Milan, January 31st 2017
- Order backlog at EUR 6,488.4 million, +1.2% y/y
- New Orders at EUR 1,475.8 million, +10.5% y/y
- Revenue of EUR 1,327.4 million, -4.1% y/y
- EBIT of EUR 126.8 million, -6.6% y/y. EBIT margin (ROS) at 9.6%, compared to 9.8% in 2015
- Net Result of EUR 77.9 million, -16.3% y/y, equivalent to 5.9% of revenues
- Net Financial Position (cash surplus) of EUR (338.0) million, in line with the 2015 amount of EUR (338.7) million
The Board of Directors of Ansaldo STS (STS.MI) has reviewed the preliminary unaudited estimates of the company’s annual results for 2016 consolidated financial statements, and thank the CEO for the results, achieved despite the final settlement of the arbitration findings with the Russian customer on the Libyan contract and the transaction costs associated with the resignation of strategic managers.
The Chief Executive Officer and General Manager, Andy Barr, thanking the Board of Directors for its support and trust, commented: "Ansaldo STS performed impressively in 2016. The company has made significant progress in two major areas: the award of new important contracts in Glasgow, Brussels and San Ying which have laid the basis for strong future revenue performance; the Company has also reaffirmed its reputation for reliability, achieving major milestones on its largest and most complex projects. I want to thank all the staff, and my management colleagues, who have helped in delivering these results.
Order backlog is EUR 6,488.4 million (6,410.4 million at 31 December 2015). New Orders at EUR 1,475.8 million compared to EUR 1,336.0 million at 31 December 2015; particular highlights include the awards of projects in Taiwan, Glasgow, Bruxelles and in Italy for the Rome - Florence and the Milan - Genoa (“Valico dei Giovi”) lines.
Revenues are EUR 1,327.4 million, a reduction of EUR 56.5 million compared with EUR 1,383.8 million in 2015; as highlighted during the year, the reduction in revenues is largely the result of achieving the final phases of significant contracts in the Asia Pacific region which have been compensated only partly by new contracts acquired in the last few years.
Operating income (EBIT) is EUR 126.8 million, a reduction of EUR 9.0 million compared with 2015. EBIT margin (ROS – Return on Sales) is 9.6%, compared with 9.8% in the previous year. The reduction in operating income is mainly due to lower revenues, compensated by the better mix of the projects in the period, the final settlement of the arbitration findings with the Russian customer on the Libyan contract and the transaction costs associated with the resignation of strategic managers.
Net Result is EUR 77.9 million (EUR 93.0 million in 2015). The reduction of 16.3% is also dependent upon further costs in the financial expenses as a result of the arbitration findings on the Libyan contract.
Net Financial Position, (cash surplus) is EUR (338.0) million compared with EUR (338.7) million in 2015.
Free Operating Cash Flow (FOCF) before strategic investments is EUR 37.9 million compared to EUR 87.7 million in 2015. In this regard we would like to highlight that, in October 2016, the Company reimbursed the Russian client ZST its advance payment share, together with legal fees and interests expenses accumulated up to the repayment date.
Roberto Carassai, the director responsible for drawing up the company’s accounting statements, hereby declares, pursuant to article 154-bis, paragraph 2 of the Testo Unico della Finanza law, that the information contained in this press releases accurately represents the figures contained in the Group’s accounting records.