Latecoere cuts 2019 earnings outlook

Latecoere SA

05/12/2018 17:20

Dec 5 (Reuters) - French aerospace equipment maker Latecoere
 LAEP.PA  cut its 2019 earnings outlook on Wednesday, saying
additional start-up and restructuring costs would weigh on
margins and cash flow.
    The group, which supplies fuselages and doors to Airbus
 AIR.PA  and Boeing  BA.N , now expects a low single-digit
recurring operating margin and a negative free cash flow for
2019.
    New contracts require additional capacity, entailing
start-up costs, it said.
    It previously expected earnings and free cash flow to be
comparable to 2017, when its adjusted recurring operating income
grew 6.7 percent to 51.1 million euros ($58 million) and its
free cash flow amounted to 29.4 million euros.
    The group, however, confirmed its forecasts for 2018.
($1 = 0.8811 euros)

 (Reporting by Piotr Lipinski in Gdynia
Editing by Susan Fenton)
 ((piotr.lipinski@thomsonreuters.com; +48 58 772 00 86;))