MILAN -Italy’s Leonardo is overhauling its Aerostructures business and expects it to absorb at least 350 million euros ($404 ) this year before bottoming out, the top executives of the aerospace and defence group said on Friday.
The state-controlled group said the COVID-19 crisis had interrupted the turnaround of the division that makes airplane components for Boeing, Airbus, ATR and others.
The division is expected to break even at the end of 2025, Leonardo CEO Alessandro Profumo said, adding that exiting the troubled business was not an option for the group.
“We are a sole supplier for Boeing 787, we cannot exit the programme,” Profumo said.
Shares in the group fell more than 2% in early trading before paring losses and were exchanging hands at 6.52 euros each, down 1.4% at 0922 GMT.
Leonardo booked 90 million euros in restructuring costs for early retirements at the Aerostructures division.
Despite problems in the unit, which comprises four plants in southern Italy, the state-controlled group reported a rise in its overall core profit in the first nine months and confirmed its full-year guidance.
The group’s earnings before interest, tax and amortization (EBITA) rose 22% year-on-year in the January to September period, reaching 607 million euros, in line with analysts’ expectations.
($1 = 0.8657 euros)