As highlighted in the Half-year financial report, the Group's performance is being impacted by the COVID-19 pandemic that is affecting the economic outlook and creating high uncertainty in global markets.
In this context, at half year results in July, Leonardo provided the estimates for FY20 financials set out below, in the absence of further worsening of the pandemic and of consequent additional restrictions:
The results of the first nine months confirm the resilience of the Leonardo business, reflecting a solid Order Backlog, the performance of our military/governmental business and the ability of our group to react promptly to this new scenario.
We are closely monitoring the recent developments of the pandemic at a global and national level and continuing to assess potential further impacts, with particular focus on the civil aeronautics sector.
In the absence of further worsening of the pandemic and of consequent additional restrictions which may compromise operations of Leonardo and of its stakeholders:
- the level of New Orders and Revenues continues to track in line with expectations for the full year, despite slowdowns in the finalisation of some export commercial campaigns due to COVID-19. This reflects solid demand for the Group's products from domestic and international customers and strengthens our confidence in the medium-long term opportunities for the business;
- the actions implemented to ensure a progressive recovery of productivity levels are bringing good results, with clear signs of recovery in the third quarter. Together with savings from cost reduction actions, this supports the delivery of EBITA expected for the full year and helps to mitigate the risks related to the performance of Joint Ventures and civil business, based on deliveries in the fourth quarter;
- the Group has detailed actions in place to deliver FOCF for the full year that reflects an exceptionally high concentration of activities and cash-ins in the last 2 months of the year and the current level of COVID-19 related restrictions.
The Group confirms its solid core business fundamentals for the medium-long term, based on:
Significant backlog of € 35 billion
Balanced military/governmental, civil and Customer Support and Training business mix
Defence and Security market growth confirmed
Strong relationships with domestic customers and position in key international programmes
Investments in innovation aimed at leveraging core competencies and products to expand business opportunities
Leadership position in key market segments of Helicopters, Defence Electronics and Aircraft recognised in export markets