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Vanessa Maydon, Corporate Affairs Director.

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Tel: +44 (0)20 7661 3325
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Email: Vanessa Maydon

Press releases

29 March 2012

Avio results show increase in revenues, EBITDA and investment; Decrease in debt; And orders above €6 billion

2011: Avio continues to grow

  • Group revenues are above €2 billion (+15.6 %)
  • Adjusted EBITDA reaches €383 million (19% of revenues)
  • Yearly investment of €170 million
  • Reduced debt at €1.4 billion
  • Order book soars above €6 billion

Rivalta di Torino (Turin, Italy), 29 March 2012 - The Board of Directors of Avio, the leading international aerospace group, yesterday approved the Group's 2011 financial results. Avio's 2011 results saw increases in Group revenues, adjusted EBITDA and investment; a reduction in net financial debt; and an order book soaring above €6 billion - placing the company in a strong position to continue its international expansion.

Avio's consolidated revenues reached €2,027.1 million, an increase of 15.6% from 2010, despite the negative repercussions caused by the depreciation of the US dollar. The AeroEngine sector saw the largest revenue growth, up 22.1% from 2010 (excluding the negative exchange rate effect).

Adjusted EBITDA (1) rose to €384.2 million, an increase of 13.3% compared to €339.1 million in 2010. This resulted in 19% revenue growth compared with 19.3% in 2010.

In light of positive sales growth and profitability, the Group was able to sustain investment expenditure (2) of over €170 million, while continuing to reduce its net financial debt (3) . On 31st December 2011, Avio's debt was of €1,433.1 million compared with €1,492.9 million at year-end 2010, representing a reduction of €59.1 million (€80 million at exchange rate parity with the US dollar. Avio's has a substantial percentage of its debt in this currency). This result enabled further improvement in the Group's leverage ratio (net financial debt over adjusted EBITDA), decreasing from 4.4x in December 2006 to 3.7x at year-end 2010.

Avio's order book reached €6,050.2 million, an increase of approximately 1% compared to 31st December 2010 - a new record in the Group's history.

Francesco Caio, CEO of Avio, commented: "In such a complex macroeconomic context, Avio has continued to grow in its international markets. This is thanks to our strong company values and skills, which are recognised worldwide. This year, we also saw the successful completion of the Vega satellite launcher's maiden flight, allowing Italy to join the few nations able to access space with their own bespoke technologies. These results allow us to consolidate Avio's prominent position in the aerospace industry globally, and allow us to face future development plans and challenges with great confidence."

2011 RESULTS  

Main indicators (€ millions):

  2011 2010 Variation %
Average US$/€ exchange rate 1.39 1.33  
Revenues 2,027,1 1,753,0 +15.6%
- AeroEngine 1,690.0 1,422.1 +18.8%
- Space 296.5 285.7 +3.8%
- AvioService 40.6 45.2 -10.2%
Adjusted EBITDA (1) 384.2 339.1 +13.3%
- % of revenues 19.0% 19.3%  
Net financial debt (2) 1,433.1 1,492.9 -4.0%


Sector progress

AeroEngine sector (civil, military, aeroderivative gas turbines and electronics)

The AeroEngine sector saw revenues of €1,690 million - an increase of 18.8% compared with 2010, as a result of greater sales volumes. It is worth noting that the weakening of the US dollar marginally eroded revenues, as this is the currency in which most revenues in this sector are achieved.

Helped by the recovery in air traffic, Avio's civil aircraft engines business saw increased revenues of 26.1% compared to 2010 (an increase of 31% at exchange rate parity). This rise was due to three factors: increased revenues from the GEnx engine powering the Boeing B787 and Boeing 747-8 aircrafts; greater sales volumes of spare parts; and an increase in deliveries of the GE90, CF6-80, PW400 and V2500 engines.

Despite the financial difficulties faced by many governments and subsequent reductions in defence spend, the military engine sector also saw revenues grow by 8.5%. Of particular note were contributions from the EJ200 engine for the Eurofighter Typhoon, the T700 engine for helicopters and the TP400 engine powering the A400M tactical transport aircraft, as well as MRO and marine propulsion activities.

Space sector

The Space sector - active in solid and liquid-propellant space propulsion, satellite launchers and tactical propulsion - generated revenues of €296.5 million (+3.8% on 2010), largely as a result of greater sales volumes related to the new Vega launcher. During 2011, the four stages of Vega were transferred to French Guyana. The launch campaign began in November, followed by the successful maiden qualification flight in February 2012. Over the last year, Avio also began production of the first two launchers of the VERTA programme supported by the ESA (European Space Agency), which will put into orbit satellites for scientific research and Earth observation.

The Ariane 5 launcher, in which Avio has a 14% share, also saw positive results. In 2011, the launcher put into orbit eight of the 18 geostationary commercial telecommunications satellites launched worldwide, as well as an ATV platform for the International Space Station (ISS) - once again confirming the company's global leadership in this field.

AvioService Sector

In 2011, the volume of AvioService's MRO interventions was in line with 2010 activity. The decrease in revenues of 10.2% is due primarily to a contraction in MRO orders for the PW120 engine family. However, this was partly balanced out by an increase in MRO activities for components designed and produced by the Group. Avio provides MRO services for Pratt & Whitney's PW100 engine - the most popular engine in the sector, with over 3,000 engines in service. This alone creates an MRO market of approximately $350 million each year.


(1) Adjusted EBITDA is considered a representative indicator to measure the Group's financial results, calculating earnings before interest, taxes, depreciation and amortisation. EBITDA also excludes factors which management regards unusual in order to normalise earnings through time and improve comparability or results.

(2) Investment expenditure includes: fixed costs, R&D expenditure and costs associated with Avio's participation in international research programmes.

(3) Avio's net financial debt represents the company's debt position in light of finance received by third parties. The value is calculated by excluding the Group's debt to its holding company and net liabilities related to the fair value of derivatives.