Leonardo's annual financial results for 2018 were markedly improved from the previous year, led by the dramatic success of its helicopter division, according to results the company released on Wednesday. Overall, new order intake increased by 32 percent, to $17.34 billion; revenues were up by 5 percent, to $14.05 billion year over year; and net profit increased by 83 percent to $578 million. The company’s overall order backlog increased to $41 billion.
Leonardo CEO Alessandro Profumo said the company is well on its intended trajectory to achieve “double-digit profitability” and “sustainable growth.”
The company’s results were bolstered by the success of its electronics, defense and security systems, and helicopter divisions, it said, citing accomplishments that included a $3.4 billion order for NH90 helicopters from Qatar and higher production and deliveries of AW139s and AW101s. Within the helicopter division, compared with 2017 results, new orders nearly doubled, to $7.03 billion from $3.57 billion; the order backlog increased to $13.77 billion from $11.77 billion; revenues increased to $4.32 billion from $3.89 billion; and profitability improved to 9.4 percent from 8.2 percent. Overall helicopter deliveries increased from 149 in 2017 to 177 in 2018. The company noted its strategy to concentrate on the “intermediate segment of civil/dual-use helicopters” had paid handsome dividends.
Leonardo also attributed its improved financial results in part to the impact of corporate tax reform in the U.S. Leonardo said it had a particularly strong 2018 fourth quarter with new orders company-wide amounting to $6.49 billion, a 57.1 percent increase from the year-ago period.