Signalling - Performance by Business Unit
(EUR thousand)
30.06.2011 30.06.2010 Change
Orders 448,378 222,452 225,926 890,205
Order backlog
2,155,620 1,900,007 255,613 2,090,584
Revenue 351,391 381,728 (30,337) 841,831
EBIT 36,253 46,747 (10,494) 104,232
R.O.S. 10.32% 12.25% -1.9 p.p. 12.40%
Net working capital
99,997 15,867 84,130 300
Research and development
18,928 16,727 2,201 33,053
Employees (no.)
3,184 3,485 (301) 3,315
(The figures in this table are inclusive of transactions with other segments).

Revenue at 30 June 2011 for the Signalling Business Unit amounted to EUR 351,391 thousand, a decrease of EUR 381,728 thousand from the first half of the prior period.

The most significant production activities are as follows:



With regard to the High-Speed project, for the Bologna-Florence line activities commenced for the Electrical Drive System Operating Direction (DOTE); for the Milan-Bologna project during the year activities continued to allow the complete activation of the ERTMS interconnections which will end in the next quarter.

Also, for the Rome-Naples project activities continued for the change to the switches command of Peripheral Posts.

As regards high-speed projects abroad:

In Russia the Itarus project continued as the simulator was shipped to St. Petersburg and the Radio Block Centre (RBC) was shipped to Adler on the Black Sea for tests to start from the next quarter.

In China, for the ZhengXi Line project, after the first phase was completed during the prior year, the Transfer of Technology (ToT) of software for RBC and On Board (OB) continued during the period. Some parts relating to the Verification and Validation (V&V), as well and the installation of the onboard SW (OB) need completion.


Production mainly regarded the continuation of the supply of onboard sub-systems for the fleet of Trenitalia and other regional railway companies. Other portions derive from the supplies for some vehicle manufacturers such as AnsaldoBreda, Stadler, Vossloh, Siemens. Particularly significant is the contribution of the contracts from Ansaldobreda for 50 Vivalto double-decker coaches, 26 high-frequency trains (TAF), 32 Electric Multiple Unit (EMU) bidirectional trains of rolling stock driven by electrical systems, as well as additional regional trains (TSR). Designing activities also continued for the ERTMS systems for the new V300 Zefiro high-speed trains intended for the Trenitalia fleet and prepared for circulating in some European corridors.


Production activities related to the projects in Pisa, Mestre, Rogoredo, Naples Junction, Trento – Malè and the new Genoa Junction.
The main event for the CTC upgrading programme, which involves several segments of Rete Ferroviaria Italiana (RFI), was the delivery of the new Central Post of the Battipaglia–Potenza CTC. In the coming months works will start for the renovation of other four Central Posts (PC).
The activities on the foreign projects based on both traditional technology and ERTMS continued during the period. In particular:
In Turkey, with regard to the Mersin-Toprakkale project, production related to the continuation of activities for the detailed designing, procurement and production of factory equipment and further onsite installation.
In Tunisia, the partner of the temporary business grouping (RTI) continued electrification activities, as well as remote control activation, earthing and electrical drive system returns (TE).
In Romania, the activations of stations along the line successfully continued: the fourth, Busteni, was activated in June and at present two more are missing; activities are expected to be completed within the year.
In the Czech Republic, certification activities continue for the system at an advanced stage of field testing. Activities for the pilot project are expected to be completed within the year.
In Germany, with regard to the POS project, field installation activities have reached an advanced stage. Also, the customer acknowledged the costs for the extension of contractual times.
Following Libya war riots, all the activities of the Ras Ajdir-Sirth, Al Hisha-Sabha project were suspended. The same applies to the project for the Sirth-Benghazi line, for which negotiations are under way with the Russian customer Zarubezhstroytechnology (ZST) to govern the extension of the period of suspension of the contract. With regard to the Kazakhstan project, production activities were suspended following a negotiation with the customer regarding the redefinition of the scope of work.


The foreign production mainly affected the supply of the Communication Based Train Control (CBTC) system for the Ankara Metro for which designing and configuration activities continued; in the period the contract was transferred from the municipality of Ankara to the Ministerial Company DHL of the Ministry of Transport.
In Italy, production activities mainly regarded the contract for the Extension of Line 1 of the Naples Metro with construction designing activities. Construction designing activities continued for the signalling system of the Mostra – Mergellina section of the Naples Metro Line 6, for which development activities started for the new Metropolitan Border. During the period, designing and production activities continued for signalling and automation equipment, as well as installation activities on Line B1 (Bologna – Conca D’Oro) of the Rome Metro, for which activation is expected within the year. With regard to the Genoa Metro, works are under way for the signalling and automation for the extension of the De Ferrari – Brignole section and the Di Negro depot. The contract for the supply of the driverless system of the Genoa Metro was completed (PP replacement in the Principe - Di Negro - Brin section).


As regards the spare parts business for the Italian company, SCMT materials were supplied to Trenitalia Le Nord and Thales Austria, and the set of Induction Connections for RFI was also supplied. In general, the business carries on with a traditional trend.
As regards assistance, the main activities relate to the maintenance of onboard systems for Trenitalia’s rolling stock and RFI’s AV, ACC, SCMT, SCC systems.


