Friday, an integrated global aviation company, AerCap Holdings N.V.(AER) said its third quarter profit plunged, due mainly to lower maintenance revenue and lower income from the sale of assets.
The Amsterdam, Netherlands based company said its third-quarter net income plunged to $35.5 million or $0.42 per share from $51.3 million or $0.60 per share in the prior-year period.
Net income for the quarter included charges relating to mark-to-market of interest rate caps and share-based compensation of $3.7 million or $0.04 per share.
Excluding these items, third quarter net income edged down to $39.2 million or $0.46 per share from $61.2 million last year.
On average, 5 analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total revenues for the quarter declined to $212.5 million from $301.9 million in the comparable period last year, mainly due to lower aircraft sales revenue and lower maintenance revenue, partially offset by higher basic lease revenue. Analysts estimated revenues of $274.79 million for the third quarter.
Sales revenue for the quarter was $49.0 million, compared to $122.4 million in the same quarter last year, generated from the sale of one aircraft, three engines and parts inventory.
Maintenance related revenues, including end-of-lease compensation, decreased to $11.4 million from $35.0 million in same quarter last year, largely due to $21.2 million of non-recurring maintenance revenue in third quarter last year.
Basic lease revenue was $142.4 million, up 7% from $132.9 million in the same quarter last year. Total lease revenue for the quarter declined 8% to $153.8 million from $167.9 million in the year ago period, due to lower maintenance rents.
AerCap Holdings' total expenses for the quarter was $172.53 million, down from $247.99 million in the comparable quarter last year.
For the nine-month period, the company's net income was $122 million or $1.43 per share, compared to $170.8 million or $2.01 per share in the prior year. Year-to-date revenue declined to $715.7 million from $929.8 million last year.
AER is currently trading at $8.75, down $0.15 or 1.69%, on a volume of 0.27 million shares on the NYSE
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