Leonardo: nine months Net Result before extraordinary transactions up 129% at EUR 343 million

Leonardo: nine months Net Result before extraordinary transactions up 129% at EUR 343 million
  • Backlog at approx. EUR 35 billion following the acquisition of the EUR 7.95 billion contract for the supply of 28 Eurofighter Typhoon to the Kuwaiti Ministry of Defence, the largest order ever booked by Leonardo – Finmeccanica
  • Operating profitability at 9.3%, 100bp higher than 8.3% of the first nine months of 2015
  • 2016 full-year guidance confirmed

 

The Board of Directors of Leonardo-Finmeccanica, convened today under the chairmanship of Gianni De Gennaro, examined and unanimously approved the results at 30 September 2016 and the results for the third quarter of 2016.

 

During the first nine months of 2016 Leonardo-Finmeccanica reported particularly significant results, both in commercial and economic and financial terms, despite the difficulties encountered in some relevant markets (including the civil sector of Helicopters) and the materially negative impact of forex (with particular reference to the GBP/€ exchange rate after the so called “Brexit” referendum). In fact, the efficiency improvement actions taken in production and industrial processes, in business areas that showed significant issues in the past, entailed, together with the streamlining of the scope of operation and product portfolio, a gradual repositioning of the Group, so as to ensure, even in a period characterised by the abovementioned difficulties, the attainment of the profitability growth target in the Industrial Plan.

 

In more details, the first nine months of the financial year showed the following aspects:

  • New Orders: amounted to EUR 15,504 million, 99% higher than the first nine months of 2015 mainly due to the acquisition of the contract for the supply of 28 Eurofighter Typhoon aircraft signed on 5 April 2016 with the Kuwaiti Ministry of Defence, for an overall value of €bil. 7.95, and despite a negative impact from the GBP/€ exchange rate for approximately 200 million. Consequently, the book-to-bill ratio reached an outstanding 1.9.
  • Orders backlog: amounted to EUR 34,589 million (+23% compared to September 2015) and more solid thanks to a rigorous selection of orders. The backlog ensures about two and a half years of equivalent production.
  • Revenues: amounted to EUR 8,034 million, -10.7% compared to the first nine months of 2015, due to the reduction in Helicopters, affected by some weakness in the civil markets caused by the prolonged crisis in the Oil&Gas, to the change in perimeter namely in DRS and FATA (ca. 200 million) and to the negative impact of the GBP/€ exchange rate (ca. 200 million).
  • EBITDA: positive EUR 1,193 million, 1.6% higher than the 1,174 million of the first nine months of 2015. Also the EBITDA margin, at 14.8%, increased by 180 bp compared to 13% of the first nine months of 2015.
  • EBITA: positive EUR 746 million, in line with the 745 million of the first nine months of 2015, despite softer revenues and the negative impact of the GBP/€ exchange rate for about 15 million. RoS was at 9.3%, 100 bp higher than the 8.3% of the first nine months of 2015.
  • EBIT: positive EUR 631 million, +5.3% compared to the 599 million of the first nine months of 2015. Also the EBIT margin, at 7.9%, increased by 120 bp compared to 6.7% of the first nine months of 2015.
  • Net Result before extraordinary transactions: positive EUR 343 million, 129% higher than the EUR 150 million of the first nine months of 2015, thanks to the reduced volatility of the charges below EBITA and to the reduction in financial expense.
  • Net Result: positive EUR 353 million, including the capital gain from the disposal of FATA, materially improved (+121%) against the 160 million of the first nine months of 2015, which had benefitted from the results from the Transportation operations sold during the fourth quarter of 2015.
  • Free Operating Cash Flow (FOCF): negative EUR 388 million, significantly improved (60%) compared to the 935 million negative of the first nine months of 2015, as a result of the collection of the first advance payment on the EFA Kuwait contract.
  • Group Net Debt: amounted to EUR 3,890 million and improved by 1,433 million (-27%) compared to 5,323 million at 30 September 2015, notwithstanding widely negative GBP/€ exchange differences for approx. 180 million, thanks to a positive cash performance during the period and to the disposals in the Transportation sector, completed in November 2015. The increase in comparison with 3,278 million at 31 December 2015 was essentially due to the usual cash absorption in the first quarters of the financial year and to the buy-back of treasury shares serving incentive plans.

 

Outlook

In consideration of the results obtained at 30 September 2016 and of the expectations for the next quarter, we confirm the forecasts for the entire year, as updated following the acquisition of the EFA Kuwait contract and reported in the Half-year Financial Report at 30 June 2016.

 

Rome 03/11/2016 19:00