Aviation company FED JSC (Kharkiv) completed July-September 2024 with a net profit of UAH 85.76 million, which is 3.7 times more than in the third quarter of 2023, with net income growing by 29.4% to UAH 300.27 million.
This result follows from the company’s interim financial statements for January-September, published in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), according to which net profit almost halved to UAH 140.32 million and net income decreased by 35.2% to UAH 586.67 million during this period.
For its part, as reported, in the first half of the year, FED reduced its net profit by 4.6 times compared to the same period in 2023 – to UAH 54.56 million, while net income fell by 2.4 times – to UAH 286.41 million.
Thus, the company managed to significantly improve its financial performance in the third quarter.
“Currently, the main significant problems of the Company are military aggression against Ukraine, low solvency of customers and financial and economic instability in the country. All other problems are solved through a “dialogue” with the relevant government agencies in the form prescribed by law,” the report says.
The plant also emphasizes that damage to infrastructure or blockage of transportation routes may lead to further delays in production and logistics, which will negatively affect its operating performance.
“In the context of the economic crisis, the credit burden is growing, which may affect FED’s ability to finance current expenses and make investments,” the document says.
The company also considers uncertainty in foreign markets to be a significant risk factor.
“FED is one of the leading enterprises in Ukraine, specializing in the development, production, maintenance and repair of aviation, space and general engineering units.
According to the report, as of October 1, 2024, the company employs more than 1030 people.
As reported, in 2023, FED increased its net profit by 2.2 times compared to 2022, to UAH 318.33 million. Net income almost doubled to UAH 1 billion 127 million.
Kharkiv-based aircraft manufacturer FED JSC completed January-September 2023 with net income of UAH 907 million, up 87.1% compared to the same period in 2022.
According to the company’s interim financial statements published in the NSSMC’s information disclosure system, its net profit for the period increased 2.8 times to UAH 272.5 million.
From operating activities, FED JSC received UAH 334.6 million in profit, which is 2.8 times more, and gross profit increased almost 2.3 times to UAH 432.3 million.
As reported, in January-June 2023, the company increased its net profit by 12.6 times compared to the first half of 2022, to UAH 249.43 million, while net income almost tripled to UAH 674.89 million.
Thus, in the third quarter of this year, the net profit of FED JSC amounted to UAH 23 million, which is 70.3% less than in July-September 2022, with a 9.1% drop in net income to UAH 232.1 million.
FED JSC is one of the leading enterprises in Ukraine, specializing in the development, production, maintenance and repair of aviation, space and general engineering units.
In 2022, the company reported a 2.7-fold decrease in net profit compared to 2021, down to UAH 146.77 million. Net income decreased by 2.3 times to UAH 570.9 million.
At the beginning of 2022, the company employed more than 1 thousand people.
According to the National Securities and Stock Market Commission, more than 98.2% of FED shares are owned by the company’s CEO Viktor Popov.
The Federal Reserve (Fed) needs to continue raising the benchmark interest rate until its level reaches 5-5.25% per year, says Rafael Bostic, president of the Federal Reserve Bank (FRB) of Atlanta.
The Fed rate is currently at 4.5-4.75%.
Bostick does not expect the Fed to cut the rate in 2023. In his view, the central bank will need to hold the 5-5.25% rate range for much of 2024.
He noted that despite signals of declining price pressures in the U.S., the time for the U.S. central bank to change course has not yet come.
“History shows that if we ease up on inflation before it is fully suppressed, it could flare up again,” Bostick said in an article published on the Atlanta Fed’s Web site. – We have to beat inflation now.”
Minneapolis Fed President Neel Kashkari said Wednesday at an event in South Dakota that he has not yet decided whether a 25 basis point (bps) or 50 bps increase in the Federal Reserve rate in March should be significant.
He said he had projected in December that the rate cap for the current cycle should be 5.4%. The Fed chiefs’ median forecast from the December meeting was that the rate would reach 5.1% by the end of 2023.
Kashkari said Wednesday that he is leaning toward raising his estimate of the peak rate.
A key factor that will influence the Fed’s future decisions will be new projections for U.S. inflation, Kashkari said. The Fed will release those projections along with the results of its March meeting.
Kashkari this year has a vote on the Federal Open Market Committee (FOMC), Bostick does not.
