Helicopter producer IAR Brasov shares increased 10% on RASDAQ on Thursday, after the company disclosed the financial results for the first six months.
The effects of the Socat programme aimed at modernising 24 Puma helicopters have started to show in the first half this year. This contract was signed with the Ministry of Defence nine years ago and postponed several times, due to the lack of funds.
IAR Brasov ended the first half with 544 billion ROL ($16.5m) in turnover, about eight times more than in the year-ago period. The 35 billion ROL losses posted in the first half last year turned into 117 billion ROL ($3.5m) gross profit.
"In the first half, we delivered four helicopters within a contract closed with the Ivory Coast, and two helicopters to the Ministry of Defence," Ion Georgescu, company's chairman, told Ziarul Financiar. Georgescu added the company could deliver another 4 - 5 modernised Puma helicopters to the Romanian military by yearend.
The order for the four Puma helicopters placed by the Ivory Coast governmental authorities amounted to $12 million. The Socat programme is an order placed by the Ministry of Defence in 1994 and aimed at modernising and performing capital repairs on 24 Puma helicopters.
IAR is one of the shareholders of the Romanian-French joint venture Eurocopter Romania, wherein it holds 49%, while the French company holds 51%. IAR participated in a 1.3 million euro capital increase this year, with a new such increase planned for next year.
"Eurocopter Romania is not profitable yet, but we estimate a substantial improvement in the financial situation for next year," Georgescu said.
IAR has already begun filing the order placed through a contract signed with United Arab Emirates, which stipulates the delivery of 25 Puma helicopters.
The first aircraft, however, is to be finished in 2005, while the contract ends in 2007. The contracts entail a complex international collaboration, with the Romanian company acting as integrator and general contractor. vlad.nicolaescu@zf.ro
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