  • Ester project: The second software release (V2) was developed and both the first and the second phase of dynamic tests was successfully carried out and completed and operation is expected by 2012.  Moreover, the customer requested additional changes to the scope of work;
  • Cambrian project: Operation was successfully completed during the period. Some extensions to the scope of work requested by the customer have to be formalised yet;
  • TGV Rhin Rhon: All the interlockings have been installed now; a new order was acquired for extending the scope of work;


  • Velaro Project: The scope of work is mainly the supply of 30 multi-standard on-board equipment for Signalling (30 on-board equipment on 15 trains). The validation of the train is a critical achievement to reach; static and dynamic tests are still in progress and onsite tests earlier commenced during the period in Germany. The first V 1.1 software release was delivered and an additional international release and a potential stage 3 (to be implemented in the Netherlands) were requested by the customer;
  • Thalis: Activities are under way for the development of an on-board system suitable to be interfaced with the systems of various countries; the first version is operational and was stabilised, while a new version was requested by the customer.


Revenues regarded system activities on existing projects, both delivery and sale of components which performed successfully during the previous year. In particular, in the period the contribution of this business was some 40% of the entire revenues in the US area.

The main projects on which production for the first half 2011 focused are the following:


Ansaldo STS USA made a contract with Union Pacific in July 2005 for the development and the implementation of a new generation of Computer Aided Dispatch (CAD) systems and an Optimizing Traffic Planner (OPT) system. These were implemented in the North American railway network. The contract also covers maintenance of the CAD system. In November 2010 the value of the contract for the enlargement and the extension of the CAD system maintenance until 2030 was formally revised. Significant progress was achieved by launching these implementations in the planned regions. Moreover, 10 out of 10 regions were completed during the period, and the remaining central regions will be completed in the next six months. The completion is scheduled for 2012. The development of the second release of the CADX continues with the customer’s approval of the contractual requirements.


In the first half-year all the wayside equipment for the 5th Avenue were manufactured and delivered, including signals, track circuits and switch machines. Cabinets were manufactured for the 5th Avenue line, and those for location 1157 were delivered; the Code System and logics for the Lexington Avenue line were completed. The FAT (Factory Acceptance Testing) in the Batesburg plant was completed in the second quarter.


This project covers the upgrade of the train automated control systems and other systems, including the Supervisory Control and Data Acquisition (SCADA) on the WMATA Red Line, Dupont Circle - Silver Spring section. In December 2009 the manufacturing of the Automatic Train Control (ATC) and some changes to the number of locations were included in the scope of work.  During the half-year the Factory Acceptance Test (FAT) was completed and all the Wayside equipment was delivered.


The scope of the contract is the designing, supply, testing and delivery of a signalling and wayside communication system for a 1.2-mile-long railway line linking the existing system to the new North Shore station; during the period, the definition and production for the fourth site (Allegheny station) was completed, the FAT was completed and cabinets were delivered. The communication system was tested (using the FAT) and a significant amount of materials was delivered and is ready for installation.


ASTS USA, Inc. acquired this contract in collaboration with PATH in July 2009. The project aims at providing a Path Train Control Center (PTCC) system that is fully integrated with a new structure. The PTCC will become the main control system and will control the functions currently performed in the Hoban facility, which will remain operating as a clone to the new PTCC. These upgrades will be based on the Hermes platform. During the half-year, the Final Design for all the various sub-systems (8) was approved and 5 of them successfully passed the FAT. The installation and the construction of the entire building were completed.



In Australia production for the half-year is mainly focused on these projects and project lines;

  • Newcastle Alliance: The activity focussed on the making up for the delays due to the changes to the work programme, following customer’s requests and the speeding-up of the works for the section linking Maintland to Minimbah;
  • Atms Project: With regard to the part of the project relating to the Train Control and the Display, the Customer decided to remove the works relating to Phase 2; Phase 1 was already fully delivered and the customer repaid the costs of the initial works for Phase 2 that had already been performed;
  • K2RQ Project: Activities slowed down during the period due to the delay of construction works to the second half of the year.

In India, still in the Railways segment, production was mainly focused on these projects:


The project was upgraded several times and this delayed times with a negative impact on the performance of works. Part of the technical problems encountered were partially solved and at the same time complicated negotiations with the customer were started in connection with variations that were considered necessary for a profitable continuation of works.


The installation of the wayside portion (178 Km) for the Agra Cantt-Tughlakabad section and of the Train Protector and Warning System (TPWS) onboard equipment was completed on ten engines; the wayside installation on the Tughlakabad - Nizamuddin section is in progress. At the moment, the technical issue of the Break Curve Application (BCA) is the main issue that needs a solution in order to improve system performance. During the period, the customer formally accepted the delay of contractual times.


The construction and installation of the on-board and wayside line were completed and testing is in progress. Some technical issues regarding both on-board and the wayside equipment relating to the implementation of the TPWS system in order to meet some contractual requirements are now being settled. Changes to on-board equipment were completed on twenty carriages, again in order to meet contractual requirements. The line wayside portion was completed and the system availability is satisfactory and meets the level of availability demanded by the customer.

EBIT for the Signalling Business Unit at 30 June 2011 came to EUR 36,253 thousand (10.3% of revenues), a decrease over the figure reported in 2010 (EUR 46,747 thousand, 12.2% of revenues), due to lower volumes and a different combination of projects during the periods at issue.

Net working capital at 30 June 2011 amounted to EUR 99,997 thousand from EUR 300 thousand at 31 December 2010. This change is essentially due to the increase in inventories and work in progress.

Research and development costs at 30 June 2011 stood at EUR 18,928 thousand, compared with EUR 16,727 thousand at 30 June 2010.

Workforce at 30 June 2011 amounted to 3,184 units (3,315 units at 31 December 2010), due to the limited number of resources determined as part of the restructuring process which is now becoming stable.