How UAE defence giant EDGE Group plans to double its exports
The UAE defence conglomerate has put an aggressive strategy in place to increase its share of exports while navigating the growing gap between East and West.
Lufthansa Systems 2009 revenues down, but still in profit
Despite a 7.9% decline in revenues, Lufthansa Systems ended its 2009 fiscal year with a profit of €16 million.
The revenues decrease took the income down to €605 million. Of this, €361 million was generated with companies in the Lufthansa Group, while revenues with customers outside the Group fell to €244 million (a 12.5% decrease). This decline, described by LSY as “disproportionate” is attributed in part to former external companies now being part of the Lufthansa Group. The operating profit of €16 million was a decrease from the previous year’s €40 million, on account of the lower revenues.
”The fact that we achieved a profit despite a significant decline in revenues shows that we are well positioned with our structures and products,” said Wolfgang Gohde, CEO and chairman of the Executive Board of Lufthansa Systems. ”The changes we initiated during the past few years have made our company leaner, more flexible and more customer-focused. We were therefore able to respond quickly to market developments, adjust our capacities and reduce our costs.”
LSY believes that the total airline spending on IT services will grow only slightly in the coming years due to the carriers’ strained economic situation. However, it sees the market for IT outsourcing growing because airlines will increasingly replace their own systems with external solutions.
The company expects revenues to decline again in 2010 on account of economic influences and the ongoing streamlining of the portfolio in the Infrastructure Services division. The measures initiated in 2009 for reducing material costs and aligning internal personnel capacity with the production volumes will probably cause the operating result in 2010 to be higher than that of the past fiscal year, says LSY.
You may also like
More from Defence Notes
-
![How UAE defence giant EDGE Group plans to double its exports]()
-
![US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness]()
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
![Can the US overcome Russian and Chinese nuclear capabilities?]()
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
![US FY2024 funding package passes as China closes military capability gap]()
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
![NATO outlines future challenges as Ukrainian funding from US stalls]()
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
![US Pentagon to reduce investments in main acquisition programmes over FY2025]()
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
