50 SKY SHADES - World aviation news

Leonardo 1Q 2018 Revenues up 4%

Download: Printable PDF Date: 13 May 2018 07:26 categories:
Publisher:
Leonardo 1Q 2018 Revenues up 4% - Finance publisher
Krista Kuznecova
Country: Italy

·       Clear signs of recovery in Helicopters

·      FY 2018 Guidance confirmed

·       Steps forward in the execution of the Industrial Plan to strengthening commercial approach: «Leonardo International»

First quarter results in line with expectations

·      New order intake at € 2.2 billion

·      Revenues at € 2.5 billion

·      EBITA at € 153 million and Profitability (RoS) at 6.2%

·       FOCF amounted to negative € 1.1 billion, in line with the usual seasonal trend

·      Group Net Debt at € 3.6 billion

Alessandro Profumo, Leonardo CEO, commented: “First quarter 2018 results are in line with expectations. Our Helicopters business is on track showing clear signs of recovery. We are fully focused on executing the Industrial Plan: we have approved the «Leonardo International» creation with the aim of strengthening our presence across international markets, leveraging the «One Company» model, ensuring a unified presence towards customers and stakeholders”.

The results for the first quarter were substantially in line with those recorded in the same period of the previous year, as restated to take into account the application of the new accounting standard on revenue (IFRS 15) from 1 January 2018.

Highlights of 1Q 2018 results are as follows:

·      New Orders: amounted to EUR 2,164 million, showed a decline of 18.2%, mainly due to major contracts booked in 2017 in Aeronautics for activities in support to the EFA aircraft fleet for the period from 2017 to 2021

·      Order Backlog: amounted to EUR 33,360 million compared to EUR 33,637 million at 31 December 2017

·      Revenues: amounted to EUR 2,451 million +3.8% vs. 1Q 2017, higher mainly due to the growth reported in Helicopters, which had been affected by a lower number of deliveries in 2017 made in the civil segment

·      EBITA: amounted to EUR 153 million, compared to EUR 155 million in 1Q 2017

·      EBIT: amounted to EUR 121 million, compared to EUR 123 million in 1Q 2017

·      Net Result before extraordinary transactions: amounted to EUR 50 million, compared to EUR 49 million in 1Q 2017

·      Net Resultamounted to EUR 50 million, equal to the net result before extraordinary transactions on account of the absence of extraordinary transactions.

·      Free Operating Cash Flow (FOCF): amounted to negative EUR 1,057 million, in line with the Group’s seasonal trend to record considerable cash outflows during the first quarters, while the value for the first quarter of 2017 had benefitted from the substantial contribution from the EFA Kuwait contract, as a result of the collection of the second advance payment during the quarter

·      Group Net Debt: amounted to EUR 3,595 million mainly as a result of cash outflows for the period



Outlook

In consideration of the results achieved in the first quarter of 2018 and of the expectations for the following ones, we confirm the Guidance for the full year that was made at the time of the preparation of the financial statements at 31 December 2017.

 

Group
(Euro million
)
1Q 2018 1Q 2017 restated Chg. Chg. % FY 2017 restated
New orders 2.164 2.647 (483) (18,2%) 11.595
Order backlog 33.360 35.189 (1.829) (5,2%) 33.637
Revenues 2.451 2.361 90 3,8% 11.734
EBITDA (*) 251 298 (47) 15,8%) 1.602
EBITA (**) 153 155 (2) (1,3%) 1.077
ROS 6,2% 6,6% (0,4) p.p.   9,2%
EBIT (***) 121 123 (2) (1,6%) 844
EBIT Margin 4,9% 5,2% (0,3) p.p.   7,2%
Net result before extraordinary transactions 50 49 1 2,0% 279
Net result 50 49 1 2,0% 279
Group Net Debt 3.595 3.254 341 10,5% 2.579
FOCF (1.057) (427) (630) (147,5%) 537
ROI 8,4% 8,5% (0,1) p.p.   15,4%
ROE 4,8% 4,6% 0,2 p.p.   6,5%
Workforce (no.) 45.606 45.407 199 0,4% 45.134

 

(*) EBITDA is obtained eliminating from EBITA the amortization and depretiation of the portion of the purchase price allocated to intangible assets as part of business combinations, restructuring costs that are a part of defined and significant plans, other exceptional costs or income, i.e. connected to particularly significant events that are not related to the ordinary performance of the business.


(**) EBITA is obtained by eliminating from EBIT the following items: any impairment in goodwill; amortisation and impairment, if any, of the portion of the purchase price allocated to intangible assets as part of business combinations, restructuring costs that are a part of defined and significant plans; other exceptional costs or income, i.e. connected to particularly significant events that are not related to the ordinary performance of the business.


(***) EBIT is obtained by adding to earnings before financial income and expense and taxes the Group’s share of profit in the results of its strategic Joint Ventures (ATR, MBDA, Thales Alenia Space and Telespazio).

 



Loading comments for Leonardo 1Q 2018 Revenues up 4%...


Recommended

Airspace Connected Experience: Pioneering Internet of Things in the aircraft cabin

Did you think about how fast the flying passenger connected experience is changing: improving, offering more opportunities and better services? Airbus A350-900 Flight Lab aircraft started...

Double digits for UAE business aviation growth

Ali Ahmed Alnaqbi, Chairman and CEO of MEBAA, confirmed that the UAE's business and private aviation sector is achieving positive growth rates of 8-9%, higher than the global growth rate which is...

Female touch in business aviation – three major points from Sophie Mabire

There are several must be in every business, one of them – constant quality of services. If we are talking about business aviation, this is a basic pillar of every company, who’s looking t...

SWISS to create over 300 new jobs

SWISS will continue to create jobs in 2019 and 2020, and will be recruiting some 700 new personnel between now and the end of next March. The two further Boeing 777-300ERs which are set to join the SW...