Finmeccanica Narrows Fourth-Quarter Losses

Finmeccanica SpA announced on Tuesday that it narrowed its loss in the fourth quarter to $1.22 billion on flat revenue after it initiated a major restructuring of its operations to cut costs, improve efficiency and reduce losses.

According to the company, it set a number of targets for 2013, including an adjusted Ebita of nearly EUR1.1 billion, revenue between EUR16.7 billion and EUR17 billion and free operating cash flow of nearly EUR100 million--pretty much in line with what it generated for all of 2012.

Chief Executive Alessandro Pansa said that after the publication of results that the group's AnsaldoBreda division, which makes trains and trams, was still suffering because it had contracts that were generating significant losses.

MAIN FACTS:

- Net loss for the fourth quarter narrowed to EUR932 million from a loss of EUR1.9 billion for the same period in 2011.

- Adjusted earnings before interest, taxes and amortization, or Ebita, was EUR339 million against a loss of EUR30 million. The figure is adjusted because it excludes restructuring costs and extraordinary items.

- Revenue was virtually flat at EUR5.1 billion.

- Orders stood at EUR6.1 billion against EUR6.8 billion a year earlier.

- Net debt was EUR3.37 billion, in line with EUR3.44 billion at the end of 2011.

- Free operating cash flow was EUR1.5 billion from EUR1.2 billion for the same quarter in 2011.