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LISI 2011 —
25
— financial report
Financial situation
Major players of this growth, the German manufacturers have won
market share in Europe, and increased their penetration in both China
and the United States.
Volkswagen and BMWhave seen their European production grow 14%
each in 2011. French manufacturers have not been as successful, but
nevertheless limited the decline in their production (-3% for PSA, -2%
for Renault SA), despite a sharp decline in domestic sales.
Besides, LISI AUTOMOTIVE's "Fasteners" line of business also benefited
from the exports of manufacturers of these critical components to
their non-European assembly plants (especially in South America,
Russia, and China).
Rise in raw material prices and overheating in Germany
The rise in rawmaterials costs was strongly felt as of March 2011 with
amagnitude certainly lower than in 2008, but nevertheless significant.
For the wire alloys used by the "Threaded fasteners" Business Group
and the "Mechanical safety components" Business Group, the increase
was around 15%. It was more moderate for plastics and flat steel.
The general overheating of the automotive industry, especially in
Germany, generated shortages among heat treatment and surface
treatment subcontractors.
Highlights and operational news
A year marked by the kickoff and the completion of many
structural projects
LISI AUTOMOTIVE adopted a new organization in April 2011. It
aligns the "Business Groups" by strategic activity, whereas they were
previously organized by geographic area. Thus, three business groups
were created:
– "Threaded fasteners" Business Group;
– "Clip fasteners" Business Group;
– "Mechanical safety components" Business Group.
Major structural projects were kicked off:
– Delle II logistics center (Territory of Belfort): creation of a Delle-Dasle-
Delle II cluster of industrial skills and construction of a logistics hub
(Delle II site) integrating the downstreamoperations of the Delle and
Dasle sites.
– Closure of the Bonneuil-sur-Marne plastic clips site (acquired
from Acument in 2010) and transfer of its activities and of some
of his staff to Puiseux (creation of Puiseux II and comprehensive
redevelopment of the Puiseux plastic injection unit).
– Redevelopment of the Grandvillars site: This project consists of
upgrading the Forges site in its entirety (expected completion late
2013) and integrating a new hydrogen annealing furnace, making
it the 3
rd
wire drawing production site in Europe. This support plant
will serve all of the "Threaded fasteners" Business Group's European
plants as early as 2012.
Efforts granted and ongoing projects have enabled LISI AUTOMOTIVE
to enjoy the gratitude of several of its customers:
– award of the status of leading provider to PSA and strategic supplier
to Daimler,
– approval of all the French factories by German manufacturers and
GM in China.
Comments on earnings
In € million
2011
2010
Change
Sales revenue
446.3
401.3
+11.2%
EBIT
23.5
25.1
-6.1%
Operating cash flow
28.7
42.9
-33.2%
Net CAPEX
-35.6
-29.6
+20.5%
Registered employees at period end
3,312
3,200
+3.5%
Full time equivalent head count*
3,406
3,171
+7.4%
* Including temporary employees.
The year 2011 was marked by the resilience of markets, albeit
with a significant destocking at the end of the year among French
manufacturers. In this context, LISI AUTOMOTIVE's growth outpaced
themarket. Order taking for newproducts was one of the very positive
aspects of fiscal 2011 and amounted to €45.2million on an annualized
basis. Sales reached a record high of €446.3 million, up +11.2% and
+8.1% on a like-for-like basis compared to 2010. This performance is to
be compared with the 1.4% decline in registrations in Europe and 4.9%
increase in the production of LISI AUTOMOTIVE's clients.
Restating the effect of a rise in raw materials prices of about 3%, LISI
AUTOMOTIVE, thanks to its growth in excess of 8%, has gainedmarket
share among German manufacturers and worldwide parts suppliers.
Order-taking for new products was also significant in Beijing (24%) and
Shanghai (+60%), where the Group has been present since 2008, which
augurs well for future growth.
Qualitative indicators such as logistics are also well oriented with
respect to all of LISI AUTOMOTIVE's commitments in terms of