Finmeccanica Reports Record Losses
Finmeccanica posted big losses in 2011.
Alenia Aermacchi's stake in ATR, which delivered the first ATR 72-600s last year, helped offset losses by Finmeccanica's ailing aeronautics division in 2011. (Photo: ATR)
Alenia Aermacchi's stake in ATR, which delivered the first ATR 72-600s last year, helped offset losses by Finmeccanica's ailing aeronautics division in 2011. (Photo: ATR)

The only way is up for Italian aerospace group Finmeccanica after it announced record losses of €2.3 billion ($3 billion) on March 27. Massive “exceptional events” and “non-recurring” charges totaling almost €3.2 billion ($4.3 billion) accounted for most of the financial hit. Substantial portions of the charges relate to additional costs incurred due to problems with Boeing’s delayed 787 program, for which Finmeccanica’s aeronautics division had served as a key strategic partner. It had to absorb further costs due to “reduced industrial efficiency of certain production processes and higher costs for the completion of some orders” relating to programs including the Italian group’s contributions to the Airbus A380 widebody.