Finmeccanica announced Tuesday approved the group’s industrial plan for FY2015 guidance.
The Plan is also the start of a re-launch and development of the Group, with a focus on the areas of excellence and a more effective commercial presence in key international markets.
The board has also has approved raised 2014 Guidance on Orders, Revenues, EBITA and Free Operating Cash Flow. The results of the recent estimates examination for FY2014 will be considered for final approval on March 18, the statement said.
The Plan aims at strengthening the Group in the core business - hi-tech A, D&S - and includes significant improvements in industrial, economic and financial performance, that will result in a more comparable performance with A, D&S competitors within the sector, even after the first three years of the Plan.
The overall FY2014 Order intake is now expected at €15.2-15.5 billion ($17.1- 17.5 billion) , more than €1.5 billion ($1.7 billion) higher than the previous guidance. “Book to bill” orders are expected to garner more than €1 billion ($1.1 billion).
The industrial plan aims at a significant increase in A, D&S EBITA (+20% from 2014 to 2016) and A, D&S RoS (EBITA/Revenues, +150 basis points from 2014 to 2016) and reduction in SG&A by more than 10% from 2013 to 2015, with the SG&A/revenues ratio reducing from 9.3% to less than 8% (with expectations of moderate growth in revenues).
A reduction of CAPEX and rationalization of capitalized R&D of more than 20% from 2013 to 2017, rebalancing the depreciation over investments ratio and thus significantly improving the self-financing capacity of the Group.
A reduction of operating working capital, net of reducing customers advances, of more than 15% in from 2013 to 2017, through a more effective management of supply chain and deliveries of products and services.
The Group expects to generate a positive FOCF even in 2015 and expected to increase over time. This will support Group Net Debt reduction, expected below €3.5billion ($3.94 billion) by the end of 2017, and improve Debt/EBITDA and Debt/Equity ratios.
Rosneft, Rostec Corporation and Finmeccanica have signed an agreement for the joint production of the medium helicopter AW189 in Russia. The JV will be based on the HeliVert plant situated in the Moscow Region and Rosneft will become a new partner of the Russian-Italian JV
Finmeccanica - Selex ES and its partners have been awarded by ENAV, the Italian air navigation service provider, a 205.9 million Euro framework contract for the development of 4-Flight programme, the new generation air traffic control system in Italy
Finmeccanica-Alenia Aermacchi and ARMAEREO (Italian National Armaments Directorate) have signed a contract worth 120 million Euros to provide the Italian Air Force with further three advanced trainer aircraft M-346 (identified as T-346A by the Italian Air Force). The agreement also includes ground base training system and relevant logistic support
Former Finmeccanica CEO Giuseppe Orsi plans to sue the companys former external relations manager, Lorenzo Borgogni, for alleging he paid bribes to Indian offices to secure the VVP helicopter deal. Orsi and former CEO of AgustaWestland Bruno Spagnolini received a suspended two years sentence after they were found guilty of false invoicing in the Indian deal but were acquitted of all alleged bribery charges
Finmeccanica is expected to cash in $502 million of the $1.3 billion contract to develop electronically scanned Captor-E radar for the Typhoon signed by Eurofighter consortium and the inter-governmental agency NETMA (NATO Eurofighter and Tornado Management Agency) on Wednesday
Finmeccanica will be exhibiting AW189 helicopter and GrandNew light twin engine helicopter at LIMA 2015, the company announced in its press release on Tuesday. The first AW189 helicopter is supposed to be delivered to Weststar Aviation Services
Finmeccanica-AgustaWestland and Kawasaki Heavy Industries (KHI) have delivered the first Airborne Mine Counter Measures (AMCM) equipped MCH-101 helicopter to the Japan Maritime Self Defense Force. The KHI MCH-101, a licence built version of the AgustaWestland AW101 helicopter, is equipped with the Northrop Grumman AN/AQS-24A airborne mine hunting system and the Northrop Grumman AN/AES-1 Airborne Laser Mine Detection System (ALMDS), AugustaWestland said in its press release on Tuesday
Finmeccanica – Selex ES has signed a new infrared seeker contract for the UK-France missile system, FASGW (H)/ANL that will equip a wide range of new generation helicopters. The contract signed with MBDA France and SAGEM was announced during the ongoing IDEX 2015 show at Abu Dhabi
Italys Finmeccanica will be present at the Aero India show in Bengaluru, a year after being asked to leave the military exhibition Defexpo, whereas AgustaWestland will be skipping the show. Secretary for defence production G
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