Basic HTML Version
LISI 2011 —
22
— financial report
Financial situation
The Group has covered all of its financial repayments for 2012 and
2013 with cash, overdraft facilities or medium term credit lines.
Supported by its experience and financial solidity, the LISI Group
is pursuing its policy of targeted, profitable growth. Management
and investment initiatives, aimed at completing numerous projects
currently in progress and strengthening the Group's industrial
excellence will be maintained.
The Group feels that the current outlook is generally positive and
does not anticipate any downturns in its markets; as a result, the
Group should achieve, for the first time in its history, sales in excess of
€1 billion in 2012.
2.2
LISI AEROSPACE
Economic environment
Further growth in global air traffic
Despite serious events occurred in 2011, such as the earthquake in
Japan or political events in Arab countries, passenger traffic continued
to grow, achieving a + 6% increase after a growth of 7% in 2010.
Premium traffic, in other words business and first class passenger
traffic, which is key to the profitability of airlines, also gained 6% in
2011 against 9% in 2010. Only freight has had a difficult year with
zero growth after a year of very strong rebound in 2010 (+21%). The
main reason for this stagnation of freight is the slowdown of world
trade which allows the choice of slower but less expensive means of
transport.
Market assessment
An eventful year
Commercial aircraft
In a highly competitive environment where airlines are always
looking to lower their operating costs, aircraft manufacturers are
concentrating their efforts on reducing fuel consumption.
Single aisle aircraft
In that respect, Airbus's A320 and Boeing's B737 Max, less energy-
consuming, served as actual order catalysts in 2011.
At the end of 2010, the CFM consortium, which manufactures the
engine that bears its name, and the Chinese manufacturer AVIC
announced an agreement to equip the first Chinese single-aisle, the
C919, which is slated to be ready for commissioning in 2017. The
chosen engine is the Leap-X, which will offer a consumption 15% lower
than current models.
The reaction of the two major manufacturers, Airbus and Boeing, was
not long in coming: Airbus responded first by launching the A320 NEO,
which will be equipped with this engine, as well as Pratt & Whitney's
engine, the GTF, which offers the same performance levels. Shortly
after, Boeing launched the renewal of its single-aisle range with the
B737 Max which will be equipped with the Leap 56.
Both models had an immediate success with 1,226 firm orders for the
A320 NEO in 2011 and 150 firm orders and over 1,000 commitments
for the Boeing B737 Max during that year. Consequently, Embraer
has renounced to set up its single-aisle project. Bombardier had
already launched its own, the CSeries, and intends to continue its
development for commissioning in 2014.
In this single aisle segment, Airbus has stepped up deliveries, raising its
monthly rate from 36 to 38 last August, which allowed it to improve
its level of deliveries of single aisle aircraft with 421 planes delivered
against 401 in 2010 (+20). The European manufacturer plans to move
to a rate of 40 aircraft in February 2012 and 42 in October. Boeing,
which delivered 372 aircraft in 2011 against 376 in 2010, announced
that it would switch from a monthly pace of 31.5 today to 35 early
2012.
Long-haul
Boeing has reached a record level of 200 net orders made this year
for the B777. As for the Airbus A330, it displays 83 net orders and is
announcing the delivery of 87 planes against 73 for the B777 and 20
for the B767.
New models
As far as new programs are concerned, a large portion of the expected
future growth will stem from the Airbus A350 and Boeing B787. They
are carefully scrutinized by all stakeholders in the sector. The year 2011
was eventful:
– Boeing has made the first delivery of 787, its composite plane. With
four years delay, the Japanese company ANA finally received its first
copy. The user experience and the initial feedback are very positive.
In total, Boeing delivered three in 2011 against 10 to 15 expected,
but it expects to deliver 63 in 2012 and up to 10 per month in
2013. To ensure this ramp-up, it opened a second assembly line in
Charleston, South Carolina.
– The A350 Airbus program, also composite, also encountered some
difficulties in early 2011. These have forced the manufacturer to
delay by six months the delivery of the first copy, now scheduled for
late 2013.
Jumbo jets
The engine failure on a Qantas A380 at the very end of 2010 could have
affected deliveries of the aircraft in 2011, but this has not happened.
Airbus even exceeded its goal by delivering 26 aircraft against 24
expected and 18 in 2010. The B747-8, the new version of Boeing's
"best seller", experienced more difficulties during its commissioning.
However, the U.S. manufacturer successfully delivered the first copy
of the freighter version in October. Boeing thus delivered nine large
aircraft in 3 months, which is an achievement in itself. The U.S.
manufacturer also secured certification of the "passenger" version in
December and should thus be able to ensure a first delivery in the first
quarter of 2012.
Compared business performance of Airbus and Boeing
For the ninth consecutive year, Airbus is ahead of Boeing in terms of
deliveries, and for the fourth consecutive year, in terms of net orders.