Home »Business and Economy » World » Eurocopter says civil recovery hampered by glut

  • News Desk
  • Jan 21st, 2010
  • Comments Off on Eurocopter says civil recovery hampered by glut
The world's largest civil helicopter maker, Eurocopter, predicted low demand in 2010, and said recovery would be delayed by a glut of over 1,000 second-hand machines on sale in the wake of the economic crisis. Orders for civil helicopters suffered a record drop last year, but the value of net orders won by the European company rose 18 percent to 5.8 billion euros ($8.24 billion) as the balance of demand shifted away from light civil to heavier military and oil rig vehicles.

"Orders for civil helicopters are expected to remain low," the EADS subsidiary said in a 2009 review. "I think the market will start to recover in the second half of 2010 or early 2011," Eurocopter Chief Executive Lutz Bertling told a news conference. Total net orders for new helicopters more than halved in volume terms to 344 units in 2009 from 715 the year before, mainly due to the civil business, which also saw hefty deferrals.

Bertling predicted 300-400 orders in 2010, adding the recovery would be delayed by the fact that most second-hand helicopters that have flooded onto the market during the economic downturn are recent models built in 2007 to 2009. Eurocopter revenues rose to 4.6 billion euros from 4.5 billion euros in 2008.

Eurocopter declined to comment on its operating figures ahead of parent EADS results, due in March, but Bertling said he was "more than satisfied" with the performance. Bertling forecast stable revenues in 2010, saying any increase would most likely be restricted to inflation.

The company delivered 558 helicopters in 2009, down by 30 from the year before. Eurocopter makes 52 percent of its revenue from civil activities with the rest from defence. Its Tiger helicopter was deployed by France in Afghanistan last year. Brazil, France and Iraq ordered Eurocopter military helicopters last year.

Copyright Reuters, 2010


the author

Top
Close
Close