May 18, 2007
IPO for Fincantieri?
As soon as next spring, an initial public offering (IPO) could be issued for Italy's state-owned shipbuilding group Fincantieri SpA.
The shipbuilder is currently holding talks with trade unions and government officials, according to several reports. The deal apparently hinges on the government's retention of a majority stake in Fincantieri.
It's an opportune time for the company, one of Europe's largest shipbuilders, to be privatized. Fincantieri's results for 2006 showed significant improvements over the previous year, with a net profit of EUR 58.7 million, up 21% compared to EUR 48.5 million in 2005.
During 2006, Fincantieri achieved record results, with new orders worth EUR 4.1 billion, increasing the year-end order book to EUR 10.2 billion as compared to 7.8 billion in 2005.
Currently, Fincantier's order book stands at more than EUR 11 billion and stretches into 2012.
In addition, the whole group--which includes engine maker Isotta Fraschini Motori S.p.A., research center Cetena S.p.A. and marine systems integrator Fincantieri Marine Systems North America Inc.--has produced excellent results, with a value of production at EUR 2.46 billion.