LISI FINANCIALREPORT2013
21
FINANCIALSITUATION
2
For 3 consecutive financial years, return on capital employed (ROCE),
whichwas € 776m (as against € 738.3m in 2012) continued its rise, now
reaching19.1% (asagainst15.5% in2012).
OUTLOOK
TheLISIGroup'smain target for2014 is tocompensate foraslowdown in
growth in theLISIAEROSPACEdivisionwithastrongercontribution from
the other divisions. From this point of view, it shouldbeborne inmind
thattheexpectedresultsofthecostsreductionundertaken in2013 inthe
LISIAUTOMOTIVEdivisionwillonlymaterialize from theendof the2014
financial year.TheLISIMEDICALdivision isdisplayingagreaterpotential
for improvement, though on a more modest scale when compared
with the entire consolidatedgroup. So 2014 is expected tobe a year of
consolidationof theprogressmade in2013, in termsbothof the level of
activityandof income.
The LEAP plan (LISI Excellence Achievement Program) will play its
full role as an across the board tool for improving the entire Group's
competitiveness, with the aim of achieving maturity for the systems
deployedanda largeproportionofthestafftrained.
The investment program will remain at the same levels as in 2013,
especially on account ofmajor projects under way tomeet the strong
demand for new products in both the aerospace and automotive
divisions.
To support this long-term development strategy the LISI Group can
base itselfonaparticularly solid financial situation,whichbecameeven
strongerduring2013: ithasthereforeundertakenaUSPrivatePlacement
(USPP) for $75m and has obtained a €30m loan from the European
InvestmentBank (EIB), intended to finance itsResearch&Development
costs. Itwill allow theGroup tograspgrowthopportunities thatpresent
themselves.
2.2
|
LISI AEROSPACE
n
Excellentresistanceoftheworldaerospacemarket.
n
Improvementofall financialperformance indicators.
n
Sharprise in investmentsrelatedtoconsolidatingoperationsandtothe
launchofnewproducts.
n
Apause ingrowthexpected in2014.
Market
International air passenger trafficwas up4.5% as comparedwith 2012,
andhasconfirmeditsaverageannualgrowthrateof5.4%
1
over3financial
years.Freighttrafficwasalsoup1.0%
1
in2013after2yearsofdecline.
Boeing and Airbus posted similar developments, with 648 deliveries
for Boeing as against 626 for Airbus, and 1,355 net orders for Boeing
and 1,503 forAirbus. Theorderbookexceeds 10,600aircraft for the two
manufacturers,an8-yearrecord formostprograms.
On the other hand, the regional aircraft markets for business planes
and helicopters have not displayed the same dynamism. Themilitary
applications segment has suffered drastic reductions in the Defense
budgets inbothEuropeandtheUSA.
Activity
In€m
2013
2012
Changes
Sales revenue
663.9
591.7
+12.2%
EBIT
118.2
91.3
+29.6%
Operatingcash flow
107.5
87.6
+22.8%
NetCAPEX
-52.3
-38.5
+35.9%
FreeCashFlow
2
32.6
38.8
-16.0%
Registeredemployeesatperiodend
5,604
5,205
+7.7%
Full timeequivalentheadcount
3
5,951
5,456
+9.1%
1Source : IATA
2FreeCashFlow:operatingcash flowminusnet industrialCAPEXandchanges inworkingcapital requirements.
3 Includingtemporaryemployees.
