Finmeccanica has created a new defence electronics business incorporating avionics, communications, integrated systems and security following its agreement to acquire defence electronics assets from BAE Systems.
Selex Sistemi Integrati incorporates air traffic management and air traffic control, Selex Sensors and Airborne Systems, of which BAE Systems owns 25%, operates in the avionics sector and Selex Communications is the sector's military and secure communications arm.
Finmeccanica says the new business will generate revenues of €3 billion ($3.8 billion) and employ 19,000 staff.
Finmeccanica's earnings rose in the first quarter of 2005, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 38% from the previous quarter to €134 million. Net debt also rose significantly from €371 million in quarter four 2004 to €901 million.
The company decreased its net loss, from €35 million in the fourth quarter, to €16 million in the first quarter and its order backlog rose on the back of the US101 contract and defence electronics to €26.9 billion, €1.12 billion higher than the previous quarter.
The company projects 20% year-on-year revenue growth in 2005, as it consolidates AgustaWestland and the defence electronics and space activities acquired from BAE Systems and Alcatel.
Chairman and chief executive Pier Francesco Guarguaglini says the agreements with BAE Systems in the defence electronics sector and Alcatel in the space sector "will create synergies and economies of scale that will further improve profitability and increase our role at an international level".
Source: Flight International
