Latécoère Reports Strong Revenue Growth in the First Nine Months of 2019 at Constant Exchange Rates
October 23 2019 - 11:45AM
Business Wire
- End of September revenue was up 10.9% on an organic basis to
€533.7 million
- Q3 2019 revenue was up 6.1% on an organic basis to €162.0
million
- Latécoère’s 2019 guidance is unchanged
Regulatory News:
Latécoère (Paris:LAT), a tier 1 partner to major international
aircraft manufacturers, is announcing the publication of its
revenue for the third quarter and first nine months of 2019 dating
up to September 30th, 2019.
Unaudited data, in € millions
Third Quarter
End of September
2019
2018
% chg.
% organic growth
2019
2018
% chg.
% organic growth
Aerostructures
91.6
87.5
4.6%
3.5%
306.9
270.1
13.7%
11.0%
Interconnection Systems
70.4
62.2
13.0%
9.6%
226.8
200.5
13.1%
10.8%
Total revenue
162.0
149.8
8.1%
6.1%
533.7
470.6
13.4%
10.9%
In the first nine months of 2019, Latécoère’s revenue increased
by 13.4% to €533.7 million, or by 10.9% at constant exchange
rates.
Positive momentum continued in the third quarter of
2019
Latécoère’s Aerostructures division delivered 3.5% revenue
growth at constant exchange rates, or 4.6% as reported mainly
driven by increased deliveries for Boeing programs. Aerostructures
division revenue totalled €91.6 million for the period. Demand from
certain programs, such as Embraer’s, remains soft, which is
expected to continue into the last quarter of 2019.
The Interconnection Systems division’s business solid momentum
continued during the third quarter of 2019, with revenue up 9.6% at
constant exchange rates and 13.0% on a reported basis, reaching
€70.4 million. This performance was primarily driven by the new
cabin business that the division won last year.
2019 guidance reiterated
Latécoère confirms its outlook. In 2019, the Group is expected
to deliver significant organic growth in sales, excluding currency
effects, and to carry out significant investments to finalize the
Transformation 2020 plan. Due to start-up costs in the
Interconnection Systems division, and progress towards the
Transformation 2020 plan in the Aerostructures division, the Group
will generate a positive recurring operating margin and a negative
operating free cash flow after capital expenditures.
Searchlight is about to launch an offer for the acquisition
of Latécoère
On September 13th, 2019, Searchlight filed a public offer on
Latécoère’s shares at a price of €3.85 per individual share. The
offer is expected to be launched momentarily, after the Finance
Minister approves the offer. Searchlight has publicly expressed its
support for the strategy proposed by management and approved by the
Board of Directors.
The Group's Board of Directors appointed an independent expert
who considered Searchlight's offer to be fair. Latécoère’s Board
recommended that shareholders who wished to benefit from the
liquidity, should tender their shares to the Offer.
Appointments
Latécoère has appointed Mr Michel Abaza as the Group's interim
Chief Financial Officer. His mission includes the management of
Latécoère’s Information Systems Department and the Transformation
2020 plan. Prior to his nomination, Michel Abaza was Chief
Financial Officer of Nyrstar. Michel Abaza has spent most of his
career in the aeronautics industry, as Treasurer of the Safran
Group, and Finance Director of Safran Landing Systems France.
Michel Abaza has also held various financial roles within Valéo and
Schlumberger.
Mr Thierry Mootz was appointed Acting Managing Director of the
Aerostructures division as of October 1st, 2019. Thierry Mootz has
been Chief Operating Officer of the Group since March 2017, and in
his capacity has overseen the Group’s Operational Excellence and
the supervision of the Transformation 2020 plan, as well as the
Information Systems and Purchasing Departments.
Upcoming publication
Fourth-quarter revenue on January 29, 2020.
_________________________________________________________________________________
About Latécoère
Latécoère is a tier 1 partner to major international aircraft
manufacturers (Airbus, Embraer, Dassault, Boeing and Bombardier),
in all segments of the aeronautical market (commercial, regional,
corporate and military aircraft), specializing in two fields:
- Aerostructures (58% of total revenue): fuselage sections and
doors.
- Interconnexion systems (42% of total revenue): onboard wiring,
electrical harnesses and avionics bays.
At 31 December 2018, Latécoère employed 4,958 people in 13
different countries. Latécoère, a French corporation (société
anonyme) with capital of €189,637,036 divided into 94,818,518
shares with a par value of €2 per share, is listed on Euronext
Paris - Compartment B. ISIN codes: FR0000032278 - Reuters: LAEP.PA
- Bloomberg: LAT.FP
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version on businesswire.com: https://www.businesswire.com/news/home/20191023005568/en/
Latécoère Michel Abaza Chief Financial Officer +33 (0)5
61 58 77 00 michel.abaza@latecoere.aero
FTI Consulting Arnaud de Cheffontaines / Investor
Relations +33 (0)1 47 03 69 48 Emily Oliver / Media Relations +33
(0)1 47 03 68 65 latecoere@fticonsulting.com
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