IAR Ghimbav expects its profit to fall 16.6% this year

This year, the company IAR Ghimbav plans to make a net profit of 2.417 million lei, down 16.6% compared to the level reached at the end of 2011, of 2.897 million lei, according to the Revenue and Expense Budget which will be submitted for approval to the shareholders tomorrow at the General Shareholder Meeting.

According to the quoted document, the company's revenues are expected to drop 32.5%, from 64.989 million lei to 43.846 million lei, whereas total expenses are expected to shrink 33.3%, from 61.432 million lei to 40.996 million lei.

The company has budgeted investments of 1.150 million lei, which will be covered using its own funds. This year, the number of employees is expected to fall from 320 to 316. Still, the company has budgeted salary expenses 30.5% higher, from 9.664 million lei to 12.614 million lei.

Also in yesterday's session, the shareholders will discuss the extension of the operation period of Eurocopter Romania beyond July 24th, 2013. According to the shareholder notice to attend sent to the Bucharest Stock Exchange, the operating duration of the company, which is hosted in a hangar assigned to it by IAR Ghimbav, will be made either by "the participation of the company of Braşov in the increase of the share capital by the amount of the right of beneficial interest over the assets (plots of land, construction and fixed assets), which were the object of a beneficial interest contract between IAR and Eurocopter on July 24th, 2003, through the creation of a new right of beneficial interest for a period of another ten years under conditions similar to those of the contract of 2003", or through the "rental by Eurocopter Romania of the assets which are the object of the contract which grants the right of beneficial interest by concluding a rental contract, and keeping the current share capital unchanged". In this latter case, the operating period of Eurocopter would be extended by less than 10 years.

The decision to add an additional item to the agenda of the General Shareholder Meeting of IAR Ghimbav was made by the company's general shareholder, the Ministry of the Economy, as in the same meeting, the shareholders are set to cancel the decision to assign an important part of the assets to Eurocopter, a decision which was made two years ago.

IAR Ghimbav is controlled by the Ministry of the Economy, which owns 65% of the shares.