Asian footprint pays off for Eurocopter

Eurocopter is putting a positive spin on its 2010 results despite its order intake falling back to a similar level as before the boom years of 2007-09.

Speaking to reporters in Paris on 24 January, Eurocopter president and CEO, Lutz Bertling, revealed the company had taken orders for 346 new helicopters in 2010 to the value of €4.3 billion. This compares to €6.6 billion in 2007 and €5.8 billion in 2009.

However, the company increased its turnover by 6% despite delivering fewer helicopters in 2010.

‘That’s not a bad result in this financial environment,’ Bertling said.

‘The number of deliveries was down – 527 in 2010 versus 558 in 2009 – but turnover increased to €4.8 billion. That is reflective of the fact the mix is changing and customers are buying more heavy and medium helicopters. So we are delivering fewer helicopters but generating more turnover.’

Bertling said the recovery of the civil helicopter market ‘was not there yet’, with the US market in particular not expected to pick up until the end of this year or first quarter of 2012. Pressure on military budgets also continued to hamper sales.

Eurocopter’s strategy of increasing its international footprint through joint ventures and co-operation agreements appears to be paying dividends, with sales in Asia in particular compensating for the slow US market.

While North America and Europe normally account for 70% of the market share, orders for 71 aircraft across Asia, to the value of €811 million, places the region in first place in terms of sales, with the US trailing with €435 million in bookings for 111 aircraft.

This trend is forecast to continue in the near term and Eurocopter is looking to increase its footprint in China on the back of the much-awaited decision to loosen the restrictions on the country’s airspace for civil operators.

Bertling said such a move had been included in Beijing's latest five year plan and the company was eyeing significant market growth in the region as a result.

Looking to activities for the coming 12 months, Bertling said the company would launch development of the X4 replacement for the EC155 Dauphin with a decision by the French government on the level of state funding for the project expected this quarter.

‘The X4 will be a game changer… we will set new standards of technology – the way the aircraft flies will be completely different and the cockpit as we know it now might not exist anymore. But I won’t say anymore than that.’

The company is also planning on exhibiting the X3 hybrid aircraft at the Paris Air Show in June as it begins to market the benefits of the aircraft’s unique configuration.

Although he did not refer to the Sikorsky X2 coaxial demonstrator by name, Bertling said Eurocopter was ‘not in a speed race’ and instead intended to highlight the increased productivity of a machine that would be 50% faster at a 20-25% increase in cost.

By Tony Skinner, Paris