Leonardo, how helicopters, electronics, aeronautics and space go

Leonardo, how helicopters, electronics, aeronautics and space go

What emerges from Leonardo's half-yearly report on the performance of the main business sectors (Helicopters, Electronics, Aeronautics and Space) of the group led by Profumo

Helicopters: “The first half of 2020 was characterized by a positive commercial trend, with an order volume higher than the first half of 2019, while revenues and profitability, which were affected by the effects of COVID-19, recorded a decrease compared to the same period of 2019 ".

Defense and security electronics: "The performance of the first half of 2020 is conditioned, in particular in the European component, by the effects of COVID-19, while Leonardo DRS confirms the growth trend highlighted in the first quarter".

Aeronautics: "In the first half the Sector was significantly affected by the effects of COVID-19, which affected its industrial performance and, as regards in particular the GIE-ATR, the number of deliveries made".

Space: “The lower result in the first half of 2020 is attributable to the manufacturing segment which, compared to the same period of 2019, recorded a decline in business volumes for both telecommunications and earth observation satellites and a worsening in conditioned profitability, in addition to than by the effects of COVID-19, by the higher costs on telecommunication programs ".

These are the summaries of the trends of the 4 pillars of the Leonardo group as they emerge from the half-yearly report published last week by the group chaired by Luciano Carta and led by the CEO, Alessandro Profumo.

Here are the details on the performance of the individual sectors as shown in Leonardo's press release and half-yearly report:

Helicopters

The first half of 2020 was characterized by a positive commercial trend, with an order volume higher than the first half of 2019, while revenues and profitability, which were affected by the effects of COVID-19, recorded a decrease compared to the same period of 2019 .

Orders. Growing compared to the first half of 2019 due to the higher orders recorded in the government sector, in particular by domestic customers. The main acquisitions of the half year include:

– the contract included in the IMOS (Integrated Merlin Operational Support) program relating to the supply for the United Kingdom Ministry of Defense of logistical support and maintenance services for the AW101 Merlin helicopter fleet;

– orders from the Italian Army for development activities relating to the NEES (New Exploration and Escort Helicopter) program and for the supply of no. 15 AW169 helicopters and logistical support and training services included in the LUH (Light Utility Helicopter) program;

– the first order for 32 TH-73A (AW119) helicopters for the US Navy

Revenues. A decrease compared to the first half of 2019 due to the effect of COVID-19 which penalized the number of deliveries made in the period and caused slowdowns in activities, as well as the expected reduction in volumes on certain programs nearing completion, partially offset by higher activities on Customer Support and Training and on the NH90 Qatar program.

EBITA. A decrease compared to the first half of 2019 mainly due to the drop in revenues and the lower efficiency recorded in the half year due to the COVID-19. It should also be noted that the first half of 2019 had benefited from the revision of the terms of the UK pension scheme.

Defense and Security Electronics

The performance of the first half of 2020 is conditioned, in particular in the European component, by the effects of COVID-19, while Leonardo DRS confirms the growth trend highlighted in the first quarter.

Orders. Lower than the same period of last year which had been characterized by important acquisitions in the naval and Airborne Systems sectors in the United Kingdom. The main acquisitions of the period include Leonardo DRS for further orders for the production of new generation IT systems, called Mounted Family of Computer Systems (MFoCS) for the mission commands of the United States Army and the good performance is generally confirmed commercial registered in the same period last year. For Electronics Europe, the order for the supply of four Vulcano systems for the frigates of the Dutch Navy, the orders for the development of avionics radar systems with electronic scanning and communication systems and the order for as part of the IMOS (Integrated Merlin Operational Support) contract for logistical support and maintenance services for the AW101 Merlin helicopter fleet in the United Kingdom. In the Automation area, the order for the supply of a Baggage Handling System – BHS for the Frankfurt international airport should be noted.

Revenues. Growth compared to the first half of 2019 due to the higher volumes recorded by Leonardo DRS, mainly due to the activities related to the modernization of the equipment supplied to the US Army. The European component is substantially in line with last year with the expected growth in production volumes reduced by the slowdowns caused by COVID-19.

EBITA. Down compared to the same period of last year mainly due to the effect of COVID-19 which led to delays in the progress of the activities with consequent lower efficiency of the hours developed, in particular in the European component. The profitability of the sector is also conditioned by a mix of revenues characterized by programs under development functional to the renewal of the offer portfolio (naval and avionics sensors, integrated systems, cyber) as well as by higher costs recorded in the period on certain business programs Automation, which in the airport component is also beginning to suffer from the market crisis. These phenomena have been partially mitigated by the improvement of Leonardo DRS.

Aeronautica

In the first half, the Sector was significantly affected by the effects of COVID-19, which affected its industrial performance and, as regards in particular the GIE-ATR, the number of deliveries made. From the production point of view, no. 62 deliveries of fuselage sections and n. 40 stabilizers for the B787 program (in the first half of 2019 delivered 82 fuselages and 41 stabilizers) and n. 16 fuselage deliveries for the ATR program (36 in the first half of 2019). For military programs, no. 18 wings for the F-35 program at Lockheed Martin.

Orders. Lower than the first half of 2019. In particular, the Aircraft Division in the first half of last year had benefited from the important acquisition for the supply to the Italian Air Force of an additional 13 M-345 aircraft, while the Aerostructures Division suffered from lower orders from the GIE consortium for the ATR program (14 aircraft in the period compared to 37 aircraft in the first half of 2019). The main acquisitions in the first half of the year include orders received by Lockheed Martin for the F-35 program and those for logistical support activities for the C-27J and EFA aircraft by the Italian Air Force.

Revenues. The volumes of activity of both Divisions were affected by the slowdowns in production recorded in particular in the months of March and April due to the effect of COVID-19. Nonetheless, revenues are slightly higher in the first half of 2019 due to the higher volumes associated with the ramp-up of production on the EFA-Kuwait program in the Aircraft Division which more than compensated for the aforementioned slowdowns and in particular the decrease in the production rates of the programs B787 and ATR in the Aerostructures Division.

EBITA. A decrease compared to the first half of 2019 due to the effect of COVID-19 which affected the number of deliveries by the GIE-ATR (1 delivery in the period compared to 18 deliveries in the first half of 2019) and the industrial efficiency of the two Divisions , effect partially mitigated by the income associated with the agreement with Airbus on the stop of work of the A380 aircraft in the Aerostructures Division.

Space

The lower result of the first half of 2020 is attributable to the manufacturing segment which registers, compared to the same period of 2019, a decrease in business volumes for both telecommunications and earth observation satellites and a worsening in conditioned profitability, as well as by the effects COVID-19, by the higher costs on telecommunication programs. The performance of the satellite services segment was substantially in line with last year.


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/leonardo-come-vanno-elicotteri-elettronica-aeronautica-e-spazio/ on Mon, 03 Aug 2020 05:59:05 +0000.