AndhraNews.net
Home » Business News » 2012 » July » July 26, 2012

Dassault Aviation : 2012 first half year results


July 26, 2012 - Saint-cloud, France

- CEDEX 300 -


2012 first half year results


+------------------------------------------------------------------------+
|Order intake 25 FALCON compared to 22 in the first half year 2011 |
+------------------------------------------------------------------------+

+------------------------------------------------------------------------+|Deliveries 34 FALCON and 4 RAFALE compared to 19 FALCON and || 6 RAFALE in the first half year 2011 |+------------------------------------------------------------------------+

+------------------------------------------------------------------------+|Net sales EUR 1,929 million, up by 46% || ||Net income Excluding THALES, EUR 179 million || || Including THALES *, EUR 223 million || ||Net margin Excluding THALES, 9.3% (+2.2 points) || || Including THALES *, 11.6% (+1.8 point) |+------------------------------------------------------------------------+

* before amortization of Purchase Price Allocation.

The Board of Directors, chaired by Mr. CharlesEDELSTENNE, closed yesterday the financial statements for the first halfyear2012. These consolidated condensed interim financial statements werereviewed bythe Statutory Auditors who expressed an unqualified opinion.

Charles EDELSTENNE, Chairman and CEO of the Group, stated:

"Regarding Defense activities, first half year was marked by thepresentation,in January, of the nEUROn - European Unmanned Combat Air Vehicledemonstrator - to the Officials and by the RAFALE selection by Indiawithin the framework ofthe "MMRCA" program for the supply of 126 aircraft.

These two events are promising. nEUROn has no equivalent in Europe. Inadditionto the technological challenge it represents, it places us in goodposition forthe new generation of combat aircraft which France and the UnitedKingdom areconsidering in cooperation (UCAS project). The Indian choice, ontechnical,operational and financial criteria, confirms the RAFALE superiority assoon asthe influence of the United States is not the criteria.

However, both these successes are to be confirmed: nEUROn must passsuccessfullyits test schedule and RAFALE negotiation is to be finalized.

The weight of the crisis on French Defense budget is also to be mentioned.

Regarding business jets, the market is still overall convalescent. Thereturn toa positive balance of FALCON sales is not sufficient enough to stabilizeourbacklog which continues to decrease. The activity is strong in China whereweinvest massively for the promotion and the support of our products. But,mainchallenge stands in the United States and in Western Europe where thecrisislasts. Very equipped with business jets, these two areas are particularlysensitive to the pre-owned aircraft market trends. This market remains veryslightly active."

Order intake and backlog

2012 first half year orders amounted to EUR 1,424 million (*), comparedto EUR953 million in the first half year 2011, up by 49 %. Export represented78% ofthe total new orders in the first half year 2012.

New orders, net of cancellations, stood at 25 FALCON in the first halfyear2012 compared to 22 in the first half year 2011. FALCON order intakereached EUR1,048 million in the first half year 2012 compared to EUR 806 millionin thefirst half year 2011.

Defense orders rose to EUR 376 million in the first half year 2012compared toEUR 147 million in the first half year 2011. They include, inparticular,support and development contract for the French Army.

As of June 30, 2012, consolidated backlog amounted to EUR 8,188 millioncomparedto EUR 8,751 million as of December 31, 2011, down by 6%.

(*) from then on, the Group is in line with other listed Groups practiceas itno longer posts up order intake with the annual variation of the EUR/$exchangerate in the backlog.

Net sales

Consolidated net sales amounted to EUR 1,929 million in the first halfyear2012, up by 46%, compared to EUR 1,317 million in the first half year2011.Export net sales represented 77% of total net sales in the first half year2012.

FALCON net sales increased by 72% between the two periods, reaching EUR1,437million in the first half year 2012 compared to EUR 837 million in thefirsthalf year 2011. 34 FALCON were delivered in the first half year 2012,comparedto 19 in the first half year 2011.

FALCON net sales represented 74% of total net sales in the first half year2012compared to 64% in the first half year 2011.

4 RAFALE were delivered to French Air Force and Navy in the first halfyear2012 versus 6 in the first half year 2011. Nevertheless, Defense netsalesshowed an upturn of 2%, due to an increase in support anddevelopmentactivities.

The book-to-bill ratio reached 0.74.

Results

DASSAULT AVIATION consolidated operating income amounted to EUR 244million inthe first half year 2012 compared to EUR 99 million in the first halfyear2011. Operating margin stood at 12.7% compared to 7.5% in the first halfyear2011. Those improvements are mainly explained by the increase of sales.

Excluding THALES, 2012 first half year net income was EUR 179 millioncomparedto EUR 94 million in the first half year 2011, up by 91%. Net marginexcludingTHALES was 9.3% compared to 7.1% in the first half year 2011.

Including THALES, 2012 first half year net income(*) amounted to EUR223million compared to EUR 129 million in the first half year 2011, up by74%. Netmargin including THALES reached 11.6% compared to 9.8% in last year sameperiod.

(*) net income before amortization of Purchase Price Allocation ;afteramortization of PPA, 2012 first half year net income amounted to EUR 191millioncompared to EUR 88 million in the first half year 2011.

Financial situation

Consolidated available cash, indicator of the Group's total liquiditiesnet ofborrowings, reached EUR 3,726 million as of June 30, 2012 compared to EUR3,274million as of December 31, 2011.

Attributable equity amounted to EUR 4,372 million as of June 30, 2012comparedto EUR 4,462 million as of December 31, 2011.

Group activities

Regarding business jets, 2012 first half year was marked by the progressof theFALCON 2000S flight tests, with in particular the demonstration of lowspeedperformances better than expected, and the FALCON 900LX "steepapproach"certification.

Regarding military activities, 2012 first half year was marked by theRAFALEselection by India as the winner of MMRCA competition and the start ofexclusivenegotiations with the Indian Air Force. Indian MIRAGE 2000modernization hascontinued in the first half year 2012.

Concerning UCAV (Unmanned Combat Air Vehicle):

* ground tests continued in Istres for the Unmanned Combat Air VehiclenEUROn, as well as software integration tests in order to achieve the maidenflight in 2012. nEUROn program, with DASSAULT AVIATION as primecontractor, involves five European industrial partners,

* a preparatory study proposal for the launch of a UCAS (UnmannedCombat Air System) combat drone demonstrator was submitted to the French DGA andto the UK Ministry of Defense.

Concerning UAV MALE (Medium Altitude Long Endurance), 2012 first halfyear wasmarked by:

* the proposal to the French Government of an interim MALE drone system,based on the HERON-TP developed by IAI,

* the submission to the French DGA and the UK Ministry of Defenseof a proposal for a preparatory study for a MALE drone system in cooperationwith BAE Systems.

2012 Outlook

DASSAULT AVIATION Group expects to deliver around 65 FALCON and 11RAFALE in2012. Net sales should remain even to 2011 net sales.


Dassault Aviation : 2012 first half year results:http://hugin.info/143388/R/1629482/521910.pdf


This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Dassault Aviation via Thomson Reuters ONE

[HUG#1629482]

Contact:
Stephane Fort
Corporate Communication
Tel. : + 33 (0)1 47 11 86 90

More information on:
www.dassault-aviation.com/finance

MarketWire

Comment on this story

Share