Leonardo said it would look to
improve competitiveness through digitalization, enhance cyber
capabilities and focus R&D expenditure on innovative
technologies, including Artificial Intelligence, on Tuesday as
the Italian State-controlled defence giant presented its
five-year plan for the 2024-28 period.
It said it expects a cumulative new order intake of 105 billion
euros by the end of the plan, with revenues rising 6% on average
each year to reach 95 billion euros.
"The Industrial Plan has defined a strategy for unlocking the
business growth potential of Leonardo, delivering stronger
top-line growth, double digit profitability by 2026 and doubled
FOCF by the end of the Plan," said CEO Roberto Cingolani. "This
will be achieved through a massive digitalization and
rationalization of products and services, group-wide
efficiencies and cost reduction initiatives - targeting 1.8
billion euros in gross savings over the plan time span - and
inorganic growth.
"The world geopolitical scenario calls for a new Global Security
paradigm, where we aim to play a proactive role in the evolution
of the European Defence sector."
Leonardo also presented its 2023 financial results on Tuesday.
It said ordinary income was up 6.5% on 2022 to 742 million
euros.
It said net income was down 25.4% to 695 million euros,
stressing that the 2022 figure was boosted by capital gains
obtained from the sales of the Leonardo DRS Global Enterprise
Solutions and Advanced Acoustic Concepts businesses.
The five-year plan went down well on the Milan stock exchange,
with Leonardo's share price gaining 4.9% in early trading.
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