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Delivery of a record 381 helicopters fuelled strong revenue growth. At the same time, Eurocopter’s large, state-of-the-art product range lifted its order book to a new high.
| Download Excel |
|
(€m) |
2006 |
2005 |
Variation |
|
|
|
|
|
|
Revenues |
3,803 |
3,211 |
18% |
|
257 |
212 |
21% | |
|
Order intake |
4,885 |
3,522 |
39% |
|
Order book |
11,042 |
9,960 |
11% |
Eurocopter achieved a record order-increase, yet again capturing the largest share of the global civil and parapublic helicopter market. This was due to the product range’s performance and the Division’s presence in all the major international helicopter markets. Recognising that Eurocopter’s orders and deliveries are now 50% bigger than they were three years ago, management expanded the workforce and reorganised the company.
Revenues rose by 18% to €3.8 billion (2005: €3.2 billion), as the industrial ramp-up progressed on schedule and 381 helicopters were delivered (334 in 2005). EBIT expanded by 21% to €257 million (2005: €212 million).
Some 615 helicopters were ordered, worth an aggregate of €4.9 billion (compared with a total order value of €3.5 billion in 2005). At the end of December 2006, the order book reached a new high of €11 billion (€10 billion in 2005). Notably, 79% of orders were exports or from outside the home countries of Germany, France and Spain. Military helicopters accounted for 53% of orders. Customer services also attracted a large number of orders.
In the civil and parapublic market, Eurocopter confirmed its position as market leader with 52% market share. High oil and gas prices, growth of the global economy and a strong demand from emergency medical services (EMS) all contributed to the year’s record orders.
Progress in defence
Importantly, Eurocopter broke into the US defence market. The US Army selected Eurocopter to provide its next-generation Light Utility Helicopter (
LUH). A total of 42 UH-72As, a customised version of the EC 145 medium-weight, multi-mission helicopter, were ordered during 2006. The US Army requires up to 352 aircraft, with a potential value of USD 2 billion.
The first three NH90 helicopters were delivered to Germany. The NH90 is a new medium-weight, multi-role military helicopter that offers high performance and low operating and maintenance costs. New Zealand ordered nine and Australia ordered 34 of the MRH90 variant. Four hundred NH90s have now been ordered. The ongoing development activities on mission equipment have led to an additional shift of planned delivery dates.
Extensive international presence
Eurocopter has an extensive and growing international footprint. In December 2006 it created Eurocopter China in Shanghai in order to strengthen the commercial footprint and to better serve customers. According to the previous year’s agreement, the co-development programme of a new seven-ton helicopter, the EC 175, jointly with AVIC II, the state-owned aviation company, achieved its first milestone in December 2006. Eurocopter has 45% of China’s rapidly growing civil/parapublic market.
In South Korea, the development contract for production of the country’s first military utility helicopter was signed, and work began during the summer, both in France and Korea. In Russia, Eurocopter Vostok was inaugurated to market products and services.
Following huge growth, Eurocopter recruited more than 1,200 people and introduced the “Vital” improvement programme. With customer satisfaction the top priority, specific measures were introduced to enhance industrial efficiency, promote internationalisation and increase research and development.
In 2007, Eurocopter’s main challenge will be to build on its commercial success by managing the industrial ramp-up. Additionally, it will seek to strengthen its position in key markets.
Management plans to hire another 500 people in 2007, to continue developing its industrial facilities in France and Germany, and to set up brand new industrial bases in Albacete, Spain and Columbus, Mississippi, US.
Recognising that much of the helicopter market’s future growth potential comes from outside Europe, and that its global supply chain must continue to be optimised, Eurocopter will seek to expand its industrial footprints in major international markets while continuing to strengthen international helicopter development programmes.
In order to enhance the performance of its global offer, Eurocopter will continue to modernise and improve its existing range of products and associated services. In parallel, it will build the foundations for a strategic breakthrough in Helicopter technology.
Continuing the momentum of 2006, further growth in revenues is expected in 2007.
