December 5, 2018 / 5:22 PM / 11 days ago

Latecoere cuts 2019 earnings outlook

Dec 5 (Reuters) - French aerospace equipment maker Latecoere cut its 2019 earnings outlook on Wednesday, saying additional start-up and restructuring costs would weigh on margins and cash flow.

The group, which supplies fuselages and doors to Airbus and Boeing, now expects a low single-digit recurring operating margin and a negative free cash flow for 2019.

New contracts require additional capacity, entailing start-up costs, it said.

It previously expected earnings and free cash flow to be comparable to 2017, when its adjusted recurring operating income grew 6.7 percent to 51.1 million euros ($58 million) and its free cash flow amounted to 29.4 million euros.

The group, however, confirmed its forecasts for 2018. ($1 = 0.8811 euros) (Reporting by Piotr Lipinski in Gdynia Editing by Susan Fenton)

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