LISI Group reported consolidated sales of €1.3 billion for the first nine months of 2019 – an increase of +6.3% compared with the same period in 2018. At constant scope and exchange rates, sales increased +3.9%.
Third quarter consolidated sales were €412 million, up +6.7% on the same quarter in 2018 but down -6.6% quarter-on-quarter. The Group confirmed positive organic growth since the beginning of the year driven, by its aerospace and medical divisions.
On a like for like and CER basis, LISI Automotive, which contributes 35% of Group sales, returned marginally to organic growth (+0.6%) in the third quarter, but the year to date cumulative position remained negative (-4%). The net effect of acquiring Hi-Vol Products Inc in North America (October 2018) and disposing of Beteo in Germany (December 2018) was €25.5 million additional sales up to September 2019. Net sales for the ninth months were €448.3 million (2018: €437.1 million).
LISI reckons global automotive sales declined -5.6% in the first nine months of 2019. China declined -10.3%; Europe did better at -1.6%. However, Quarter 3 2018 was a low base for the European automotive industry because of the introduction of WLTP environmental standards.
By contrast, LISI Aerospace (57% of Group sales) reported +9.3% organic growth in the third quarter, and +8.5% cumulative (like for like and CER). Nine month net sales were €741.8 million (2018 same period: €687.1 million). Growth reflected accelerated demand for fasteners from the European aerospace sector as single aisle production recovered. LISI also saw “good momentum” in North America, despite lower demand from the Boeing 737-Max programme, which is expected to negatively impact LISI sales by €15 million – €20 million during 2019. LISI expects this, and the disposal of Indraero-Siren and Crueset Morroco in July, to be offset by sustained activity in aero engines, business jets, defence and helicopters. LISI says long-term prospects for the global aerospace market remain strong.
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.