Reuters logo
UPDATE 1-Finmeccanica lifts full-year outlook as core earnings rise
November 3, 2015 / 6:32 PM / 2 years ago

UPDATE 1-Finmeccanica lifts full-year outlook as core earnings rise

(Adds details)

MILAN, Nov 3 (Reuters) - Italian aerospace and defence group Finmeccanica said on Tuesday it expects full-year earnings to come in at the top of its forecast range, after core earnings jumped 45 percent in the first nine months of 2015.

It said its performance in January-September was helped by a stronger U.S. dollar and British pound.

State-controlled Finmeccanica said in a statement that it expected its full-year earnings before interest, tax and amortisation (EBITA) to be around 1.13 billion euros ($142 million) this year, excluding any positive forex effect.

The company had previously guided to an EBITA range of 1.08-1.13 billion euros.

Core earnings in the nine months to September came in at 745 million euros, boosted by the strong performance of the group’s defence and security electronics (DSE) division, especially at US unit DRS Technologies.

On Monday Finmeccanica completed the sale of its two transportation divisions to Japan’s Hitachi, part of a disposal programme to transform the group from a financial holding company to a pure aerospace and defence player.

New orders rose 2.6 percent in the first nine months to 7.8 billion euros, as the DSE business offset a weaker performance at the helicopter and aeronautics divisions.

A slowdown in emerging markets and the fall in oil prices has dampened demand from oil-producing countries for military equipment, softening defence groups’ orders.

Net profits in the first nine months, stripping out the transport business which is slated for sale, were 150 million euros, compared to a net loss of 54 million euros the previous year. ($1 = 0.9124 euros) (Reporting by Stephen Jewkes; Editing by Susan Fenton)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below