Bermuda Aviation Services Ltd’s (BAS) net earnings for the six months through September totaled $830,000 a fall of almost 43 percent compared to the same period last year.The company said it had seen revenues shrink by more than $5.5 million over the past year as the recession hit profits hard.Kenneth Joaquin, BAS group president and chief executive officer, said the company’s exit from segments of Aircraft Services Bermuda Limited (ASB) operations had also incurred costs during the period.He added that net income before discontinued operations and income from operations were both in excess of $1 million.“The pressures of the local economy have been and continue to be an unavoidable reality as we have seen revenues contract by over $5.5 million over the prior year,” Mr Joaquin said. “The sale of goods has been particularly affected by a recessionary market that has seen consumers with much smaller appetites for new or major capital projects.“This was neither surprising nor unanticipated. Appreciating the economic trends, Management has kept its focus on cost control and containment.”The company added that its “fiscal conservatism” meant the balance sheet was in good shape and the cash position had improved by over $2.1 million from the prior year.“The notable event in the first half of the year has been the discontinued operations of key segments of ASB through an asset sale to Renaissance Aviation Ltd,” Mr Joaquin said.“While the transaction proved to be cash neutral for ASB in so far as the context of the proceeds of the sale and associated restructuring costs cancelled each other out, the accounting implications of the transaction had a negative impact on the current period’s earnings.“Notwithstanding, management remains firm in its conviction, that after having considered the commercial aviation industry and the future direction of BAS, this was the correct course of action.“BAS-Serco has had strong midyear results and has managed to duplicate the same robust performance that it had last year with net earnings in line with those of the prior period.“That said, with a depressed economy and an increasingly competitive facilities maintenance market, we have constrained expectations for the second half of the year.”Otis Bermuda Ltd, Weir Enterprise Ltd, CCS Group and IBC Ltd all performed within the group’s expectations, Mr Joaquin said.“The next half of the year will be equally challenging, if not more so, for the local economy,” Mr Joaquin said. “Management is committed to remaining vigilant and seeking out greater efficiencies and opportunities to strengthen BAS.”