FLS Aerospace reports an €8.5m loss for half-year

FLS Aerospace, the Danish group which owns the former TEAM Aer Lingus aircraft maintenance plant at Dublin Airport, has reported an interim loss of €8.5 million, well below expectations.

The company, which employs over 1,500 workers in Ireland, said despite an improvement in business conditions, the aircraft maintenance industry continued to be affected by the terrorist attacks of September 11th. Net turnover in the six months to June 30th was €200 million, down from €242.5 million.

It added that second-quarter earnings, which traditionally break even, were down on expectations. The half-year loss of €8.5 million compares with a profit of €3.9 million during the corresponding period last year.

"The normally lower level of activity in the second quarter means that FLS Aerospace is dependent on projects from ad hoc customers," it said in a statement. "This spot market is characterised by fierce competition as a result of overcapacity in the aircraft maintenance industry."

FLS Industries, the parent of FLS Aerospace, announced losses of €96.6 million on a turnover of €1.13 billion. The company has also downgraded its full-year forecast from a slight profit to a loss. It said earnings before tax would be close to break-even before the inclusion of the accounting loss of €65 million from the sale of shares in the period.