Italy's Leonardo aerostructures losses ease as JV talks continue

By Reuters News

- Italian defence group Leonardo LDOF.MI said its troubled aerostructures business is showing signs of improvement, as the company continues to pursue a long-planned partnership for the unit.

Chief Financial Officer Giuseppe Aurilio told analysts on Thursday that losses at the division were declining and that a ramp-up of the Boeing B787 programme had made the issue "much more manageable and less painful".

At the same time, Leonardo is pressing ahead with talks on a joint venture for the unit - which supplies components to Boeing BA.N and Airbus AIR.PA - despite delays linked to geopolitical factors, Aurilio added.

The state-controlled conglomerate has been in talks for more than a year with a partner - whose identity has not been disclosed but which has been identified by media as Saudi Arabia's sovereign wealth fund.

Aurilio said that Leonardo was making progress on a standalone plan for aerostructures and would provide an update as part of its new industrial strategy, expected in March.

"The strategy does not change, (and that is) to make aeostructures sustainable, widening its customer base, and that is with this partnership or with no partnership," the executive said.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.