Finmeccanica restructure moves ahead

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ROME, Feb. 22 (UPI) -- Italian aerospace and defense group Finmeccanica is pushing forward with a reorganization to improve management and increase profits.

The group's board of directors on Thursday decided to increase the number of Surveillance Body members to a maximum of five and replaced two members who resigned. It also centralized Finemeccanica's internal audit activities to allow for more direct control over the financial processes of the group's companies.

"Finmeccanica is determined to continue with the implementation of the restructuring plan of the group ... in order to achieve a significant and sustainable recovery of profitability and the ability to generate cash flow," it said.

"At the same time, Finmeccanica is continuing its strategic and industrial strengthening path by revisiting its portfolio of activities, with the concentration of the invested capital in areas whose technological and industrial capabilities allow (it) to achieve market positioning able to maximize value creation.

"This could also entail the deconsolidation of assets, thus reducing financial debt, preserving the group solid liquidity profile," it said.

Other decisions reached by the board: replacement of a number of company chief executive officers, including that of AgustaWestland; centralization of the group's indirect procurement; and approval of short-term structural initiatives for companies in the aerospace, defense and security domains that will reduce costs of production – such as outsourcing of some non-core activities.

"With regards to the process relating to the possible disposal of some of its stakes, at today's meeting the board of directors was informed of offers received for the acquisition of Finmeccanica's stake in Ansaldo Energia and the proposals will be submitted to the competent bodies for the final considerations.