Profits down at £77m aerospace manufacturer after US parent takeover

Despite a restructure, Leeds aerospace manufacturer AETC has seen pre-tax profits and turnover drop following the takeover of its US-based parent company.

AETC specializes in the manufacture of gaspath components, including rotating blades and stationary nozzle guide vanes for the aerospace and industrial gas turbine industries from sites in Yeadon and Leicester.

In January 2016, its parent company, US-based PCC (Precision Castparts Corporation), was acquired by Berkshire Hathaway Inc. This led to the removal of PCC from the New York Stock Exchange, closing the share incentive scheme across the group. Accounting periods are also being changed to reflect the group’s incorporation into Berkshire.

Turnover for the year to April 2016 was down to £77.1m from £86.2m the year before. Pre-tax profits slumped to £8.4m from £13.6m in 2015, for the year to March 29.

The company said this was as a result of an 18% decline in the industrial gas turbine sector, with a broadly flat aerospace industry.

A restructuring was undertaken at the end of 2015 to combat a decline in revenues during that year which has not yet impacted the business.

However sales for the 12-month period ending March 2017 are expected to improve, with parts transferred from parent company PCC’s subsidiaries further expected to improve sales in 2018.

AETC has three manufacturing facilities with its head office in Yeadon, Leeds, as well as a precision casting and blade machining facility. Its other facility is located 100 miles south in Leicester. Together they total 225,000 sq ft of manufacturing space.

AETC was acquired by PCC Airfoils, LLC in 1996.