Italian shipbuilder Fincantieri H1 profits up 62.5%
Italian shipbuilder Fincantieri - Cantieri Navali Italiani SpA (Fincantieri) has reported its six month ended June 30, 2012 results with a year-over-year increase in operating profits of 62.5% to €26 million ($32 million), and revenues of €1,233 million ($1,518), an increase of 4.8% from the first half of 2011, Ship & Bunker reports.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 15.2% to €68 million ($84 million) compared to €59 million ($73 million) at period end in 2011, with surplus cash at €909 million ($1,119 million) compared to €166 million ($204 million) at June 30, 2011.
The order book decreased 10.8% to €7,069 million ($8,699 million) from €7,920 million ($9,746 million) for the same period last year.
The company's news release said net financial position at the end of period and cash reserves of €347 million ($426 million) and €107 million ($132 million) respectively will be used to cover future working capital requirements, make new investments to add value to Fincantieri, and mitigate risk of unforeseen charges.
€33 million ($41 million) in capital expenditures relate to projects commenced in previous years for efficiency, safety, enhancing environmental standards, as well as capital expenditures at its U.S. shipyards.
New orders of €488 ($600 million) in the first half of the year are down 44.2% from €874 million ($1,080 million) in the first half of 2011.
Fincantieri said at the end of period, the order book of €7,069 million ($8,699 million) will not be sufficient to meet capacity at all of the company's shipyards prompting the company to use extraordinary income-support benefits to furlough workers at Italian shipyards.
Its U.S. subsidiary, Fincantieri Marine Group, received an order for two Littoral Combat Ships (LCS) for the U.S. Navy, and an order for 40 Response Boats-Medium (RB-M) for the U.S. Coast Guard.
Fincantieri's news release states that because the shipbuilding industry has experienced severe difficulty during the first half of 2012, the company swiftly implemented its Reorganisation Plan to address the market and make it possible to adjust production capacity to meet demand and to enter new markets.
Giuseppe Bono, Fincantieri Chief Executive Officer, commented: "We are pleased with these results, giving cause for optimism to the company and its employees. The ongoing reorganisation process, initiated thanks to an agreement with the unions and the government, is proving its worth."
"Fincantieri therefore presents itself on the market as one of the major players in its industry and can count on an encouraging future if cohesion between all its employees lets it achieve the necessary productivity levels to succeed in a smaller but much more fiercely competitive market," he concluded.
