Industrial plan tracking nicely
Finmeccanica’s Q3 results highlighted the clear progress being made in delivery of the industrial plan revealed at the start of 2015. With operating profit improvements clearly coming through and good progress being made in the key areas of restructuring, the group confirmed its confidence for the financial year and revised EBITA expectations up to the top end of previous guidance (€1.13bn), plus an expected €50-60m FX benefit. With the recently announced completion of the transportation disposal to Hitachi (OTC:HTHIY), Finmeccanica (OTC:FINMY) is now focused on developing as a pure-play aerospace, defense and security group.
Q3 results show promise and impact of restructuring
Finmeccanica delivered good Q3 results highlighting the combined effect of previous restructuring, as well as those driven by the Industrial Plan launched in January 2015. Nine-month revenues were up 4.6% to €9bn, while EBITA improved substantially by 45% to €745m. Even excluding a previous year US$100m provision in DRS, results showed significant underlying improvement across all divisions with ROS increasing >200 bp to 8.3%. The net result before extraordinary transactions improved to €160m (9M14, -€24m). FOCF was -€935m, in line with traditional cash phasing, but this was some €420m better than 9M14 figures as actions to reduce seasonality were undertaken. Net debt improved by €224m to €5,125m.
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