Leonardo, all about Helicopters, Electronics, Aeronautics and Space

5 November 20213 years ago babelfish

What emerges from the results of Leonardo's first 9 months on the trends of the main sectors of activity (Helicopters, Electronics, Aeronautics and Space)

The performance of electronics and aircraft was good (orders up by 21.3% and 112.8% respectively), a little less that of helicopters (orders down 24.2%) among Leonardo's sectors in the top 9 months of the year.

Furthermore, the Aerostructures division of the former Finmeccanica continues to suffer (orders down by 33.4%). “It is confirmed that 2021 will be the most impacted year for Aerostructures, with a gradual recovery that will lead to breakeven at the end of 2025” communicates the group from Piazza Monte Grappa. ( Here the in-depth analysis by Start on all the news for the Aerostructures division ).

Regarding the income statement: Leonardo closed the nine months with annual revenues growing by 6% to 9.6 billion, EBIT increasing by 22% to 607 million, negative Focf for 1.387 million euros, an improvement compared to -2.596 million of the 2020 consideration. Orders also grew: up by 9% to 9.3 billion.

"The results of the first nine months of 2021 – underlines the company led by Alessandro Profumo in a note – consolidate the recovery of the growth path and increase in profitability formulated in the financial statements at 31 December 2020, highlighting for 2021 a progressive and continuous improvement of the industrial performance of the Group ".

Here are the details on the performance of the individual sectors as can be seen from the press release and the report on the first nine months of Leonardo:

HELICOPTERS

The trend of the first nine months of 2021 confirms the growth trend, compared to the first nine months of 2020, of Revenues and EBITA, despite the civil component still affected by a market still characterized by the pandemic.

The volume of orders was lower due to the acquisition, in the comparative period, of the IMOS (Integrated Merlin Operational Support) contract for the UK Ministry of Defense.

Orders: down due to the acquisition, in 2020, of the IMOS order, as well as due to the postponement of some planned acquisitions to the last quarter of 2021.

The main acquisitions in the period include:

second order of 36 TH-73A (AW119) helicopters for the US Navy;
the second additional act for the completion of the development activities and for the supply of n. 4 standard helicopters relating to the NEES program (New Helicopter for Exploration and Escort) for the Italian Army;
contracts for the overall supply of no. 9 AW139 helicopters destined for the Saudi Royal Court and n. 8 AW139 helicopters for the Italian Guardia di Finanza

Revenues: slightly increased due to higher revenues on the AW189 / AW149 lines as well as the ramp-up of activities on certain military / government programs, such as NH90 for Qatar and TH-73A for the US Navy

EBITA: increase substantially in line with revenue growth.

ELECTRONICS FOR DEFENSE AND SECURITY

The nine months of 2021 are characterized by an excellent commercial performance, with volumes of revenues and profitability growing in all business areas both in the European component and in Leonardo DRS, confirming the trend of increase in profitability recorded starting from beginning of the year.

Orders: significantly increased compared to the same period last year. The main acquisitions that characterized the excellent commercial performance of Elettronica Europa include the supply of equipment for two U212 Near Future Submarines (NFS) submarines that will become part of the Italian Navy fleet starting from 2027 and, in within the wider Quadriga program, the order relating to the supply of radar and aerial protection systems that will equip the 38 Typhoon aircraft intended to replace the Tranche 1 aircraft currently supplied to the German Ministry of Defense. In addition, in the Cyber area, the order relating to Phase 4 of the Sicote program (Territory Control System) should be noted, focused on innovative solutions to support the institutional activities of the Carabinieri and the Defense Staff. In the field of Automation, the order is mentioned to enhance the logistics management of the baggage handling systems, which will be equipped with the safety technology approved by the European Civil Aviation Conference (ECAC) for 10 Spanish airports.

For Leonardo DRS there are further orders for the production of modular hardware systems called Mounted Family of Computer Systems (MFoCS) to be installed on land combat vehicles to support maneuverability and logistics for the United States Army and the order IMSHORAD for the initial supply of a Mission Equipment Package, to be integrated on heavy striker-type vehicles and which will allow the neutralization of low-altitude aerial threats including remote control ones (drones). Revenues: growing both in the European component, which last year had been affected by the application of the containment measures of the COVID-19 contagion, and in Leonardo DRS, excluding the unfavorable effect of the USD / € exchange rate.

EBITA: increasing due to higher volumes and better profitability compared to that recorded in the first nine months of 2020 which had been affected, with particular reference to the European component, of the effects deriving from the application of the measures to contain the contagion from COVID19.

Leonardo DRS, whose result recorded a marked growth despite the unfavorable effect of the USD / € exchange rate, confirms the trend of increase in profitability due to the passage into production of some development programs.

AERONAUTICS

The first nine months of 2021 confirm the good performance of the Aircraft Division and a performance of the civil component still conditioned by the effects of the pandemic on civil air traffic, with production volumes in significant decline in the Aerostructures Division and still low levels of deliveries, albeit clearly recovery compared to 2020, by the GIE-ATR.

Aircraft

From a production point of view for the Division's military programs, Lockheed Martin no. 32 wings for the F-35 program (27 wings delivered in September 2020).

Orders: the Division recorded more orders than the same period of 2020 thanks to the finalization of significant export orders for the M-346 aircraft Revenues: higher production volumes of the Division on the business line of the M-346 trainers and the Kuwait program.

EBITA: for the Division, EBITA benefits from the effect of higher volumes.

Aerostructures

For the Division, n. 32 fuselage sections and n. 16 stabilizers for the B787 program (90 fuselages and 58 stabilizers delivered in 2020) and n. 10 deliveries of fuselages for the ATR program (19 in the first nine months of last year).

Orders: the Division has not received new orders from the GIE / ATR consortium and from Boeing with reference to the B787, although it continues to register orders in line with the comparative period with reference to the Airbus A220 and A321 programs.

Revenues: decrease in the Division, which is affected by the reduction in production rates on the B787 and ATR programs EBITA: for the Division, the expected reduction in volumes of activity and the consequent unsaturation of production sites resulted in a net decrease compared to the first nine months of 2020 GIE-ATR.

EBITA: the GIE-ATR consortium records a result higher than that of the first nine months of 2020 thanks to the cost containment actions and the increase in deliveries (16 deliveries in 2021 compared to just one delivery in 2020).

SPACE

The first 9 months of 2021 show an increase in the result compared to the same period last year due to higher production volumes and better profitability in the manufacturing segment, whose performance in the comparative period was affected by the effects of COVID-19. The satellite services segment confirms the good trend of last year, and records operating results basically in line with the comparative period.

In addition to the aforementioned industrial performances, there is the significant economic benefit recorded on the Italian component of the manufacturing business deriving from the effects of the realignment of the tax value of goodwill, in fulfillment of the facilitations provided for by the Decree "Urgent measures to support and relaunch the economy".

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/leonardo-tutto-su-elicotteri-elettronica-aeronautica-e-spazio/ on Fri, 05 Nov 2021 10:37:06 +0000.