Board of Directors approves first-half results

New orders totalled EUR 7,566 million in the first half, versus EUR 8,050 million in 1H10. Improvements in Energy (Gebze contract in Turkey worth EUR 638 million) and Aeronautics (increased orders for ATR aircraft, the B787 programme and logistical support to the M-346) partially offset the slowdown in Helicopters and Defence and Security Electronics.

The order backlog was EUR 44,981 million, versus 48,668 million at 31 December 2010, and represents around two and a half years of production. This result reflects the change in the consolidation perimeter (EUR 1,649 principally due to Ansaldo Energia) and variations in the end-of-period EUR/USD exchange rate.

Revenues totalled EUR 8,432 million versus EUR 8,654 million in 1H10, down mainly due to Defence and Security Electronics, and Energy. The other sectors were broadly stable Adjusted EBITA was EUR 440 million, from EUR 586 million in 1H10.

The adjusted EBITA margin was 5.2%, versus 6.8% in 1H10.

Net profit totalled EUR 456 million versus EUR 194 million in 1H1. This mainly reflects the capital gain from the sale of 45% of Ansaldo Energia (EUR 443 million)

FOCF was negative by EUR 1,184 million versus a negative EUR 967 million in 1H10. This figure must be considered in light of the typical seasonal trend demonstrated by the Group companies, in which trade payables tend to be higher than receipts in the period.

Net debt stood at EUR 4,189 million versus EUR 3,133 million at 31 December 2010. The figure marks an improvement versus the debt at 30 June 2010 (-9%) and reflects the sale of 45% of Ansaldo Energia (EUR 344 million). The Group’s financial solidity is shown by the debt maturity profile and the fact that there is no short-term need for financing.

Investment in research and development totalled EUR 882 million, equivalent to 10% of revenues.

Rome 27/07/2011