The Board of Directors of Leonardo, meeting today under the chairmanship of Gianni De Gennaro, has unanimously examined and approved the results of the first quarter 2018.
Alessandro Profumo, Managing Director of Leonardo, commented: "The 2018 first quarter results are in line with expectations and, as expected, the Helicopters show signs of recovery. We are focused on the implementation of the Business Plan: we approved the creation of "Leonardo International" with the aim of strengthening our presence in foreign markets, leveraging the "One Company" model, to ensure a unified presence towards customers and of all the stakeholders ".
The results for the first quarter are substantially in line with those of the corresponding period of the previous year, reclassified to take into account the application starting from 1 Jan. 2018 of the new accounting principle regarding revenues (IFRS15).
In detail, the 2018 first quarter results highlight:
- Orders equal to 2.164 million euros, down by 18,2% due, in particular, to the significant orders acquired in the 2017 in the Air Force for activities supporting the fleet of EFA aircraft for the 2017-2021 period
- Order backlog of 33.360 million euros compared to 33.637 million euros at 31 December 2017
- Revenues amounting to 2.451 million, + 3,8% compared to the first quarter of the 2017, up mainly due to the resumption of helicopters, whose 2017 figure was affected by the reduced number of deliveries operated in the civil segment
- EBITA equal to 153 million, compared to 155 million euros in the first quarter 2017
- EBIT equal to 121 million, compared to 123 million euros in the first quarter 2017
- Net ordinary result equal to 50 million euros compared to 49 million euros of the first quarter 2017
- Net result equal to 50 million euros, equal to the ordinary net result, in the absence of extraordinary transactions
- Free Operating Cash Flow (FOCF) negative for 1.057 million euros, in line with the Group's usual tendency to record significant cash absorption in the first quarters, while the first quarter result 2017 benefited exceptionally from the contribution of the EFA Kuwait contract , with the receipt in the quarter of the second advance
- Net debt of the Group equal to 3.595 million euros, mainly due to the absorption of cash for the period
Outlook
In consideration of the results obtained in the first quarter of the 2018 and of the expectations for the subsequent ones, the Guidance for the whole year, formulated during the preparation of the budget for 31 December 2017, is confirmed.
Analysis of the main 2018 data for the first quarter
With regard to orders, the first quarter shows a growth (+ 33% compared to the first quarter 2017) in the Helicopters on the AW109 / AW119, AW169 and AW189 lines, against the decrease in the Aeronautics attributable to the particularly positive trend in the period compared. Furthermore, there is a good level of new orders for AW139 in Helicopters.
The increase in revenues is attributable to the reduced number of deliveries made in the first quarter of 2017 in the civil segment of Helicopters. The deliveries data is also reflected in the sector EBITA, which shows an increase in 56%, offset by the reduction in Electronics and Space. EBIT and Net Result are in line with the 2017.
The cash flow figure was negative for ā¬ 1.057 million, in line with the Group's usual tendency to record significant cash absorption in the first quarters, while the first quarter result 2017 benefited exceptionally from the contribution of the EFA Kuwait contract, with the receipt in the quarter of the second advance.
Net invested capital shows an increase compared to 31 2017 December, due to the increase in net working capital, attributable to the aforementioned seasonal trend in cash flows.
PERFORMANCE OF THE SECTORS
Helicopters
The performance of the first quarter of the 2018 shows the first positive signs of recovery of the Division confirming the goodness of the path taken and an improvement of all the indicators compared to the same period of the previous year, which was however characterized by a performance not particularly brilliant from an industrial point of view.
Electronics, Defence and Security Systems
The first quarter of the 2018 is characterized by revenue volumes in line with that recorded in the same period of the 2017 and by a decrease in profitability due, in particular, to the different mix of activities developed during the period.
aeronautics
From the commercial point of view, the first quarter of 2018 was characterized by the acquisition of some important orders both in the Aircraft Division, among which we mention the provision for the supply of additional 4 M346 Advanced Jet Trainer aircraft to the Ministry of National Defense of Poland they add to the 8s already in service at the Polish Air Force, both in the Aerostructures Division, which received orders for the supply of 100 B787 fuselage sections and XTRUM fuselages ATR.
From the production standpoint, during the first quarter 2018 deliveries were made equal to 35 fuselage sections and 22 stabilizers for the B787 program (in the first quarter 2017 delivered 35 fuselages and 20 stabilizers), and 20 fuselages ATR (10 in the first 2017 quarter). For the C-27J productions, an aircraft for the Slovakian Air Force was completed.
Spazio
The lower quarterly result compared to 2017 is attributable to higher costs for research and development activities recorded in the period, relating in particular to new generation satellite platforms.
Industrial operations
No significant transactions took place during the period. It should be noted that in April, 2018 - following a protocol of intent signed with the national labor unions on early retirement pursuant to art. 4 92 / 2012 Law (so-called Fornero Law) - the union agreement was signed, involving up to a maximum of no. 1.100 employees who will accrue the requirements for retirement within the maximum time period of the 4 years following the scheduled outputs in the two-year 2018-2019, together with the definition of the membership conditions. A similar agreement was subsequently signed with the union representative of the management population, up to a maximum of no. 65 executives. The effects of these agreements will be incorporated into the 30 June 2018 half-year report.
Financial transactions
In February, 2018 Leonardo signed a new Revolving Credit Facility (RCF) line with a pool of 26 national and international banks. The new RCF provides for the payment of a margin of 75 basis points on the Euribor down by 25 basis points compared to the 100 basis points of the previous operation signed in July 2015, with consequent benefits on financial charges. The amount was also reduced to 1,8 billion euros, compared to the previous 2 billion euros - to align it with the Group's cash requirements - and the expiry in February 2023, a year currently free of repayment commitments on the market, was extended. of capital. On 18 April 2018 Leonardo has renewed the EMTN program for further 12 months, leaving the maximum amount of ā¬ 4 billion unchanged.
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Leonardo's internationalization project continues through the creation of "Leonardo International"
In line with the "One Company" approach, Leonardo is transforming its international network through the reorganization and consolidation of its companies abroad - with the exclusion of domestic markets (Italy, United Kingdom, United States and Poland) - with the aim of creating a single and unique legal entity in each country, able to represent the Leonardo offer, promote on the territory the appropriate agreements with third-party companies, support the customer throughout the entire life cycle of the programs and develop the Leonardo's business globally.
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The manager in charge of preparing the corporate accounting documents, Alessandra Genco, declares, pursuant to paragraph 2 article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records .
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The results approved today by the Board of Directors are made available to the public at the Company's registered office at Borsa Italiana SpA, on the Company's website (www.leonardocompany.com, Investor Relations / Balance Sheet and Report) and on the website of the authorized storage mechanism eMarket Storage (www.emarketstorage.com).
