This headline was corrected at 12:01 p.m. ET. The original version misstated the amount as EUR7.31 billion instead of EUR8.69 billion.
Corrections & Amplifications
This headline was corrected at 12:02 p.m. ET. The original version misstated that orders grew 21% in the second half.
By Pierre Bertrand
Leonardo, the Italian aerospace-and-defense company, announced a decrease in net profit for the first half of the year due to higher costs. However, the company remains confident in its 2023 guidance and plans to unveil a new industrial plan.
In the six months of the year, Leonardo recorded a net profit of 196 million euros ($215.2 million), compared to 266 million euros in the same period last year. Despite this decrease in profit, revenue grew by 4.8% to reach 6.9 billion euros.
Chief Executive Roberto Cingolani expressed his optimism, saying, “The results confirm solid and positive trends across the group. Looking forward, we are starting to set up the new Industrial Plan which will be announced at the beginning of next year.” Cingolani emphasized their focus on defense products, as well as space and cybersecurity.
The company attributed its lower earnings to higher borrowing costs and increased tax charges.
Leonardo experienced a 19% increase in new orders during the six-month period, reaching 8.69 billion euros. This contributed to the order backlog, which now stands at 39.12 billion euros—a 7.6% increase compared to the previous year. The company assures that this backlog provides coverage for more than two and a half years of production.
Leonardo remains committed to its 2023 guidance.
