Revenue figures for Quarter 1, 2011/2012
(September to November)
Zodiac Aerospace remains on course for growth
Plaisir, December 14, 2011 - Zodiac Aerospace Group revenue grew by 21% to end Quarter 1 (September-November) of its 2011/2012 fiscal year at €778.6 million. On the basis of like-for-like consolidation scope and exchange rate, the level of revenue generated by the Group's aerospace businesses[1] grew by 20.8%. The Group as a whole (including non-aerospace businesses) achieved organic growth for the quarter of 17.5%. Changes in consolidation scope (Sell consolidated for 1 month and Heath Tecna for 3 months) contributed 5 points to business growth, whilst exchange rates had a negative effect of 1.6 points.
| (€ MILLION) | Quarter 1 2011/2012 | Quarter 1 2010/2011 | Var% | Exchange rate impact | Scope | Organic growth |
| AeroSafety & Technology | 142.5 | 134.9 | +5.6% | -1.1% | 0.0% | +6.7% |
| Aircraft Systems | 156.8 | 131.5 | +19.2% | -2.6% | 0.0% | +21.9% |
| Cabin Interiors | 479.3 | 377.1 | +27.1% | -1.4% | +8.7% | +19.8% |
| Group Total | 778.6 | 643.6 | +21.0% | -1.6% | +5.0% | +17.5% |
| €/$ conversion | 1.37 | 1.35 |
· Cabin Interiors
The Cabin Interiors segment reported strong revenue growth of 27.1% to end the quarter at €479.3 million. Organic growth for the period was 19.8%, despite the impact imposed by the sharp contraction in the Rail division as a result of the slowdown in Chinese rail projects. Excluding the rail division, organic growth for the Cabin Interiors segment in Quarter 1 of the year was 25.4%. The integration of Sell (over 1 additional month) and Heath Tecna (from September 1) contributed 8.7 points of revenue growth for this segment. Heath Tecna will complement Zodiac Aerospace expertise in airliner cabin interiors, and allow the Group to offer its customers a broader palette of services, with particular emphasis on cabin retrofit; a market in which this company is a leading global player. Based at Bellingham in Washington State, USA, Heath Tecna employs 600 people and reported revenue of $78 million in 2010.
· AeroSafety & Technology
The AeroSafety & Technology segment generated revenue of €142.5 million in Quarter 1, reflecting growth of 5.6% in terms of published data, and 6.7% in terms of organic revenue growth. Technology activities reported a slight contraction in business volumes, whilst the Emergency Arresting Systems division sales were up slightly on Q1 2010/2011, in which revenue was high. On the other hand, Emergency Evacuation Systems, Interconnect Systems and Elastomeric Systems divisions achieved double-figure organic growth, benefiting in particular from higher aircraft manufacturer production rates.
· Aircraft Systems
The Aircraft Systems segment reported very strong revenue growth of 19.2% to end Quarter 1 at €156.8 million. Sales revenue growth on the basis of like-for-like consolidation scope and exchange rate was 21.9%. This strong performance was driven primarily by the Fuel Circulation, Oxygen & Life-Support and Electrical Power and Lighting Systems divisions, all of which reported double-figure growth as a result of higher production rates from aircraft manufacturers. The performance from Actuators, Sensors and Motors reflects sustained business levels in the Seats segment with customers outside the Group, as well as with internal customers.
Acquisition of Contour Aerospace Ltd.
On December 12, Zodiac Aerospace signed a final agreement with PAIG Investments Limited, an investment vehicle controlled by RBS Special Opportunities Fund, for the acquisition of Contour Aerospace Ltd. With bases in Cwmbran and Camberley in the UK, Contour Aerospace employs around 1,300 people and reported revenue of approximately £130 million in 2010. This acquisition will enable Zodiac Aerospace to strengthen its seats product range, with particular emphasis on the Contour Aerospace specialist segments of business class and first class seating. Subject to anti-trust regulatory approval, this acquisition is expected to be finalized in the first three months of 2012.
Other significant events during the quarter
Business portfolio management: after the 2010/2011 fiscal year-end, the Group sold the non-strategic Driessen repair business for a total of €6.8 million[2] as part of its business portfolio management.
On October 21, the Group signed an agreement to sell its Issy les Moulineaux building. The transaction should be concluded by December 31, 2011.
Zodiac Aerospace is closely monitoring the trend in collection risk relative to receivables from customer airlines, whilst focusing on safeguarding future customer relations. This is currently the case with American Airlines, where receivables were outstanding at the time the company filed for Chapter 11 bankruptcy protection. The level of exposure created by this debt - approximately 0.2% of revenue - will be the subject of a partial provision in the financial statements for the first half of the fiscal year.
Outlook
Zodiac Aerospace continues to grow externally and internally. In terms of external growth, Heath Tecna and now Contour Aerospace will contribute to revenue for the fiscal year. As far as internal growth is concerned, the strong performance seen in Quarter 1 confirms the outlook for annual growth.
The Group will announce its revenue figures for the First Half and Quarter 2 on March 14, 2012.
