Aircraft components manufacturer Romaero estimates a 23 percent increase in turnover to RON 98.82 million (EUR 22.34 million) for this year, and zero profit after three consecutive years of losses, while aiming to extend the contract with the American builder Boeing, according to Mediafax.
The turnover of the company amounted to RON 80.22 million (EUR 18.14 million) last year. The indicator rose by 21 percent compared to 2013 (when it was at RON 66.3 million) due to higher volume of maintenance and repair of aircraft.
“To improve the outcome of 2015, Romaero will implement the following measures: increasing operating revenues resulting from higher order portfolio by attracting new customers and developing work packages with existing customers; recovery of Romaero owned assets by opening payment and / or sales; investments in upgrading and rescheduling of debts,” according to Romaero representatives.
In 2014, Romaero recorded losses of RON 45.02 million, more than two times higher than those reported in 2013, when the state company had a net loss of RON 19.78 million. In 2011 was the last year in which Romaero saw profit (RON 397,545). For 2015, Romaero budgeted a zero profit.
Company representatives say that the main reasons for the increase in loss was the negative influence of interest expense and increases related to arrears to the state budget, which came as a result of non-completion of the impetus for the recovery of assets unused during the production process due to law requirements concerning deadlines for the stages of endorsement, approval and recovery. Other negative influence facts were the impact due to revaluation of society action inventories and losses in the US/RON exchange, from RON 3.2551 to RON 3.6868
Also, the manufacturer of aircraft components plans to increase deliveries for Boeing, Israel Aerospace Industries (IAI) and Novae.
Romaero currently has underway two contracts concluded directly with US giant Boeing (Boeing Commercial and Boeing Defense & Aerospace) and other companies that are direct suppliers to Boeing (Spirit Aerosistems UK, Cyclone) for running primary parts specific to all types Boeing, except 787. In addition, Romaero provides Airbus pieces for two companies that are direct suppliers to Airbus, namely Aerolean (Novae Aerospace) and Sabca.
The company has planned an investment of EUR 11.6 million of which (EUR 1.06 million are from own sources) in the purchase of new machines for this year, because “existing Romaero machinery are prototypes made in Romania in the 80s and are old and outdated”.
Romaero representatives say that “these investments are necessary for efficient use of the used machinery in order to cut costs and consumption, eliminate the risk of occurrence of defects and to maintain the activity and for existing contracts”.
The company has about 900 employees and is controlled by the Ministry of Economy, Trade and Tourism.