The aviation industry enterprise FED JSC (Kharkiv) in January-June 2022 received a net income of UAH 228.18 million, which is 2.7 times less than in the same period of 2021.
According to the interim financial statements of the enterprise, published in the information disclosure system of the National Commission for Securities and Stock Market (NCSM), its net profit in the first half of the year decreased by almost 9 times – to UAH 19.84 million.
FED received UAH 26.48 million of net profit from operating activities against UAH 223.3 million a year earlier, while gross profit decreased 3.4 times, to UAH 88.36 million.
The report notes that the suspension of the company’s activities during the war period affected the financial statements, resulting in, in particular, a decrease in revenues. At the same time, the report does not indicate the period for which the work was suspended.
According to the company’s previously published statements for the first quarter of this year, its net income for this period decreased by 40% – to UAH 170.35 million, and net profit by 39% – to UAH 40.12 million.
Thus, in the second quarter of this year, the FED received a loss of UAH 20.28 million against a net profit of UAH 110.19 in April-June 2021, and net income decreased by 5.8 times to UAH 57.83 million.
JSC “FED” is one of the leading enterprises in Ukraine, specializes in the development, production, maintenance and repair of units for aviation, space and general engineering purposes. Export geography includes EU countries, China, South Korea, India, UAE.
In 2021, according to preliminary data, the company increased its net profit by 55% by 2020 – up to UAH 395.37 million, net income has not yet been made public.
By the beginning of 2021, the company employed more than 940 people.
More than 98% of the shares of JSC “FED”, according to the National Securities and Stock Market, belongs to the head of the board Viktor Popov.
European stock indices fall on Monday on growing fears that the tightening of policy by the world’s largest central banks will continue to put pressure on the global economy.
The composite index of the largest enterprises in the region Stoxx Europe 600 as of 12:35 CSK fell by 1% to 421.71 points.
The German DAX index is losing 1.36%, the French CAC 40 – 1.52%, the Italian FTSE MIB – 1%, the Spanish IBEX 35 – 1.15%. UK stock exchanges are closed on Monday (Summer Bank Holiday).
“Today the markets are focusing on the message from Jackson Hole about a ‘coordinated tightening’ of policy. Treasury bond yields are rising and risky assets are getting cheaper,” said Danske Bank experts, quoted by Dow Jones.
Federal Reserve Chairman Jerome Powell, speaking Friday at an economic symposium in Jackson Hole, reaffirmed the US central bank’s determination to continue tightening monetary policy to bring inflation under control.
“We are purposefully moving our policies to a point where they will severely restrict economic activity,” Powell said.
“Higher rates, slower economic growth and a weaker labor market will contain inflation, but will also cause some pain for households and businesses. This is the sad price of reducing inflation. However, failure to restore price stability will mean even more serious pain,” he said.
Representatives of the European Central Bank (ECB) warned at Jackson Hole that the ECB’s monetary policy is likely to remain tight for an extended period of time.
ECB executive board member Isabelle Schnabel said tightening policy would require global central banks to “sacrifice” more in terms of economic consequences than in the past, as the “globalization of inflation” makes it harder for central banks to keep inflation under control, the Financial Times writes.
The head of the Bank of France, Francois Villeroy de Galo, in turn, said that there should be no doubt about the ECB’s readiness to raise key interest rates above the so-called “neutral” level, which does not constrain, but does not limit economic activity.
He noted that rates could reach the level of 1-2% by the end of this year.
Shares of energy and utility companies, as well as chemical producers, fell sharply on Monday amid persistently high gas prices.
The value of shares of French Engie SA and Veolia Environment SA fell by 3.8% and 2.4% respectively, German RWE AG and Bayer AG – by 2.1% and 3%, Italian Enel SpA – by 1.8%, Spanish Iberdrola SA – by 1.1%.
The decline leaders in Germany are shares of Infineon Technologies (-3.9%), Deutsche Post (-2.5%) and HeidelbergCement (-2.3%), in France – Cie de Saint-Gobain (-2.6%) and Kering (-2.5%).
Luxury goods makers LVMH and Hermes lost 2.2% and 1.7%, respectively, on weaker consumer spending forecasts in Europe and expectations of a further slowdown in the Chinese economy.
