Restructure and loss of Boeing contract affect aircraft parts business

THE loss of a major contract has affected the bottom line at Cleckheaton aerospace distributor Wesco Aircraft Europe.

The European division of Wesco, based in West Yorkshire, specialises in supply chain management for the aerospace industry. It lost a contract worth £32m during the year with Boeing as the manufacturer moved its operations in house.

This, along with the transfer of its Canadian business to a new legal entity, which shaved £27m off the firm’s turnover, meant that full year revenues fell from £179m last year to £115m.

Pre-tax profits more than halved, coming in at £13.2m for the year to 30 September, down from £30.8m in 2014.

It said that major airlines were ordering new aircraft “at a robust pace” and that volatile fuel prices were creating greater demand particularly for fuel-efficient models, but Wesco said that production levels in the aviation manufacturing industry are still well below pre-recession levels.

Military build rates are also down and expected to continue to decline said the firm. Despite this, Wesco directors said they were confident of future prospects.

The business has more than 2,600 employees, turned over $1.5bn last year and operates from more than 70 bases across the world.