Nexter Systems (Giat Industries subsidiary) held a Board Meeting on Tuesday, 26th February and closed the Nexter Group consolidated accounts for the 2007 financial year.
Those accounts were closed in compliance with IFRS rules.
- Current operating profits: 44 Mˆ, which represent 7,4 % of turnover
- Order in hand: 1.825 Mˆ which represents around three years of activity
Nexter Group 2007 orders intake amounted to 495 Mˆ, compared with 780 Mˆ in 2006. The drop is explained by the lack of a large export order during 2007 whereas, in 2006, a contract was obtained for 76 CAESAR® artillery systems for the Middle East. Export orders thus reached in 2007 an amount of 67 Mˆ. The 2007 domestic orders were slightly higher than the 2006 level.
Nexter Group turnover in 2007 (587 Mˆ) is decreased compared to 2006 (715 Mˆ*). This was expected and is related to the end of the Leclerc MBT deliveries to the French Army (14 vehicles against 47 in 2006), whereas the initial VBCI and CAESAR® deliveries will only start in the second half of 2008.
The main element of the 2007 financial year is the continuing improvement of the Group’s profitability. The Nexter Group operating profits were 69,9 Mˆ. "Current operating profits" (not including non-recurring elements) reached 44 Mˆ in 2007 versus 42 Mˆ in 2006. The current operating margin was up to 7,4 % against 5.8 % in 2006. The Nexter Group’s consolidated net profits were 151,1 Mˆ. This includes a considerable non-recurring part, due notably to the incorporation, for the first time, of future benefits related to carry forward tax deficits that have been transferred from Giat Industries to Nexter Systems.
These profits also take into account the high level of expenditures dedicated to research and development of new products (17 % of turnover against 13 % in 2006).
Nexter Group orders in hand amount to 1.825 Mˆ and represent around three years of activity.