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Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 4/98 RECORD YEAR FOR DASA by Norbert Burgner After losing billions in 1995 and a tentative return to the black two years ago Daimler-Benz Aerospace to glow with "peak rates in turnover and orders". Turnover has increased by 20 per cent (from 12.7 to 15.3 billion DM) orders by 14 per cent (from 16.7 to 19.1 billion DM). According to DASA chief executive Manfred Bischoff at the company's final balance conference, "Daimler-Benz Aerospace has now become a substantial source of financial return and appreciation within the Daimler-Benz group. This is even more important since now our strategic and economic position in Germany is undisputed. However, only our permanent attractiveness to the money market will secure our long term growth." Dasa is said to have consolidated its economic position in an impressive manner if compared with difficulties that were experienced in previous years. In this context Bischoff pointed to the success of "Dolores", a competition initiative which had been frequently criticised. This initiative had made it possible to increase efficiency and lower costs by 30 per cent and had thus opened the door to transform the increased interest of many airlines in airbus planes into the equivalent financial results. However, now as always there was intense competition, which has lead for example to a 20 per cent price collapse in the plane industry. This price collapse did not allow to increase the result according to turnover and the recovered dollar. It is, however, apparent, that the Daimler daughter will conclude 1997 in the black, even if the Dasa as an entity will not meet the expected return of 12 per cent of the initial capital invested by Daimler-Benz. According to Bischoff Dasa's Airbus business is most successful with a record in orders in 1997. The European Consortium in which Dasa has a 37.9 per cent stake, has been able to raise its market share to over 40 per cent. There have been 460 new orders valued at 29.6 billion US dollars as opposed to 326 in 1997. Special interest was recognized in the 320- family, of which the A319 and A321 are assembled in Hamburg. The Daimler-Benz Aerospace Airbus GmbH will invest 300 billion DM to enable its plant in Finkenwerder to assemble eleven planes by the end of this year as opposed to six last year. Dasa's, the Airbus daughter's, turnover grew in 1997 by 40 per cent from 3.5 billion DM to 4.9 billion DM. Orders increased by 39 per cent fom 6.4 to 8.9 billion DM. Since the drastically increased interest in planes and the simultaneous co-operation of employee representatives in achieving cost cutting targets, the reduction in production staff was 3000 employees less than planned originally. By the end of 1997 the Daimler Airbus-subsidiary employed 15403 staff as opposed to 15319 in the previous year. Last year the German-French joint-venture Eurocopter (Dasa/Aerospatiale) had, according to Bischoff, developed into the biggest helicopter manufacturer with the biggest turnover worldwide. The EC 135 for civilian use has proved to be a hit with over 100 orders in only 18 months since its introduction into the market. Serial production has started for the EC 120, a light helicopter, which prospects are as promising according to the Dasa boss. For military use the contract for serial production of the fighter helicopter Tiger was signed, and in the transport helicopter program NH90 the second prototype has successfully completed its maiden flight. Eurocopter's turnover, quota consolidated, amounted to 1.13 billion DM in 1997 (1.1 billion DM in 1996). Orders were placed at 1.5 billion DM (1.4 billion DM). By the end of 1997 there were 3847 staff as opposed to 3987 in 1996. As far as military aircraft were concerned, 1997 was influenced by political decisions over the Eurofighter-program. Bischoff recognised the long term securing of key functions in the air and space industry and highly qualified positions in this area by the German government being instrumental in helping with this. The Dasa boss explained, that "courage and foresight of politicians, who made unpopular decisions to secure Germany's safety and future deserve nothing but respect". A positive vote for the Eurofighter could be seen as an important prerequisite for Dasa's successful role in a new Europe: "Without our basic abilities of the military plane construction we would have had far less weight in the reconstruction of the european aviation and space flight industry." As far as the positioning of the fighter plane, which is co-produced by Germany, Britain, Italy and Spain, Bischoff explained: "Our competitors in Russia and the USA have used every trick in the book to discredit the Eurofighter with help of their agents. They are continuing to do so, which is an excellent indication of the fact that they regard the Eurofighter as a dangerous competitor. And so they should." It's attractiveness for export already shows by being shortlisted in Norway and Greece. The turnover for military aircraft rose in 1997 by 6 per cent to 1.7 billion DM (1.6 billion DM in the previous year), the order value is said to be 2.0 billion DM (1.2 billion DM). The employment figure in this industry was 5640 (5567). Symbolic for last year's developments in Dasa's space travel program, which was responsible for supplying the second stage of the rocket, was the successful start of the new European carrier Ariane 5, after the first attempt had failed. This branch has been able to increase its turnover by ten per cent to 1.1 billion DM. In 1997 the Ariane Space Program, which has a world market share of over 50 per cent, has in all launched 16 satellites into orbit during 11 starts. This year the construction of the European laboratory module "Columbus" will start in Bremen. It is planned to dock this module with the international space station "Alpha" in 2002. Russia was supplied with the control centre for steering, navigation and data processing for their elements used in the space station at the end of 1997. That year orders had been placed at the amount of 0.8 billion DM (2.3 billion in 1996). 