LISI (EPA:FII) - Q3 2013 Financial information
Transparency directive : regulatory news
24/10/2013 17:45
Click here to download pdf version
LISI announces an increase of 7.8% of its sales revenue in the third quarterof 2013 at constant scope and exchange rates
FINANCIAL
INFORMATION
Quarterly Consolidated sales
In million euros
2013 2012
Q1 299 281
Q2 296 277
Q3 277 260
Q4 264
EBIT* & Net Profit in EURM
EBIT Net profit
2010 49,5 32,9
2011 78,1 59,2
2012 100,4 57,3
* After participation and profit-sharing expenses
- Maintained increased rate of growth at LISI AEROSPACE: Up 14.7% in the first
nine months of the year, including 10.2% in Q3
- LISI AUTOMOTIVE returns to growth: +2.3% in Q3
- Confirmation of annual objectives: double-digit operating margin and positive
Free Cash Flow(1)
(1) Free Cash Flow: cash flow from operations minus net capital expenditures
and changes in working capital requirements.
in millions of euros Change
2013 2012 2013 / 2012 2013 / 2012
on a like for like basis
1st quarter 298,6 281,2 + 6,2 % + 7,0 %
2nd quarter 296,2 276,5 + 7,1 % + 8,2 %
3nd quarter 277,0 260,2 + 6,5 % + 7,8 %
Cumulative, as
of September 30 871,8 817,9 + 6,6 % + 7,6 %
During the third quarter of the 2013 financial year the LISI Group has
maintained a sustained rate of growth (up 6.5%) despite a negative exchange
rate effect: at the same consolidation scope and exchange rates, sales
revenues were up 7.8% on the corresponding period last year.
This growth has allowed the Group to post sales revenues of EUR 871.8M for the
first nine months of the financial year (i.e. similar growth rates of +6.6% in
published data and +7.6% at the same consolidation scope and exchange rates,
respectively). This performance reflects sustained dynamism in the aerospace
business (+14.7% in cumulative published data), which represented 58% of
consolidated sales revenues, as well as the gradual return to slight growth in
the Automotive Division (+2.3%).
With steady growth over several consecutive months, the share of consolidated
sales revenues outside France represented 67.3 % of the total, being EUR 586.5M
to September 30, 2013, up 8.1% as compared with September 30, 2012.
COMMENTS BY LINE OF BUSINESS
LISI AEROSPACE ( 58 % of total consolidated revenue)
- Commercial aircraft market continues to be good
- New quarter with double-digit growth on a higher comparison base
in millions of euros Change
2013 2012 2013 / 2012 2013 / 2012
on a like for like basis
1st quarter 172,9 141,8 + 21,9 % + 21,6 %
2nd quarter 169,8 151,4 + 12,1 % + 13,0 %
3nd quarter 160,1 145,3 + 10,2 % + 12,4 %
Cumulative, as
of September 30 502,8 438,5 + 14,7 % + 15,6 %
Sales in million euros
End of September
438,5 502,8 329,6 321,0 51,1 49,1
2012 2012 2012 2013 2013 2013
AEROSPACE AUTOMOTIVE MEDICAL
Commercial aircraft market continues to be good
The basis of the market, measured in passenger traffic, remains solid (+4.2% at
end September - source IATA), freight transport has stabilized (+0.8%), while
the Premium segment is quite dynamic (+3.0%). Over 3 years traffic has
increased on average by 5% annually.
As a result the orders books of the two largest manufacturers continued to
grow in the 3rd quarter, with 233 orders and 180 deliveries for Boeing and 354
orders and 150 deliveries for Airbus. In its latest announcement, Airbus says
that its order book is full for the next 8 financial periods, and is examining
solutions how to increase its rates. This good situation has a knock-on effect
on the whole line of subcontractors for assembly of aerostructures and
components such as engines.
On the other hand, other parts of the aerospace industry have remained stable,
or have even dropped back a bit, such as the helicopter and military segments.
Only regional turbo-props, such as ATR, still have potential for the launch of
new platforms.
New quarter with double-digit growth on a higher comparison base
The division has maintained double-digit growth on account of:
* The "Europe Fasteners" business, which having posted sustained growth until
Q3 (+12.0%), should settle at this very high level over the next few months.
The "US Fasteners" platform has posted a 6.8% sales growth, before possibly
benefiting from increases at Boeing and the current contract. Other segments
of the US market, such as distribution, are stable or even down (regional
aircraft, military).
* The "Structural Components" segment confirmed expectations with a sustained
growth rate (up 13.8% for the 3rd quarter), to meet increased demand.
