MILAN, July 30 (Reuters) - Italian defence group Leonardo
SpA on Thursday lowered its profit outlook for the
year but said it sees revenue almost stable with 2019 as it
expects military and governmental business to offset
coronavirus-related weakness in civil demand.
The Rome-based group issued new full-year guidance which
gave a gloomier picture compared with expectations it released
in early March which lacked the potential impact of the
It said, however, that revenue would come in at 13.2
billion-14 billion euros, not far from 13.8 billion-euro level
New orders are seen in the 12.5 billion-13.5 billion euros
range, down from a March's guidance of around 14 billion euros.
Full-year profit, cash flow and debt would be more impacted
than sales as a lower level of activity at some of its
divisions, slower deliveries and weakness of ATR and space
joint-ventures would take their toll on the entire group.
Turboprop maker ATR, which Leonardo co-owns with
France-based Airbus, has said it will cut its workforce by
around 200 employees this year.
"ATR delivered only one aircraft in the first half and we
expect it will continue to be affected by weak demand," Chief
Financial Officer Alessandra Genco said.
Leonardo's earnings before interest, tax and amortization
(EBITA) are now expected between 900 million and 950 million
euros, compared with a March guidance of 1.325 billion-1.357
"Our order backlog of 36 billion euros is mainly
governmental and military," Leonardo's CEO, Alessandro Profumo,
said during a conference call on first-half results.
Between January and June the group reported a 1.4% fall in
revenue, but suffered a 40% drop of its core profit (EBITA),
which came in at 292 million euros.
All the divisions, excluding Leonardo's U.S. unit, DRS,
reported falling EBITA, with space and ATR joint ventures
The aerostructures division also bore the brunt of a fall in
demand for airplane parts coming from Boeing Co and
(Reporting by Francesca Landini in Milan
Editing by Matthew Lewis)