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FINCANTIERI: BOARD OF DIRECTORS APPROVED 2008 RESULTS POSTING A POSITIVE PERFORMANCE DESPITE THE GLOBAL ECONOMIC DOWNTURN; DIVIDENDS CONFIRMED, IN LINE WITH PREVIOUS YEARS.
27 mar 2009
27 mar 2009
Revenues grew vs. 2007 (+8%), reaching a new record of 2,932 Euro/million because of the high orders intake in the past years;
EBITDA amounted to 134 Euro/million;
Profit before Tax and Net Income both positive, amounting to 43 and 10 Euro/million respectively;
New orders for 2.5 Euro/billion and order book at 10.8 Euro/billion vs. the record level of 12 Euro/billion reached in 2007. Current order book does not ensure saturation of the production capacity of all Group’s plants;
Capital expenditures amounted to 111 Euro/million, that represent the continuation of projects started in previous years. Due to the postponement of share capital increase, that was originally requested in 2007, new projects were delayed, with the exception of investments connected with safety and the maintenance of fully efficient production plants;
Net Debt was 64 Euro/million due to a higher capital expenditure and to the growth of production activities which led to an increase in working capital;
A share capital increase of up to 300 Euro/million has been proposed to the Shareholders’ Meeting;
A dividend distribution of 10.1 Euro/million has been proposed for the fifth consecutive year.
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Rome, 27th March 2009 – Fincantieri’s Board of Directors met today and approved the Group’s consolidated financial statements and the parent company’s financial statements for the year ended December 31, 2008:
The Group, despite the economic and financial crisis and the increased market pressure, reached positive results in 2008, even though they were lower than in the previous years. Revenues amounted to 2,932 Euro/million (+8% compared to 2007), thus reaching a new record level thanks to the high value of orders intake of the past years.
The soaring tension in the market of raw materials over the first nine months of the year, which has partially decreased in the last quarter, together with the negative consequences produced by the economic and financial crisis and the increase in the labour cost, have caused a decrease of the EBITDA in comparison with 2007 (134 Euro/million as opposed to 194 Euro/million in 2007).
As a consequence, both Profit before Tax and Net Income have reduced to 43 and 10 Euro/million respectively, as opposed to 87 and 36 Euro/million in 2007.
From a commercial perspective, 2.5 Euro/billion of new orders were acquired versus a record level of 4.2 Euro/billion in 2007. This decrease was due to the current financial crisis that has frozen new orders since September 2008. In particular:
Cruise ships: orders were received for two small/medium-sized ships for the high end segment of the market;
Naval vessels: orders were received for four multi-mission frigates (FREMMs), two U212 submarines, one fleet tanker for the Indian Navy and the refitting of two fast attack crafts for the Kenyan Navy;
Special vessels: an order was received for a ship for the transport of nuclear waste for the Russian market;
Marine systems: orders were received for a total amount of 141 Euro/million.
In comparison with 2007, the order book has decreased from 12 to 10.8 Euro/billion. The 2008 backlog of 7.9 Euro/billion is certainly remarkable but can not saturate the production capacity of all the Group’s plants.
Capital expenditures amounted to 111 Euro/million, a slight decrease compared to the 116 Euro/million of 2007. These investments were the continuation of projects started in the previous years aiming at improving production and logistic efficiency of the Group’s facilities.
The implementation of the 2007-2011 Business Plan envisaged the higher capital expenditures and the growth of the activities connected with a higher level of orders intake of the previous years, thus consolidating the Group’s market position. This growth led to an effective increase of working capital which, together with a higher capital expenditure, produced a negative net financial position of 64 Euro/million in 2008, after several years of financial surplus. The Business Plan also envisaged a share capital increase in 2007 to face the situation that occurred later. This share capital increase has notably not been achieved.
In the light of the above, the Board of Directors has decided to propose to the Shareholders’ Meeting to grant to the BoD the power to execute a cash capital increase of up to 300 Euro/million to be issued in one or more tranches and to be reserved to the shareholders in application of their pre-emptive rights.
