AviTrader MRO Magazine 2017-03

Finance News
17
Safran core 2016 profit up 5.4%
Safran reported adjusted revenue was €15,781m, up 1.6% yearon-year.
Adjusted revenue growth was 3.9% on an organic basis.
Adjusted recurring operating income was €2,404m, a 5.4%
increase year-on-year. Adjusted recurring operating margin of
15.2% improved by 50 basis points compared to 2015. Adjusted
net income – Group share (continuing and discontinued operations)
at €1,804m rose 21.7% compared with 2015. Free cash
flow generation was €1,091m, 17.4% higher than in 2015 and
amounting to 45% of adjusted recurring operating income. Net
debt was €1,383m as of December 31, 2016 following, notably,
a capital subscription of €750m made by Safran to equalize its
share in Airbus Safran Launchers. Civil aftermarket growth was
6.9% in USD terms in 2016 driven notably by recent CFM56,
GE90 engines spares and services. Civil aftermarket had a strong
finish to 2016 with 12.5% growth in Q4. (€1.00 = US$1.06 at
time of publication.)
MTU Aero Engines posts new record revenues and
earnings for 2016
MTU Aero Engines once again set new records in the financial
year 2016. Revenues increased by 7% to a new high of €4,732.7m
(2015: €4,435.3m). Operating profit reached €503.0m, beating
the previous year’s record by 14% (2015: €440.3m). Earnings
after tax surpassed the previous record of €306.9m, set in 2015,
growing by 13% to €345.4m. “We have thus met all of our forecast
targets – including the projected earnings that we revised
upward for the second time in October,” said Reiner Winkler, CEO
of MTU Aero Engines AG, summing up the provisional annual
results for 2016. MTU had set itself the goal of generating revenues
of around €4.7bn in 2016. The earnings forecasts were for
an adjusted EBIT of approximately €500m and an adjusted net
income of approximately €340m. (€1.00 – US$1.06 at time of
publication.)
Bombardier charts net loss of US$981m for financial
year 2016
Despite a substantial improvement over the company’s loss of
US$5.34b for the financial year 2015, Bombardier, the Canadian
plane and train manufacturer has reported continued losses
for the financial year 2016 at US$981m. While 2015’s loss was
sweetened by the announcement of as substantial order, Bombardier
Aerospace, the world’s third-largest aircraft manufacturer
had no such additional sales announcements to deliver with these
results.
The Montréal-based company’s revenue fell US$1.8bn compared
to 2015, at US$16.34bn. Based on a press release issued by
Bombardier, on a consolidated basis, the company exceeded its
2016 guidance range for EBIT before special items; improved its
year-over-year cash performance by US$778m; and delivered
approximately 200 basis points of margin improvement at its
Transportation, Business Aircraft and Aerostructures segments.
Business Aircraft’s 2016 financial performance exceeded guidance
on all fronts, delivering a total of 163 aircraft, while reaching
revenues of US$5.7bn and EBIT margins before special items
of 6.4%, a 200-basis point improvement over the prior year
Commercial Aircraft reached a historic milestone in 2016 as it
certified and brought to market both variants of the C Series aircraft,
the first all-new clean-sheet designed family of single-aisle
aircraft in the 100- to 150-seat segment in nearly 30 years. With a
total of seven aircraft delivered by year end, both the CS100 and
CS300 aircraft are delivering on their operating cost advantage,
superior operating flexibility, exceptional performance and range,
as well as passenger comfort. During the year, significant orders
solidified the C Series aircraft program in the 100- to 150-seat
category. A total of 129 firm orders and 80 options were added
to the backlog, from Delta Air Lines, Air Canada, airBaltic and Air
Tanzania, with a combined value of US$10.1 billion at list prices.
SKY Leasing completes successful launch year
In 2016, SKY Leasing, a full-service aircraft leasing company
headquartered in Dublin, Ireland, originated an initial portfolio of
18 aircraft with an appraised value of approximately US$1.0bn,
diversified globally across 14 different lessees including Aeroméxico,
China Airlines, Ethiopian Airlines, Hawaiian Airlines, Malindo
Air, and Volaris. During its launch year, SKY Leasing successfully
established itself as a creative and flexible capital provider to
airlines pursuing fleet financing solutions for both new deliveries
and existing capacity, and to established lessors seeking trading
partners with the ability to execute large portfolio acquisitions.
In 2016, SKY Leasing built on its successful track record in the
bank debt market, raising approximately US$900 million of total
financing between its previously announced warehouse financing
facility, which included eight leading global aviation banks, and
two new bilateral loans with Cathay United and Nord LB. SKY
Leasing has significant debt capital committed to finance its 2017
growth plans.
AerCap Holdings N.V. reports financial results for
2016
For the full year 2016 AerCap reported net income of
US$1,046.6m, compared with US$1,178.7m for the same period
in 2015. Net income and diluted earnings per share decreased
due to various items, including sales of older aircraft during 2015
and 2016, which reduced average lease assets by approximately
US$1.6bn. Diluted earnings per share was favorably impacted by
the repurchase of 40.7 million shares for US$1.7bn during 2015
and 2016. AirCap reported fourth-quarter 2016 net income of
US$364.7m, compared with US$264.2m for the same period in
2015. Diluted earnings per share of US$2.01, compared with
US$1.33 for the same period in 2015. Net income and diluted
earnings per share were driven by higher gains on sales and other
non-recurring items, as well as lower AeroTurbine losses.
Aircastle reports fourth-quarter and full-year 2016
results
Aircastle reported fourth-quarter 2016 net income of US$67.7m
and adjusted net income of US$70.5m. Net income for the year
ended December 31, 2016 was US$151.5m, and adjusted net
income was US$168.5m. The fourth-quarter results included
AviTrader MRO - March 2017