Dassault sales, profit jump in 2017
Dassault Aviation saw operating profit jump 60%, to €348m, on net sales of €4.8bn (+34%) in 2017. Defence sales, at €1.9bn (+51%), were the major contributor to the revenue increase.
Dassault Aviation saw operating profit jump 60%, to €348m, on net sales of €4.8bn (+34%) in 2017. Defence sales, at €1.9bn (+51%), were the major contributor to the revenue increase. Falcon sales also picked up strongly, reaching €2.9bn (+25%). Net profit climbed 27%, to €489m, including a €241m contribution from Thales. The net margin dipped from 10.7% in 2016 to 10.2%
Defence sales were favourably affected by the increase in the number of Rafale deliveries to Egypt and the related delivery of new support resources, including technical assistance, spare parts and training. Eight Rafales were delivered to Egypt in 2017 versus 3 in 2016. In addition, one Rafale was delivered to France in 2017, versus six in 2016.
A total of 49 Falcons were delivered, ahead of the expected 45.
Order intake dropped sharply, to €3.2bn, compared with €9.6bn the previous year, which included the 36 Rafales for India. Export orders accounted for 82% of the total.
A total of 41 Falcons were ordered and three Falcon 5X cancelled in 2017, compared with 33 Falcons ordered and 12 Falcon 5X cancellations the previous year. The company said it was seeing a recovery in the pre-owned aircraft market, but at low prices, in a very competitive new aircraft market environment, despite signs of recovery in North America at the end of the year.
The year-end backlog dropped 7%, to €18.8bn, including 52 Falcons, down from 63, and 31 Rafales for France, 36 for India, 24 for Qatar and 10 for Egypt.
For 2018, the company is forecasting delivery of 40 Falcons, and 12 Rafales. Net sales are expected to be stable.