Lufthansa Technik's good result creates foundation for investment

Lufthansa Technik Group’s 4.2% increase in revenue to €4.2bn in 2013 was characterized by stable business development within the Lufthansa Group and an increase in business with external customers, whose share of the total revenue rose by 1.7% to reach 62.2%. The operating result improved considerably, climbing by 23.2% to €404m, with an operating margin of 10.9%. “In addition to the good order situation, it was above all the significant cost reductions resulting from the SCORE program’s measures that made our excellent result in 2013 possible,” said Dr. Peter Jansen, CFO of Lufthansa Technik AG on March 18 in Hamburg. “We were able to respond to the high price and cost pressures in the market with a reduction in unit costs, more efficient administration, the restructuring of our network and numerous individual measures. On this basis, we will further improve the competitiveness of the Lufthansa Technik Group through the introduction of new aircraft types and state-of-the-art technologies and the focused continuation of our SCORE program.” Total operating expenses grew by 2.5% to €4.0bn. Due to a higher volume of modifications and the overall increase in VIP and engine business, the cost of materials increased by 5.2% to €2.1bn. The company’s reduced staffing level meant that, despite the collective agreement pay increase valid from August 2013 and rising expenses for pensions and staff reduction measures, personnel costs remained largely the same at €1.2bn euros. At €99m, other depreciation, amortization and impairment losses also remained largely at the previous year’s levels. Other operating expenses declined slightly to €610m (- 0.8%) owing mainly to currency effects.