The Hamburg-based Lufthansa Technik Group, one of the world’s leading providers of technical services for aircraft, ended fiscal 2010 with a slight increase in revenue.
Revenue grew by 1.4 per cent to EUR 4.02 billion. However, the company's result did not quite meet the record level of the previous year owing to extremely intensive price pressure and customer orders that were withdrawn.
The annual report of the 21 companies consolidated under the Lufthansa Technik name shows an operating result of EUR 268 million for the Group.
“Lufthansa Technik survived the economic and financial crisis relatively well through increases in efficiency, high utilization of flexible working hours, and process innovations,” said Lufthansa Technik AG’s CEO, August Wilhelm Henningsen.
“Operatively, the smooth introduction of Lufthansa’s new Airbus A380 flagship was a particular high point for us in 2010, and we’ve continued to solidify our position as the world’s market leader in the global maintenance, repair and overhaul (MRO) business.”
“During the second half of the year in particular, we were able to continue our course for growth and increase our business with customers outside the Lufthansa Group by 3.3 per cent. However, since price pressures remained extremely intensive and some customers postponed or even withdrew orders, we were, as expected, unable to meet the high levels of the previous year.” The decline in business amounted to 15 per cent.
Lufthansa Technik also invested a total of EUR 82.1 million in 2010 in a new engine test center at Lufthansa Technik Aero Alzey, additional reserve engines, and technical systems and machines.
Operating expenses in 2010 climbed by EUR 157 million to reach EUR 4.0 billion – a plus of 4 per cent. The growth in revenue from engine and component maintenance made itself felt in an additional EUR 77 million in material costs – likewise a plus of 4 per cent over last year.
Personnel costs rose by EUR 42 million (+4 per cent), owing to an increase of 539 employees in the average yearly workforce. Other operating expenses rose by EUR 31 million (+ 5 per cent) to EUR 710 million, largely through higher provisions and the increased use of temporary employees.
The total workforce of all 21 consolidated companies climbed to an average of 20,297.
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