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BUSINESS NEWS

November 7, 2014 by

05 Nov 14. The Board of Directors of Finmeccanica, convened under the chairmanship of Gianni De Gennaro, examined and unanimously approved the Interim Financial Report at 30 September 2014 and the results for the third quarter of 2014. With regard to commercial performance, considerably more orders were acquired than the first nine months of 2013, both in Aerospace and Defence and Transportation. The economic results obtained by the Group as at 30 September 2014 show an overall improvement compared to 2013, particularly marked in EBIT (+ 44%) and Net Result (+ 82%), as a result of minor impacts from non-recurring costs and, to a lesser extent, from financial expenses and taxes. The decreased EBITA is in line with forecasts. The costs for a programme of DRS accounted for in the second quarter have been offset by better than expected results of the Helicopters and Aeronautics sectors, as well as by the first benefits from the reduction of costs at Corporate level and the lower loss of the vehicles segment in the Transportation sector.
The FOCF, negative EUR 1,557m, is affected by the usual seasonality and includes the payment of the guarantees related to the Indian contract in the Helicopters sector (€256m) made in the second quarter. Without this payment, the figure would have been negative EU€1,301m, better than 2013.
Main figures of the first nine months of 2014
Starting from 1 January 2014, the new accounting standards on consolidation have been applied, leading to the deconsolidation of the Joint Ventures in which the Group participates (mainly ATR in Aeronautics, MBDA in Defence Systems and the Joint Ventures in the Space segment). The Group indicators have been restated accordingly.
• New orders: amounted to EUR9,353m, +15.3% compared to the first nine months of 2013.
• Order backlog: amounting to EUR36,914m, ensures over two and a half years of equivalent production for the Group.
• Revenues: amounted to EUR 9,869m, +1.4% compared to the first nine months of 2013.
• EBITA: positive EUR 578m, compared to positive EUR665m of the first nine months of 2013 mainly due to the costs in the above mentioned DRS contract.
• EBIT: positive EUR 384m, +44% compared to positive EUR267m of the first nine months of 2013 primarily thanks to the minor impacts from non-recurring costs.
• Net result before extraordinary transactions: negative EUR 24m, although improved by EUR 212m compared to negative EUR 236m of the first nine months of 2013. (*) unaudited data
Finmeccanica is Italy’s leading manufacturer in the high technology sector and ranks among the top ten global players in Aerospace, Defence and Security. In 2013 Finmeccanica generated revenues of 16bn Euro and obtained orders for 17.6bn Euro, with about 64,000 employees operating in 362 sites (of which 138 industrial facilities) in 22 countries worldwide. Listed on the Milan Stock Exchange (FNC IM; SIFI.MI), Finmeccanica is a multinational and multicultural group which boasts permanent industrial and commercial establishments in four domestic markets (Italy, United Kingdom, United States and Poland) and a significant network of partnerships at international level. Finmeccanica’s success is based on its technological excellence, which springs from conspicuous investments in Research & Development (amounting to 11% of the revenues), and the constant efforts in developing and integrating the skills, know-how and values of its operating companies. Finmeccanica is active, through controlled companies and joint ventures, in the following sectors: Helicopters (AgustaWestland), Defence Electronics and Security (Selex ES, DRS Technologies), Aeronautics (Alenia Aermacchi, ATR, SuperJet International), Space (Telespazio, Thales Alenia Space), Defence Systems (Oto Melara, WASS, MBDA) and Transportation (Ansaldo STS, AnsaldoBreda, BredaMenarinibus)
• Group net debt: amounted to EUR5,349m improving by EUR233m compared to EUR 5,582m at 30 September 2013, while suffering t

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