The effects of exchange rate variations, mainly the drop of the US dollar and
sterling against the euro, came to over 2% of 3rd quarter sales revenues. LISI
AEROSPACE has continued to examine several major projects, especially for
engine manufacturers (Leap, Silvercrest, PP20, GE9X) while complying with the
increased demands for satisfactory service for its customers.
Order taking dropped in Europe but remains satisfactory in the USA.
On the operational level, the division continues to benefit from an optimal
workload in Europe, though still below expectations in Torrance (USA). The
"Structural Components" division remains very active in its development
programs (A350, A320 Neo, Leap pods, GTF etc), which require heavy recruiting
of operational staff in the coming months. Deployment of the LEAP program (LISI
Excellence Achievement Program) is continuing according to plan, and all the
division's factories are working on the first level of improvement for work
stations, the organization of focused work groups, and ambitious targets for
ongoing improvement.
% Sales Variation per division / N-1
LISI AEROSPACE
LISI AUTOMOTIVE
LISI AUTOMOTIVE ( 37 % of total consolidated revenue)
* European market stabilizes at low point
* Favorable base effect for LISI AUTOMOTIVE sales revenues
in millions of euros Change
2013 2012 2013 / 2012 2013 / 2012
on a like for like basis
1st quarter 110,2 122,0 - 9,7 % - 7,9 %
2nd quarter 110,2 109,3 + 0,9 % + 2,4 %
3nd quarter 100,6 98,3 + 2,3 % + 2,5 %
Cumulative, as
of September 30 321,0 329,6 - 2,6 % - 1,3 %
European market stabilizes at low point (source LMCA-LV oct. 2013)
World 1% 2,5% 4%
Europe -9% -3,7% -3,7%
Q1 Q2 Q3
Even though at a global level new registrations were up 4% in the 3rd quarter,
in Europe they came to +2.6%, thanks to a favorable comparison base and a
rebound of 5.5% in September. For the first nine months of the year the drop
was 4% as compared with the corresponding period in 2012, evidence of the
continuing softness of volumes.
The production of LISI AUTOMOTIVE's European customers is in line with this
(overall down 2.7%, up 3% in the 3rd quarter), but with sharp differences
between the French (overall -5.3% and -5.4% for the 3rd quarter) and German
(-1.6% and +3.3%) car manufacturer customers.
Favorable base effect for LISI AUTOMOTIVE sales revenues
In Q3 2012 LISI AUTOMOTIVE was sharply down, so much so that a comparison with
2013 shows a recovery of +2.3%, while the trend of daily sales has remained
stable since Q2. The drop in LISI AUTOMOTIVE sales in the first nine months of
the year (-2.6%) is still better than the European market (-4.0%) and in line
with the drop in European production of LISI AUTOMOTIVE's customers. By segment
it should be noted that business with the major parts manufacturers worldwide
has benefitted from a strong world market to post the best results of the
division. This expansion has also been supported by many projects in
development. The two Chinese locations are continuing their growth (overall
+15%) in order to capture a share of the local supply of the western
manufacturers and especially the parts manufacturers.
At the operational level, the division is still suffering from significant
volatility in its customers' requirements, especially in the screws segment.
The division has also suffered a degree of imbalance in the distribution of the
workload between the various locations, particularly between France and Germany.
Nevertheless, the reduction in fixed costs has let it continue the improvement
of its results in comparison with 2012, despite the ongoing effect of the drop
in volumes caused by French car manufacturers.
Other operating indicators have stabilized and the LEAP program is also making
a significant contribution to the improvement of LISI AUTOMOTIVE's industrial
performance.
LISI MEDICAL (5 % of total consolidated revenue)
- Complex market conditions that are making the division's recovery difficult
- Continuation of productivity improvements and innovations with a view to the
long-term
Spine
Dental & CMF
Knee
Hip
Trauma
Extremities
in millions of euros Change
2013 2012 2013 / 2012 2013 / 2012
on a like for like basis
1st quarter 16,0 17,9 - 10,8 % - 10,9 %
2nd quarter 16,6 16,2 + 2,8 % + 2,9 %
3nd quarter 16,5 17,0 - 3,0 % - 2,6 %
Cumulative, as
of September 30 49,1 51,1 - 3,9 % - 3,8 %
Complex market conditions that are making the division's recovery difficult
In a market that is not well documented, some trends can nonetheless be seen:
- the market is continuing to grow in terms of volumes in the long-term with a
rise of +2% to +4%, depending on the orthopedic sectors,
- inventories in the industry remain too high,
- downward pressures on prices by the bodies reimbursing medical expenses have
been taken into account by all the players in the market.
