BBA Aviation PLC (BBA.L) reported Friday a decline in profit for its fiscal year 2012, despite higher revenues. The company also lifted its dividend.
In its fiscal year 2012, the company's pre-tax profit fell 20 percent to $130.3 million from last year's $163.6 million. Underlying pre-tax profit, which excluded certain items, dropped 4 percent to $163 million. Underlying earnings per share were 23.8 cents, lower than last year's 31.7 cents.
Revenue for the year increased 2 percent to $2.18 billion from prior year's $2.14 billion, despite weaker than expected markets.
Chief Executive Officer Simon Pryce commented, "BBA Aviation had another year of operational improvement, structural cost reduction and strategic progress in 2012, together with good cash conversion against a backdrop of softer than anticipated markets throughout the year and a weak de-icing season."
Further, the company said its Board is proposing a final dividend of 10.45 cents per share, higher than last year's 9.95 cents per share This will result in a 5 percent increase in full-year dividend to 14.65 cents.
Looking ahead, Pryce said, "Although we have yet to see any material effect on B&GA flying, and the potential impact of sequestration is uncertain, the economic indicators in the US are slowly beginning to improve. We are also carrying good underlying momentum into this year which, together with the incremental contribution from acquisitions means we therefore continue to anticipate making good progress in 2013."
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