Fincantieri Reports Loss in Depressed Market

Fincantieri has reported a net loss of 124 million euro on revenues of 2.9 billion euro for 2010, compared to a loss of 64 million euro on revenues of 3.3 billion euro for 2009. The results reflected what the company called “non-recurring and extraordinary expenses due to the reduction in the order backlog, price pressure on new orders, and various provisions for risks relating to non-recurring events.” Excluding so-called non-recurring events, Fincantieri would have posted net earnings of 53 million euro, according to a company statement.

The Italian shipbuilding company also said that EBITDA was 179 million euro for a margin of 6.2 percent.

Fincantieri secured 1.9 billion euro worth of new contracts during 2010. This is slightly higher than for 2009 but well below 2008 and a record 4.2 billion euro in 2007. The company attributed the decrease to the international crisis, which, it said, has significantly depressed the demand for new ships.

Among the new orders were two 141,000-ton cruise ships for the Carnival Group’s Princess Cruises, two patrol vessels for the United Arab Emirates and two vessels for the U.S. Coast Guard. In addition, Fincantieri’s U.S. subsidiary was awarded an order for a combat ship for the U.S. navy in partnership with the Lockheed Martin Corporation. The U.S. navy has an option to build another 10 ships in the class by 2015 and a total of 55 by 2020.

The U.S. subsidiary was also awarded contracts to build an oceanographic ship and 39 medium-response boats for the Coast Guard.

Repairs and conversions received 44 million euro worth of new orders, while systems and component orders reached 72 million euro during the year.



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