LISI ANNUAL REPORT 2009
A year
of contrasts
Environment &prospects
A SEVERE DROP IN THE
VOLUME OF SALES IN 2009
The LISI AEROSPACE group saw
sales volumes decrease by nearly
14% from €384.8M in 2008 to
€330.8M with a substantial impact
from clients destocking.
Massive adjustments by North
American distributors, with many
orders being postponed, added
to the weakness in business and
regional aviation, and negatively
compensated for Airbus and
Boeing’s resistance.
Sales revenue in €M
Record production, but order taking in free fall. These two contrasting elements characterize
the aerospace market in 2009. A period of intense pressure suddenly slackened off at the
end of the second half of 2009, generating a lack of predictability for the various players in
the market and a substantial decrease in activity in the group’s factories during the second
half of the year.
The North Americanmarket severely contracted (of the order of 50% in terms of order taking)
as a result of the substantial impact of destocking by our clients and mainly distributors,
leading to numerous postponements and cancellations of orders. Distribution being less
present, this decline was less marked in the European market (of the order of 25% in terms
of order taking).
An acceptable level of activity was maintained in Europe due to the development of new
products and the work associated with the qualification of European sites by Boeing. In
conclusion, direct activity with Airbus and Boeing has remained stable while other markets
have collapsed.
Very early corrective measures
Thisdecreaseinactivityresultedinacontractioninsalesofnearly14%,i.e.toalevelcomparable
to that of 2006-2007. From the start of the year, even though production remained at a
healthy level, LISI AEROSPACE anticipated a decrease and undertook adjustment and cash
flow preservation measures. Projects in development have nevertheless been preserved
(R&D, IT, setting up of operations in India etc.) so as not to hinder recovery.
346.4
384.8
330.8
2007 2008 2009
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