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FINANCIAL SITUATION
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LISI 2015 FINANCIAL REPORT
Sales revenue amounted to €454.6 million, an increase of +1.4%
compared to 2014, of which +2.5% for the purely automotive
activity. After a very dynamic start to the year, the division
saw a downturn during the second half-year due, in particular,
to the sudden slowdown in the Chinese market, which led
to inventory adjustments throughout the supply chain. To
this can be added a decline in production at certain of LISI
AUTOMOTIVE's European customers as a direct consequence of
the decline in exports to Eastern Europe (reminder: Russia at
-35.7% over the year).
Highlights
■■
First parts deliveries to Mexico from the new Monterrey site
for the Clipped solutions Business Group, operational since
the second half of 2015
■■
Ramp-up of the Mechanical safety components activity on
the Shanghai, China site
■■
On-time start-up of the new Mellrichstadt logistics center in
Germany (production of plastic clipped solutions)
Results
The division adapted its production to its level of activity:
inventories were practically stable compared to 2014 at 66 days
of sales revenue. Production amounted to €457.3 million, an
increase of 1.3%.
The bulk of the restructuring operations was conducted in
accordance with:
■■
the "Ecrous" (Nuts) plan, with the closure of the Thiant (Nord)
plant and the repatriation of its activities to the two sites of
Dasle (Doubs) and La Ferté-Fresnel (Eure-et-Loire);
■■
the "Visserie" (Screws) plan for the specialization of the Delle
(Territoire de Belfort) site in engine screws and the Saint-
Florent (Cher) site in chassis screws.
As planned, these contributed to the progressive recovery
of the French plants specializing in threaded fasteners. The
performance of the Saint-Florent (Cher) site was, however,
considerably below expectations.
In the other product segments (application screws, seat
components, clips), the vast industrial reorganization plan
launched in 2012 started to show results in a significant way
in 2015.
The successful implementation of these plans notably
enabled to compensate for the operational difficulties of sites
confronted by under-capacities in heat treatment during the
first half-year, following significant changes in the activity
mix. In addition, the end of construction work at the Dasle
(Doubs) plant is effective since the fourth quarter 2015 and
should contribute to consolidating the division's profitability.
Thus, LISI AUTOMOTIVE's operating margin increased for the
fourth consecutive year to reach 4.0% (3.0% in 2014, 2.7% in
2013 and 0.5% in 2012).
Other management indicators are improving, particularly the
safety indicators, as well as those relating to the deployment of
LEAP (LISI Excellence Achievement Program).
While still negative (-€3.1 million), free cash flow improved
by €9.6 million compared to 2014: the increase in operating
cash flow at €31.9 million (+€2.6 million) and the significant
improvement to working capital requirements (+€10.8 million)
enabled a large part of the increase in industrial investments
(€38.3million compared to €34.7million in 2014) to be absorbed.
These investments were justified by many projects, including
the updating of IT systems, industrial equipment dedicated to
new products and the financing of infrastructure projects.
Headcount was stable compared to 2014 with 3,241 employees at
December 31, 2015 compared to 3,186 in 2014, i.e. +1.7%.
OUTLOOK
The division's logistics situation stabilized during the second
half-year of 2015 allows 2016 to be approached without major
operational difficulties. Beyond the first quarter, which should
be an extension to the fourth quarter 2015, notably with regard
to the French manufacturers, PSA and Renault, market growth
remains to be confirmed, given, in particular the continuing
uncertainty in Asia. The industrialization and launch of new
Activity
In millions of euros
2015
2014
Changes
Sales revenue
454.6
448.3
+1.4%
Current operating profit (EBIT)
18.0
13.3
+35.1%
Operating cash flow
31.9
29.4
+8.8%
Net CAPEX
(38.3)
(34.7)
+10.4%
Free cash flow
1
(3.1)
(12.7)
+€9.6M
Registered employees at period end
3,241
3,186
+1.7%
Average full time equivalent headcount
2
3,330
3,334
-0.1%
1 Free cash flow: operating cash flow minus net industrial CAPEX and changes in working capital requirements.
2 Including temporary employees