Zodiac Aerospace: Q1 2017/2018 sales revenues
Q1 2017/2018 sales revenues
Plaisir, December 13, 2017 - Zodiac Aerospace's sales were down -6.9% on a like-for-like basis for the first quarter of its fiscal year 2017/2018 (September to November).
On October 30th 2017, the Group expected a slight decline in sales, which is broken down into a further increase of Aerosystems activities, at a similar pace to the previous year, a stabilization of the Cabin activities, and a decline in Seats business, impacted by past operational performance. Sales for the first quarter are in line with this scenario, with the exception of the Cabin branch, which is experiencing a weak start due to some customers' decision in the VIP and business jets markets to postpone their orders.
Zodiac Aerospace reported sales of €1,077.5m, decreasing by -10.4% on a reported basis, impacted by a negative foreign exchange rates of -3.5 points. There was no impact from consolidation scope.
Sales revenue for the first quarter of the 2017/2018 fiscal year
|In millions of euros||First quarter||First quarter||% change||Exchange rate||Consolidation scope||Organic variation|
|Aircraft Interiors Activities||590.4||722.1||-18.3%||-3.4%||+0.0%||-14.9%|
Aerosystems activities (45.2% of total revenue) reported a growth in revenues of +5.1% on a like-for-like basis and +1.5% on a reported basis, amounting to €487.1m. Aerosystems benefited from a good start of the year on IFE's activities, compared to a weak start in 2016/2017, and from a good performance in Power Systems, Oxygen and Evacuation activities. After-sales activities also contributed significantly to the growth of the quarterly sales.
Aircraft Interiors activities (54.8% of total revenue) sales stood at €590.4m, down by -14.9% on a like-for-like basis and by -18.3% on a reported basis.
- Zodiac Seats branch reported €236.9m sales in Q1, down by -20.4% in organic and by -22.7% on a reported basis. As expected, the Seats branch remains penalized by the impact of its poor past operational performance.
- Zodiac Cabin branch reported a -10.6% organic decrease of its sales. This weak activity during the first quarter, below the Group's expectations, is due to postponements of orders by some customers, in the VIP and business jets markets. On a reported basis quarterly sales decreased by -15.0% to €353.5m.
For 2017/2018, Zodiac Aerospace has hedged 91% of estimated EUR/USD exposure at 1.0952 $/€ (spot rate), 54% of USD/CAD, 68% of USD/GBP, 87% of USD/MXN and 65% of USD/THB exposure.
As a reminder, the sensitivity of the current operating margin rate is estimated at 168 basis points for 10 cents change in the euro / dollar exchange rate (transaction impact).
As published in the presentation of its annual results on October 30th, Zodiac Aerospace continues its industrial recovery and transformation.
On a like-for-like basis the Group confirms its expectation to post a slight decrease in sales for 2017/2018, excluding forex and scope effects, which breaks down into a further increase in Aerosystems activities, at a similar pace to the previous year, a stabilization of Cabin activities over the next 3 quarters and a further decline in Seats business, impacted by past operational performance. Current operating income should rise sharply. As for the sales, the current operating income for the second half of the year should be significantly higher than the first half. Operational Cash Flow generation is expected to remain strong, particularly as a result of ongoing actions to reduce inventories, which should lead to an increase in industrial investments.
On December 7, Safran filed with the Autorité des Marchés Financiers (AMF) a draft tender offer on a principal basis, complemented on a subsidiary basis by a public exchange offer, targeting the shares of Zodiac Aerospace.
About Zodiac Aerospace
Zodiac Aerospace is a world leader in aerospace equipment and systems for commercial, regional and business aircrafts and for helicopters and spacecraft. It develops and manufactures state-of-the-art solutions to improve comfort and facilities on board aircrafts and high-technology systems to increase aircraft performance and flight safety. Zodiac Aerospace has approximately 35,000 employees worldwide and generated revenue of €5.1bn in 2016/2017. www.zodiacaerospace.com
|Next meeting:||General meeting of shareholders||January 9, 2018|
| ZODIAC AEROSPACE CONTACTS |
Tel: +33 (0)1 61 34 25 68
Tel: +33 (0)1 61 34 03 34
Isabelle Delhom (Investor meeting)
Tel.: +33 (0)1 61 34 19 86
61, rue Pierre Curie - CS20001 - 78373 PLAISIR CEDEX
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|In millions of euros||1st quarter 2017/2018||2nd quarter 2017/2018||3rd quarter 2017/2018||4th quarter 2017/2018|
|Aircraft Interiors Activities||590.4||-590.3||0||0|
|In millions of euros||1st quarter 2016/2017||2nd quarter 2016/2017||3rd quarter 2016/2017||4th quarter 2016/2017|
|Aircraft Interiors Activities||722.1||689.1||753.8||717.1|
(Quarter compared with the same quarter of the previous year)
|Based on reported data||Q1||Q2||Q3||Q4|
|Aircraft Interiors Activities||-18.3%||-185.7%||-100.0%||-100.0%|
|Aerospace activities *||-10.3%||-186.6%||-100.0%||-100.0%|
|Based on organic revenue||Q1||Q2||Q3||Q4|
|Aircraft Interiors Activities||-14.9%||-192.2%||-100.0%||-100.0%|
|Aerospace activities *||-6.8%||-192.6%||-100.0%||-100.0%|
|In millions of euros||1st quarter 2017/2018||1st half 2017/2018||9 months 2017/2018||Full year 2017/2018|
|Aircraft Interiors Activities||590.3||0||0||0|
|In millions of euros||1st quarter 2016/2017||1st half 2016/2017||9 months 2016/2017||Full year 2016/2017|
|Aircraft Interiors Activities||722.1||1,411.3||2,165.1||2,882.1|
(Aggregate at end of period compared with the same period of last year)
|Based on reported data||1st quarter||1st half||9 months||Full year|
|Aircraft Interiors Activities||-18.3%||-100.0%||-100.0%||-100.0%|
|Aerospace activities *||-10.3%||-100.0%||-100.0%||-100.0%|
|Based on organic revenue||1st quarter||1st half||9 months||Full year|
|Aircraft Interiors Activities||-14.9%||-100.0%||-100.0%||-100.0%|
|Aerospace activities *||-6.8%||-100.0%||-100.0%||-100.0%|
*Excluding Trains and Airbags businesses