(News Bulletin 247) – The Toulouse aeronautical equipment manufacturer, which is in the midst of recapitalization, has sharply increased its losses despite a clear appreciation of its activity in the first half.
The French aeronautical equipment manufacturer Latécoère, in the midst of recapitalization, doubled its net loss in the first half despite strong growth in its turnover, according to a press release.
The group, which supplies aerostructures (doors and fuselage parts) and electrical wiring to customers such as Airbus and Boeing, suffered a net loss of 58.2 million euros between January and June, compared to a loss of 27. 3 million over the first six months of 2022.
Latécoère puts this down to a sharp deterioration in its loss of gross operating surplus (Ebitda), which was multiplied by more than three, to -18.4 million euros, due to “inflationary pressures ” and “continued supply chain disruptions during the ramp-up of operations.”
The financial result plunged to -9.2 million euros, weighed down by the impact of recent acquisitions and the increase in interest rates on its debt. The half-year was a “demanding period for Latécoère”, recognizes its CEO Thierry Mootz, quoted in the press release.
“Significant headwinds come from faltering performance of some of our suppliers, higher inflation on energy, raw material and labor costs, which has impacted on financial performance,” he explains.
2023 outlook revised upwards
The group’s turnover is increasing sharply, driven by the increase in aircraft manufacturers’ production rates. It jumped 42.9%, to 303.8 million euros, benefiting in particular from the activity brought by acquisitions in Mexico and even Canada.
Latécoère is revising its turnover forecasts upwards for 2023, now counting on an increase of around 35%, compared to 25% previously forecast. It also expects a “reduction in Ebitda losses in the second half”, while free cash flow (-58.3 million euros in the first half) will be affected in particular by restructuring and investment costs. .
Indebted to the tune of 370.3 million euros as of June 30, Latécoère validated a recapitalization agreement providing for the cancellation of 183 million euros in loans guaranteed by the State (PGE) and a capital increase of ” at least 100 million euros”, scheduled for the end of November.
Latécoère shares lost 15.55% on Wednesday around 3:00 p.m., bringing its annual losses to 75%.
(With AFP)
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