The Italian shipbuilding group Fincantieri recorded EUR 55 million (USD 61.7m) net profit in 2014, a 35% drop compared to EUR 85m (USD 95.3m) the company made in 2013, despite an increase in shipbuilding orders.
Fincantieri secured new orders totaling EUR 5.6 billion (USD 6.27bn), 13% more compared with EUR 4.9bn (USD 5.49bn) in 2013.
Of the total new orders, 78% relates to the shipbuilding segment, compared to 61% in 2013. The increase is attributed to a significant cruise segment recovery, both in terms of order intake and production volumes.
The order intake in the shipbuilding segment increased by 46% compared to 2013, including eight new cruise ships ordered from the beginning of the year.
The company’s current order backlog now stands at EUR 9.8bn (USD 11bn), a 21.6% increase compared to EUR 8.1bn (USD 9.1bn) recorded at the end of 2013. The order delivery profile extends until 2019.
In general terms, Fincantieri expects a sustained order intake in 2015, also in relation to the expected finalization of contracts for the Italian Navy fleet renewal program.
In the shipbuilding segment, despite the gradual recovery in cruise volumes thanks to a significant number of acquired orders entering production, Fincantieri says margins will continue to be affected by prices related to cruise orders acquired during crisis and currently under construction, as well as by still partial production capacity utilization in Italy. Concerning the naval business, the period will denote a reduced production volumes, with the vessels within the Italian Navy fleet renewal program expected to enter production in the second part of the year.
“2014 was an important year for Fincantieri, characterized by an increase in order intake and backlog on a consolidated level and in revenues across all operating segments. In particular, the cruise business has significantly recovered, with the acquisition of 8 orders, among the 16 worldwide, and 9 units currently under construction, leading to a gradual recovery in volumes at the Italian facilities,” said Giuseppe Bono, Fincantieri’s Chief Executive Officer.