Lufthansa Technik Group report decline in revenues for 2012

Lufthansa Technik Group’s 1.9% decline in revenue in 2012 to €4.0bn was characterized by a drop in business with other companies in the Lufthansa Group, but also by an increase in revenue with external customers, whose share of the total revenue rose by 5 percentage points to reach 61%. The operating result climbed by 24% to €318m, with an operating margin of 8.9%. Total operating expenses dropped to €3.9bn(- 3.7%). The cost of materials sank markedly by 7.4% to €2.0bn a decline largely attributable to the lower volume of modifications and reduced engine capacity utilization, which both resulted in decreased requirements for material and external services. At €101m, depreciation, amortization and impairment losses in 2012 were €11m higher than the previous year. Other operating expenses slid by 19.1% to €615m, especially owing to prior-year provisions for long-running contracts.