Board of Directors approves the Half-Year Financial Report
New orders materially increasing (+ 43%). Order backlog worth EUR 37.6 billion. FOCF of second quarter positive for Eur 28mln
The Board of Directors of Finmeccanica, convened today under the chairmanship of Gianni De Gennaro, has examined and unanimously approved the Half-Year Financial Report at 30 June 2014.
The results of the first six months 2014 confirm a good commercial performance; considerably more orders were acquired than had been forecasted, compared to the corresponding period of the previous financial year, both in the Aerospace and Defence and Transportation. Financial results and cash flows were less negative than expected, in spite of the enforcement of the guarantees for the Indian contract in the Helicopters sector, which had a significant effect on the half-year (€mil. 256). The business performance was substantially in line with or better than forecast in all sectors, except for Defence and Security Electronics.
In June, in the framework of a broader examination of the Group’s strategic positioning and operational efficiency, the Board of Directors also launched the process of transformation of Finmeccanica’s organisational and operating model, with a view to transforming the companies currently operating in Aerospace and Defence into divisions of a new Finmeccanica. The process excludes the companies subject to strategic review (Transportation sector and FATA), the Joint Ventures and DRS (which operates under a Proxy system). At the end of this process, on one hand Finmeccanica will be a division-based operating company and on the other hand it will retain its function as Parent Company and corporate centre for the companies not included in the divisional perimeter.
Main figures of the first six months of 2014
The results for the first half are only representative of the performance of the entire financial year to a limited extent, in consideration of the fact that more than half of the Finmeccanica’s business is concentrated in the second half-year.
Furthermore, 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, therefore, restated.
- New orders: amounted to EUR 7,184 million, +42.5% compared to the first six months of 2013.
- Order backlog: amounting to EUR 37,653 million, +2.2% compared to 31 December 2013. The order backlog ensures over two and a half years of equivalent production for the Group.
- Revenues: amounted to EUR 6,557 million, -1.1% compared to the first six months of 2013.
- EBITA: positive EUR 351 million, compared to positive EUR 426 million of the first six months of 2013.
- EBIT: positive EUR 220 million, compared to positive EUR 241 million of the first six months of 2013.
- Net result before extraordinary transactions: negative EUR 39 million, compared to negative EUR 70 million of the first six months of 2013.
- Net result: negative EUR 39 million, improving compared to negative EUR 62 million of the first six months of 2013 thanks to lower financial expenses and taxes.
- Free Operating Cash Flow (FOCF): negative EUR 1,157 million. It reflects the normal seasonal fluctuation in Group cash flows and, in spite of the enforcement of the guarantees for the Indian contract in the Helicopters sector, is improving by EUR 39 million compared to negative EUR 1,196 million of the first six months of 2013.
- Net financial debt: amounted to EUR 4,840 million improving by EUR 401 million compared to EUR 5,241 million at 30 June 2013.