FLS Industries, the Danish company understood to be close to selling the former TEAM Aer Lingus business at Dublin Airport to US multinational United Technologies, has reported a pre-tax loss of just over €8 million (£6.3 million) for the six months to the end of June.

The outcome was a sharp drop on the €160 million pre-tax profit reported for the previous corresponding first half.

Within the cement to aircraft maintenance group, the FLS Aerospace subsidiary, which operates the former TEAM business, reported a turnaround with after-tax profits of just under €4 million from a loss of €53 million.

The group declined to give any separate operating figures for the Dublin operation where some 1,800 staff are employed.

A spokeswoman would only say the unit was "doing well" declining to disclose whether it was profitable.

The Dublin operation is thought to be profitable, though the Danish and British operations are believed to be incurring losses.

Asked about the sale, the FLS Aerospace spokeswoman in Dublin confirmed "we are in investment talks".

At the moment it is "business as usual here", she said.

Asked what the discussions could mean for the Dublin operation and staff there, she said it would depend on the level of investment involved.

The turnaround at FLS Aerospace reflected process streamlining, faster turnarounds resulting in more maintenance slots, increased cost controls and faster invoicing which boosted cash flow.

On a man-hours basis FLS's Dublin operation accounts for about 40 to 50 per cent of its aircraft overhaul and repair business. FLS Aerospace has operations at Stanstead, Manchester and Gatwick airports and a smaller operation in Copenhagen.

FLS Industries acquired the troubled TEAM aircraft maintenance company in 1998.

Earlier this year, the president of FLS Aerospace, Mr Stephen Henderson, indicated that its parent would sell the company if a suitable bid emerged.

He said the group's key problem was "under-performance" and said outside investment was require to secure the group's future growth.

The process of selling FLS is now thought to be nearing completion.

The group, whose major interests are in the cement industry, is understood to be keen to exit the aircraft maintenance business altogether as part of a restructuring.