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By: 23rd January 2006 at 19:35 Permalink - Edited 1st January 1970 at 01:00
-Probably because no money has actually been paid for the ordered aircraft yet, only nearer their delivery schedule?
By: 23rd January 2006 at 19:53 Permalink - Edited 1st January 1970 at 01:00
-Are they selling the aircraft at knock-down prices?
By: 24th January 2006 at 07:18 Permalink - Edited 1st January 1970 at 01:00
-Seeing there sales book i wouldnt think they would be able to afford to knock down much.
By: 26th January 2006 at 06:34 Permalink - Edited 1st January 1970 at 01:00
-Its just the timing - the orders will generally come with a deposit but that is not recognisable as revenue in standard accounting practice. The revenue comes when you deliver the plane (or the customer cancels and bails on his deposit). There may be some accounting rules that allow partial revenue recognition as the plane is being built but I'm not sure about that. So while ATR took deposits on 90 planes it'll only show on their balance sheet as an increase in cash and increase in deferred revenue.
Also remember that the turnover from the orders may be spread out over multiple years if the customers order for delivery in say 2006, 2007, 2008 so while one might expect revenue in the current fiscal year to increase it may not jump all the way up in the same magnitudeas it'll be spread over the time.
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By: tenthije - 23rd January 2006 at 19:17
Translated from Dutch:
Is it me or is there something fishy in this article? Sales of new planes have increased more then 400%, yet turnover increased only 15%? I realise that most turnover for any technical company tends to come from maintenance and spare parts, but the difference here is just enourmous!
Has ATR been selling at insane prices just to get the big Air Deccan and Kingfisher orders?