Italian giant eyes European and US aerospace and defence targets and leaves door open for possible Thales merger
Finmeccanica is on the lookout for acquisition targets in Europe and the USA. The Italian industrial group's chief executive and chairman Pier Francesco Guarguaglini says it is interested in small and medium-sized companies in the hi-tech aerospace and defence sectors.
An agreement with Thales, bringing about further rationalisation in the European aerospace and defence sector, remains a possibility, Guarguaglini says. But he stresses that the company is not in discussions with Thales, although "it is clear we're interested in European industrial consolidation". Alberto de Benedictis, senior vice-president US and UK operations, adds: "It depends what [Thales] is thinking of putting on the table." No government approval for any tie-up has yet been sought, he adds.
The company hopes to increase its US revenues by at least four times from the current level of $80 million. Finmeccanica says its Eurosystems deal with BAE Systems has put it at number two behind Thales in the European avionics market and it plans to increase its European, as well as its US, footprint through acquisitions.
De Benedictis says the company was "disappointed" not to be allocated more of the UK's helicopter budget (Flight International, 5-11 April), "but we're prepared to compete for the rest".
The completion of the purchase of the remaining 50% it did not own of AgustaWestland makes it the UK's second largest defence company, employing around 10,000 people. UK sales are expected to account for around 25% of group aerospace and defence revenues in 2005, Finmeccanica says.
The company has reported a 23.1% rise in operating profit in 2004, while net profit was €349 million ($452 million) higher than the previous year at €548 million. Its orderbook grew 18% to €10.8 billion compared with ?9.14 billion at the end of 2003.
HELEN MASSY-BERESFORD/LONDON
Source: Flight International
