Finmeccanica lines up EUR1 billion assets sale as loss looms

摘要

Finmeccanica is to sell off assets worth EUR1 billion (USD1.37 billion), cut jobs in its aeronautics division and rationalise its Defence Electronics & Systems companies after forecasting a EUR200 million loss for 2011. Described by the Italian group as "extraordinary measures" for "uncertain times", the steps mark the culmination of a strategic review that commenced earlier this year following the appointment of Giuseppe Orsi as chief executive officer. The aim is to mitigate against the impact of spending cuts in the key Italian, UK, and US markets; adapt portfolios to meet current opportunities; and reign in debt that has remained stubbornly high since the USD5.2 billion acquisition of DRS Technologies in 2008. The measures were announced on 15 November 2011 in tandem with Finmeccanica's third-quarter results, in which it revealed a net loss of EUR324 million. Orsi said: "These are uncertain times and they call for extraordinary measures, but I have no doubt that Finmeccanica's future is a bright one. Tough times also provide us with an opportunity to clarify our mission, our organisation and our ambitions."