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Leonardo, how are Helicopters, Electronics, Aeronautics and Space going

3 years ago babelfish

Leonardo, how are Helicopters, Electronics, Aeronautics and Space going

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

The Leonardo group closed the first half with a net profit of 177 million euros, up 195% compared to the 60 million recorded in the first half of 2020

Revenues rose 7.9% from 5.87 to 6.34 billion, driven by the performance of Defense and Security Electronics and Helicopters , only partially mitigated by the planned reduction in Aerostructures which continues to be affected by the decline in production installments on the B787 and Atr.

Below are the details on the performance of the individual sectors as can be seen from the press release and from Leonardo's half-yearly report.

HELICOPTERS

The trend in the first half of 2021 shows, compared to the first half of 2020, a good level of orders and a growth in revenues and EBITA, even in a context still characterized by the pandemic.

Orders: Down due to the acquisition, in the first half of 2020, of the aforementioned IMOS order, partly offset by higher orders in the Commercial sector.

The main acquisitions during the half year include:

  • the 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

Revenues: Growth compared to the first half of 2020 due to the ramp-up of activities on certain military / government programs, such as NH90 for Qatar and TH-73A for the US Navy, as well as higher revenues on the AW189 / AW149 and AW169 lines .

EBITA: Increasing mainly due to the better industrial efficiency, which in the first half of 2020 was affected by the onset of the COVID-19 emergency, while the effect of higher volumes is offset by a different mix of activities, with a consequent slight decline of the ROS.

ELECTRONICS FOR DEFENSE AND SECURITY

The first half of 2021 is characterized by excellent commercial performance, with revenue volumes and profitability growing in all business areas both in the European component and in Leonardo DRS, confirming the trend of increase in profitability anticipated in the first quarter.

Orders: Significant increase compared to the first half of 2020. Among the main acquisitions that characterized the excellent commercial performance of Elettronica Europa, we highlight the supply of equipment for two U212 Near Future Submarines (NFS) that will become part of the fleet of the Italian Navy starting from 2027 and, as part of the broader Quadriga program, the order for the supply of radar and air protection systems that will equip the 38 Eurofighter 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 focused on innovative solutions to support the institutional activities of the Carabinieri and the Defense Staff should be noted. For 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 IM order -SHORAD 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: Growth compared to the first half of 2020 both in the European component, which last year had been affected by the application of the measures to contain the contagion from COVID19, and in Leonardo DRS if we exclude the unfavorable effect of the USD / exchange rate. €.

EBITA: Increasing due to higher volumes and better profitability compared to that recorded in the first half of 2020 which had been affected, with particular reference to the European component, of the first effects deriving from the application of the containment measures of the COVID-19 contagion . Leonardo DRS, whose result recorded a marked growth despite the unfavorable effect of the USD / € exchange rate, confirms the trend of increase in profitability already highlighted in the first quarter.

AERONAUTICS

The first half of 2021 shows a good performance of the Aircraft Division and a performance of the civil component still heavily influenced by the effects of the pandemic, with production volumes in significant decline in the Aerostructures Division and still low levels of deliveries, albeit recovering compared to 2020, by the GIE-ATR.

Aircraft

For the military programs of the Aircraft Division n. 22 wings for the F-35 program (18 wings delivered in June 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 Aircraft Division, in particular on the M-346 trainers line.

EBITA: for the Division the effect of higher volumes and better industrial efficiency compared to the first half of 2020 resulted in an increase in profitability.

Aerostructures

From a production point of view, the Division was delivered n. 24 fuselage sections and n. 17 stabilizers for the B787 program (62 fuselages and 40 stabilizers delivered in 2020) and n. 7 deliveries of fuselages for the ATR program (16 in the first half of last year).

Orders: the Division was affected by lower requests from all major customers, and in particular from the GIE consortium for the ATR program, from Boeing (in particular B787) and from Airbus (A220 and A321).

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 business volumes and the consequent unsaturation of production sites resulted in a net decrease compared to the first half of 2020

GIE-ATR

EBITA: the GIE-ATR consortium records a result higher than that of 2020 thanks to the cost containment actions and the increase in deliveries (6 deliveries in 2021 compared to just one delivery in 2020).

SPACE

The first half of 2021 shows 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 first half of 2020 was also affected by the effects of COVID-19 . The satellite services segment confirms the good performance of last year and records results basically in line with the same period of 2020. In addition to the good industrial performance, 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-come-vanno-elicotteri-elettronica-aeronautica-e-spazio-2/ on Sun, 01 Aug 2021 13:31:27 +0000.