Leonardo orders dropped in 2017
Leonardo’s trading results were down across the board in 2017. And more of the same is expected in 2018.
The value of new helicopter orders Leonardo signed in 2017 was down to €3.15 billion from the €3.74 billion it netted in 2016. Leonardo attributes the drop in orders to general uncertainty and caution in the helicopter market.
At the end of 2017, the company’s helicopter orderbook stood at €9.7 billion.
The manufacturer’s outlook on 2018 is cautious. However, Leonardo is expecting its production numbers to rise in 2018, mitigating the drop in production it saw in 2017. Overall profits in its helicopter segment appear set to improve this year – in line with the company’s goal of attaining double-digit margins in its helicopter business by 2020.
The story is the same in the company’s electronics and defence business, with slight decreases in overall orders and deliveries across the board – again, in line with expectations.
Alessandro Profumo, Leonardo’s CEO, commented: “2017 results are in line with expectations; 2018 will be a consolidation year and we are entering a new phase of solid and sustainable growth in the longer term based on top-line and profitability improvement and also on an increasing cash-flow generation from 2020.
“We are focused on achieving all targets of the 2018-2022 Industrial Plan, with the key objective of creating value for all our stakeholders. This year we are proposing the distribution of the dividend as a fundamental element of the remuneration of the shareholder”.
The overall revenue from the helicopter market segment was valued at €3.26 billion, down slightly from the 2016 figure of €3.64 billion. EBITA was almost half that of 2016, with €260 million in 2017 and €430 in 2016.
Leonardo’s results reflect that of Airbus, which also saw a slight drop off in deliveries, placing 350 helicopters in 2017 as opposed to the 388 it signed in 2016. However, Bell’s deliveries were up in 2017, hitting 132 commercial aircraft in 2017 as opposed to 114 in 2016. Sikorsky is yet to release official order figures for 2017.