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Eurocopter’s global industrial presence and technological advantages drove another year of significant growth, with the order book maintaining its high level.
|
(€m) |
2008 |
2007 |
Variation |
|---|---|---|---|
|
|
|
|
|
|
Revenues |
4,486 |
4,172 |
+8% |
|
EBIT |
293 |
211 |
+39% |
|
Order intake |
4,855 |
6,584 |
-26% |
|
Order book |
13,824 |
13,455 |
+3% |
In 2008, Eurocopter achieved its second highest ever level of orders while delivering more helicopters than ever before. With the benefit of its global industrial presence and practical technology, Eurocopter also maintained its leadership in the worldwide civil helicopter market in terms of deliveries.
Substantial reorganisation of production lines and recently opened industrial facilities enabled Eurocopter to deliver 588 helicopters in 2008. The rate of production has increased by over 20% compared with 2007’s 488 helicopters and has almost doubled in the past four years.
Revenues rose by 7.5% to € 4.5 billion (€ 4.2 billion in 2007). EBIT rose to € 293 million (€ 211 million in 2007). A 44% rise in self-funded research and development costs, as well as adverse foreign exchange movements impacted the EBIT margin.
Research and development was mainly related to the new EC175 medium-weight civil helicopter being jointly developed with Chinese partners, as well as new developments to continue making Eurocopter helicopters the safest and most fit for each purpose.
WELL-BALANCED ORDER BOOK
Eurocopter won orders of € 4.9 billion (€ 6.6 billion in 2007), including 715 new aircraft as well as after-sales service. The order intake was well-balanced between serial helicopters (59%), support and services (35%) and development and other activities (6%). Military and civil products respectively split 36% and 64%, and the total export rate amounts to 64%.
At year end, the order book was € 13.8 billion (€ 13.5 billion in 2007), the equivalent of 1,515 helicopters or approximately three years’ production at current rates. Cancellations were limited and concentrated in the civil/corporate market.
In the United States, Eurocopter’s relationship with the armed forces expanded, with the US Armed Forces ordering 44 UH-72A Lakota helicopters. The 50th of the 123 Lakotas ordered by the US Army was delivered, including the first from the new Mississippi final assembly line.
The December announcement that the Brazilian government signed an agreement for the acquisition of 50 new EC725 medium-weight helicopters for its armed forces demonstrates the importance of Eurocopter’s international presence. Eurocopter has been active in Brazil for more than 30 years through its subsidiary Helibras.
EXPANSION IN SERVICES
In line with the goal of making up 50% of sales through services by 2020, investment in services increased notably, particularly in flight simulation. Furthermore, the number of power-by-the-hour service contracts increased by 20%. In 2008 Eurocopter acquired German maintenance, repair and overhaul specialist, Motorflug.
At a time of uncertainty, Eurocopter has a large order book diversified across commercial, corporate, oil and gas, parapublic and military customers. Furthermore, the military market is still likely to grow as developed nations replace helicopter fleets and emerging nations build defence forces.
Management is monitoring the financial crisis, maintaining production flexibility and close relationships with key customers.
Research and development will continue to increase as Eurocopter maintains product leadership and prepares the next generation of helicopters.
Strategically, the global industrial footprint will continue to be developed, as will service capabilities.
Eurocopter has confidence in its customer base and will continue to strengthen its competitive advantages.
