Finmeccanica

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Finmeccanica
Società per azioni
Traded as BITFNC
Industry Aerospace, defence
Founded 1948; 68 years ago (1948)
Headquarters Rome, Italy
Key people
Giovanni De Gennaro (Chairman)
Mauro Moretti (CEO)
Products Aeronautics, helicopters, space, electronics, defence systems
Revenue € 15.62 billion (2014)[1]
Profit € 20 million (2014)[1]
Number of employees
About 47,000[2]
Website www.finmeccanica.com

Finmeccanica is the leading industrial group in the high-technology sector in Italy and one of the main global players in aerospace, defence and security. It operates in five sectors: aeronautics, helicopters, electronics, defence systems and space. The company is partially owned by the Italian government through the Ministry of Economy and Finance, which holds 30,2% of Finmeccanica's shares.

History[edit]

The company was established in 1948 as a subholding for mechanical industry of state owned IRI. Finmeccanica has held for years some historic Italian enterprises, such as Alfa Romeo (automobile), Aeritalia (aerospace) and Ansaldo (engineering). From 1960s to 1980s Italy's defence and aerospace industry was split in different state-holding entities: so EFIM owned the helicopters manufacturer Agusta, the defence company Oto Melara and the electronic enterprise Officine Galileo, whereas STET (another IRI subsidiary) held Selenia, Elsag and SGS Thomson, all electronic enterprises with specializations in security and defense. In 1989 an internal IRI reorganization process brought STET electronic enterprises to Finmeccanica, that from Aeritalia-Selenia merger made up its aerospace subsidiary Alenia. In 1992 EFIM wound up because of troubled financial situation; so Agusta, Oto Melara, Officine Galileo and Breda passed to Finmeccanica, which became one of the most important Italian industrial groups.

Finmeccanica, which was previously fully state owned by IRI, went under a privatization process in 1993, when it was listed in Milan Borsa Italiana.

In 1992 Finmeccanica's Agusta became a 32% partner in NHIndustries, the prime contractor for NH90 helicopter, along with Eurocopter (62.5%) and Fokker (5.5%). In July 2000 Finmeccanica and the British GKN agreed to merge their respective helicopter subsidiaries (Agusta and GKN-Westland Helicopters) to form AgustaWestland. In December 2001 the missile business of Alenia Marconi Systems (AMS), a joint Finmeccanica/BAE Systems company, was merged with other European missile manufacturers to form MBDA which thus became the world's second largest missile manufacturer.[3] In July 2003 Finmeccanica and BAE Systems announced their intention to set up three joint venture companies, to be collectively known as Eurosystems. These companies would have pooled the avionics, C4ISTAR and communications businesses of the two companies.[4] In March 2007 BAE Systems sold its 25% share to Finmeccanica for €400 million.[5] In January 2013 the company merged with Finmeccanica's other defence electronics companies, SELEX Elsag and SELEX Sistemi Integrati, to become Selex ES.

In May 2008 Finmeccanica announced its intention to purchase the U.S. defense contractor DRS Technologies for nearly $5.2 billion. On 22 October 2008 the sale of DRS Technologies was finalized.[6] In October 2013, Finmeccanica reached a deal to sell a majority stake in power engineering company Ansaldo Energia to state lender Cassa Depositi e Prestiti.[7]

In the first half of 2014, the change in management at the top of Finmeccanica started a process of profound change for the Group, both in terms of strategic choices and organizational structure. In June 2014, Finmeccanica launched guidelines for the new Group's Organizational and Operational Model. The goal was to create a more cohesive, homogeneous and efficient group in which all processes (research, marketing and sales, engineering, procurement, strategies and governance) are centralized and integrated and can interact more effectively for the benefit of industrial productivity in the various sectors where the Group is present and competitive in global markets, to which the new Finmeccanica will be able to speak "with a single voice". The Model presented by Finmeccanica's new Chief Executive Officer and General Manager Mauro Moretti encompasses the 100% owned companies of the core aerospace and defence business, transformed into new Finmeccanica divisions. The current holding company will then become an operating company based on seven major business areas, maintaining its parent company and corporate centre function for the Group companies excluded from the model.

In January 2015, the new Finmeccanica Group Industrial Plan was unveiled, which aims to strengthen the core business high-tech Aerospace, Defence and Security sectors, and increase competitiveness on international markets. The strategic evolution of the new Finmeccanica is set over four directions: focusing the business portfolio on A,D&S; cutting-edge technology with a focus on dual-use applications for the civil sector; competitive products and services and development of integrated capabilities; more internationalization and attention to selected target markets. Specific segments are also up for restructuring, in order to reduce costs and to achieve economies of scale and the conclusion of the divestment process of non-core sectors..

At the end of 2014, an agreement between Finmeccanica and the Italian subsidiary of the Chinese group King Long led to the creation of the newco Industria Italiana Autobus (20% Finmeccanica and 80% King Long), the new Italian industrial hub for the production of buses, which brings together the most important national industries of the sector. Finmeccanica transferred its stake in BredaMenarinibus to the newco, thereby taking a further step in the Group's portfolio rationalization process. 2015 opened with a new agreement in the field of Transport: the Japanese group Hitachi signed a binding agreement with Finmeccanica for Hitachi's acquisition of the AnsaldoBreda business, excluding some revamping activities and residual contracts, and of the entire Finmeccanica stake in the share capital of Ansaldo STS, approximately 40% of the total capital. There was also a buyer for FATA, another subsidiary of the Finmeccanica Group since 2004 that was not part of the core business. FATA, dealing in the design and manufacture of industrial systems and equipment, was sold in 2015 to the Gruppo Danieli, dealing in the production of steel plants.

Starting January 1, 2016, Finmeccanica is no longer a holding company. Focused on its core business of Aerospace, Defence and Security, the new Finmeccanica become a single and integrated company, with the goal of becoming stronger and more competitive in an increasingly complex international scenario.[8]

Organization[edit]

Aeronautics
Helicopters
Space
Defence and security electronics
Defence systems

Shareholder structure[edit]

As of 30 September 2015 Finmeccanica's largest shareholder was Italian Ministry of Economy and Finances with 30.204%. Other declared shareholdings at this date were Norges Bank (2.031%) and Libyan Investment Authority (2.010%).[9]

References[edit]

  1. ^ a b "Annual Report 2013". Finmeccanica. 
  2. ^ [1]
  3. ^ "EADS, BAE and Finmeccanica Complete MBDA Merger". Defense Daily International. 2001-12-21. the new MBDA, the world's second largest missile manufacturer behind Raytheon 
  4. ^ "BAE ties up £2.6bn Italian deal". BBC News. 3 June 2003. Retrieved 13 September 2007. 
  5. ^ Parmalee, Patricia J. (9 April 2007). "Selex Sale Sealed". Aviation Week and Space Technology (The McGraw-Hill Companies). 
  6. ^ "Finmeccanica completes $5.2B DRS buy". The Business Journal of Milwaukee. 22 October 2008. 
  7. ^ Giuseppe Fonte (4 October 2013). "Finmeccanica agrees to sell Ansaldo Energia to state fund". Reuters. 
  8. ^ "Finmeccanica: Mauro Moretti vara la One Company.". www.finmeccanica.com. Retrieved 2016-01-13. 
  9. ^ "Azionisti rilevanti di FINMECCANICA SPA". Commissione Nazionale per le Società e la Borsa. Retrieved 27 December 2014. 

External links[edit]