German aircraft parts supplier Premium Aerotec GmbH expects to book a positive operating result in 2014 after incurring a loss before interest and tax of EUR 620 million in 2013. The turnover figure (1.6 billion €) is similar to 2012 figure.
For 2014 the supplier -headquartered in Augsburg- is expecting positive EBIT (earnings before interest and taxes) recovering the black-numbers of 2012.
Main reason for loss in 2013 were “development, start-up costs and overtime for the production of the A350 model” that is ramping up aggressively in 2013 and 2014. “There are also serious internal problems, which had resulted in high production costs since the company was founded”.
“Logistics and software of different sites need to be harmonized urgently” said Aerotec´s spokeman Krüger.
Premium Aerotec has around 9.300 employees. In addition to the headquarters in Augsburg, Germany, the company has plants in Varel, Nordenham and Bremen as well as a site in Romania.
Premium Aerotec CEO Hoppe pointed out in this interview that he wants the company works as a team; “there are cultural problems and lack of integration between sites”.
“We are structurally too weak to cope with so much work, and this resulted in missing-parts and quality problems that has forced us to allocate more than 2.000 temporary workers to avoid impacting deliveries” he said.
“We need at least 2 to 3 years to re-develop the company and solve all structural problems. What we are going to do, on airline language is a complete overhaul with running engines on the runway.”
"Currently around 70 employees from Airbus help us intensely. And additional 40 procurement team supports us subcontracting some tasks to cheaper companies in Turkey, India and United States. We should outsource up to 900.000 working hours over the next few years to reduce costs. But we remain committed to the core workforce”
“We will do it well, with discipline. We have no other choice.”