Finmeccanica 1Q earns down 92 percent

AP News
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Posted: Apr 28, 2011 12:59 PM
Finmeccanica 1Q earns down 92 percent

Italian defense and aerospace company Finmeccanica SpA on Thursday said first-quarter earnings dropped by 92 percent due to higher financial expenses and lower energy and aeronautics revenues.

Net profit for the first quarter was euro7 million ($10.36 million), down from euro91 million in the same period a year ago.

Much of the decrease was due to higher financial expenses on interest rate swaps, which the company said should be mostly contained to the first quarter.

Core earnings before interest and tax were down 14 percent, to euro215 million. Aeronautics revenues were down 4 percent to euro567 million, and energy was down 21 percent to euro266 million.

Shares in the company closed down 2.13 percent to euro9.17

Finmeccanica, based in Rome, said it is integrating units to confront slower growth. It said new orders in the first quarter have increased backlog to more than euro48 billion, which will cover 90 percent of the revenue forecasts of between euro18.3 billion to euro19 billion.

During the first quarter, Finmeccanica signed an agreement to sell a 45 percent share of Ansaldo Energia to U.S. investment fund First Reserve Corporation. The transaction should be complete by the end of June.