Latécoère is still struggling to take off again a year and a half after a massive rescue plan

The permanent move of the Latécoère factory from Toulouse-Montredon to the Czech Republic a few days ago (see opposite) has once again thrown a harsh light on the future of the former flagship of the aeronautics sector. Manufacturer of aerostructure elements (sections, aircraft doors, etc.) and cabling for the world’s major aircraft manufacturers (Airbus, Boeing, Dassault, etc.), Latécoère has been going through crises for more than ten years. From recovery plans to renegotiations of its debt, the equipment manufacturer has seen its French workforce shrink to 1,200 employees (900 in Toulouse).

Shareholders’ meeting still not held

Latécoère was counting on the increase in production rates after the covid crisis to bounce back. Unfortunately, the scenario of a return to better fortune is struggling to materialize. Despite a net rebound in turnover (+ 32% in 2023) to €615 million (compared to €467 million in 2022), profitability is still not there. “Every time Latécoère takes a part out of its factories, it loses money,” a Toulouse industrialist coldly analyzes. Losses immediately reflected in the accounts: in 2022, Latécoère’s loss plunged to – €127 million after – €112 million in 2021. In 2023 the operating profit (Ebitda) was still negative at – €31.5 million. A sign that the situation is not improving in 2024, the general meeting of shareholders scheduled for June 24 was not held and was postponed indefinitely.

$600 million injected by the American shareholder

However, the American fund Search Light Capital Partner, which holds 75% of the capital, has put in the resources. Over the last three years, he has injected 600 million dollars, including €330 million in the form of capital increases to get the company back afloat. And just a year ago, the last chance boss was put in place: the Franco-British Greg Huttner. A workaholic, his main mission is to put Latécoère back on the path to profitability. To achieve this, he took on the delicate task of renegotiating old contracts with major aircraft manufacturers, particularly on the issue of prices.

Inflation difficult to pass on

Because Latécoère suffers from the endemic illness common to large aeronautical suppliers: production costs have jumped by 15 to 20% following covid (increased prices of raw materials, surge in energy, increases in wages including in low-cost countries, etc.) . Costs that these large subcontractors were unable to reflect in their prices due to contracts that were too rigid. “It is not up to the supplier chain to absorb all the cost increases,” warned Didier Kayat, the boss of Daher, a leading aeronautical subcontractor (1.6 billion euros) at the start of the year. of activity) particularly present in Toulouse and Tarbes.

These fragilities have been highlighted by Gifas which, alongside the Banque de France, monitors 200 sensitive aeronautical suppliers, 45 of which are deemed “fragile” and 15 “very fragile and at risk of failure”. But neither Airbus nor Boeing have any interest in seeing this chain of suppliers mishandled at the risk of endangering aircraft delivery targets (770 for Airbus in 2024).