The Group continued its balanced growth despite a negative foreign exchange impact EBIT and net income increased from a particularly high comparison base. The acquisition of Manoir Aerospace is part of the LISI AEROSPACE long term strategic plan. Already for the second half 2014, it will contribute significantly to LISI Group revenues.
Belfort, July 24, 2014 – LISI today announced its results for the first six months ended June 30, 2014, presented to the Board of Directors held today.
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OUTLOOK FOR THE LISI GROUP
LISI AEROSPACE
The Farnborough International Airshow, which just ended, confirms demand trends for new efficient large
aircraft which is the core market for LISI AEROSPACE’s fasteners and components. The robust long-term
trend is thus confirmed. In the short term, the market could be impacted by stocking and destocking effects
as on the A350. As such, the development and qualification program meets the initial schedule and the
various related parts manufacturers begin placing orders for components and fasteners in preparation for
the industrial series. The “Structural components” Business Unit should gradually solve its issues relative to
the industrial development of new products and display more sustained growth in the second half of the
year. At constant scope, the division is expecting to achieve better performance in the 2nd half than in the
1st.
The consolidation of Manoir Aerospace was launched immediately upon completion of the acquisition by
LISI AEROSPACE’s teams, with detailed per site and per function action plans. A 5-year strategic plan is
being developed which will include, inter alia, compliance with the LISI Group’s standards and
strengthening of the industrial base with a significant increase in capital expenditures.
LISI AUTOMOTIVE
Given the favorable product/client mix on the one hand, and the positive market orientation, on the other
hand, LISI AUTOMOTIVE should experience a rather dynamic second half-year. Despite the weight of the
current plans, the volume effect is expected to consolidate the results of the first half. As was explained in
February when it announced its results for the year 2013, the division expects to improve its earnings as of
late 2014/early 2015, once all the current plans product their full effect.
Cash outflows in the second half for the various restructuring projects represented nearly €30 million in the
second half of the year (against about €16 million in the first half) including €6 million of disbursement for
Thiant’s redundancy plan. The division’s Free Cash Flow should therefore be strongly negative in second
half of the year.
LISI MEDICAL
The good level of backlog, combined with sustained demand from clients and projects in progress, should
lead to a satisfactory level of activity in the second half. LISI MEDICAL Orthopaedics’ plant (Caen) will be
undertaking extensive work during the summer, which could affect production. The main obstacle to a
ramp-up is the lack of skilled operators in the labor market. Considering the number of new products
developed in the first half, the production level should nevertheless continue to improve in the second half.
To conclude, the LISI Group confirms that its performance indicators should show a slight increase at
constant scope and exchange rates compared to the previous year. The contribution of Manoir Aerospace,
including improved operating conditions for the long term, will help contribute positively to the current
operating income (EBIT) for the year 2014.