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advance that will consolidate its differentiation in a sustainable manner
in very strongmarkets over time.
2.2
I
LISI AEROSPACE
Summary presentation of the LISI AEROSPACE activity:
■■
sales revenueswere above €1 billion for the first time, but with a strong
disparity inorganicgrowthbetweenthefirsthalf(+7.4%)andthesecond
(-1.1%);
■■
improvement of all management indicators over the year, with a sharp
contrast between the first and second half of the year affected by the
temporary adjustment of Airbus inventories and the adverse effect
related to the decline of the dollar against the euro;
■■
positive free cash flow after a strong increase in investment plans
(+11.0%);
■■
a difficult start to 2018 in line with the second half of 2017.
Market
Visibility in the commercial aircraft segment remained very solid in
an environment in which global air traffic was experiencing sustained
annual growth (+7.7%* in 2017). The other market segments served by
LISI AEROSPACE, including military, business aircraft and regional
aircraft still show no perceptible signs of recovery. The helicopter
market seems to be slowly recovering.
Although Airbus delivered fewer aircraft than Boeing (718 aircraft
delivered versus 763 for Boeing), it remains the leader in the number
of net orders (1,109 versus 912 at Boeing). The backlog for both aircraft
manufacturers is over 13,000 airplanes. As expected, the impact of
increases in delivery rates of single-aisles (from 1,035 to 1,087) and of the
A350, which accelerated from49 to 78 deliveries, will continue in 2018.
For its part, Safran continues to benefit fromof the steep rise in delivery
rates of theLEAPengine (more than450engines delivered in 2017, nearly
6 times more than in 2016) with a backlog of more than 14,000 engines.
This growth rate is expected to almost triple in 2018.
* Source: IATA.
Activity
In millions of euros
2017
2016
Changes
Sales revenue
1,000.9
987.2
+ 1.4%
Current operating profit (EBIT)
128.1
122.9
+ 4.2%
Operating cash flow
129.9
127.1
+ 2.2%
Net CAPEX
- 91.4
- 82.4
+ 11.0%
Free Cash Flow
1
61.6
32.3
€+29.3 million
Registered employees at period end
7,251
7,386
- 1.8%
Average full time equivalent headcount
2
8,223
8,011
+ 2.6%
1
Free Cash Flow: operating cash flowminus net capital expenditure and changes in working capital requirements.
2
Including temporary workers.
At €1,001 million, sales revenues reached a historical level, up 1.4%
compared to 2016 and 3.3% at constant scope and exchange rates.
The “Fasteners Europe” activity was negatively impacted by the Airbus
destocking in the second half of the year. As a result, deliveries were
down 7.8% in the second half of the year after a very dynamic first part of
the year (+13.7% in H1). Airbus adjusted onsite inventory levels after the
industrialization and launch phase of the A350 and A320neo (phase-in).
Theaccelerateddepreciationofthedollaragainsttheeuroalso impacted
the division’s performance negatively. In the United States, “Fasteners”
activity picked up steam at Boeing, while the active repositioning of
LISI AEROSPACE with the distribution sector was hampered by low
activity levels for business and regional aircraft. On the other hand,
the “Structural Components” activity had strong sales revenue growth
comparedto2016withthecontinuedramp-upofnewprograms,including
the LEAP engine.
Results
Current operating profit totaled €128.1 million, up €5.2million from2016.
At +12.8%, the operatingmargin increased by 0.4 points compared to the
previous financial year.
The production sites for the “Fasteners” activity benefited from a
favorablevolumeeffectinthefirsthalfoftheyear.Theproperadjustment
of production costs in the second half of the year limited the negative
impact of lower volumes for Airbus on operating profit. In addition, the
improvement intheoperationalsituationofthe“StructuralComponents”
activity is underway, and the additional costs generated by the industrial
difficulties in the steep acceleration phase for new programs were
reduced by half over the year according to the road map that was
established.
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LISI 2017 FINANCIAL REPORT
FINANCIAL SITUATION
2