Shorts upbeat despite 10% drop in profits to £30m

Belfast aircraft manufacturer Shorts has reported a drop in profits last year, but insists that business is looking up in 1997. Full-year figures, issued yesterday, show that profits slipped from £33.8 million sterling (£36.9 million) in the previous year to £30 million in the year to the end of January 1997.

Sales also slumped, dropping from £391 million to £358 million. Operating profits fell to £28.3 million. Shorts chairman, Mr Roy McNulty, said the collapse of Dutch planemaker Fokker had been a major setback for the group last year. In the current year, however, he said much of the business which had been lost had been recovered as a result of strong growth in new business. Shorts had taken back 350 workers since January to cope with increased orders, he said. The group was forced to lay off 900 people last year, following Fokker's shutdown. Mr McNulty said he believed the strong growth in orders this year augured well for the future, predicting that new orders could create up to 1,000 jobs at the Belfast plant over the next five years. Shorts implemented a cost reduction programme in Northern Ireland in the run-up to the collapse of Fokker. It has also refocused on winning new orders and is seeing some recovery in the global aerospace sector, according to Mr McNulty.

It has now secured a substantial contract in the new Bombardier CRJ-700 70-seat regional jet and the Dash-8-400 70-seater which is expected to create up to 1,000 jobs.

Bombardier has become the world's third largest aircraft manufacturer after Boeing and Airbus. Both of these companies have reported a strong performance this year and it is hoped continued strong growth will benefit Shorts.

Shorts was Boeing's major European supplier and has been increasing its production for the Seattle-based aircraft group over the past 12 months.

Bombardier has invested £740 million on plant facilities, product development and training since 1989.