OREANDA-NEWS. The Board of Directors of Finmeccanica, convened today under the chairmanship of Gianni De Gennaro, has examined and unanimously approved the Half-Year Financial Report at 30 June 2015.

There was considerable improvement in both the business and financial performance in the first half of 2015, compared to the corresponding period of 2014. More specifically, Finmeccanica reported considerably improved profitability, with EBITA up almost 50% on the first half of 2014, an EBIT that nearly doubled and a net profit of €mil. 111, compared to a net loss of €mil. 39 a year earlier.

This performance, along with the agreement with Hitachi to dispose the Transportation sector (preparation for the closing of the transaction– scheduled for the second half of the year - continues), appears to be consistent with the development targets and reinforcement efforts set out in the 2015-2019 Industrial Plan.

The results for the first half of 2015, which no longer include the contribution of the operations in the Transportation sector as they are now separately classified among discontinued operations, show:

  • New orders: amounted to EUR 5,539 million, above expectations. The decline as compared to the same period of 2014, lower than expected also thanks to the positive impact of the forex, is attributable to significant extraordinary orders last year in Helicopters and Aeronautics.
  • Order backlog: amounting to EUR 29,303 million, ensures about two and a half years of equivalent production for the Group.
  • Revenues: amounted to EUR 5,973 million, +4.6% compared to first half 2014.
  • EBITA: positive EUR 450 million, significantly improved (+45%) compared to positive 310 million of first half 2014. Even excluding the expense in 2014 of about $mil. 100, relating to a specific DRS programme, there is still a significant improvement over the same period of last year as a result of the benefits connected with the efficiency-enhancement and cost reduction plans launched in previous years. ROS at 7.5%, 210 bps higher than last year.
  • EBIT: positive EUR 351 million, +93% compared to positive 182 million of first half 2014.
  • Net result before extraordinary transactions (without considering the activities of the Transportation sector under disposal): positive EUR 91 million, compared to negative 61 million in first half 2014.
  • Net result: positive EUR 111 million, compared to negative 39 million of first half 2014.
  • Group Net Debt including discontinued operations: amounted to EUR 4,802 million, improved by 38 million compared to 4,840 million at 30 June 2014, notwithstanding the  negative foreign exchange differences on debts denominated in sterling and US dollar. The increase, in comparison with EUR 3,962 million at 31 December 2014, was essentially due to the negative effect of the cash flows of the period, reflecting the typical seasonality in the Group’s performance.
  • Free Operating Cash Flow (FOCF): negative EUR 743 million, improved by 288 million compared to negative 1,031 million of first half 2014. The latter was negatively impacted by the enforcement of the guarantees for the Indian contract in the Helicopters sector (€mil. 256), partially offset by higher dividends received from the joint ventures.