Leonardo closed the first quarter of 2020 with new orders up 36% to 3,4 billion and one order book equal to 37 billion with coverage of 2,5 billion.
However, the impact of the coronavirus on the balance sheet for the first three months was substantial. Due to the slowdown in production that began in March, the reduction in productivity and delays in deliveries, the quarter closed with revenues down by 5% to 2,6 billion euro. The decrease is "mainly attributable to the slowdowns recorded in the helicopters and in particular to the lower deliveries attributable to the Covid-19 effect", explains the company in a note.
Also down sharplyebitda, dropped by 75% to 41 million euros, while theebit it stands at 30 million euros, down by 80,8% compared to the same period of the previous year.
Il Net income it was negative for 59 million euros. "In addition to the worsening of EBITA, the greater impact of financial charges weighs on it", explains Leonardo.
Il free operating cash flow (focf) is negative by 1,595 billion, while the group's net debt is equal to 4,396 billion euros, an increase compared to 2,84 billion as at 31 December 2019.
“The results of the first quarter of 2020 were in line with expectations until the impact of the Covid-19 – explains the CEO of the group, Alessandro Profumo -. We reacted immediately to the pandemic with the primary objective of ensuring full protection of the health and safety of our people, while preserving business and production continuity. We have slowed down but never stopped activities being a strategic business for our customers in key countries".
Leonardo also makes it known that the impact of the coronavirus on the entire year is not "yet quantifiable". For what reason the group has decided to suspend the 2020 guidance. “We are not yet able to quantify the impact of COVID-19 in 2020, but we firmly believe – underlines Profumo – in our solid fundamentals and remain entirely focused on the execution of the Business Plan aimed at creating value for all our stakeholders”.
