CHRISTINA MACKENZIE / PARIS
Company also aims to earn more euros and spend more dollars to trim exchange losses
EADS Socata is to transfer its sales and marketing operations in March from Paris to its manufacturing site in Tarbes in south-west France to cut costs. Chief executive St‚phane Mayer says the company also aims to increase its income in euros and its spending in dollars to reduce exchange-rate losses.
"Two-thirds of our sales of the TBM700 are in the USA," Mayer says. "Although the hedging policies of our parent EADS cover us until the end of 2005, we do need to take some action ourselves."
The French company delivered 74 aircraft in 2003. While shipments of TBM700s remained static at 34 aircraft, deliveries of the TB GT piston single line fell sharply, to 40 aircraft compared with 70 the previous year. This, Mayer says, was due to "a drop in orders and the cancellation of three contracts", and as a result the TB GT line will now be built to order.
Mayer suggests the ongoing battle to gain European certification for the TBM700C2 "lost the company at least two sales" last year.
The C2 has a higher maximum take-off weight, increasing stall speed from 61kt (112km/h) to 65kt. However, the European authorities have so far refused to approve the variant's strengthened pilot and passenger seats. It has already gained approval in Australia and the USA.
Aircraft manufacturing accounted for 57% of EADS Socata's revenues in 2003, down from 60% in 2002, with the rest provided by the aerostructures business that makes parts for Airbus, ATR, Eurocopter, Dassault and Embraer aircraft.
Source: Flight International
