CORPORATE NEWS
AIRBUS announced details of its Power8 restructuring plan with a strong cost reduction of € 2.1bn by 2010 involving a progressive headcount layoff of 10 000 in Europe. Over four years, down staffing will include 3 700 employees at Airbus Deutschland , 4 200 at Airbus France 1 600 at Airbus UK 1 100 at Airbus CE (France) and 400 at Airbus España . Out of the total 10 000 to be let go, half of these positions are temporary or on-site subcontractors where reductions will begin immediately. The other 5 000 overhead positions affected will be direct Airbus employees but there will be no forced redundancies in France. Airbus reported that other substantial cost cutting and strict budget control measures are already underway: they include a temporary hiring freeze, an executive salary freeze for 2007, as well as significant cuts in general expenses. Airbus operates in a growth market of 22 000 new aircraft in the next 20 years. The order backlog represents about five years of future production
ALCATEL-LUCENT announced that the Group’s restructuring plan in France involves down staffing of 1 468 employees (12% of the workforce) by the end of 2008. The global plan, with a cost reduction of € 1.7 bn affects mostly the Brittany region as both the Rennes-Cesson site and Rennes-St Grégoire are to be closed. As a result of the annoucement of the plan, elected officials from the Brittany region announced that they unanimously decided in a committee to postpone payment of nearly €1.9 mn to the Group, under the form of regional aid, regarding a research program lead by the Media and Networks cluster. Alcatel, one of the founding members of the cluster is also one of its main participants
CARREFOUR announced that the Group opened its 95th Hypermarket with a sales area of 5.100 sq.m. in China in the center of Xi'an city
Groupe BOUYGUES reported a turnover increase +10% to € 26.4bn in 2006 with net results up +50% to € 1 246 mn and including sales of TPS for € 109 mn and Bouygues Telecom Caraibe for € 99 mn. Both companies had been created and developed by Bouygues. The Group also took a 25.07% stake of Alstom. Bouygues’ operational margin regarding the construction branch in 2006 increased significantly : orders at Bouygues Construction grew +38% , reservations increased +31% for Bouygues Immobilier (Real Estate) and Colas’ order books rose +18% Bouygues Construction contributed the most +15% to the Group’s turnover results
ELECTRICITE DE FRANCE SA., EDF reported global organic revenue growth + 11% to € 58 932mn in 2006 (reported growth +15.4%) and excluding non recurring operations +47.3% to € 4 227 mn. In Europe, and excluding the French market, turnover increased +19.7% and accounts for 42.2% of the total turnover. Investments increased +14.8% to € 5.9 bn and +21.5% in France. Per region, the group’s consolidated organic revenue growth performed best +24.3% in the UK (EDF Energy) to € 8 319mn and +18.1% in the rest of Europe to € 4 930 mn. In Germany (EnBW) organic growth revenue increased +14% to € 6 016mn
LVMH reported strong organic revenue growth +12% to € 13 910 mn with profit from recurring operations up +16% to € 3 172 mn and operating profit +21% to € 3 052 mn. The Group’s share of net profit increased +30% to € 1 879 mn. Per region and in Euro, revenue rose the fastest +26% in the United States (including Hawaî) +22% in Europe (+15% in France) +17% in Asia and +13% in Japan. Other regions saw revenue rise +7% Watches and Jewelry recorded the strongest revenues in the United States and in Europe while in Japan, both Wines & Spirits and Watches & Jewelry performed best. In Asia, Wines & Spirits, Perfumes & Cosmetics, Fashion & Leather Goods took in best sales.
VALEO, one of the world's leading automotive suppliers, reported total operating revenue increase +2.6% to € 10 086 mn for fiscal year 2006. As a result of the rise in cost of raw materials, gross margin fell -1.3% to 1539 mn (0.7 points) representing 15.4% of sales, compared to 16.0% in 2005. Operating margin dipped - 8.8% to €341 mn and net income per share rose +16.7% to € 2.10 The Group announced that it sold its electric motors and actuators business and logistics business to rationalize its business portfolio. To reinforce its thermal and lighting systems businesses Valeo acquired 50% of the Korean radiator manufacturer Threestar and created a joint venture in China with Ichikoh. In addition, a Memorandum of Understanding was signed with a view to purchase a thermal systems plant in North America from Ford
GAZ DE FRANCE Group (GDF), reported a record consolidated sales increase +21% to € 27.642mn in 2006 compared with the previous year. Under average weather conditions and comparable accounting methods, sales increased +24% on the same period. The group benefited from both an overall increase in European energy prices, (despite the slight price drop recorded toward the end of the year), and from an increase in volumes and the integration of new operations. Sales growth in volume fell -12 billion Kwh against last year due to a warm autumn. However, sales generated by the group’s international activities counterbalanced this negative impact and increased +33% to a total € 10.839 mn and now account for almost 40% of the group’s overall sales. Out of the Energy Supply & Services division, sales of the Exploration-Production segment jumped +46% to € 1.659 mn The Transmission & Distribution International segment saw sales increase +57% to € 3.570 mn while sales generated by the Distribution branch fell -4% in France to € 3.289 mn
IN THE NEWS
Customs officers from the Nice region reported that they seized 9 761 counterfeited luxury Carolina Herrera bags for a total estimated value € 3.9 mn while checking a truck traveling from Milan, Italy and, en route to Paris. The customs officers immediately suspected counterfeit due to the bags poor quality. The 28 year old Hungarian lorry driver was taken to the national judiciary customs Service (SNDJ) following verification procedures.
FRONTEX, the European agency in charge of control and surveillance of external borders, announced in a joint communiqué with the German Federal Ministry of the Interior, that Amazon II, a security operation taking place at 8 European airports to tackle illegal migration from South America, was initiated in mid February. A total 29 border police experts from France, Germany, Italy, the Netherlands, Portugal and Spain are part of the operation similar to a plan conducted in November last year. The Agency reported that their risk analysis has shown a major migration flow by air from South America, in majority destined to Spain and Portugal, in conjunction with the misuse of visas and other travel documents. Airports in Amsterdam, Barcelona, Frankfurt, Lisbon, Madrid, Milan, Paris, and Rome are participating in this operation and, seven border police officers from Greece, Romania, Bulgaria and Poland are taking part as observers in this multilateral operation
According to data published by the French Ministry of Finance, the trade gap widened in December of last year to € -2.922 bn as exports slightly fell due to slow car sales. However, 24 airbus aircrafts were exported in December for € 1.397 bn. In 2006, the deficit totaled € -29.211 bn, an improvement, compared with € -22.936 bn a year earlier. The Ministry’s department of statistics and economic studies rated 2006 as an exceptional year with 256 aircrafts sold for € 15.289 bn compared with 212 aircrafts a year earlier for € 13.316 bn
CONSUMER CONSUMPTION OF MANUFACTURED PRODUCTS fell -0.4% (compared with +1% in January) according to the National Office of Statistics, Insee. Sales of new cars rose +0.8% while sales of household equipment took a slight dive -1.6% (compared with +4.1% in January)
