8.31.2010: 2010 H1 Results


The CS Board Meeting, held on August 31, 2010 and chaired by Mr. Yazid Sabeg, approved the Company financial statements for first half 2010.


First-half results 2010 (1)

Chiffres d'affaires en M€

 

In € million

H1 2009

H2 2009

2009

H1 2010

Order intakes

75.6

129.9

205.5

84.8

Revenues

 108.4

 97.2

205.6

95.0

Operating margin
%
of revenues

 -2.5
-2.3%

 0.5
+0.6%

-2.0
-1.0%

 -5.0
-5.3%

Operating income
En % du CA

 -3.9
-3.6%

 -7.3
-7.5%

-11.2
-5.4%

-7.8
-8.2
%

Before-tax income from ongoing operations
% of revenues

 -5.1
-4.7%

 -6.7
-6.9%

-11.8
-5.7%

 -9.7
-10.2
%

Net income

 -5.5

-15.4

-20.9

-10.9

(1) The accounts have been submitted to a limited review of the auditors.
 


The Group posted first-half 2010 revenues of €95.0 million, down 12.3% compared to first-half 2009.

In France, revenues totalled €68.3 million, down 13.6% compared to first-half 2009 level. Abroad, the Group registered €26.7 million of revenues, 28% of total revenues, down 9% from year ago level, due to the completion of integration projects. On the other hand, Group subsidiaries revenues increased in Romania, Germany and Canada, led by aircraft business.

First-half 2010 order intakes reached €84.8 million, up 12.2% compared to first-half 2009. Backlog represented 16 months of revenues.

In first-half 2010, the Group’s operating margin totalled €-5.0 million, or -5.3% of revenues, due to lower volume and intensification of self-financed R&D expenses (€1.7 million on first-half 2010 versus €1.8 million for the whole year 2009).

« Other operating expenses and income » reached €-2.8 million (€-1.4 million on June 30, 2009), of which €1.8 million for restructuring costs (€1.3 million on June 30, 2009). Operating income amounted to €-7.8 million versus €-3.9 million on June 30, 2009.

After taking into account the financial result (€-1.8 million versus €-1.2 million on June 30, 2009) and income taxes, net income amounted to €-10.9 million versus €-5.5 million on June 30, 2009.

Working capital requirement was stable at €-23.9 M€ versus €-23.6 million on December 31, 2009 and net cash level reached €31.9 million (€45.4 million on June 30, 2009). The gearing ratio was -41% (-54% on December 31, 2009 and -42% on June 30, 2009).

On June 30, 2010, consolidated stockholders equity amounts to €48.0 million.


Workforce (2)

As of June 30, 2010, the total number of employees was 2,112 versus 2,096 as of December 31, 2009 and 2,061 as of June 30, 2009. The group recruited 131 new staff while turnover was 5.0% (5.6% on H1 2009). The average occupation rate was 81.4% (81.1% over the year 2009, and 80.3% on H1 2009). 

(2) Excluding toll cashiers in Chile.


Performances by operating segments

Defense, Space & Security: penalized by French State program downsizing

Chiffres d'affaires en M€

 

In € million

H1 2009

H2 2009

2009

H1 2010

Revenues

49.6

43.3

92.9

41.7

Operating margin
% of revenues

-0.8
-1.5%

-1.3
-3.0%

-2.1
-2.2%

-3.3
-7.9%

 


French State program downsizing (closure of some air bases) and the completion of abroad integration projects have impacted both revenues and profitability. With backlog at 23.1 months of revenues and thanks to business under negotiation, a rebound of orders and revenues can be anticipated in second-half 2010. The Group is also strengthening the control of selling and R&D costs in order to reduce operational losses.


Aeronautics, Energy & Industry: levelling off after a very good year 2009

Chiffres d'affaires en M€

 

In € million

H1 2009

H2 2009

2009

H1 2010

Revenues

34.2

33.6

67,8

34.2

Operating margin
En % du CA

1.3
3.8%

3.0
8.9%

4,3
6.3%

0.4
1.2%

 


Following a 10% growth in 2009, this activity recorded stable revenues in first-half 2010. Foreign subsidiaries have been growing, with an expansion of embedded systems activities in North America. The Group is targeting an improvement in its operating margin for second-half 2010 (compared to first-half) and increased revenues thanks to technical and commercial investments made on high value-added offers (HPC, simulation, digital mock up and PLM) and productivity optimization.


Transportation: continuing investment and profitability recovery

Chiffres d'affaires en M€

 

In € million

H1 2009

H2 2009

2009

H1 2010

Revenues

18.3

13.6

31.9

14.0

Operating margin
% of revenues

-2.3
-12.8%

-2.4
-17.6%

-4.7
-14.7%

-1.3
-9.3%

 


The Group has been delivering its margins recovery plan while realizing the necessary technical investments to address a very active market. With the signing of the Port Mann Bridge free-flow project in Vancouver and new projects in Greece and Poland, €25.5 million of orders were registered during first-half 2010. During second-half 2010, the Group should register a revenue growth and a new reduction of its operational loss.


Products*: order intakes growth and good R&D progress

Chiffres d'affaires en M€

 

In € million

H1 2009

H2 2009

2009

H1 2010

Revenues

5.2

6.7

11.9

5.7

Operating margin
% of revenues

0.0
0.0%

1.3
19.4%

1.3
10.9%

-0.6
-10.5%

 


This activity recorded a significant growth in order intakes and revenues, thanks to innovative solutions in the field of tactical data links and training forces. First-half 2010 R&D investments have temporarily impacted profitability, which should be positive in second-half 2010.                          

* 2008 & 2009 figures restated of the transfer the Department of Virtual Reality from Aeronautics, Energy, Industry Activity to Products Activity since January 1, 2010.


2010 outlook

With second-half 2010, the company is targeting a rebound of its order intakes and an increase of its revenues which should allow it reducing its operating loss compared to first-half 2010 level. The Group plans positive cash net of debts, as of December 31, 2010.

Besides business actions plans for each activity to restore operating profitability, the Board asked the corporate management to propose, by end 2010, various scenarios to strengthen the Group’s financial structure in order to speed off its recovery. 

Next release: Q3 revenues, November 9, 2010 after stock market closing.


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