Financial Round Up
Haeco first-half profit drops 21%, revenue up 66%
August 19th 2014
Hong Kong Aircraft Engineering Co (Haeco) has reported a 21% profit drop to HK$283 million (US$36.5 million) in first-half 2014 despite a 66% surge in revenue to HK$5.34 billion (US$690 million) during the same period, reflecting the continued shortage of skilled labour and declining demand for engine services. Read More »
Haeco’s engine maintenance service providers, Haesl and Saesl, accounted for HK$136 million of the profit, a 47% decrease from the year-ago-period, which Haeco said was the result of waning demand following the retirement of older engine types requiring more frequent maintenance.
Speaking to the South China Morning Post, Haeco CEO Augustus Tang Kin-wing said the shortage of skilled labour, from which the company had been suffering since 2012, was alleviated with the churn rate a third lower than last year. Owing to the long lead time required to train new staff – three to seven years according to Tang – labour would continue to be a constraint on capacity even though Haeco will continue to hire more trainees this year.
