Half Year 2024 Dassault Aviation SA Earnings Call Transcript
Key Points
- Dassault Aviation SA (DUAVF) has secured orders for 95 Rafale aircraft, including 18 additional orders from Indonesia, indicating strong demand for its military aircraft.
- The company is making significant progress in its Future Combat Air System project, collaborating with German, Spanish, and French teams to advance to Phase B and build the first demonstrator.
- The Falcon 6X aircraft has demonstrated excellent reliability with over 400 flights and 600 flying hours, receiving positive feedback for its comfort and performance.
- Dassault Aviation SA (DUAVF) is committed to carbon neutrality, actively working with Paris Airport to reduce CO2 emissions and promoting the use of Sustainable Aviation Fuel (SAF).
- The company is undertaking a strong recruitment effort, planning to hire 2,000 people in 2024, with over 1,000 already recruited in the first half of the year, to support its production pace and replace retiring employees.
- Dassault Aviation SA (DUAVF) is facing significant supply chain challenges, particularly in aerostructures and small equipment, leading to delays in assembly lines and aircraft deliveries.
- The sluggish market for Falcon aircraft, with only 11 orders compared to 12 last year, is attributed to delays in certification and supply chain issues affecting the 6X and 10X models.
- The company is experiencing financial strain due to price increases from suppliers, impacting its ability to deliver aircraft on time and manage costs effectively.
- Despite efforts to modernize its industrial infrastructure, Dassault Aviation SA (DUAVF) is still dealing with challenges in transferring operations from Argenteuil to Cergy, expected to complete by the end of 2024.
- The European Commission has not accepted Dassault Aviation SA (DUAVF) in the European taxonomy for civil aviation, despite its commitment to reducing carbon emissions by 2050, leading to ongoing procedural disputes.
Good afternoon. Thank you for coming for this presentation of our half yearly accounts. And thanks to those who are online, who are not here on the barge. So we're going to go back to wars, to sea or rivers, the war is still at our doors in Ukraine. It is still in the Middle East which is creating this tension.
And therefore, this war coming that was ruled by the French President of the Republic and we are part of it. We are prioritizing the production of Rafale in France and for the armed forces for export. There were elections in Europe and in France. And today, there is an idea of this government. We don't know what's going to happen.
There's a lot of uncertainty, a lot of concern but waiting for the coming weeks. The elections in the United States are disturbed by the fact that President Biden has decided not to represent himself. Here again, there will be a lot of things happening in the coming months.
Now let's go back to aeronautics, the highlights, the entry into force. We've said several
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