A shock therapy to reduce debts, with the sale of approximately one billion of assets in the civil sector and in the Drs galaxy. This is what was announced this morning by Finmeccanica. Not only that: targeted reduction of investments, from 3,6 to 3,4 billion (with cuts concentrated in 2012). Transparency operation in the aeronautical sector, with a cut for "non-recurring charges of 753 million linked to the B787 program "in order to take into account new and recent events that have changed the scenario". Consequently, the board has already resolved to propose “not to distribute any dividends with reference to the current financial year” against the 258 million euros of a year ago.
A therapy that proved indigestible in Piazza Affari where Finmeccanica is suspended due to excessive reductions with the stock marking a theoretical variation of -11,9% to 3,952 euros. It affects the loss of 790 million euros in the third quarter (against a profit of 112 million). In the press release with which it released the data, the company specifies that the current forecast is that the whole of 2011 will close with a negative EBITA (result before financial charges, taxes and depreciation) of approximately 200 million euros.
Other data: Finmeccanica closed the first nine months in the red for 324 million (against 321 in the first nine months of 2010), under the weight of 4.665 million in debt compared to the 3.133 million recorded as at 31 December 2010, while revenues fell to 12.252 million (against 12.924) and Ebitda is negative for 188 million against a positive balance of 856 (due to aeronautical charges).
Faced with these numbers (the order backlog also declines). The CEO Giuseppe Orsi has ordered a bitter medicine that meets the sharp dissent of the president Pier Francesco Guarguaglini, absent from the board meeting on Monday evening, entrusted to the care of the senior adviser, Admiral Guido Venturoni. To complicate relations at the top there is undoubtedly Orsi's decision to remove Marina Grossi, Guarguaglini's wife, from the leadership of Selex Sistemi as soon as possible.
In essence, Orsi proposes: a) the forward sale of AnsaldoBreda, through “ a strategic and industrial partnership which allows over time to “deconsolidate the company from the perimeter of the Group” ; b) the pruning of many branches in the DRS area; c) the sale of minority shares, not excluding 25 percent in the missile company Mbda, of which Bae System and EADS are partners. In addition, costs of 100 million and investments of 200 million will be cut next year. In the future, Finmeccanica will be less prodigal in terms of investments which, from now on, will respond to the need to "guarantee the improvement of the ability to generate cash, also through the definition of investment priorities".
The creation of super Selex should be interpreted in this key, into which the current Selex Sistemi, Selex Galileo and Selex Elsag will converge, a single entity in the electronics sector for Defense and Security - excluding the US ones - which will make it possible to "rationalise the technology portfolio, improve industrial and financial performance, increase market share and reduce costs”. In addition to cutting command posts, to the advantage of Orsi's leadership, one could add.
Lastly, cuts have also been agreed in the aeronautical sector with a therapy that envisages reduction of the workforce, the restructuring of production and engineering activities and the rationalization of the supply chain in order to reduce external costs.
