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Finmeccanica says 2010 orders could near 22 bln eur

Published 11/04/2010, 09:47 AM
Updated 11/04/2010, 09:52 AM

* Orders to top 20.5 bln euros, may come close to 22 bln

* Says impact of UK defence cuts factored into forecasts

* Shares down 2.4 percent

ROME, Nov 4 (Reuters) - Italy's top defence and aerospace company Finmeccanica said orders could near 22 billion euros in 2010, in line with its own forecasts, driven by contracts from emerging markets.

On a conference call with analysts on Thursday, the Rome-based company said orders for the year would top 20.5 billion euros and could come close to 22 billion euros, falling in line with its 20-22 billion euros orders target for 2010.

Finmeccanica in March had forecast orders this year would top 22 billion euros

Finmeccanica already has 7 billion euros of orders that it is sure to add to the 13.5 billion euros it has already booked for the year, and could have a few more orders that could bring it close to the 22 billion euro mark, CFO Alessandro Pansa said.

Finmeccanica shares were down 2.4 percent at 9.60 euros by 1343 GMT, after it reported a 12 percent fall in nine-month profit late on Wednesday, dragged down by higher taxes and poor results at its aeronautics unit.

The company, which assembles military jets and builds electronic warfare systems, said its energy division would show a recovery in orders in the coming months, including a 200 million order from Tunisia and one from Syria.

Finmeccanica also sought to reassure investors on the impact of global spending cuts on its business, saying it expected the Italian defence budget to remain stable in coming years. It did not expect cuts that would affect its U.S. unit, it said.

In Britain, the company said it would not be fully spared the pinch of spending cuts, but that some of the impact had already been factored into its forecasts.

Italy, the United States and Britain make up Finmeccanica's major markets, but the company has been stepping up its focus on fast-growing emerging markets like Brazil and India to offset weakness in spending in more developed nations.

Finmeccanica also said it expected its Alenia Aeronautica unit to recover significantly in the fourth quarter after the aeronautics division showed a 40 percent fall in adjusted earnings before interest and taxes for the nine-month period.

The company also said it is still in discussions with Boeing over the horizontal stabilizers it makes for the plane maker's 787 Dreamliner. The production process for that would be restructured by the end of the year, it said. (Reporting by Deepa Babington; Editing by Jon Loades-Carter)

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