November 8, 2016 - 11:35 AM EST
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ASSYSTEM : Revenue for the period ended 30 September 2016, Total organic revenue growth of 5.5% for the first nine months of 2016

           

Revenue for the period ended 30 September 2016 

  • Total organic revenue growth of 5.5% for the first nine months of 2016
  • 24.5% organic revenue growth for the Automotive sector
  • Sustained growth for the Aerospace and Nuclear sectors

Paris, 8 November 2016, 5.35 p.m. - Assystem S.A. (ISIN code: FR0000074148 - ASY), a leading player in engineering, today released its consolidated revenue figures for the third quarter of 2016 and the nine months ended 30 September 2016.

Consolidated revenue for the nine months ended 30 September 2016 and year-on-year changes (unaudited)

In millions of euros Nine months ended
30 Sept. 2015
Nine months ended
30 Sept. 2016
Total year-on-year change Organic year-on-year change*
Group 666.1 701.3 +5.3% +5.5%
Global Product Solutions 384.9 424.6 +10.3% +10.6%
Energy & Infrastructure 229.6 228.7 -0.4% -0.3%
Staffing 45.7 41.3 -10.0% -10.0%
Other 5.9 6.9 - -

* Based on a comparable Group structure and constant exchange rates.

Assystem's consolidated revenue rose by a strong 5.3% in the first nine months of 2016, breaking down as 5.5% in organic growth, a 0.9% increase due to changes in scope of consolidation and a 1.1% negative currency effect.

Consolidated revenue growth slowed temporarily in the third quarter, to 1.0% (breaking down as 1.5% in organic growth, a 0.5% increase due to changes in scope of consolidation and a 1.0% negative currency effect). This slowdown was mainly due to the challenging operating context in the Oil & Gas sector hampering the revenue performance of Radicon and the Staffing business, whose contributions had a 3.0% combined adverse impact on third-quarter organic growth.

In view of the strong momentum in Assystem's three principal business sectors (Aerospace, Automotive and Nuclear) - which account for 75% of consolidated revenue - and given the relative improvement in business levels expected in the fourth quarter for Radicon and Staffing, the Group is standing by its full-year 2016 target of achieving over 5% organic revenue growth at constant exchange rates.

GLOBAL PRODUCT SOLUTIONS

Revenue generated by Global Product Solutions in the first nine months of 2016 climbed 10.3% to €424.6 million and accounted for 60.5% of the consolidated total for the period. The year-on-year growth figure reflects 10.6% in organic growth, a 1.1% increase due to changes in scope of consolidation and a 1.4% negative currency effect.

The first nine months of 2016 was another period of sustained growth for the Aerospace sector, with revenue up 4.6% to €248.9 million (6.7% organic growth), spurred by the ongoing development of support activities for manufacturing processes.

Automotive sector revenue surged 28.2% to €140.9 million (with 24.5% organic growth), led by a favourable business cycle and a market-relevant offering.

ENERGY & INFRASTRUCTURE

Revenue for the Energy & Infrastructure business edged down 0.4% in the first nine months of 2016 to €228.7 million and represented 32.6% of the consolidated total. Organic growth during the period was a negative 0.3%, changes in scope of consolidation had a positive 0.8% impact and there was a negative 0.9% currency effect.

Revenue for the Nuclear sector came to €134.3 million, with solid organic growth of 7.5% excluding the effect of a contraction in revenue generated with the Areva group (3.1% including this effect).

Other Energy & Infrastructure activities reported €94.4 million in revenue for the first nine months of 2016. This figure represents a 4.2% year-on-year decrease, stemming from the combined impact of 4.8% organic growth in Europe and a 9.0% contraction due to the steep organic revenue decline experienced by Radicon. However, after troughing in the third quarter, Radicon's revenue outlook is now much improved due to the gradual re-start of infrastructure projects in Saudi Arabia.

STAFFING

At €41.1 million (accounting for 5.9% of the consolidated total), revenue for the Staffing business was down 10.0% in the first nine months of 2016. Contrary to forecasts, the falloff in revenue in the Oil & Gas sector accelerated in the third quarter and was only slightly offset by the positive effects of the business's diversification into the industry sector.

Thanks to the growing momentum of this diversification, Staffing business levels in the fourth quarter should be significantly better than in the third quarter. However, the impairment tests that will be carried out at the 2016 year-end will probably result in a write-down of the Group's assets dedicated to the Staffing business.

HEADCOUNT

The Assystem Group had 12,169 employees at 30 September 2016, reflecting the effect of ongoing recruitments to meet high demand in its three main business sectors (Aerospace, Automotive and Nuclear).

OUTLOOK FOR FULL-YEAR 2016

As well as its target for organic revenue growth at constant exchange rates, the Group is standing by its other targets for full-year 2016, which are as follows:

  • to achieve a higher EBITA margin than the 6.4% of revenue reported in 2015;
  • to generate free cash flow representing circa 4% of revenue.

2017 FINANCIAL CALENDAR

  • 2 February:               Press release for full-year 2016 revenue
  • 8 March:                    Press release for full-year 2016 results - Presentation meeting on
                                      9 March at 11.30 a.m.
  • 27 April:                     Press release for first-quarter 2017 revenue
  • 16 May:                      Annual General Meeting

Assystem is an international group specialised in engineering. As a key participant in the industry for 50 years, Assystem supports its clients in developing their products and managing their capital expenditure throughout the product life cycle. Assystem employs some 12,200 people worldwide and generated €908 million in revenue in 2015. Assystem S.A. is listed on Euronext Paris.
For more information please visit www.assystem.com
Follow Assystem on Twitter: @Assystem

CONTACTS

Philippe Chevallier                                                                                                           Agnès Villeret
CFO & Deputy CEO                                                                                                            Komodo - [email protected]
Tel.: +33 (0)1 55 65 03 10                                                                                               Tel.: +33 (0)6 83 28 04 15

BREAKDOWN OF REVENUE BY QUARTER

In millions of euros Q1 2015 Q1 2016 Total year-on-year change Organic year-on-year change*
Group 222.3 235.8 +6.1% +5.6%
         
Global Product Solutions 127.8 142.0 +11.1% +10.3%
Energy & Infrastructure 76.9 76.8 -0.1% -0.2%
Staffing 15.5 14.6 -5.7% -5.7%
Other 2.1 2.4 - -
         

In millions of euros Q2 2015 Q2 2016 Total year-on-year change Organic year-on-year change*
Group 224.9 244.5 +8.7% +9.2%
         
Global Product Solutions 130.0 148.3 +14.1% +14.2%
Energy & Infrastructure 76.9 78.9 +2.6% +3.8%
Staffing 16.1 14.8 -8.2% -8.2%
Other 1.9 2.5 - -

In millions of euros Q3 2015 Q3 2016 Total year-on-year change Organic year-on-year change*
Group 218.8 221.0 +1.0% +1.5%
         
Global Product Solutions 127.0 134.3 +5.7% +7.1%
Energy & Infrastructure 75.8 73.0 -3.7% -4.6%
Staffing 14.1 11.7 -16.8% -16.8%
Other 1.9 2.0 - -

* Based on a comparable Group structure and constant exchange rates




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ASSYSTEM via Globenewswire


Source: Thomson Reuters ONE (November 8, 2016 - 11:35 AM EST)

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