|Toulon, July 28, 2020, 6:00 p.m.|
ECA Group (Euronext Paris: ECASA) reports today its revenue for second-quarter and first-half 2020.
|(in € millions)||H1 20201||H1 2019||Change||Q2 2020||Q2 2019||Change|
|Structure & disposals||0.0||0.0||n.s.||0.0||0.0||n.s.|
|Backlog at end of period||531.0||545.5||-2.7%|
First-half 2020 revenue was heavily affected by the Covid-19 pandemic. As expected, the drop in revenue was due both to the sharp downturn in the aeronautics market and the impact of health measures on production and project execution. First-half 2020 revenue for ECA Group was down 24.5% to €43.1 million, including a 42.8% decline in second-quarter 2020.
At June 30, 2020, the Group's backlog was at a high level of €531 million. The Group maintained strong business momentum in second-quarter 2020; excluding the Belgian-Dutch contract, orders booked in that period were higher than those booked in second-quarter 2019.
In the Robotics division, revenue was down 18.9% to €31.1 million in first-half 2020, including a 36.7% decline in second-quarter 2020. This decline was mainly due to a strong base effect, but also to a quarter marked by a heavier workload in design phase than in production phase for projects under way.
The division's backlog stood at €508.9 million at June 30, 2020, up 2.8% compared to March 31, 2020. During the second quarter, the division recorded significant commercial successes, in particular a contract worth about €4 million for the supply of steering consoles for the South Korean submarine JANGBOGO III, together with an export contract worth nearly €20 million to modernize robots dedicated to mine countermeasures.
In the Aerospace division, revenue posted a decline of 36.1% in first-half 2020, totaling €12 million. The health crisis implied a strong reduction in activities for aeronautics customers.
The division's backlog stood at €22.1 million at June 30, 2020, up 9.1% compared to March 31, 2020. Orders booked in the second quarter of 2020 were stable compared to second-quarter 2019, in particular with an order worth more than €3 million for testing means for aeronautic assembly lines.
The health situation and macroeconomic environment remain uncertain, especially in the Aerospace division, which could be affected in the long term. In this context, the Group will accelerate its plan launched in 2018 to implement commercial and technology synergies between its divisions.
The business slowdown will affect the profitability of the first-half year. Moreover, the Group is conducting an in-depth review of the consequences of the crisis and, in particular, any impairment losses. This depreciation would have no effect on cash.
The Group is confident in its outlook and expects revenue to recover in second-half 2020, while remaining cautious with respect to uncertainties linked to the macroeconomic environment. The Group has an excellent backlog of more than four years of revenue, a solid financial position with available cash of €24 million at June 30, 2020, and is positioned on markets – in particular defense– that should be preserved in the short and medium term.
Thus, ECA Group is expecting to sign an export contract worth more than €20 million in third-quarter 2020, for the supply of mine countermeasure systems. This new four-year project reflects the strong momentum of the Group's technologies.
Next financial release
First-half 2020 results released on Tuesday, September 22, 2020, after market closing.
Guénaël Guillerme, Chief Executive Officer, and Loïc Le Berre, Groupe Gorgé Chief Finance Officer, will comment on ECA Group's results at this time and answer questions from the financial community during a conference call in French starting on Wednesday, September 23 at 11:30 a.m.
Conference call details will be available one week before the conference in the Investor Relations section of ECA Group's website: https://www.ecagroup.com/en/investors/documents
A presentation and replay of the conference call will be available on ECA Group's website, www.ecagroup.com.
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Forward looking statement
This press release could contain statements on past events and forward-looking statements including statements regarding future goals or targets. Forward-looking statements reflect current expectations for results and future events.
Such forward-looking statements and targets depend on known and unknown risks, uncertainties and other factors that may cause actual results, performance or events to differ materially from those anticipated herein. All these risks and uncertainties could affect the Group's future ability to achieve its targets. Risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements and targets include, among other things: the risks and uncertainties mentioned in the press release; the strength of competition; the continuing growth of the market; currency fluctuations; interest rate fluctuations; raw material price fluctuations; armed conflicts or political instability; control of costs and expenses; changes in tax legislation, rules, regulation or enforcement; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel and key personnel; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements; supply chain and manufacturing bottlenecks; the performance of our business partners (subcontractors, agents, suppliers, etc.).
Some of these risk factors are set forth and detailed in our Universal Registration Document including the annual financial report filed with the French Autorité des Marchés Financiers). This list of risks, uncertainties and other factors is not limitative. Other non- anticipated, unknown or unforeseeable factors could also have material adverse effect on our targets.
Recognized for its expertise in robotics, automation systems, simulation and industrial processes, ECA Group has been developing complete, innovative technological solutions for complex missions in hostile and confined environments since 1936. Its product offering is designed for an international client base that is demanding, both in terms of safety and effectiveness. The Group's main markets are in the defense, maritime, aeronautics, simulation, industrial and energy sectors.
In 2019, the Group reported revenue of €112.5 million across its two divisions: Robotics and Aerospace.
ECA Group is a Groupe Gorgé company.
The ECA Group is listed on Euronext Paris Compartment B.
ISIN Code: FR0010099515 | Ticker Code: ECASA – Bloomberg Code: ECASA
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 Unaudited figures.