Snecma president Jean-Paul Bechat says that the group is back in profit and may not need to pursue its long-running call for fresh cash from the French Government. He also confirms that the re-organised group is keen to grow.
Final figures for 1997 are not yet available, but Bechat says that he expects to turn around years of losses with a group profit of slightly more than Fr500 million ($80 million). Losses had come in at Fr280 million in 1996.
He says that, because of the improved results, there is "no immediate need" for the Fr2 billion ($330 million) of state cash which the group had previously requested. "We are no longer on the list of priorities for recapitalisation," he says, adding that the group's capital base ended 1997 at around Fr500 million and will come close to doubling again over the first half of the year.
The turnaround follows a strong surge in sales, which in 1997 climbed by 23% to Fr23 billion. Forecasts for 1998 show another rise to Fr28 billion, with profits increasing to Fr700-750 million.
The improvement has been led by the civil-airliner business, with 750 CFM56 engines turned out in 1997 and another 1,050 due this year. "We expect this rhythm to continue for at least two or three years," says CFM International president Gerard Laviec. Snecma's military business remained "stagnant" with less than Fr5 billion-worth of new orders in 1997.
The figures also reflect a major re-organisation at Snecma during a year in which the group absorbed the whole of rocket-engine manufacturer SEP and merged its Carbone Industries unit with the Messier-Bugatti brakes business. Snecma also acquired the TI Group's half-share in landing-gear company Messier-Dowty. Snecma Services, a new Fr3.5 billion engine maintenance division, was launched in January, and is expected to grow "significantly", says Bechat.
He also says that the group would be "very interested"in French helicopter-engine maker Turboméca if it came to market.
Source: Flight International
