Lufthansa Technik bucks recession trend with revenue increase

While it was possible to improve the operating profits by 5.7 percent to EUR 316 million, the operating margin retreated slightly by 0.5 percent to 8.3 percent.

"Lufthansa Technik's key financials show that we have significantly
outperformed the MRO market as a whole," said the CFO of Lufthansa
Technik AG, Dr. Peter Jansen, at the company's annual press
conference  in Hamburg today. The number of customers rose 3.4
percent year-on-year to 691 and the number of aircraft under support
contracts by as much as 14.2 percent to a total of 2,028.

Revenue generated with Lufthansa Group companies increased by EUR 165
billion (+ 11 percent) to EUR 1.7 billion in 2009 as a result of an
increase in the Group's fleet size and a high number of orders.
Revenue from non-Group customers was negatively affected by the slide
of the dollar, but could nevertheless be increased by 3.7 percent to
EUR 2.3 billion. As a result, its share of total revenue amounted to
58.0 percent (2008: 59.6 percent). The company's operating margin was
7.4 percent in 2009.

"The Lufthansa Technik Group's business profitability remains at a
good level," says Jansen, "as does its value creation." The equity
ratio in 2009 stood at 26.2 percent and the debt-to-equity ratio at
30.2 percent. "This means that our financial situation is still very
sound."

Operating expenses climbed by EUR 230 million (+6.4 percent) to EUR
3.8 billion, mostly driven by the increase in the cost of materials,
which rose by EUR 151 million (+8.3 percent) to EUR 2.0 billion.
Personnel costs grew by 4.9 percent to EUR 1.1 billion. At EUR 679
million, other operating expenses were up 4.1 percent, due to higher
provisions and greater use of temporary personnel.

At EUR 121 million, investments made by Lufthansa Technik AG in 2009
- related primarily to spare engines, new machines, and technical
equipment - were slightly down on the previous year (-0.8 percent),
but still well above the long-term average of EUR 105 million.

The workforce of the 20 consolidated companies increased by 2.9
percent to 19,758 as a result of the integration of Lufthansa Technik
Switzerland and the expansion of the workforce at Lufthansa Technik
AG. Across all direct and indirect affiliates and associates, the
Lufthansa Technik Group employed over 26,000 employees in total.

"The development of our figures on performance, revenue, profit and
value creation show that in 2009 we succeeded in thwarting the
airline crisis and growing profitably," said Jansen. "However, as an
MRO business and therefore a belated indicator in the economic
development of the aviation industry, we will doubtless feel some
effects of the crisis in 2010/2011."