Friday, April 29, 2011

Finmeccanica: Libyan Rebels Will Honor Contracts

Representatives of Libyan rebels fighting Col. Moammar Gadhafi have told Finmeccanica that they will honor the Italian firm's Libyan contracts should they take over the country, a Finmeccanica official said.
Before civil conflict erupted in Libya in February, Finmeccanica was expecting to see between 250 million and 350 million euros in revenue this year from contracts signed with Gadhafi's government, mainly covering border control systems, government service helicopters and civil transport.
The firm's current backlog of orders from Libya stands at 800 million euros, 80 percent of which is related to transportation contracts, Finmeccanica has said.
"We have met with the interim government, and they have told us all present contracts would be confirmed," said Finmeccanica CFO Alessandro Pansa, referring to the Benghazi-based rebels.
"They are interested in border control and railway systems," he told analysts in a conference call April 28 to coincide with the release of Finmeccanica's first-quarter results.
In the first three months of 2011, Finmeccanica reported a 92 percent decline in net profit to 7 million euros, a fall it attributed to higher finance charges. Revenues dropped 5 percent to 3.86 billion euros.
Pansa said the conflict in Libya would not change Finmeccanica's revenue prediction for 2011 of between 18.3 billion and 19 billion euros.
"We don't expect to suffer much from the defense cuts of the U.S.," he added.

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