1946 staff were being employed by Spacetravel Infrastructure as opposed to 1919 in the year before. Bischoff reports that Dornier Satellitensysteme GmbH (Friedrichshafen), where satellite parts supplied by Dasa are being assembled, had been succesful in winning three big programs of the European space organisation ESA. Meanwhile work has started on the X-ray telescope XMM, the comet probe Rosetta and the reconstruction of the four cluster satellites, which were lost during the first start of Ariane 5. Additional impetus came from the German Parliament having given the go-ahead for the preparation of the military satellite program Trimilsat (communication), a German, British and French project. In a sonsortium under the guidance of Matra Marconi Dasa has taken on the responsibility for the satellite component. "Germany's satellite industry had until then been the only one world wide which had not had orders for a military program. That is why the decision of the approval commission is the more pleasing," explained Bischoff. In the area of strategic reconnaissance funds have not been made available yet, although Germany's Chancellor Helmut Kohl and the French President Jacques Chirac are fundamentally in agreement. " We are still working on a solution in this area that will enable us to fulfil this important task despite financial restrictions." The Daimler daughter also wants to participate in the building of world embracing satellite nets for communication and data exchange, for example as subsystem supplier. In this context Manfred Bischoff envigages Bill Gates' (Microsoft) "Teledesic Plans". Conditions for successful participation have been created through more efficient construction and co-operation sequences, as was applied for the first time with the satellite net Global Star. For this net Dornier Satellite Systems produces components for 64 satellites in all. The turnover of the satellite branch has increased by 17 per cent from 1.2 to 1.4 billion DM, orders were placed for 1.1 billion DM (1.5 billion DM). The workforce consisted of 1623 (1648) staff. The defence and civil systems area again was hit by cuts in the defence budget. However, it was still possible to take important steps to consolidate and prepare for European integration. Through alliance with the French Matra-Lagardere group there have been new business opportunities with regards to guided weapons for the Lenkflugkörpersysteme GmbH. There is a 30 per cent minority participation of the french-british joint venture Matra/BAe Dynamics. Bischoff does not forsee any competition between the distance weapon Taurus, manufactured by LFK and Matra/BAe's Storm Shadow. "I don't see competition here, but two different guided weapons, which are able to satisfy the same needs. The basic condition is that our partners receive their orders for Storm Shadow and we our orders for Taurus. Only then it makes sense to discuss optimising the situation by exchanging components or parts." In the area of defence electronic Dasa was able to take an important step towards a national bundling of strengths by acquiring Siemens Sicherungstechnik. On top of this the joint enterprise of Dasa and the Canadian Northern Telecom, the Nortel Dasa Network Systems Ltd. with its headquarters in Frankfurt, was able to achieve a major breakthrough by securing a big contract with Viag Intercom. Nortel Dasa will supply the system, technology for the new mobile broadcasting net. Turnover in the area defence and civil systems rose, according to our information, by two per cent from 2.75 billion DM to 2.8 billion DM in 1997. Orders were placed to the tune of 3.0 billion DM (2.5 billion DM), 8742 (9254) staff were employed. Bischoff was especially delighted about the final balance of "his" engine specialists, the MTU Munich. 1997 was the most successful year for the Dasa-engine daughter as far as business is concerned. Turnover increased by 30 per cent to three billion DM. The realisation of the MTU-intern competition initiative "World Class 98" has been instrumental in achieving this, according to Bischoff. As from this year the engine and turbine union will expand its maintenance services internationally. Apart from this the series production of the Eurofighter, the EJ200-engine of which is co-constructed by MTU, as systems leader for the German contingent, will be beneficial for the final balance. Last year the value of new orders were 8 billion DM (2.1 billion DM). Towards the end of 1997 MTU had 6023 (6007) staff on their payroll. Dasa-CEO Bischoff was not prepared to comment on the profits, which resulted from Daimler-Benz Aerospace business activies, before the year's final balance conference of the Daimler-group. According to conservative intern "estimates" profits of hundreds of millions can be assumed. From Page 20 of FLUG REVUE 4/98 Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 4/98 Copyright 1998 by Motor-Presse Stuttgart. All rights reserved. Last updated March 6, 1998 FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany