Fincantieri, the Italian state owned shipbuilder that is a leadinhg builder of passenger vessels, has reported an increase in profit from ordinary operations, but a reduction in its orderbook for the first half of the year. Consequently, the company warns of insufficient workload.
The profit rose by 62.5% to €26 million in the first six months of the year compared to the same period in 2011, while revuenues increased to €1.23 billion from €1.18 billion. Cash holdings at the end of June amounted to €909 million, significantly more than €166 million on 31 December last year. Order portfolio totaled at €7.07 billion at the end of June, a decline from €7.92 billion 12 months earlier.
“Of particular note is the Group's net financial position, which at the end of June reported a net cash surplus of euro 909 million. Such a financial position makes it possible, on the one hand, to plan and cover future working capital financing requirements with complete peace of mind and on the other to consider, without particular duress, potential new investments to create value for the Group,” Fincantieri said in a statement.
New orders won fell to €488 million from €874 million in the first half of 2011. At 30 June 2012, the Fincantieri Group’s order portfolio stood at €7.07 billion. “The associated order backlog, although a still significant €5,047 million, will continue to be unable to saturate production capacity at all the Group's shipyards. The Group therefore plans to carry on using extraordinary income-support benefits to lay off workers at Italian shipyards where there is insufficient work,” Fincantieri warned.
