Turbomecanica - revenue and profit down, last year

Aircraft component manufacturer Turbomecanica Bucharest (TBM) reported a net profit of 10.7 million lei for last year, 12% below that of 2022, while revenues from contracts with customers decreased by 5.6%, up to 131.3 million lei, according to the company's report published yesterday on the website of the Bucharest Stock Exchange (BVB).

Turbomecanica's management mentions in the document that the company's business last year did not rise to the budgeted level in the spring. "In the aeronautical industry there is a volatility of production, especially regarding the timing of deliveries related to the maintenance of engines and mechanical assemblies. Most of the time, they appear as a result of changes requested by customers following operational emergencies, without changing the contracted values. Concretely, in the year 2023 there were several such requests from our partners, which generated changes in the financial indicators, both in terms of income and expenses", the Turbomecanica report states.

The company's raw materials, materials and utilities expenses amounted to 49.1 million lei, 2.3% more than the previous year, while expenses for employee benefits and salaries amounted to 55.9 million lei, up by 6% compared to those at the end of 2022. From the financial activity, the company obtained a profit of 0.66 million lei, compared to a loss of 1.64 million lei in 2022.

"Financial income has doubled compared to the previous period, through the interest that the company collected from the established deposits, including the interest collected from the securities", the report also mentions.

Last year, the company deposited 18 million lei in deposits at BRD. "These amounts are likely to be used to secure own funds in order to start the development project in the maintenance of civil engines", according to the document.

The largest shareholder of Turbomecanica is Radu Viehmann, who in the middle of the year had 25.9% of the company's capital, while Dana Maria Ciorapciu owned 15.2% of Turbomecanica.