Zodiac Aerospace said on Tuesday it aimed to return to its historical profit levels by 2019-20 as the aircraft cabins supplier recovers from a series of profit warnings and production setbacks that dragged earnings lower in the past year.
The Paris-based maker of seats, galleys and aircraft emergency equipment forecast stable sales and a 10 to 20 per cent increase in core operating profit for its current financial year after reporting a 14.1 per cent drop in profit for 2015/16.
The chief executive Olivier Zarrouati set out a recovery plan that he described as a “three-stage rocket”, designed first to erase delivery delays and quality problems, then underpin the company’s operational performance and finally restore margins.
The last stage of the plan will involve some restructuring to remove additional costs related to the turnaround, which saw cost overruns increase by €98 million (Dh382.8m) in the past year.
Zodiac said this would bring its operating margins to the historical level of mid-double digits by 2019/20.
However, Mr Zarrouati said it was taking longer than expected to reduce excess costs, while overheads were also above forecasts.
“It is taking a long time because we are transforming industrial operations across the group,” he said.
Zodiac shares fell 3.5 per cent in early trading.
For the BEtihad Business Studio offering on its 787, Zodiac supplied the seats – dovetailed – in a 28-seat 1-2-1 configuration, all with direct aisle access.
“These are more than just business seats – even compared with the luxurious models being regularly introduced as business-class rivalry intensifies among carriers – with the Studios earning their name through offering some 20 per cent more space than the airline’s current seats,” according to Aircraft Interiors International.
Zodiac has approximately halved the number of contractors brought in to resolve a crisis at its Santa Maria seat shells plant in California, where the extent of Zodiac’s recent production problems became apparent last year.
It has also developed new assembly facilities for the shells, which are part of all modern premium aircraft seats.
On another troubled project, Zodiac said it was increasing production of toilets which have delayed deliveries of the Airbus A350, but remained near the beginning of the cost reduction path.
Mr Zarrouati said plans by Rockwell Collins to buy competing cabins supplier B/E Aerospace highlighted the importance of connectivity in modern aircraft cabins.
Although new aeroplane orders have peaked, the market for supplying seats for new jets or replacing seats on old ones is growing, he said.
Zodiac said it had received a letter of intent from an undisclosed airline for its largest ever business-class seats order.
For the financial year that ended in August, core operating profit dropped to €269.6m as the operating margin fell 1.2 percentage points to 5.2 per cent.
* Reuters
business@thenational.ae
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Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
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Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
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Power: 480hp at 6,500rpm
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The flights: You can fly from the UAE to Iceland with one stop in Europe with a variety of airlines. Return flights with Emirates from Dubai to Stockholm, then Icelandair to Reykjavik, cost from Dh4,153 return. The whole trip takes 11 hours. British Airways flies from Abu Dhabi and Dubai to Reykjavik, via London, with return flights taking 12 hours and costing from Dh2,490 return, including taxes.
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The tours: It’s often better to book a tailor-made trip through a specialist operator. UK-based Discover the World offers seven nights, self-driving, across the island from £892 (Dh4,505) per person. This includes three nights’ accommodation at Hotel Husafell near Into the Glacier, two nights at Hotel Ranga and two nights at the Icelandair Hotel Klaustur. It includes car rental, plus an iPad with itinerary and tourist information pre-loaded onto it, while activities can be booked as optional extras. More information inspiredbyiceland.com
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The biog
Hobbies: Salsa dancing “It's in my blood” and listening to music in different languages
Favourite place to travel to: “Thailand, as it's gorgeous, food is delicious, their massages are to die for!”
Favourite food: “I'm a vegetarian, so I can't get enough of salad.”
Favourite film: “I love watching documentaries, and am fascinated by nature, animals, human anatomy. I love watching to learn!”
Best spot in the UAE: “I fell in love with Fujairah and anywhere outside the big cities, where I can get some peace and get a break from the busy lifestyle”
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● Company: Bidzi
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● Industry: M&A
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
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- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.