Fincantieri Reports Positive 1st Half Results
RESULTS CONFIRM POSITIVE OPERATING PERFORMANCE AND THE GROUP'S FINANCIAL STRENGTH
• Profit from ordinary operations at euro 26 million (16 million at 30/6/11, +62.5%)
• EBITDA at euro 68 million (59 million at 30/6/2011, +15.2%) with 5.5%
• Revenues at euro 1,233 million (1,176 million at 30/6/11, +4.8%)
• Cash surplus of euro 909 million, versus euro 166 million at end 2011
• Order portfolio at euro 7,069 million (7,920 million at 30/6/11)
Rome, 30 July 2012 – The Board of Directors of Fincantieri met today to examine the Group's performance in the first half of 2012:
Despite the difficult trading environment, the first half of 2012 has closed with euro 1,233 million in revenues (1,176 million at 30/6/11, +4.8%).
The half-year reports a profit from ordinary operations of euro 26 million (16 million at 30/6/11, +62.5%) and EBITDA of euro 68 million (59 million at 30/6/11, +15.2%). The results achieved during the first half confirm the operating forecasts for 2012, with the full-year numbers expected to show an improvement on 31.12.2011.
Of particular note is the Group's net financial position, which at the end of June reported a net cash surplus of euro 909 million. Such a financial position makes it possible, on the one hand, to plan and cover future working capital financing requirements with complete peace of mind and on the other to consider, without particular duress, potential new investments to create value for the Group.
The amount of accumulated equity reserves is still considerable (euro 347 million), demonstrating the strength of the Group's capital structure. The financial statements also include euro 107 million in provisions that are more than adequate to cover specific risks and potential charges.
Capital expenditures of euro 33 million relate to completion of projects started in previous years to enhance production efficiency and improve safety and environmental standards. This figure also includes continuation of the capex program in the US shipyards.
Fincantieri acquired euro 488 million in new orders during the first half of the year, down from euro 874 million in the first half of 2011. Fincantieri Marine Group, the US subsidiary, secured an order for two LCS (Littoral Combat Ships) for the US Navy (under a contract for 10 ships signed at the end of 2010), and an order for 40 more RB-M small patrol boats (Response Boats-Medium) for the US Coast Guard.
At 30 June 2012, the Fincantieri Group’s order portfolio stood at euro 7,069 million. The associated order backlog, although a still significant euro 5,047 million, will continue to be unable to saturate production capacity at all the Group's shipyards. The Group therefore plans to carry on using extraordinary income-support benefits to lay off workers at Italian shipyards where there is insufficient work.
Among the significant events subsequent to the half-year close, it is reported that on 12 July Fincantieri and Viking Ocean Cruises signed a contract for the construction of two small super-luxury cruise ships, for delivery in 2015 and 2016, while on 23 July Fincantieri signed a contract with Société des traversiers du Québec for the construction of a latest generation ferry, for delivery in late 2014.
The shipbuilding industry has continued to experience severe difficulty during the first half of 2012. Implementation of the Reorganization Plan, swiftly introduced by Fincantieri to address the market situation, will make it possible, in view of the current situation and future outlook, to adjust production capacity to demand and to enter new markets.
Giuseppe Bono, Fincantieri Chief Executive Officer, has commented: "We are pleased with these results, giving cause for optimism to the company and its employees. The ongoing reorganization process, initiated thanks to an agreement with the unions and the government, is proving its worth. The acquisition of the latest orders from Viking Ocean Cruises and Société des traversiers du Quebec also testify to the foresight of company policies, aimed at seeking new customers and new markets with exceptionally innovative products." Bono then concluded: "Fincantieri therefore presents itself on the market as one of the major players in its industry and can count on an encouraging future if cohesion between all its employees lets it achieve the necessary productivity levels to succeed in a smaller but much more fiercely competitive market".