Article pusblished in Les Echos this morning, still like ZC, find these levels interesting 23.50 look to be a strong supprot level, 200dMA areound the 22.30 levle is another, Sector as rerated vs the market could see some Op to come on next coming weeks...ZC reporting Q2 salees on the 19th (next week), buy the stock to play rebound on the 25.7 levels (7% higher) first target.
Laurent
With Zodiac, niches ascend to heaven
Slides relief seats through electrical systems, the OEM has stepped acquisitions to offer a full range airlines.
The images have a hard life. Ask anyone around you on Zodiac, and you will inevitably meet boats, fishing, creeks ... Unless, of course, investors whose share increased by 40% per year for five years and who had satisfaction to fly with it. Zodiac is indeed an aerospace company - born in 1896, is the oldest existing even today. When she was already making airships, Boeing was still a lumber merchant and boats.
For those were just a Zodiac boat launched distress at sea when she encountered difficulties in the air. Bled after the war, when she came out of her boxes patent inflatable vessel filed in 1933 which allowed him to recover his health by surfing the civilization of leisure "sixties." The company manufactured its stocks in winter and flowed in August. 31 this month was therefore the only year where Zodiac can present a correct balance its bankers, which is why, incidentally, its exercise is always shifted and ended.
If the French sold its famous craft of investment funds in 2007, it is because in redécollant, aviation had taken such an altitude that it required the attention of the driver. Vessels accounted for only € 400 million on a turnover of 2.4 billion, and sales reported 1.3 billion. What continue to fuel the machine's growth strategy developed by the charismatic Jean-Louis Gerondeau, predecessor of the current CEO , Olivier Zarrouati. Two years after his appointment in 2007, the X-Supaero earned his first stripes repelling the onslaught of Safran, arguing that it would be better alone than in bad company.
Complexity of standards
This is rummaging wedges acquisition who signed his comeback in aviation, the Aerazur in 1978 that Zodiac has found the secret on which he built his fortune. Aerazur was a bit of everything, parachutes, stop barriers in textile, inner tank and small inflatable safety products, belts, slides ... It is against this mess that the strategic idea of niches was born in the spirit of Jean-Louis Gérondeau recruited in 1974. Coexist in a plane almost all technologies invented by man, metallurgy, composite materials, electricity, and they coexist without, necessarily, need to communicate. This gives many "niches" both small and numerous. Once conquered, they are difficult to resume their best guard dogs is the complexity of the standards that govern them. An inflatable system or a "galley" (Zodiac is the global leader of these trucks used to transport food and juices), it seems simple and it does not cost anything at Ikea. But when it comes to sending them to the air, it must meet a number of documents, compilation of all the teachings of all crashes, and which alone can fill an entire room. "The subject is less impenetrable if you're not born into it, "says Olivier Zarrouati. Fort slides recovered Aerazur, the French will be added those of the U.S. Air Cruisers, becoming the world number one. Thus, all Aerazur assets grew and embellished before Zodiac not attack other less visible golf cab. It is in this offensive aided by the very favorable wind conditions of air transport. In a market that grows 4 to 5% per year, Zodiac moves faster, allowing him to target a rate of 7 to 8% of organic growth , which adds an average of 7% external growth by multiplying acquisitions through its cash as well as its inflated slides. In total, he has absorbed more than 35 companies since 1978, all integrated with a recognized expertise in the industry: "As in Rome, the appended populations immediately become citizens of the Empire. "
In 1999, with the resumption of INTERTECHNIQUE, Zodiac brings in his nets not only his current boss, but also doubles its size being enriched with a variety of systems for the distribution of electricity and fuel, to oxygen masks and future entertainment systems onboard. By acquiring the British Outline, specialist chairs first class, he became the world number one in all categories seat and controls a third of the market nearly 3 billion. An investment of 6 to € 700 million for its upscale, Air France devotes 105 to provide more than 2,000 new seats in its passenger business, a bed of 1.96 meters to 50,000 euros each, a Zodiac exclusive originally as the seat eco lightest on the market: 7.5 kilos each.
10% more passengers
Seats, kitchens, toilets, door frames, in total the manufacturer can provide almost the entire cabin, and thus integrate and optimize the use of times more expensive than real estate Paris 50 space. The latest innovations allow him to stay home up to 10% more passengers. What attract airlines, which have almost the comfort of their cabins to differentiate themselves and engage in a battle to attract highly profitable passengers' classes before, "fill up the" rear classes "and travel as light as possible to save fuel. Offering them the opportunity to improve their performance immediately, without waiting for the delivery of new equipment, Zodiac has everything to seduce.
Increasing the share of its business with companies, the supplier reduces its dependence on only manufacturers, increases profitability and speed. The group believes that, if it continues at this rate, $ 10 billion in sales is not out of reach: "Obviously, we do not touch the edges of the aquarium, you can still grow, "says Zarrouati. When the 10 billion will be achieved, it will be time, then, to possibly revise the model, to be inspired by the American example UTC, which, after grown in aeronautics, became a giant conditioning air and lifts, another way to climb. The stability of the family shareholding help to do away with 40% of voting rights are held by descendants of the founders and those who joined them.
The surge in emerging market does not make a Zodiac Ayatollah offshoring, it does not count over 50% production in Tunisia, Thailand and Mexico, and is not in China: "There are no interest to seek China hypothetical half dollar extra hour at the cost of millions of euros per year overhead ", especially as Zodiac is a small business series: he built 10 aircraft per day worldwide. So it preserves its traditional French and American bases, even at the price of accommodation. A Loches (Indre-et-Loire), a 10,000 square meters modernized factory now houses more employees than the institution that preceded and was double its surface. Maintaining these bases is of course permitted by the group's growth, but it's not just patriotism. Many older aircraft still flying, and industrial matters affecting them were much less extensive than today. To maintain or redevelop, memory and know-how that comes is therefore essential. "It floats, it rises, it flies, on plane" already marveled Maupassant, carried by the airship Maurice Mallet, aeronaut, founder of Zodiac. Long as it lasts.