In a buoyant worldwide helicopter market, Eurocopter deliveries and new orders reached record levels. Reflecting their advanced capabilities and low lifecycle costs, Eurocopter helicopters captured more than 50% of the civil and parapublic market in terms of deliveries, and continued to grow military orders.

Following a 75% rise from 279 to 488 helicopter deliveries over the past three years, management started to reorganise the industrial base to prepare for future volume increases. The NH90 medium-weight, multi-role military helicopter was a particular focus.

Revenues rose substantially to € 4.2 billion (€ 3.8 billion in 2006), as 488 new military and civil helicopters were delivered (381 in 2006). EBIT fell to € 211 million (€ 257 million in 2006), reflecting margin correction and provision for delays on the NH90.

Eurocopter received orders for 802 new helicopters worth € 6.6 billion, an increase of more than 30 % (615 worth € 4.9 billion in 2006). At the end of December 2007, the order backlog exceeded € 13 billion (€ 11 billion in 2006).

The order intake was well balanced in all respects. Serial helicopters generated 74% of orders, customer services 22% and development and other activities 4%. By product sector, the military accounted for 56% and civil and parapublic 44%. The export rate was a high 51%.

In order to manage output growth of up to 50% by 2010, the industrial base is being restructured. Internally, it is being streamlined to reduce complexity and increase productivity. Externally, a “first-tier” layer of suppliers is being selected, with the aim of reducing direct suppliers from 2,600 to 300 over a decade and proportionately increasing dollar-based costs. Furthermore, Eurocopter will invest increasingly in its core activities of developing and marketing helicopters and associated services, reducing its asset base.

NH90 production was stepped up, but the large number of model variants has caused great complexity. The programme is being reorganised, with internal industrial measures and greater customer flexibility under discussion.

Eurocopter continued to expand internationally, further developing its position in target markets. In Europe, the Spanish Albacete plant was opened and Eurocopter U.K. was founded following acquisition of the 90% of McAlpine Helicopters not already owned. In Asia-Pacific, the creation of a joint venture to market the medium-weight military Korean Utility Helicopter internationally was decided, joint development of the medium-weight civil EC175 started in China and an NH90 Final Assembly Line opened in Australia. And in the United States, the Columbus, Mississippi production line for the U.S. Army’s Light Utility Helicopter (LUH) was significantly expanded. Eurocopter has delivered 18 UH-72A Lakota helicopters to the U.S. Army as of year end 2007.

A network of 17 subsidiaries globally allows Eurocopter to provide services for owners of its more than 10,000 helicopters, the second largest manufacturer fleet, with services representing a growing revenue source.