Latecoere: set for worst day ever after 2019 outlook cut

Latecoere SA

06/12/2018 09:06

** Shares in French aircraft supplier  LAEP.PA  fall 21%
after co cut its 2019 financial outlook  urn:newsml:reuters.com:*:nL8N1YA51F
    ** Co says expects a low single-digit recurring operating
margin and a negative free cash flow for 2019 due to additional
start-up and restructuring costs
    ** Stock on track for worst day ever since market debut in
1980s
    ** In terms of margins, the objective of a return in 2019 to
2017 margin levels is totally challenged - Midcap Partners 
    ** Brokerage anticipates a 2019 recurring operating margin
only slightly above than the level it forecasts for 2018, and
FCF will remain significantly negative
    ** Midcap Partners maintains rating 'buy', saying co's
restored commercial dynamism and profound transformation at the
industrial level will promote a powerful boost starting from
2020
    

 (masha.trybus@thomsonreuters.com)