Within this context LISI MEDICAL has continued its adaptation process,
reflected in strengthening its positions in strategic fields. However, in Q3
this progress did not compensate for the drop in sales with dental customers or
ones who are part of groups.
Comparison with the previous period must take into account a sharp technical
reduction in inventories of about EUR 2M that occurred in the 3rd quarter of
2012.
Continuation of productivity improvements and innovations with a view to the
long-term
The Group's target is to consolidate LISI MEDICAL in the most attractive
markets by applying differentiation to processes, excellence and integration.
As is in the other divisions, the plans for improving conditions of production
are continuing with the deployment of the LEAP program to all sites.
Nevertheless, productivity is still insufficient.
The plan to deploy unbranded products has started with first deliveries for
customers for launch during the period.
Post balance sheet date event:
On October 17, 2013 the LISI Group announced a private placement financing for
the equivalent of USD 75 million. Drawn down in euros (EUR 56 M), this new
financing has been taken out with an American institutional investor as a USPP
(US Private Placement), with final maturity in 10 years, an average life of 7
years and a coupon fixed at 3.64 %. This transaction is intended to finance
general requirements and optimizes an already healthy financial structure.
PROSPECTS AND COMMENTS ON THE FINANCIAL IMPACT OF THE BUSINESS
The Aerospace Division should see its main growth area (Europe Fasteners) reach
a plateau during the next quarter while the US should continue at the same rate
of growth as stated at the start of the financial year. This scenario is
supported by delivery forecasts for the coming months. The "Structural
Components" segment will retain the very dynamic trends of 2013 on account of
the finalization of projects that are still in the development stage. In the
long-term the division, which has exceptional visibility, can achieve higher
growth rates when certain programs such as the A350 and, to a lesser degree,
the B787 will have achieved industrial maturity.
In the automotive division, the favorable comparison base of Q4 2012, when the
car manufacturers seriously reduced inventories, should let LISI AUTOMOTIVE
post higher sales revenues in Q4 2013 without yet seeing any strong signs of a
solid recovery. The huge efforts on the fixed costs base should nevertheless
allow confirming an improvement in results as compared with 2012.
The Medical division, like Automotive, also benefits from a favorable
comparison base in 2012 and is gradually consolidating its profitability at
levels that are still inadequate. Improvement in performance will come through
a significant increase in business volumes.
The group confirms its target for the whole of the 2013 financial year, as
announced with the consolidated results for the first half-year: a double digit
operating margin and positive Free Cash Flow for the year.
CONTACTS
Gilles KOHLER
Chairman and CEO
Email: gilles.kohler@lisi-group.com
Emmanuel VIELLARD
Deputy CEO
Email: emmanuel.viellard@lisi-group.com
Tel : +33 3 84 57 00 77 - Fax : +33 3 84 57 02 00
Website: www.lisi-group.com
The next announcements will appear after close of trading on Paris Euronext
> Annual results 2014: February 20, 2014
> Q1 2014: April 23, 2014
TRADING AGREEMENT: ODDO CORPORATE TEL. +33 (0)1 40 17 52 89
LISI's latest news
21/05/2024 17:41
25/04/2024 17:41
22/02/2024 17:41
26/10/2023 17:41
25/07/2023 17:41
15/05/2023 17:40
10/05/2023 19:22
27/04/2023 17:42
19/04/2023 18:03
12/04/2023 17:45
Other stories
21/05/2024 23:56
22/05/2024 00:19
21/05/2024 18:15
21/05/2024 23:37
21/05/2024 16:34
21/05/2024 19:20
21/05/2024 16:45
21/05/2024 20:00
21/05/2024 21:31
21/05/2024 16:01
21/05/2024 22:37
21/05/2024 23:01
21/05/2024 21:29
21/05/2024 16:37
21/05/2024 12:15
21/05/2024 21:55
21/05/2024 19:39
21/05/2024 17:40
21/05/2024 13:27
21/05/2024 13:34
21/05/2024 15:28
21/05/2024 09:30
22/05/2024 00:51
21/05/2024 22:15
21/05/2024 21:55
21/05/2024 20:34
21/05/2024 21:41
21/05/2024 23:31
22/05/2024 00:06
21/05/2024 23:31
21/05/2024 18:13
21/05/2024 22:08
21/05/2024 23:00
20/05/2024 22:55
22/05/2024 01:10
22/05/2024 00:30
21/05/2024 13:23
21/05/2024 16:21