Revenues up, orders down for Leonardo in Q3
Leonardo saw mixed results in the third quarter, with revenues up 11% year-on-year at €9.1bn but commercial helicopter orders down drastically by 52%, buoyed only by a €3bn Qatari government NH90 military contract.
Total commercial helicopter orders brought in €2.2 billion for the quarter, compared to the €4.4bn+ from Q3 2018. However, helicopter business revenues for the quarter are up 3%, with the drop in civilian orders offset by military deals.
On top of the Qatari order, generating steady revenue is a contract for four AW101s signed in April between Leonardo and the Polish government. The contract includes logistics, support, training and medical equipment.
Speaking on an earnings call, Alessandro Profumo, Leonardo CEO said: “So Helicopters, we are on track to meet our targets. We are successfully achieving sustainable growth. We are a strong well-diversified business. Our successes and our capabilities in military and customer support are offsetting the business of the civil market. And, importantly, the plan to restore profitability is well on track.”
Helicopter orders made up the lowest percent of the total backlog for the quarter, representing 32% of Leonardo’s total – with defence electronics and security making up 35% and aeronautics 33%.
Leonardo also re-confirmed its 2019 guidance, predicting €12.5-13.5bn in new orders for the year, down from €15.124bn last year. Revenues are expected to be steady compared to last year, predicting €12.5- €13.0bn, slightly up from €12.24bn. The manufacturer also expects to return to double-digit profitability by 2020.