Zodiac Aerospace is a world leader in aerospace equipment and systems for commercial, regional and business aircraft, as well as helicopters and space applications. Zodiac Aerospace employs 23,000 people worldwide, and generated revenue of €2.75 billion in 2010/2011 from its three business segments of Aerosafety & Technology, Aircraft Systems and Cabin Interiors.
| Next meetings: | Annual General Meeting of ShareholdersChiffre Q2 and H1 revenue | January 10, 2012 March 14, 2012 (after stock exchange closing) | |
| CONTACT ZODIAC AEROSPACE Pierre-Antony VASTRA Tel: +33 (0)1 61 34 25 68 PierreAntony.Vastra@zodiacaerospace.com 61, rue Pierre Curie - BP1 78373 PLAISIR CEDEX | CONTACTS MEDIA - IMAGE 7 Grégoire LUCAS Tel: +33(0) 1 53 70 74 94 / glucas@image7.fr Priscille RENEAUME Tel: +33 (0) 1 53 70 74 61 / preneaume@image7.fr Flore LARGER Tel: +33 (0) 1 53 70 74 91 / flarger@image7.fr | ||
| CONTACT POINT FOR ANALYSTS - KEIMA Communication Emmanuel DOVERGNE Tel: 01 56 43 44 63 / emmanuel.dovergne@keima.fr | |||
Appendices
Consolidated sales revenue per quarter
| (€ million) | Quarter 1 2011/2012 | Quarter 2 2011/2012 | Quarter 3 2011/2012 | Quarter 4 2011/2012 |
| AeroSafety & Technology | 142.5 | |||
| Aircraft Systems | 156.8 | |||
| Cabin Interiors | 479.3 | |||
| Group Total | 778.6 | |||
| €/$ conversion | 1.37 |
| (€ million) | Quarter 1 2010/2011 | Quarter 2 2010/2011 | Quarter 3 2010/2011 | Quarter 4 2010/2011 |
| AeroSafety & Technology | 134.9 | 134.8 | 139.9 | 162.0 |
| Aircraft Systems | 131.5 | 132.6 | 152.2 | 146.9 |
| Cabin Interiors | 377.1 | 398.6 | 422.6 | 416.3 |
| Group Total | 643.6 | 665.9 | 714.8 | 725.3 |
| €/$ conversion | 1.35 | 1.34 | 1.43 | 1.43 |
VARIANCES
(Quarter versus the same quarter of the previous year)
| On the basis of published data | Q1 2010/2011 | Q2 2010/2011 | Q3 2010/2011 | Q4 2010/2011 |
| AeroSafety & Technology | +25.2% | |||
| Aircraft Systems | +18.4% | |||
| Cabin Interiors | +49.2% | |||
| Group Total | +36.5% |
| Organic growth | Q1 2010/2011 | Q2 2010/2011 | Q3 2010/2011 | Q4 2010/2011 |
| AeroSafety & Technology | +10.4% | |||
| Aircraft Systems | +9.3% | |||
| Cabin Interiors | +25.5% | |||
| Group Total | +18.3% |
Variances in organic growth versus 2010/2011
| Organic growth | Q1 2009/2010 | Q2 2009/2010 | Q3 2009/2010 | Q4 2009/2010 |
| AeroSafety & Technology | +10.4% | +1.6% | -3.3% | +9.8% |
| Aircraft Systems | +9.3% | +15.3% | +21.8% | +15.2% |
| Cabin Interiors | +25.5% | +23.7% | +19.8% | +25.7% |
| Group Total | +18.3% | +16.6% | +14.8% | +19.5% |
Cumulative Consolidated Sales Revenue
| (€ million) | Quarter 1 2011/2012 | Half year 1 2011/2012 | 9 months 2011/2012 | Fiscal year 2011/2012 |
| AeroSafety & Technology | 142.5 | |||
| Aircraft Systems | 156.8 | |||
| Cabin Interiors | 479.3 | |||
| Group Total | 778.6 | |||
| €/$ conversion | 1.37 | |||
| €/$ transaction | 1.36 |
| (€ million) | Quarter 1 2010/2011 | Half year 1 2010/2011 | 9 months 2010/2011 | Fiscal year 2010/2011 |
| AeroSafety & Technology | 134.9 | 269.7 | 409.6 | 571.7 |
| Aircraft Systems | 131.5 | 264.1 | 416.3 | 563.2 |
| Cabin Interiors | 377.1 | 775.7 | 1198.3 | 1614.6 |
| Group Total | 643.6 | 1309.5 | 2024.3 | 2749.5 |
| €/$ conversion | 1.35 | 1.35 | 1.37 | 1.39 |
| €/$ transaction | 1.31 | 1.32 | 1.37 | 1.35 |
VARIANCES
(Period-end total versus the same period of the previous year)
| On the basis of published data | Quarter 1 2010/2011 | Half year 1 2010/2011 | 9 months 2010/2011 | Fiscal year 2010/2011 |
| AeroSafety & Technology | +5.6% | |||
| Aircraft Systems | +19.2% | |||
| Cabin Interiors | +27.1% | |||
| Group Total | +21.0% |
| Organic growth | Quarter 1 2010/2011 | Half year 1 2010/2011 | 9 months 2010/2011 | Fiscal year 2010/2011 |
| AeroSafety & Technology | +6.7% | |||
| Aircraft Systems | +21.9% | |||
| Cabin Interiors | +19.8% | |||
| Group Total | +17.5% |
