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LISI 2016 FINANCIAL REPORT
The aeronautical division moreover continues the modernization
of its production resources, by investing in the long-term projects
such as the development of the “Optiblind
®
” assembly system, the
implementation of the “robotization” project or again the development
of LISI AEROSPACE Additive Manufacturing. The LISI AEROSPACE
Additive Manufacturing plant was inaugurated in October 2016 and
was certified to produce parts in long production runs for the division’s
major aeronautical customers. Nevertheless, the contribution of this
site will remain negative in 2017.
In 2017, the Manoir Aerospace “Forge 2020” installation project
concerning the plant currently located in Bologne (Haute-Marne) will
enter a concrete work phase.
Other strategic initiatives (Villefranche-de-Rouergue, Dorval [Canada],
Parthenay, Rugby [UK] and Saint-Ouen l’Aumône) will have their full
effect in financial year 2017.
2.3
I
LISI AUTOMOTIVE
Summary presentation of the LISI AUTOMOTIVE activity:
–
–
Organic growth in a still well-focused European market;
–
–
Good dynamic in the mechanical safety components and clipped
solutions activities;
–
–
Fifth consecutive year’s improvement in the operating margin.
Market
The worldwide automotive markets grew by +4.6%* driven by the
Chinese (+12.3%) and European (+6.5%) markets. The American market,
in a consolidation phase, experienced moderate growth of +0.5%.
In Europe, the main area of operations for LISI AUTOMOTIVE, growth
(+6.5%) was driven by the main markets: Italy (+15.8%) and Spain
(+10.9%) stood out from France (+5.1%) and Germany (+4.5%) which
did less well than the market. The UK grew more modestly (+2.3%).
Amongst the Europeanmanufacturers, customers of LISI AUTOMOTIVE,
Daimler (+13.4%), Renault-Dacia (+12.1%) and BMW (10.1%) are the most
dynamic. On the other hand, Volkswagen (+3.3%) and PSA (-0.5%) had
more contrasted performances than in 2015. Orders for new products
taken by the division expressed in annualized sales revenue represents
10.2% of sales revenue, i.e. about €48 million, against about €44 million
in 2015 (9.8% of sales revenue). The growth was particularly remarkable
in the Mechanical safety components Business Group, which expresses
the strategy for gaining market shares in the segment.
Activity
(in millions of euros)
2016
2015
Changes
Sales revenue
465.3
454.6
+2.3%
Current operating profit (EBIT)
26.3
18.0
+46.2%
Operating cash flow
43.8
32.0
+37.1%
Net CAPEX
(31.9)
(38.3)
(16.7%)
Free Cash Flow
1
7.9
(3.1)
+€11.0M
Registered employees at period end
3,265
3,241
+0.7%
Average full time equivalent headcount
2
3,368
3,330
+1.1%
1
Free Cash Flow: operating cash flow minus net capital expenditure and changes in working capital requirements.
2
Including temporary workers.
After a lackluster start to the year, the division saw a speed up in its
sales in the second half-year (+1.1% at HY1 and +3.8% at HY2). Sales
revenue amounted to 465.3 million, up by +2.3% compared with 2015,
this increase marking the fourth consecutive year’s growth.
This growth, which is less than the volume of the European market,
illustrates the wish of the division to develop selectively in high value-
added products.
Furthermore, the division is continuing its intention to become established
worldwide with encouraging developments particularly in China.
Results
All the “Business Groups” see their performances increasing compared
with last year.
The situation of the French sites in the “Threaded fasteners Business
Group”, and more particularly the Saint-Florent-sur-Cher site, was
markedly improved without, however, reaching the Group average.
Efforts to recover are continuing.
* Source : ACEA Association des Constructeurs Automobiles Européens.
FINANCIAL SITuaTION
2