HAECO posts 2016 final results

The HAECO Group reported an attributable profit of HK$975m in 2016. The profit included a gain of HK$805m on disposal of the interest of Hong Kong Aero Engine Services Limited (HAESL) in Singapore Aero Engine Services Limited (SAESL) and an impairment charge of HK$285m in respect of the goodwill recorded on the acquisition of TIMCO Aviation Services (TIMCO). The HAECO Group’s 2015 attributable profit was HK$464m. Disregarding the gain on disposal in 2016 and impairment charges in both years, the HAECO Group’s 2016 attributable profit was HK$516m, 8.2% higher than in 2015. HAECO USA Holdings, (HAECO Americas) recorded a higher loss in 2016. This principally reflected losses on some seat contracts and a reduction in the number of seats sold and in cabin integration work. Airframe services results improved, with more manhours having been sold, but the benefit of this was offset in part by costs incurred with a view to improving efficiency and work flow.