For the fifth consecutive year, the Board of Directors has decided to propose to the Shareholders’ Meeting the distribution of a 10.1 Euro/million dividend, corresponding to a 3% return on the share capital.
EBITDA amounted to 134 Euro/million;
Profit before Tax and Net Income both positive, amounting to 43 and 10 Euro/million respectively;
New orders for 2.5 Euro/billion and order book at 10.8 Euro/billion vs. the record level of 12 Euro/billion reached in 2007. Current order book does not ensure saturation of the production capacity of all Group’s plants;
Capital expenditures amounted to 111 Euro/million, that represent the continuation of projects started in previous years. Due to the postponement of share capital increase, that was originally requested in 2007, new projects were delayed, with the exception of investments connected with safety and the maintenance of fully efficient production plants;
Net Debt was 64 Euro/million due to a higher capital expenditure and to the growth of production activities which led to an increase in working capital;
A share capital increase of up to 300 Euro/million has been proposed to the Shareholders’ Meeting;
A dividend distribution of 10.1 Euro/million has been proposed for the fifth consecutive year.
******
Rome, 27th March 2009 – Fincantieri’s Board of Directors met today and approved the Group’s consolidated financial statements and the parent company’s financial statements for the year ended December 31, 2008:
The Group, despite the economic and financial crisis and the increased market pressure, reached positive results in 2008, even though they were lower than in the previous years. Revenues amounted to 2,932 Euro/million (+8% compared to 2007), thus reaching a new record level thanks to the high value of orders intake of the past years.
The soaring tension in the market of raw materials over the first nine months of the year, which has partially decreased in the last quarter, together with the negative consequences produced by the economic and financial crisis and the increase in the labour cost, have caused a decrease of the EBITDA in comparison with 2007 (134 Euro/million as opposed to 194 Euro/million in 2007).
As a consequence, both Profit before Tax and Net Income have reduced to 43 and 10 Euro/million respectively, as opposed to 87 and 36 Euro/million in 2007.
From a commercial perspective, 2.5 Euro/billion of new orders were acquired versus a record level of 4.2 Euro/billion in 2007. This decrease was due to the current financial crisis that has frozen new orders since September 2008. In particular:
Cruise ships: orders were received for two small/medium-sized ships for the high end segment of the market;
Naval vessels: orders were received for four multi-mission frigates (FREMMs), two U212 submarines, one fleet tanker for the Indian Navy and the refitting of two fast attack crafts for the Kenyan Navy;
Special vessels: an order was received for a ship for the transport of nuclear waste for the Russian market;
Marine systems: orders were received for a total amount of 141 Euro/million.
In comparison with 2007, the order book has decreased from 12 to 10.8 Euro/billion. The 2008 backlog of 7.9 Euro/billion is certainly remarkable but can not saturate the production capacity of all the Group’s plants.
Capital expenditures amounted to 111 Euro/million, a slight decrease compared to the 116 Euro/million of 2007. These investments were the continuation of projects started in the previous years aiming at improving production and logistic efficiency of the Group’s facilities.
The implementation of the 2007-2011 Business Plan envisaged the higher capital expenditures and the growth of the activities connected with a higher level of orders intake of the previous years, thus consolidating the Group’s market position. This growth led to an effective increase of working capital which, together with a higher capital expenditure, produced a negative net financial position of 64 Euro/million in 2008, after several years of financial surplus. The Business Plan also envisaged a share capital increase in 2007 to face the situation that occurred later. This share capital increase has notably not been achieved.
In the light of the above, the Board of Directors has decided to propose to the Shareholders’ Meeting to grant to the BoD the power to execute a cash capital increase of up to 300 Euro/million to be issued in one or more tranches and to be reserved to the shareholders in application of their pre-emptive rights.
For the fifth consecutive year, the Board of Directors has decided to propose to the Shareholders’ Meeting the distribution of a 10.1 Euro/million dividend, corresponding to a 3% return on the share capital.