Ansaldo STS group recognised a profit of €74,815 thousand for 2013, compared to €75,696 thousand for the previous year. Revenue came to €1,256,419 thousand, compared to €1,247,849 thousand and the ROS was 9.4%, in line with the previous year.
Performance was positive and substantially in line with forecasts. The group’s strong operational performance is shown by the early-2013 deliveries and good operation throughout the year of the Brescia and Milan automated metros, the roll-out of the 2.5.3 build of the ERTMS signalling system in Sweden on the ESTER contract, the delivery of the first central equipment on the Turin-Padua railway line in Italy, and the roll-out of the first stations of the Ankara metro at the beginning of 2014.
New orders totalled €1,483,587 thousand, compared to €1,492,346 thousand in 2012. Specifically: the contract won as part of the ArRiyad New Mobility consortium for the construction of Line 3 (Red Line) of the new Riyadh metro for some €511 million; the contract for the construction of the first catenary-free Tramwave® system in China (Zhuhai municipality) under the agreement signed in 2012 for the construction of tram lines on the Chinese market using this innovative technology, for some €26 million; the Algerian contract for the implementation of the ERTMS signalling technology for some €40 million and the contract in Morocco, as part of a specific consortium, to supply the centre for railway signalling, telecommunications and traffic control for the future Tangiers-Kenitra high-speed line for some €58 million. The order backlog at 31 December 2013 totalled €5,601,021 thousand (31 December 2012: €5,683,253). It fell some €172 thousand following a dispute with the Russian customer, Zarubezhstroytechnology (ZST), in relation to the contract for the Sirth-Benghazi line (in Libya).
On the whole, the group’s reference market continues to grow at 2-3% p.a. despite heavy price competition, especially in the signalling business unit. The group’s response is to seek to innovate and differentiate its product portfolio and to constantly improve its efficiency and operational effectiveness via specific plans.
Accordingly, management continued its upgrade of processes with a view to increasing the scope and extent of group governance and risk management. The organisational structure has also been updated so that it can respond to changing market needs and pursue greater efficiency.
The recent reorganisation is driven by the need to centralise multibusiness project management and the need for greater cohesion between the various teams, particularly the contracts and sales teams.
Under the new organisational model, the revenue centres (Sales/Bidding, Project Management and Operations & Maintenance) will be more distinctly separate from the cost centres which are responsible for all internal processes (Engineering, Construction & Commission, Supply Chain, Manufacturing, and Development).
One revenue centre represents the former two centres, Rail and Mass Transit products, which have been streamlined into a single centre in response to market needs, and the other relates to Freight, with a strongly geographic focus.
After an initial short-term transition period, the new revenue centre was fully operational by the beginning of 2014.
With reference to the group’s corporate and governance structure:
- on 18 December 2012, the board of directors authorised the sale of the parent’s investment held through its direct subsidiary Ansaldo STS France S.A.S. in the Venezuelan-based ECOSEN VA. Ansaldo STS France S.A. signed a preliminary sales agreement for this investment with an independent party. The transaction is underway and is expected to be completed in 2014;
- in its meeting of 26 June 2013, Ansaldo STS’s board of directors approved the dissolution of the JV in Kazakhstan with JSC Remlokomotiv and authorised the early closure and liquidation of Kazakhstan TZ-Ansaldo STS Italy LLP. The liquidation process is presently underway;
- on 27 September 2013, the board of directors authorised the negotiations for the sale to a local operator of 31% of the shares currently held by the parent via its direct subsidiary, Ansaldo STS Australia PTY Ltd, in the subsidiary Ansaldo STS – Sinosa Rail Solutions South Africa (Pty) Ltd, representing 51% of the entire share capital. Negotiations are still underway;
- on 20 September 2013, the closure of the indirect subsidiary Ansaldo STS Finland OY took effect and this company was therefore excluded from the consolidation scope from such date. The directors had approved this company’s liquidation in their meeting of 28 September 2012;
- in order to seize the strong sales opportunities arising in the Mass Transit sector, the directors resolved to set up a new company in Brazil in their meeting of 16 December 2013. Ansaldo STS do Brasil Sistemas de Trasporte Ferroviario e Metropolitano LTDA was thus set up on 5 February 2014, with registered office in Fortaleza, in the state of Ceará.
Any commercial opportunities arising in those countries where Ansaldo STS no longer has a permanent establishment will be pursued in partnership with local operators or other legal entities of ASTS group.