Board of Directors approves the Interim Financial Report at 30 September 2014 and the results for the third quarter 2014
Key performance indicators improved over 2013 Full year 2014. Group guidance raised for Orders, Revenues and EBITA
The Board of Directors of Finmeccanica, convened today under the chairmanship of Gianni De Gennaro, examined and unanimously approved the Interim Financial Report at 30 September 2014 and the results for the third quarter of 2014.
With regard to commercial performance, considerably more orders were acquired than the first nine months of 2013, both in Aerospace and Defence and Transportation.
The economic results obtained by the Group as at 30 September 2014 show an overall improvement compared to 2013, particularly marked in EBIT (+ 44%) and Net Result (+ 82%), as a result of minor impacts from non-recurring costs and, to a lesser extent, from financial expenses and taxes. The decreased EBITA is in line with forecasts. The costs for a programme of DRS accounted for in the second quarter have been offset by better than expected results of the Helicopters and Aeronautics sectors, as well as by the first benefits from the reduction of costs at Corporate level and the lower loss of the vehicles segment in the Transportation sector.
The FOCF, negative EUR 1,557 millions, is affected by the usual seasonality and includes the payment of the guarantees related to the Indian contract in the Helicopters sector (€mil. 256) made in the second quarter. Without this payment, the figure would have been negative EUR 1,301 millions, better than 2013.
Main figures of the first nine months of 2014
Starting from 1 January 2014, the new accounting standards on consolidation have been applied, leading to the deconsolidation of the Joint Ventures in which the Group participates (mainly ATR in Aeronautics, MBDA in Defence Systems and the Joint Ventures in the Space segment). The Group indicators have been restated accordingly.
- New orders: amounted to EUR 9,353 millions, +15.3% compared to the first nine months of 2013.
- Order backlog: amounting to EUR 36,914 millions, ensures over two and a half years of equivalent production for the Group.
- Revenues: amounted to EUR 9,869 millions, +1.4% compared to the first nine months of 2013.
- EBITA: positive EUR 578 millions, compared to positive EUR 665 millions of the first nine months of 2013 mainly due to the costs in the above mentioned DRS contract.
- EBIT: positive EUR 384 millions, +44% compared to positive EUR 267 millions of the first nine months of 2013 primarily thanks to the minor impacts from non-recurring costs.
- Net result before extraordinary transactions: negative EUR 24 millions, although improved by EUR 212 millions compared to negative EUR 236 millions of the first nine months of 2013.
- Group net debt: amounted to EUR 5,349 millions improving by EUR 233 millions compared to EUR 5,582 millions at 30 September 2013, while suffering the normal seasonal fluctuation if compared with 31 December 2013.
- Free Operating Cash Flow (FOCF): negative EUR 1,557 millions. It reflects the normal seasonal fluctuation in Group cash flows and is substantially in line with the prior year, although it was heavily impacted, compared to 2013 and to forecasts, by the enforcement of the guarantees related to the Indian contract in the Helicopters sector (€mil. 256) during the second quarter. Net of this enforcement the FOCF would have been negative EUR 1,301 millions, EUR 212 millions better than 2013.