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2.3 MAJOR ACQUISITIONSThe sector invested a 65% shareholding in iShopAeroPte Ltd in July 2000.The partnership with iMerchantsseeks to establish internet trading of aircraft partsand components.In December 2000, the sector, in collaboration with SIAEngineering Company and Pratt & Whitney establishedTurbine Coating Services Pte Ltd (TCS).The principalactivities are the repair, refurbishment and upgrading ofaircraft jet engine turbine blades and vanes. Our share inTCS is 24.5%.AEROSPACE SECTOR PROFIT AND LOSS ACCOUNTS3. PROSPECTSThe B757 PTF production line in MAE will commenceoperations by first quarter 2001 as mentioned above.Following the successful DC-10 PTF aircraft conversionby SASCO, a second aircraft is expected to be inductedin February 2001.The first KC-135 tanker modificationwill commence in first quarter 2001.The design andprototyping phase of the TuAF F5 upgrade programmeis expected to be completed in 2001.AEROSPACE SECTOR BALANCE SHEETS2000 1999$’000 $’000SHARE CAPITAL AND RESERVES 381,397 464,610MINORITY INTERESTS 21,236 21,266402,633 485,876Represented by:FIXED ASSETS 175,247 175,097ASSOCIATED COMPANIES AND JOINT VENTURES 61,142 102,974LONG TERM INVESTMENTS 215,870 317,175LOANS RECEIVABLE, NON-CURRENT 2,331 3,6252000 1999$’000 $’000Turnover 959,130 857,943Cost of sales (729,641) (644,945)Gross profit 229,489 212,998Other operating income 37,343 24,078Distribution and selling expenses (14,329) (4,967)Administration expenses (57,785) (54,652)Other operating expenses (15,481) (14,544)Profit from operations 179,237 162,913Other income (expenses) 4,701 3,536Financial expenses (3,969) (4,156)Profit before taxation 179,969 162,293Share of results of associated companies and joint ventures 39,022 27,544218,991 189,837Taxation (64,209) (59,309)Profit after taxation 154,782 130,528Minority interests (3,744) (5,320)Profit after taxation and minority interests but before extraordinary items 151,038 125,208Extraordinary items – 3,143Net profit for the year 151,038 128,351CURRENT ASSETSStocks and work-in-progress 86,902 90,323Debtors, deposits and prepayments 195,364 165,966Short term loans to a related corporation 189,233 66,831Loans receivable, current 2,007 2,150Amounts under fund management 151,564 144,945Short term investments 24,745 –Bank and other liquid funds 219,535 275,012869,350 745,227CURRENT LIABILITIESCreditors and accruals 697,193 655,349Provisions 62,210 73,816Short term bank loans (unsecured) 5,004 5,509Provision for taxation 78,019 62,653Lease obligations, current 990 887Long term bank loan, current 6,950 6,694850,366 804,908Net current assets (liabilities) 18,984 (59,681)473,574 539,190NON-CURRENT LIABILITIESDeferred taxation 1,292 2,868Deferred rent 1,098 1,146Floating rate bonds (unsecured) 19,072 18,775Lease obligations, non-current 16,965 17,093Long term bank loan 6,950 13,388Loan from holding company 25,510 –Provision for staff retirement benefits 54 4470,941 53,314402,633 485,876184 • visionreview of financial performance • 185