Plaisir, June 14, 2017 – Zodiac Aerospace reported sales of €3,789.3m for the first 9 months of its fiscal year 2016/2017; -1.4% on a reported basis. Foreign exchange rates had a 1.4 point impact on growth rate over the period, offsetting part of the -2.8% organic decrease.
Aerosystems activities (42.7% of total revenue) sales for the first 9 months amounted to €1,616.8m up by +3.0% on a reported basis and +1.7% on a like-for-like basis, excluding a positive 1.3 percentage point impact from foreign exchange rates.
Aerosystems is evolving in line with its pattern of a strong dissymmetry between first and second half, as previously communicated. Q3 sales were up 6.6% on a reported basis and 4.7% on a like-for-like basis. This growth was mainly coming from IFEC, Arresting Systems and Telemetry. Expected growth for the second half is supported by a robust backlog.
Aircraft Interiors activities (57.3% of total revenue) sales amounted to €2,172.5m combining a positive 1.5 point forex impact and a -5.9% organic growth, resulting in a -4.4% change over the first 9 month of the fiscal year 2016/2017.
- The Cabin branch reported a -3.9% organic decrease of its sales on the back of a mix effect whereby new programs (currently ramping-up) are progressively substituting mature programs. Adding a 2.7 points positive forex impact, sales decreased by -1.2% to €1,228.9m. The Group’s progress regarding on time and on quality deliveries, in particular for the A350XWB Lavatories program, is in line with planned milestones given on April 28th, 2017 in the H1 results presentation.
- The Seats branch reported €943.6m sales in the first 9 months, -8.1% compared to 9M 2015/2016 and breaking up into a positive 0.2 point foreign exchange impact and a -8.3% organic decrease, reflecting some industrial issues which generated significant disruptions and delays that are currently being addressed. Indeed issues resolution in the UK (Cwmbran) is moving forward according to plan.
The Group enjoyed new commercial successes. In particular, the new Optima Business Class seat, revealed during the Aircraft Interiors show last April and currently deployed within United Airlines fleet as under the Polaris design, has been selected by Air France for its new A350XWB and for the retrofit of its B777-300ER COI. Air France also selected the Z300 Economy class seat, which equips its entire “BEST” fleet, as well as the RAVE IFE system developed by Zodiac Inflight Innovation.
The Supervisory Board appointed at its meeting of June 5, 2017:
- Yann Delabrière as Chairman of the Executive Board of Zodiac Aerospace, effective June 16, 2017, succeeding to Olivier Zarrouati.
- Didier Fontaine to the Executive Board, replacing Benoît Ribadeau-Dumas called to serve as chief-of-staff for the French Prime Minister. This has been effective since June 6, 2017. He remains Administration and Finance Director of Zodiac Aerospace.
- TK Kallenbach has been appointed as CEO of Zodiac Aerosystems succeeding to Benoît Ribadeau-Dumas. He was previously CEO of the Entertainment and Seat Technology Division.
Zodiac Aerospace is progressing in line with its recovery scenario. The Group is improving its operations, especially regarding on time and on quality deliveries, in line with milestones described on April 28th. Zodiac Aerospace confirms guidance for FY 2016/2017 and its long term outlook.
The contemplated combination with Safran is progressing as per the new agenda announced on May 23. Both companies will update the market as soon as there is any significant development.
For 2016/2017, Zodiac Aerospace has hedged 95% of estimated EUR/USD exposure at 1.1157$/€ (spot rate), 100% of USD/CAD, 100% of USD/GBP, 95% of USD/MXN and 80% of USD/THB exposure.
For 2017/2018, Zodiac Aerospace has hedged 69% of its estimated EUR/USD exposure at 1.0703$/€ (spot rate).