19 Mar 14. Finmeccanica: the Board of Directors approves the 2013 Financial Statements. Return to net profit and new orders up by 11%
Profitability up in Aerospace and Defence; AnsaldoBreda negatively affects the overall performance. The Board of Directors of Finmeccanica, convened under the chairmanship of Gianni De Gennaro, examined and unanimously approved the draft of Group consolidated and Finmeccanica S.p.A. financial statements at 31 December 2013.
• New orders: EUR 17,571m compared to EUR 15,869m in 2012, thanks to the performance of the Aerospace and Defence sector which was significantly better than that of 2012. As a result of this, the book-to-bill ratio was again above 1 (1.10).
• Order backlog: EUR 42,697m compared to EUR 44,908m in 2012. The reduction is due to the deconsolidation of Ansaldo Energia. The order backlog ensures around two and a half years of equivalent production for the Group.
• Revenues: EUR 16,033m compared to EUR 16,504m in 2012. They slightly decreased due to the cuts in defence budgets in Europe and in the US.
• EBITA: showed a limited reduction (EUR 949 m in 2013 vs EUR 1,006m in 2012), because of the worse performance of AnsaldoBreda and the persisting difficulties in certain areas of Selex ES (air traffic control); this reduction was partially offset by the positive effects of the restructuring and efficiency plans, which led to a rise of the operating profitability of the Aerospace and Defence sector from 7.3% to 7.5%.
• Net result: a profit of EUR 74m after the significant losses incurred over the last two years.
• Free Operating Cash Flow (FOCF): negative in the amount of EUR 307m compared to positive EUR 91 m in 2012, affected by the lack of collections of payments in respect of the Indian contract of AgustaWestland, the outlays made in repayment of advances and lower collections on the Fyra order of AnsaldoBreda. Despite the above mentioned difficulties, Aerospace and Defence posted a positive cash flow generation.
• Group net financial debt: EUR 3,316m compared to EUR 3,382m in 2012.
Comments on the main financial results for 2013
The figures for 2013 and the comparative figures with respect to new orders, revenues, EBITA and FOCF do not include the contribution of the Energy segment, which was eliminated from the Group’s scope of operations in December 2013 and classified among Discontinued Operations until the date of disposal. At 31 December 2012 Order Backlog and Group Net Debt included Ansaldo Energia.
• The year 2013 marks the end for Finmeccanica of a transition year in which a deep reorganisation and restructuring of the Group was carried out through the three priority actions reported below: the strengthening of the Governance, through initiatives aimed at shortening reporting lines and making management more effective and efficient; the reorganisation of the industrial activities, with significant benefits, exceeding expectations on the whole, in Aerospace and Defence and especially in the Aeronautics and Defence and Security Electronics sectors; focusing on Aerospace and Defence, through the sale of Ansaldo Energia and the search for solutions that allow Finmeccanica to deconsolidate the Transportation sector. Thanks to these actions Finmeccanica presents a more solid and sustainable organisation able to cope with the challenges of an ever-changing international scenario marked by increasing competition. A new relaunch phase is beginning for Finmeccanica in which the Group structure will allow it to focus more on its core business, with a more consistent order backlog in terms of technologies, products and markets.
• In 2013 the Aerospace and Defence sector posted better than forecast results with respect to new orders, revenues and cash flow (net of the impact of the Indian contract of AgustaWestland), as well as an EBITA in line with expectations. These results reflect the positive progress made in the restructuring and efficiency-enhancement