First-half 2017 revenues up 1.8% (-1.2% at constant exchange rates)

¹ Following the disposal of Latécoère Services, and in accordance with IFRS 5, revenues for 2016 have been restated to exclude activities that have been sold.

² Revenues for Equipment & Systems are now assigned to the Interconnection Systems division.

Latécoère revenues stood at €348.8 million on 30 June 2017, up 1.8% in reported figures on the same period in 2016. The Group benefited from a positive effect linked to EUR/USD hedges. At constant exchange rates, Latécoère's revenues decreased by 1.2% in the first half of 2017, which is consistent with earlier guidance.

The decrease in Aerostructures division revenues (2.7% at constant exchange rates) primarily reflects the slowdown in production for the A380 and the 7X/8X. The drop in E1 volumes is expected to be felt in the second half of the year.

The Interconnection Systems division enjoyed an upturn in activity of 1.3% at constant exchange rates. The effects of the most recent ramp-up of production of the A350 program were partially offset by lower volumes for the A380 and the 7X/8X.

Outlook for 2017

Continuous strong business momentum resulted in new contracts which include: 

• the development of landing gear electrical wiring for Héroux-Devtek Inc (TSX: HRX), the first North American contract for the new entity in Canada;
• the development of EWIS (Electrical Wiring Interconnection Systems) for the Mitsubishi Regional Jet (MRJ).

The Group's entry into these markets illustrates both its ambition and the competitiveness of its industrial and technical platforms.

The first significant revenues associated with the Interconnection Systems division and certain new contracts will occur as of the second half of the year.

The deployment of the Transformation 2020 plan continues as planned, both with the transfer of production and the development of new production sites. In July, construction began on the new factory in Toulouse which has been recognized by the French association, the Alliance Industrie du Futur (AIF), as a showcase factory for the industry of the future (Vitrine Industrie du Futur).

Latécoère has confirmed its 2017 road map: despite slightly lower revenues at constant exchange rates, the Group is expecting an improvement in recurring operating income and positive free cash flow. 

Next publication: H1 2017 results on 18 September 2017 (before the opening of Euronext market)

About Latécoère

Latécoère is a tier 1 partner to major international aircraft manufacturers (Airbus, Embraer, Dassault, Boeing and Bombardier), in all segments of the aeronautical market (commercial, regional, corporate and military aircraft), specializing in two fields:

• Aerostructures Industrial (65% of total revenue): fuselage sections and doors.
• Interconnection Systems (35% of total revenue): onboard wiring, electrical harnesses and avionics bays.

At 31 December 2016, Latécoère employed 4,338 people in 8 different countries.

Latécoère, a French corporation (société anonyme) with capital of €188,398,504 divided into 94,199,252 shares with a par value of €2 per share, is listed on Euronext Paris - Compartment B. ISIN codes: FR0000032278 - Reuters: LAEP.PA - Bloomberg: LAT.FP