Finmeccanica archives a positive year from an economic point of view and is preparing to change name to “Leonardo” starting from 2017. In terms of accounts, 2015 ended with a net profit of 527 million, from 20 in 2014. Revenues are close to 13 billion, up 1,8%. EBITDA increases by 23,3%, to 1,2 billion, with a Ros that goes from 7,7% to 9,3%. Orders fell by 2,3%, to 12,37 billion, with a backlog down by 2% to approximately 28,8 billion. Free operating cash flow rose to 307 million from 65 in 2014. Net financial debt fell by 17,3% to approximately 3,28 billion.
Il drop in orders arrived "due to the decrease recorded in Helicopters and in the Air Force - writes the company -, which are affected by some postponements of orders from the Defense and the moment of crisis in some markets, with particular reference to Oil&Gas for Helicopters, substantially offset by the significant increase recorded by Defense and Security Electronics, attributable to a good commercial performance by DRS, also on international markets, and to significant orders in Selex ES (among which we note the one for naval systems on national programmes, of which also benefited from the Defense Systems sector), as well as from the favorable effect of the exchange rate. The 'book-to-bill' (orders/revenues ratio) is equal to 0,95, a slight decrease compared to 2014 (when it was equal to 0,99)”.
The mild increase in revenues, on the other hand, is "substantially attributable to a higher value of the dollar/euro and pound/euro exchange rates, from which Defense and Security Electronics benefited - in particular DRS - and, to a lesser extent, Helicopters" .
as to “significant growth” in profitability, "which highlights the success of the initiatives implemented for the improvement of industrial processes and the rationalization of expenditure - continues the note -, is attributable in particular to Defense and Security Electronics, by virtue of the expected improvement in profitability in some business areas of the Security and Information Systems Division and the benefits deriving from the restructuring and streamlining underway of the structures and industrial processes. The Aeronautics result was also significant, supported by the greater contribution of ATR, thanks also to a positive effect of the dollar/euro exchange rate, as well as the always solid performance of Helicopters", while "the decrease in Space is attributable to the charges recognized on a specific program”.
The strong growth of ordinary net income (253 million) arrived "due to the aforementioned improvement in Ebit" (+48,1% to 884 million) and "lower financial charges" only partially offset by the increase in taxes (attributable to the effects on deferred taxes of the reduction of the expected tax rate starting from 2017, partially offset by the lower incidence of Irap following the revision of the taxable base, and provisions for tax risks)”.
Finmeccanica then notes that the net result benefits “also from capital gain recognized on disposals in the Transportation sector (€248 million), as well as the results of the assets sold up to the closing date and the capital gain realized by Drs on the sale of minor assets. The cash trend in 2015 showed significant progress compared to the corresponding period of the previous year, with an improvement concentrated in particular in Defense and Security Electronics and Helicopters. The workforce at 31 December 2015 amounted to 47.156 units with a net reduction of 7.224 units compared to 54.380 units at 31 December 2014 mainly due to the deconsolidation of the Transportation sector”.
I fourth quarter data however, they indicate less encouraging performances than in the rest of the year. In detail, orders fell by 9,7% to 4,58 billion, revenues by 4% to around 4 billion, while EBITDA grew by 6,3% to 692 million, EBITA was in line with the fourth quarter of 2014 at 463 million and the ebit increased by 4,8% to 285 million. Net ordinary income was €103 million, compared to €69 million in the fourth quarter of 2014, while free operating cash flow was positive by €1,242 billion, down by €178 million compared to the fourth quarter of 2014.
The board therefore decided to submit to the shareholders' meeting the proposal to renew the authorization for the purchase and disposal of treasury shares to service the current incentive/co-investment plans, up to a maximum of 2 million shares for a period of eighteen months from the date of the shareholders' resolution.
Finally, the board of directors approved the renewal for a further 12 months of the bond issue framework programme denominated 'Euro Medium Term Note Programme' (EMTN), leaving the total maximum amount of use unchanged at 4 billion. The renewal - explains the note - is carried out by the Finmeccanica group annually as part of its ordinary financial management activities.
As for the name, the new Finmeccanica commissioned by the managing director by Mauro Moretti will be called "Leonardo" from the beginning of 2017. The new company name will be brought to the approval of the extraordinary shareholders' meeting (convened on 22, 27 and 28 April, respectively in first, second and third call). In a context "of redefinition of objectives and priorities, in which the company designs new development models and proposes itself with a new role - reads a note - there is a need for a new name that represents it and constitutes the first and most important point of synthesis between the profound values that characterize it and that support its strategies".
In particular - reads the note from the group - the proposal of the board of directors "is to change the company name by putting the new name before the current one until 31 December 2016 (with the possibility, in abbreviated form, to use both individually until 31 December 2016 ), so as to ensure the company a sufficient period of time to guarantee the necessary continuity in relations with foreign countries, and arranging the exclusive use of the new name starting from 2017 January XNUMX".
Specifically, "the proposal - concludes the note - provides that the company will assume the company name 'Leonardo – Società perzioni' (in abbreviated form 'Leonardo Spa') from 2017 January 31 and, until 2016 December XNUMX, the corporate name 'Leonardo – Finmeccanica – Joint stock company' (in abbreviated form 'Leonardo Spa' or 'Finmeccanica Spa')”.
The company has decided to do not distribute dividend not even this year to continue the work of economic strengthening. Today the share on the Finmeccanica Stock Exchange it opened more than 2% down, marking itself as one of the worst stocks in the Ftse Mib.
Meanwhile, the Guardia di Finanza carried out searches at the Rome, Genoa, Naples and Milan offices of Ansaldo Sts, Hitachi and Finmeccanica, on behalf of the Milan Public Prosecutor's Office as part of theinvestigation into the sale of Ansaldo Sts and Ansaldo Breda. The investigation arose from the complaint of the minority shareholder fund Bluebell on the hypothesis of an agreement between Finmeccanica and the Japanese group in the sale to the latter of 40% of Ansaldo Sts (with the subsequent launch of the mandatory takeover bid on the remaining 60% at the price of 9,50 euros per share), in parallel, however, with the sale of Ansaldo Breda to the Japanese as well.
"I have nothing to add on the survey", but "I am absolutely sure that the price was the best that could be expected", said the managing director, Mauro Moretti, during the presentation to the analysts. Moretti then took a tablet indicating the price of the Ansaldo Sts Stock Exchange: "This is the answer", he commented.
