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(in € millions) | Q3 2020 | Q3 2019 | Change | 9M 2020 | 9M 2019 | Change | |
Robotics | 16.3 | 13.0 | +25.8% | 47.5 | 51.4 | -7.6% | |
Aerospace | 4.7 | 9.5 | -50.6% | 16.7 | 28.3 | -41.0% | |
Structure & Disposals | 0.0 | 0.0 | n.m. | 0.0 | (0.)1 | n.m. | |
| 21.0 | 22.5 | -6.4% | 64.1 | 79.6 | -19.4% | |
Backlog end of period | 539.7 | 539.0 | +0.1% |
ECA Group recorded revenue of €21.0 million in third-quarter 2020, down only €1.5 million compared with third-quarter 2019. The Group benefited from the strong performance of the Robotics division, which partially offset the decline of the Aerospace division, adversely affected by the civil aviation crisis.
As of September 30, 2020, the Group’s backlog was up 1.7% compared with June 30, 2020. It remains at a high level of €539.7 million, i.e. five years of Group revenue.
The Robotics division recorded a strong activity recovery in the third quarter, with revenue up 25.8% to €16.3 million in third-quarter 2020. This performance benefited from the increased contribution of the naval robotics contract for the Belgian and Dutch navies.
The division’s backlog stood at €518.8 million as of September 30, 2020, up 2.0% compared with June 30, 2020. During the third quarter, the division recorded significant commercial successes, in particular a contract worth more than €20 million for the modernization of three minehunters of the Latvian Navy, which will be equipped with its UMIS drone system. With this contract, ECA Group is expanding in the the mid-life renovation market of minehunter systems. In so doing, it is demonstrating its leadership in developing innovative mine warfare solutions.
In the Aerospace division, third-quarter 2020 revenue was down 50.6% to €4.7 million. Unsurprisingly, civil aviation activities remained severely impacted in the third quarter.
The division nevertheless retained a solid backlog of €20.9 million as of September 30, 2020, down 5.4% compared with June 30, 2020.
Public tender offer under way
On September 23, 2020, Groupe Gorgé and ECA announced the contemplated merger of Groupe Gorgé with its subsidiary, preceded by a proposed simplified tender offer (OPAS) on ECA shares under its share buyback program.
The public tender offer relating to 10% of the capital opened on October 16, 2020, and will close on the evening of October 29. AMF and Euronext Paris will publish the notice of the results of the offer on November 4, 2020.
2020 outlook
The health and macroeconomic situation remains uncertain, especially in the Aerospace division, which could remain affected in the long term. Within this context, the Group is continuing to implement its restructuring plan in the assembly line production activity, while also continuing to ramp up commercial and technological synergies between its divisions.
Based on the current health and economic environment, the Group is expecting fourth-quarter 2020 revenue comparable to fourth-quarter 2019 relying on the continuation of the upward trend in the Robotics division.
