Dassault Aviation Faces Challenges in Meeting Delivery Targets

French aircraft manufacturer Dassault Aviation experienced a decline in shares on Monday, following lower-than-expected deliveries of its Rafale and Falcon jets last year. The company cited ongoing supply-chain disruptions as the main culprit for the decreased output.

In 2022, Dassault Aviation managed to deliver 13 Rafale fighter jets and 26 Falcon business jets to customers, falling short of its initial guidance of 15 Rafales and 35 Falcons. The aerospace industry has been grappling with supply-chain challenges for several months, causing difficulties in sourcing spare parts and raw materials.

Analysts from Berenberg commented on the figures, highlighting the persistent obstacles faced by the aerospace supply chain. They noted that both Falcon business jet and Rafale combat aircraft deliveries were below expectations.

As a result of these developments, Dassault Aviation shares traded approximately 5.7% lower at EUR178.90 as of 0900 GMT. This is a significant drop from the stock's value of around EUR153.00 in mid-January last year.

Looking back at the numbers, Dassault Aviation received a total of 60 Rafale orders last year, with 42 coming from France and 18 from Indonesia. This is in comparison to the 92 orders received in 2022. For the Falcon, the company reported 23 orders, down from the 64 received in 2022.

Despite the challenges faced, Dassault Aviation's backlog at the end of the year stood at 211 Rafale jets and 84 Falcon jets, indicating potential growth in the future.