- Strong commercial performance with orders intake at EUR 1,889.1 million (+25.9%), leading to a backlog of EUR 6,883.4 million
- Revenue at EUR 1,437.1 million (+5.6%)
- EBIT at EUR 118.5 million (+17.5%)
- Net result at EUR 88.3 million (+36.1%)
- Net Financial Position, positive net cash, at EUR (398.9) million (+11.6%)
- Ansaldo STS delisting effective since January 30, 2019
The Board of Directors of Ansaldo STS has examined and approved the Group’s interim consolidated financial report at 31 December 2018.
The Chief Executive Officer and General Manager, Andrew Barr, stated:
“The performance of ASTS this year has been extremely strong, in line with the guidance provided to the market during the year 2018. This year we have achieved the best results ever in revenues and net financial position with excellent figures for backlog, and orders in take.
2018 was a year in which we focused on ongoing project delivery, in particular making sure we have the correct people located locally. For example in Boston, we completed the first phase of the PTC installation for the MBTA network. At the end of the year, we were also able to get approval from the Federal Railroad Administration to operate this service as part of the trial for the next phase of the program.
In Australia, we have completed one million kilometres autonomous running with the freight trains for Rio Tinto.
In Honolulu, I was able to meet the Mayor, the local team and to see the first operation of an automatic train within the depot area in Honolulu itself.
In Italy we’ve achieved several significant milestones in the project we are implementing on the Italian rail network for our client RFI.
Our financial results show a record backlog this year, which was mainly strengthened by one major acquisition the Riyadh Operation & Maintenance contract, assigned by RDA to the Flow Consortium, led by Ansaldo STS and participated by Alstom and Ferrovie dello Stato Italiane. This contract is in perfect alignment with the Strategic Business Overview presented in 2018 which stated our intended focus on the new O&M business in addition to 2 the established model and has a huge relevance for our company because it consolidates our O&M capability and our status of “Full Service Provider” in the rail industry.
The good operating performance I have mentioned before strongly contributed to the achievement of the record amount of revenues in 2018, in which significant milestones related to a certain number of projects have been met. At region level, the most important contributor to this result is Italy, where projects have progressed more than in other regions.
The profitability of the year, with a ROS of 8.2%, has been better than last year, when the ROS of 7.4% was negatively affected by exceptional events. It is important to say that the 2018 profitability, in addition to the different mix of the projects, has been negatively impacted by the IFRS15 new accounting principle, came into force starting from January 2018. Net of this effect, profitability of 2018 should have been 8.9%.
2018 reported also the highest level of Net Financial Position (cash positive) ever reached by Ansaldo STS, very close to €400m.
Corporate Social Responsibility (CSR) remains a very important part, as we are a global organization. As part of this, we are industry leading in the area of Sustainability and the award received in 2018 confirmed ASTS as a global leader in CSR in transportation.
We changed the structure of the company during the year to be more regionally focused and to be able to satisfy the needs of our clients more closely. The previous Railways & Mass Transit and Freight Business Units were replaced by the creation of the new EMEA (Europe, Middle East & Africa) and Americas and Asia Pacific regions and were joined by the Operation & Maintenance business unit after signing the Riyadh Metro contract. It was a great achievement for the company to have concluded this Organisational change by the end of 2018, so that we can start 2019 with the organisation now in place and ready to operate.
After almost three years since my appointment as CEO I’m extremely proud of the figures presented to the Board today performed by the company under my management in one of the most important phase of ASTS’ history. We delisted from the Stock Exchange Market on 30th January 2019 with performance at a record high.
ASTS is now fully part of the Hitachi Group and this represents a remarkable opportunity for all of us to continue the transformation process that makes ASTS one of the most competitive within our industry. We know that Hitachi will support our path of growth granting the business continuity and the plans for the future we have recently put in place.
I would like to acknowledge the strong commitment support and friendship of the people that we have within the company. Their dedication during the last three years has enabled us to reach the position we are now at and I would like to take this opportunity to express my thanks to everybody.”