LISI 2014
5
Strong“historical” resilience
of theGroup
On a like-for-like basis, 2014 proved to be a consolidation
exercise,andso itwas inanumberofways.
The Group’s three divisions enjoyed constant and sustained
organic growth throughout 2014: +4.3% for the aeronautics
division, +6.4% for automotive and +10.8% formedical. In each
case this isdueprimarily to the strengthor recoveryof our end
markets,but it isalso the fruitionof strategicchoicesmadeover
the past few years, which are now resulting in significant gains
inmarket share. In total, the LISI Group generated a turnover
of €1.31billion, basedonorganic growthof 5.5%, towhich can
be added the sales of MANOIR Aerospace, acquiredmid-year,
bringingbusinessgrowthup to+13.7%on thisnewbasis.
In termsofprofitability, a rebalancingofourdivisions tookplace
in linewithexpected trends:
• A solid, but slightly lower margin for LISI AEROSPACE, where
the increase involumedeliveredbyall sectionsof thedivision
compensated inpart for thecompletionof retrofitoperations
on the A320 and A380 and the exceptional deliveries on the
A350 seen by the “Fasteners” segment in 2013, as well as
developmentand industrializationdifficultiesencounteredby
our “Structural Components” segment with its major future
program forGE-SNECMA’sLEAPengine.
• An improvement inLISI AUTOMOTIVE results, inspiteofmajor
operational reorganization of its French entities, particularly
the closureof theThiant (59) site, at the endof 2014, and the
relocationof itsbusinesstotheDasle (25)andLaFerté-Fresnel
(28) plants, and the improving profitability of LISI MEDICAL,
driven by strong demand from its principal client, STRYKER
andmounting interest in new products such as orthopedic
generics.
2014performancesadjustedby the
acquisitionofMANOIRAerospace
Themost important event of the year 2014wasmost certainly
theacquisitionofMANOIRAerospaceonJune5, 2014.With four
factories, three in France and the fourth in Belgium, MANOIR
is one of theworld leaders in themanufacture of often critical
structural componentsandengines in “hardmetals”; hot forged
components which are then thermally and chemically treated
by processes which are understood by but complementary to
thoseemployed inothersiteswithin thedivision.
With the AIRBUS and SAFRAN groups as its principal clients,
MANOIR joins CREUZET, acquired by the Group in 2011,
strengthening thepositionof LISI AEROSPACE in the Structural
Componentssectorof themarket.
This new activity accounted for 25% of LISI Group sales in the
secondhalfof2014and isexpectedtoachieveaturnoverof€350
million in 2015. The strategic value of these parts brings a new
dimension toLISI AEROSPACE in forging long termpartnerships
withitskeycustomers;intheshorterterm,however,development
of the new A350 and LEAPprogramswill adversely impact the
profitabilityand freecash flowof thegroupbefore reaching full
maturityby2018/2020.
