An industrial dispute at Shannon Aerospace last year cost the Irish Lufthansa group of companies more than $5 million (€3.5 million), accounts lodged with the Companies Office show.

According to accounts for Lufthansa Technik Airmotive Irish Holdings Ltd, "results for the group were marred by an industrial dispute in Shannon Aerospace Limited".

The accounts state that this "resulted in a disruption to the production programme over a three month period and had a negative impact on the results of $5.7 million. The disposal of surplus inventory by the subsidiary resulted in a further loss of $3.3 million".

The Lufthansa group of companies is involved in the rebuilding of aircraft engines, leasing of aircraft engines and aircraft-related services, engine component repair, aircraft maintenance and aircraft painting.

The accounts show that profits for the group dropped by nearly 50 per cent from $17 million in 2005 to $9 million last year. The group's turnover increased from $227 million to $242 million in 2006. However, the cost of sales increased from $182 million to $201 million. The group's tangible assets increased from $224 million in 2005 to $259 million last year.