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LISI 2011 —
23
— financial report
Financial situation
With 1,419 net orders recorded in 2011, Airbus has indeed beaten its
record of 1,341 net orders from 2007. Boeing is lagging behind, but
should have benefit from the Max 737 effect in 2012 and hopes to
overtake Airbus that same year.
Given the expected production rates, the order books of these two
major customers of LISI AEROSPACE represent between 5 and 8 years
of production depending on the model.
Highlights and operational news
Organizational changes
The year was indeed marked by the enormous effort involved in
integrating the Creuzet group to form the pole the "Structural
components" arm. Meanwhile, the medical division took its
independence.
For the "Fasteners" arm, LISI AEROSPACE deployed in 2011 a new
production organization at its European plants. Gradually, standalone
production units, themselves comprised of standalone production
groups, have emerged in the workshops. These changes were
intended to empower the operatives in the field, improve internal
communication and reduce quality flaws. The autonomy and
versatility of the teams which this scheme has developed, have
improved responsiveness, team spirit at the workshops, and increased
significantly the productivity of the plants. The deployment of these
methods will be continued in 2012 throughout the workshops.
Aerospace approvals for the Saint-Brieuc
The plant in Saint-Brieuc, formerly focused on the Racing markets, has
strengthened its presence in the aerospace markets not only with
major customers such as Pratt &Whitney and Rolls Royce, but also by
conducting outsourcing operations for other LISI Group plants. These
results confirm the site's diversification in this sector and strengthen
the activities for the coming years.
Quality strengthened and stabilized
The efforts undertaken in the past several years have thus improved
significantly the performance levels across all of the Group's plants.
Deployment of the Lean and Six Sigma projects continued with a
host of training sessions. In this context, "Green Belt" certification of
twenty-two people who contribute to improving the performance of
their respective entities, enhances the visibility and concrete nature of
the industrial excellence initiative undertaken by the Group.
This approach, known as LISIXSIGMA, which integrates the
components of the LISI Group's "LEAP" method, will continue in
2012 with the aim to boost the cross-functional projects and to
share industrial and administrative best practices. All employees are
encouraged to participate in these activities; there again, new training
sessions tailored for each individual's level will be initiated in 2012 and
will affect the entire organization. The "Structural components" arm is
gradually becoming integrated into the group initiative.
Improvement of HSE performance
European plants have almost halved their number of accidents with
work stoppage, from36 in 2010 to 17 in 2011. The Rugby plant remains
at the forefront in this field: no accident took place there for over
three years. Thus the European TF0, which represents the number of
accidents with work stoppage involving a LISI AEROSPACE employee
per million hours worked, fell to 5.50 in December, below the 2010
rate. The TF1, which counts the number of accidents with and without
work stoppage on the same basis, meanwhile dropped to 12.9. The
North American plants have maintained or even improved their
excellent performancewith a TF0 of 2.22 and a TF1 of 6.22. Overall, the
TF0 is below 4.0; the goal of bringing the TF1 below 10 was achieved
with 9.7 in December 2011.
Comments on earnings
In € million
2011
2010**
Change
Sales revenue
407.6
281.6
+44.8%
EBIT
49.7
19.0
+161.7%
Operating cash flow
57.0
29.9
+90.9%
Net CAPEX
-25.0
-17.7
+41.9%
Registered employees at period end
4,677
2,988
+56.5%
Full time equivalent head count*
4,141
3,104
+33.4%
* Including temporary employees
**figures do not include the data from LISI MEDICAL.
LISI AEROSPACE's sales revenue reached €408m, up 44.8% and covered
the companies Creuzet Aéronautique and Indraero Siren for the last six
months of the period. Production stood at €422m, compared to €281m
in 2010. The Creuzet arm, specializing in structural components and
technical assemblies, contributed nearly €59 million to that revenue
and €60 million to production. The growth pace of the Fasteners arm
is very strong in Europe under the leadership of Airbus.
Within the scope of the Creuzet group, one should distinguish the
components segment, which is fast-growing (+13%), and that of
aerostructures element assembly (+7%). The operations acquired from
the Creuzet group therefore reach their quantitative goals, which
are to meet the ramp-up and the development of new products for
customers. The A350, B787 and Leap 56 programs are very important
issues for future developments.