Dassault Aviation Profits Fall, Cuts Dividend

France's Dassault Aviation unveiled lower profits and halved its dividend on Thursday as it became the latest plane maker to bear the scars of a global financial and aviation crisis.

The maker of Rafale warplanes and Falcon business jets said 2008 net profit fell to EUR373 million euros (USD$486.4 million) from EUR382 million in 2007 and slashed its dividend to 5.8 euros per share from 10.6 euros "after taking into account the economic crisis".

Operating profit fell to EUR434 million from EUR503 million on revenues down to EUR3.748 billion from EUR4.085 billion.

Dassault delivered 72 Falcon jets in 2008, up from 70 in 2007 but lower than an initial target of 90-100 planes announced by top executives a year ago.

Business jet demand has been damaged by recent economic turmoil as well as a row in the United States over perks after US automakers were criticized for traveling to Washington in private jets to ask for financial bailouts.

Dassault said new orders for Falcon planes plunged to 115 jets from 212 in 2007. The value of total new orders fell to EUR5.82 billion from EUR6.265 billion.

Family-controlled Dassault, which agreed in December to increase its share in defense firm Thales to 27 percent from 5 percent, said its board had appointed Alain Garcia as a new member.

Louis Gallois, chief executive of Airbus parent EADS, which owns 46 percent of Dassault, recently resigned from the Dassault board in what was seen as a rift over the deal. EADS had been a rival suitor for control of Europe's largest defense electronics group