Dassault Aviation posts 37-percent growth in net profits

Dassault Aviation posted a 37-percent growth in net profits to 170 million euros (221 million U.S. dollars) during the first half of 2010 compared with the same period last year, the company said Thursday.

Dassault's operating profit in the first six months of 2010 reached 248 million euros, up by 104 percent compared to 2009.

Meanwhile, the French airplane manufacturer's operating margin improved to 12.4 percent from an 8.7-percent growth a year ago, while the group's first-half revenue surged 44 percent to 1.99 billion euros.

The company received orders in the first half of 2010 for two Falcon business jets and delivered 45 Falcons and five Rafale fighter jets during the period.

Despite the increase in deliveries and gains in revenue, Charles Edelstenne, chairman of the group, expressed concern for Dassault's business in the second half of 2010.

"Even though Falcon orders cancellations pace is decreasing, new orders are taking time to pick up again," Edelstenne said in a statement.

The chairman also said that increased national debts will lead to defense budgets restrictions, notably in France.

Orders for 56 Falcon aircraft were canceled in the first half of 2009, heavily impacted the group's yearly results.

Dassault said it expects 2010 net sales to be comparable to those of 2009"with deliveries of the order of 85 Falcons and 11 Rafales."

However, the group said it doesn't expect a short-term recovery in the business aviation market due to the rich stock of used aircraft around the world.

Source: Xinhua