Brief: Latecoere Aims To Improve 2021 Recurring EBITDA By 20% YoY

Latecoere SA

16/03/2021 06:24

March 16 (Reuters) - Latecoere SA  LAEP.PA :
    * REPORTS FY 2020 RESULTS
    * 2021 EXPECTED TO REMAIN CHALLENGING
    * FY 2020 RECURRING EBITDA AMOUNTED TO € -42.6 MILLION, REPRESENTING A
MARGIN OF
-10% VERSUS +6.7% IN 2019
    * FY NET LOSS EUR 189.6 MILLION VERSUS LOSS EUR 32.9 MILLION YEAR AGO
    * FY21 OUTLOOK: REVENUE TO BE AROUND 25% BELOW 2020 ON AN ORGANIC BASIS. THE
FULL
YEAR CONTRIBUTION OF THE BOMBARDIER EWIS ACQUISITION WILL REDUCE THE
YEAR-ON-YEAR IMPACT TO APPROXIMATELY -10%
    * IN 2020, THE GROUP REDUCED ITS WORKFORCE BY 26% (1475 EMPLOYEES), PENDING
THE
IMPLEMENTATION OF THE FRENCH SOCIAL PLAN IN 2021
    * FY21 OUTLOOK: RECURRING EBITDA TO IMPROVE BY 20% FROM FY 2020 LEVELS
DEMONSTRATING THE STRONG FUNDAMENTALS OF THE BUSINESS AS IT COMPLETES THE
ADAPTATION PLAN, HOWEVER IT IS LIKELY TO REMAIN NEGATIVE
    * FY21 OUTLOOK: OPERATING FREE CASH FLOW WILL REMAIN NEGATIVE MAINLY AS A
RESULT
OF THE ROLL OUT OF THE ADAPTATION PLAN.
    * THE GROUP TO ADAPT ITS RESOURCE LEVELS TO THE FORECASTED CUSTOMER NEEDS
    * COVID-19 PANDEMIC HAS CAUSED A COLLAPSE OF AIR TRAFFIC IN 2020, LEADING
LATÉCOÈRE CUSTOMERS TO MATERIALLY REDUCE THEIR PRODUCTION REQUIREMENTS
    * LATECOERE - END-2020 OPERATING FREE CASH FLOW WAS €-22.5 MILLION (COMPARED
TO
€4.8 MILLION FOR 2019)
    * FROM A FINANCIAL PERSPECTIVE, COVID-19 HAS CLEARLY HAD A VERY NEGATIVE
IMPACT ON
OUR 2020 PERFORMANCE
    * END-2020 NET DEBT INCREASED TO €-147.6 MILLION COMPARED TO €-115.8 MILLION
AT
THE END OF 2019


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