did more work in 2015 than in 2014, but better operating results were largely offset by unrealised foreign exchange losses on loans. The results of the Group’s other joint ventures in Mainland China were better than in 2014.
The Group continued to invest in order to increase the scale of its operations and technical capabilities and to improve and widen the range of services it can offer to customers. Total capital expenditure for 2015 was HK$716m. Capital expenditure committed at the end of the year was HK$1,928m.