Italy's Finmeccanica saw a return to profit in 2013, with new orders rising, even as revenue fell due to flat defense spending in the EU and US. (Finmeccanica)
Italy’s Finmeccanica saw a return to profit in 2013, with new orders rising, even as revenue fell due to flat defense spending in the EU and US.
The group saw profit of €74 million in 2013, after two years of losses due to writedowns, it said in a statement March 19, although Earnings Before Interest, Taxes and Amortization (EBITA) dropped 5.7 percent to €949 million from just over a billion euros due to the poor performance of its rail unit Ansaldo Breda, which Finmeccanica is seeking to sell.
Revenues dropped 2.9 percent to €16 billion euros from €16.5 billion — and the group said it expected to see a further drop in 2014.
New orders rose 11 percent to €17.57 billion from €15.87 billion, thanks to work on the B787 program as well as contract wins, including 16 Search and Rescue AW101 helicopters for Norway (worth €1.15 billion) and eight AW159 Lynx Wildcat helicopters for the South Korean Navy.
Finmeccanica’s US defense electronics unit DRS continued to suffer from a reduction in US defense spending and the conclusion of programs, with new orders totaling $2 billion compared to $2.47 billion in 2012. Revenues stood at $2.24 billion, from $2.77 billion in 2012, while EBITA was down to $198 million from $293 million in 2012.