Avio core earnings jump as rocket maker pushes ahead with US expansion

By Mirko Miorelli

Nov 11 (Reuters) - Italian rocket maker Avio AVI.MI posted a 13.3% rise in nine-month adjusted core earnings to €18.6 million ($20.77 million) on Wednesday, aided by progress in its US expansion and the finalizing of private equity Advent's €109.4 million investment.

• Net revenue rose 16.7% to €409.7 million, driven by increased production for its Vega-C launchers and higher engine deliveries for Ariane 6, the European Space Agency launcher

• Orders acquired during the nine-month period amounted to about €237 million, around half of which related to contracts in the defense sector, while the rest mainly to Vega-C and Vega-E launchers

• Shares of the company had fallen as much 4.6% after the results, before paring losses and adjusting to a flat trading

• An analyst from Intermonte brokerage told Reuters that the market initially reacted negatively to a lack of upward-revised forecast for net revenue

• The analyst deems the results as positive across the board

• Avio expects full-year adjusted core earnings to be between €29 million and €37 million, and backlog in the range of €2.0 billion to €2.10 billion

• Avio shares had surged in late October after it announced a strategic operation with US-based defense giant Lockheed Martin LMT.N to expand solid rocket motor production

($1 = 0.8957 euros)