FRENCH-GERMAN helicopter builder Eurocopter aims to break even in 1997 and turn a profit in 1998, despite recording another year of heavy losses.
The Aerospatiale/Daimler-Benz helicopter joint venture reported a tenfold rise in losses to above Fr3.9 billion ($770 million) in 1995, although the figure includes a goodwill write-off of Fr2.5 billion, to clean up the company's balance sheet ahead of new European accounting rules.
Eurocopter also made a provision of Fr780 million to cover further restructuring measures and set aside Fr250 million for foreign-exchange risks, based on a rate of Fr5 to the dollar.
Revenues edged up slightly, to Fr9.3 billion, and Eurocopter chairman Jean-Francois Bigay is striving to maintain sales around this level while cutting costs. He is seeking annual savings of Fr700 million by 1998, including the shedding of the equivalent of850 jobs in France and Germany, out of a total workforce of 9,380.
Source: Flight International
