01 Mar 12. Italian aerospace and defence group Finmeccanica has delayed the release of its 2011 results by two weeks, as it prepares for a heavy clean-up of its accounts that may lead to an expected net loss of 2.5bn euros ($3.30bn).
“The board meeting to approve 2011 results will be held on March 27 instead of March 14,” it said on Friday, without providing a reason.
The state-owned conglomerate, hit by an ongoing corruption probe that forced a management shake-up last year, plans to sell assets for 1 bn euros to keep its investment-grade credit rating. Finmeccanica had net debt of 4.7 bn euros at end-September. Analysts expect it to post a 2011 reported net loss of 600-2,500m euros due to write-downs, according to Thomson Reuters I/B/E/S. Giuseppe Orsi, chairman since December, has been tasked with rebuilding the group’s reputation and turning its business round by focusing on core defence and aerospace operations. Earlier this week, Finmeccanica was hit by a fresh potential challenge as Indian authorities launched a corruption probe into a 560m euros helicopter deal. Finmeccanica has denied any wrongdoing. In December, Standard & Poor’s cut Finmeccanica’s long-term rating one notch to BBB-, tying the confirmation of investment grade to delivery on the group’s plans. Orsi, an aeronautical engineer who started his career 39 years ago in a company now part of the group, said in November the energy and transport businesses could be sold. These activities include its train-making unit AnsaldoBreda, engineering firm AnsaldoEnergia, rail technology group Ansaldo STS and bus manufacturer BredaMenarinibus. A sale could be challenged by trade unions which have voiced opposition to disposals or called for the companies to be sold to an Italian buyer in order to avoid job cuts. Marking a contrast to its previous accounting practices, Finmeccanica announced in November a 753 m euro write-down for its share in the Boeing’s 787 programme. Finmeccanica shares ended up 0.3 percent to 3.854 euros, having lost about 60 percent of their value in the past year. ($1 = 0.7573 euro) (Source: Reuters)
02 Mar 12. ITT Exelis (NYSE: XLS – News) reported results for the full year and fourth quarter of 2011. For 2011, the company reported full-year sales of $5.84bn and adjusted operating income of $583m, compared to full-year sales of $5.89bn and operating income of $689m in 2010.3 Adjusted earnings per fully diluted share for 2011 were $1.99, compared with earnings from continuing operations per fully diluted share of $2.39 in the prior-year period. Exelis reported fourth-quarter sales of $1.48bn and adjusted operating income of $168m, compared to fourth-quarter sales of $1.64bn and operating income of $219m in 2010. Adjusted earnings per fully diluted share for the fourth quarter of 2011 were $0.50, compared to earnings from continuing operations per fully diluted share of $0.75 in the fourth quarter of 2010.3
“During a year of significant transition for the company and a challenging budget environment for our customers, the focused execution of our business strategy and dedicated professionalism of our employees helped enable Exelis to deliver its operating and financial performance in 2011,” said Dave Melcher, Chief Executive Officer and President of Exelis. “We finished 2011 with stronger-than-anticipated top-line performance, driven largely by a strong showing in our Information and Technical Services segment. We believe our 2012 guidance appropriately reflects our challenging global business environment. The diversified Exelis portfolio is aligned with our customers’ mission-critical priorities in enduring capabilities and emerging challenges. As we embark on our first full year as an independent, publicly traded company, we are focused on creating value for our shareholders and delivering the affordable, innovative technologies and services to our customers for which Exelis is known.”
Full-year funded orders increased 12 percent to $5.4