NJ 1st QTR Earnings
Geez..what are they saying? There is a lot of stuff in one sentence.
Geez..what are they saying? There is a lot of stuff in one sentence.
Revenues of our other service businesses were $1,968 million in the first quarter of 2011, an increase of $194 million (11%) compared to 2010. Pre-tax earnings were $200 million in the first quarter of 2011, a decrease of $19 million (9%) versus 2010. The increase in revenues included higher sales by TTI, FlightSafety and NetJets. The decline in earnings in 2011 reflected lower earnings at NetJets, partially offset by higher earnings of TTI and FlightSafety. The improvements in revenues and earnings of FlightSafety and TTI reflected stronger customer demand.
For the first quarter of 2011, NetJets’ earnings declined $55 million from 2010. The decrease was attributable to increased fees incurred to cancel certain aircraft purchases under a purchase agreement entered into in 2006 and amended on June 6, 2008 and which committed NetJets to unneeded aircraft, impairment charges related to the planned disposition of a block of aircraft later in 2011 and negative foreign currency exchange rate movements affecting operations outside of the United States. NetJets continues to own more aircraft than required for present operations and we expect to continue to dispose selected aircraft over time. NetJets’ operating cost structure has been reduced to better match customer demand and we believe that NetJets will continue to operate profitably in the future.
For the first quarter of 2011, NetJets’ earnings declined $55 million from 2010. The decrease was attributable to increased fees incurred to cancel certain aircraft purchases under a purchase agreement entered into in 2006 and amended on June 6, 2008 and which committed NetJets to unneeded aircraft, impairment charges related to the planned disposition of a block of aircraft later in 2011 and negative foreign currency exchange rate movements affecting operations outside of the United States. NetJets continues to own more aircraft than required for present operations and we expect to continue to dispose selected aircraft over time. NetJets’ operating cost structure has been reduced to better match customer demand and we believe that NetJets will continue to operate profitably in the future.
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