Zodiac sees recovery in aircraft seats market

Philadelphia
Source:
This story is sourced from Pro
See more Pro news »

Zodiac Aerospace's cabin interiors segment reported a robust 10.9% organic increase in business volume during the fiscal third quarter.

The segment "was boosted by a recovery in the seats market, and also an improvement in the cabin interiors and equipment businesses", says Zodiac in its latest earnings statement.

It notes that Zodiac companies "are ramping up industrial production" for the Boeing 787 programme, and that "some of them have begun equipment deliveries". Boeing aims to certify the 787 before the end of the calendar year.

Zodiac is parent to aircraft interiors specialists C&D Zodiac, Sicma and Weber Aircraft.

Overall, the Zodiac group - which includes aerosafety and technology, and aircraft systems divisions - generated revenues of €583.3 million ($721.2 million), an increase over the €568.7 million achieved in the year-earlier quarter.

For the first nine months of the 2009/2010 fiscal year, however, consolidated revenues fell 7.6% year-over-year to €1.5 billion.

Zodiac says it expects to achieve its fiscal year objective of an operating margin of 8% based on an average exchange rate of the euro at $1.50. Meanwhile, it anticipates the economic situation in the industry to "improve significantly" during the 2010/2011 fiscal year.

"This view would appear to be confirmed by the first signs of recovery seen in air traffic and the delivery schedules of leading aircraft manufacturers. At that point, Zodiac Aerospace is likely to be able to reap the full benefit of the way it has positioned itself as a supplier to all the new aircraft programmes, and especially from the ramp-up in production volumes for the Boeing 787. It should also benefit from an improved organisational structure for Zodiac Services' after-sales businesses and from an optimised manufacturing base," adds the firm.