LISI ANNUAL REPORT 2009
— 2009: Management strategy totally
focused on cash flow management
In these “extreme”conditions, we have strenuously
applied a management strategy based on cash
flow, as demonstrated by the decisions taken at
the end of 2008: deep cuts in charges of every kind,
implementation of measures for partial lay-offs and
production control, huge decreases in inventory and
postponing all non-strategic or capacity investments.
Despite these measures, financial results for the LISI
Group took a profound hit, as shown by the principal
account data:
—
Sales figures of €695M, a decrease of 17.7%
compared to 2008
however with just a 13.8%
decrease by the end of the final fiscal quarter.
—
A consolidated EBIT of €34M or a 4.9%
operating margin
for respective values of €99M
and 11.7% in 2008.
—
A net result of €9M
after posting €12M for
goodwill impairment.
Nevertheless, the LISI Group attained its priority
objective and ends up stronger on the bottom line
in 2009 thanks to a
positive Free Cash Flow of over
€51M
that allows a significant reduction in financial
debts for the group, which can post a gearing below
10%, the lowest in the last ten years.
— Objectives for 2010: continuation
and accentuation of strategies followed
in 2009
For the principal LISI business sectors, the prognosis
for the 2010 fiscal year looks similar to the preceding
year: slower aerospace business and a more erratic
road ahead in the automotive sector. As a result, the
short-term goals of the group will remain exactly the
same as those in 2009, namely, a constant aim to adapt
to cyclical trends – both downward and upward – with
the focus on cash flow management.
On the longer term horizon, the group’s growth
strategy remains intact: the announcements in late
2009 of projected acquisitions in the automotive and
medical sectors demonstrate this, as does the launch of
prototypes for new fasteners tailored for the assembly
of new composite panels for the Airbus A350.
Though not in the public eye, the world of fasteners
and assembly components remains in constant
evolution: strategically, technologically, technically and
industrially. Thus in a world market estimated to be
worth some €50 billion, all sectors combined, the LISI
Group continues to show great growth potential.
Now more than ever, the group’s managers are
committed to a return to growth and profitability, as
expected by both our employees and shareholders.
Gilles KOHLER
Chief Executive Officer
of LISI
Emmanuel VIELLARD
Deputy Chief Executive
Officer of LISI
3
