MILAN (Reuters) - Italy's defense company Finmeccanica expects to generate more cash this year to help cut debt and fund new investments as it presses ahead with its turnaround plans under a new name - Leonardo.
Since coming to office in May 2014, Chief Executive Mauro Moretti has launched a restructuring of the group to focus on the aerospace and defense core activities while shedding non-core assets.
The fall in oil prices, a slowdown in emerging markets and cuts in state defense budgets have dampened demand for military equipment across the sector.
The state-controlled conglomerate announced on Wednesday it would rename the company "Leonardo", in a clear reference to Renaissance artist and genius Leonardo da Vinci.
In December last year Moretti said the new name would be "recognizable, simple, very Italian".
Free operating cash flow in 2015 jumped almost five-fold to 307 million euros ($344 million), Finmeccanica said, boosted by the sale of rail signaling units Ansaldo STS to Japan's Hitachi.
In 2016 the Rome-based group expects cash of up to 400 million euros, which will help it meet a debt target of around 3 billion euros one year ahead of a plan set last year. At the end of last year debt stood at 3.3 billion euros.
Orders, which fell 2.3 percent last year on a weak performance of its helicopter division, are expected to remain little changed this year at 12.2-12.7 billion euros.
The company will hold a conference call on Thursday morning on the 2015 results.