The CEO's Report

Given the wider international context of reduced investment and intensified competition, 2011 is to be judged a positive year despite the marked fall in our revenues and margins, against both our original expectations and the previous year. This contraction was largely due to the suspension of our contracts in Libya, where we were to have completed a huge amount of work in 2011.

The most important event of the year was undoubtedly the signing of the contract to build Honolulu’s subway. In November 2011 Ansaldo Honolulu Joint Venture, a consortium set up by Ansaldo STS and AnsaldoBreda, signed a contract for the realisation of the technology and the supply of the trains for the City of Honolulu’s new driverless subway, with HART (Honolulu Authority for Rapid Transportation) in the State of Hawai.

Our cost cutting programme, together with our new internal organisation, will enable us to deal decisively with the challenges of the market, which is seeing increasing globalisation of demand and downward pressure on prices.

In 2011 the Ansaldo STS Group made a net profit of €73,056 thousand as against €94,908 thousand in 2010.
Revenues were €1,211,944 thousand as against €1,283,710 thousand in the previous year. The Group operating profit margin was 9.6%, as against 10.7% in 2010.

At 31 December 2011 orders stood at €2,163,745 thousand as against €1,985,012 thousand at 31 December 2010 - an increase of €178,733 thousand or 9%.

In detail:

  • the Transportation Solutions Unit acquired orders amounting to €1,256,058 thousand mainly consisting of the City of Honolulu’s Driverless Metro, the extension of metro 5 in Milan and the Rio Tinto project in Australia; 
  • the Signalling Unit acquired orders worth €1,045,870 thousand, comprising mainly the modernisation of the technical installations on the Turin-Padua line, the red line project in Stockholm, the contract for the design and construction of the signalling system of the ERTMS level 2 for the new high-speed section between Le Mans and Rennes in France and an order for the technical installations of the Kolkata Metro in India.

At 31 December 2011 the order-book was €5,452,770 thousand, which was in line with acquisitions and showed an increase of 20% over that of the 2010 year end, which was €4,551,127 thousand. 

In general, the Company’s main market, despite the serious financial and economic crisis, is still solid and is showing global annual growth rates in the order of 3-4%.
2011 also however witnessed a sharp intensification of competition between the largest global players, which resulted in a considerable downward push on unit prices.

In this scenario of continuing tough competition Ansaldo STS has the advantage of valid technology of its own in the key areas (ERTMS, CBTC and driverless metros) and in emerging products (signalling by satellite), a consolidated position in the main world markets, an integrated worldwide organisation, and an especially effective business model.

A decisive factor in the further growth of the Company will be successful execution of the plan for efficiency gains in the Company’s operating structure launched in 2011 and the concerted reduction of outside purchase prices launched in 2010.

The activities performed in 2011 involved almost all the Company’s organisational entities and made it possible to identify - and in some cases to exploit - numerous opportunities for efficiency gains in the areas of Delivery, R&D, manufacturing and staff functions.

From an organisational standpoint Fast Forward Driven by Business (“FFDB”), which transformed the original financial and strategic Parent structure of Ansaldo STS S.p.A. (“ASTS” or “Ansaldo STS”) into an operating company, by centralising all business operations into its existing structure, was to all intents and purposes completed at 31 December 2011; at the same time the IT system development plan became operational throughout the Group.


Sergio De Luca
CEO Ansaldo STS Group

Firma AD

Registered Office: 16151 Genoa Via Paolo Mantovani, 3 - 5
Paid-in Share Capital EUR 70,000,000 R.E.A. n. 421689 Register of Enterprises of Genoa Tax Code 01371160662
A Finmeccanica Company