Signalling and Transportation Solutions market is large (€14+bn) and continues to grow healthily (3%+ per year) with an above average growth rate in “turnkey” Business and in selected geographies (e.g. emerging). Ansaldo STS Customer centric business model legitimated by proven leadership in signalling technology with worldwide reference list and the ability to deliver on time, on budget and especially on value both for its clients and its shareholders make the ground for a positive and solid outlook for the company. In some segments competition and pressure on prices continue, making cost competitiveness one of the main challenges to be addressed.
Market Selectivity, Innovation, Effectiveness and Efficiency are confirmed to be the main strategic directions Ansaldo STS needs to pursue along with a tight monitoring of the related implementation plans.
Based on the above, Ansaldo STS remains committed to deliver superior value to shareholders leveraging profitable backlog and protecting profitability on new projects.
In the broader context of the global financial crisis, the Group’s 2012 performance was positive and in line with forecasts. The delivery of turnkey metro systems in Riyadh and Genoa, the CBTC (Communication Based Train Control) signalling system for Chengdu metro (China) and, in early 2013, the unmanned metrolines in Milan (Line5) and Brescia represent technological and operational successes achieved ensuring results in line with targets previously communicated.
From a commercial point of view, 2012 confirmed our strong position in the Australian and US markets and in the European High Speed Line sector. To sustain going forward the technological leadership an important achievements of the year is the signature in Australia of the first contract to deliver a Satellite based signalling system for a new freight railway line under the Roy Hill Iron Ore project in the Pilbara Region of Western Australia.
In details: Ansaldo STS Group recognised a net profit of €75,696 thousand for the year ended 31 December 2012, compared with €73,056 thousand for the previous year.
Revenue came to €1,247,849 thousand, compared to €1,211,944 thousand and the ROS was 9.4%, compared to 9.6% in the previous year confirming a solid negative Net financial position of €301,982 thousand (loan assets and cash and cash equivalents greater than loans and borrowings).
New orders totalled €1,492,346 thousand, compared to €2,163,745 thousand in 2011 (which included the maxi contract for the Honolulu metro). Specifically:
- Transportation Solutions Business Unit accounted for €642,712 thousand new order which mainly refer to the master agreement with Rio Tinto Iron Ore in Australia;
- Signalling Business Unit totalled for €893,197 thousand new orders which include the contract for the high speed line Brescia-Treviglio in Italy, the contract with Southeastern Pennsylvania Transportation Authority (SEPTA) in USA to supply the Positive Train Control (PTC) integrated signalling system, the above mentioned Roy Hill Iron Ore project in Australia, the contract for the new Shah-Habshan-Ruswais line in the United Arab Emirates and the contract related to the Honam high-speed line in South Korea.
The order backlog at 31 December 2012 totalled €5,683,253 thousand, compared to €5,452,770 thousand at 31 December 2011.