Transportation Solutions

Transportation Solutions Business Unit - Performance by Business Unit
(EUR thousand)
30.06.2011 30.06.2010 Change
31.12.2010
Orders 222,568 425,740 (203,172) 1,142,756
Order backlog
2,705,818 2,291,366 414,452 2,721,540
Revenue 226,213 222,011 4,202 504,448
EBIT 21,135 18,158 2,977 46,294
R.O.S. 9.3% 8.2% 1.1 p.p. 9.2%
Net working capital
(123,498) (122,680) (818) (105,299)
Research and development
952 1,350 (398) 1,774
Employees (no.)
565 412 153 449
(The figures in this table are inclusive of transactions with other segments).

Revenue of the Transportation Solutions Business Unit at 30 June 2011 came to EUR 226,213 thousand compared with EUR 222,011 thousand at 30 June 2010.

The volumes were developed in Italy (60%) and abroad (40%), with 81% regarding the metro rail sector. Production developed on the projects for high-speed trains, the Rome Metro Line C, Copenhagen Metro, Milan Metro, Genoa Metro, Thessaloniki, Alifana, Naples Metro Line 6, Naples Metro Line 1, Brescia Metro, Riyadh, Taipei, Malaysia and Australia Metros.

The most significant production activities are as follows:

High-speed train lines

Regarding the High-Speed Railways, for the works carried out through the Saturno Consortium, for the Rome-Naples line, the Aversa SSE project phase only is nearing completion and was formalised through a contract. The Technical Control Commissions are also being assisted. For the Novara-Milan and Bologna–Florence lines, only assistance services and actions covered by warranty are to be performed.

On the Milan-Bologna section, a system for the Modena interconnection is under construction and is being delivered.

On both the Rome–Naples and the Milan-Bologna sections completion times depend on the outcome of the existing arbitration proceedings; on that matter, we are awaiting the final awards of the Arbitration Panel in relation to the definition of the SUD (Substantial Ultimate Deadline).

Metrogenova

Regarding the functional line De Ferrari-Brignole, activities focus on a test route to be made during the first part of 2012 and aim at opening to the public during the year.
During the period, the Brignole substation facilities were completed, finishings for the technical premises started and cable paths were being laid.
Signalling equipment is being assembled along the line. Regarding the contract for the extension of the Dinegro Depot, unpredicted and significant structural consolidation works had to be carried out on several industrial boxes in the areas included in the scope of work. The customer’s decision to remove a part of the works for covering the scaffolding, which were outsourced, and to assign it to the company will cause a delay and a revision of the contractual planning, for which works completion is estimated in Autumn 2013.

Alifana regional line

During the second quarter an Agreement was signed for the price increases of construction materials, accounted during 2008. The Licensor Metrocampania Nordest prepared and transmitted to the Region a new text for the Addendum to replace the one signed in March 2010. The Licensee Temporary Business Grouping entered the appropriate claims in the accounting record to demand the refund of all the greatest charges and damages unduly incurred.
In July all the works which do not interfere with the Melito Station will be completed, and the Scampia Underpass is being fitted out.
With regard to the Integrated Contract for the Piscinola–Capodichino line, Metrocampania Nordest as Contractor has not delivered the areas and works in Lot A yet. The ATI, of which the company is the agent, formalised a specific reserve for the refund of all the greatest resulting charges and damages.

Naples Metro Line 6

During the period activities continued for the civil works on the main sites regarding the 6th Addendum (Mergellina – Municipio functional line). In particular, as regards the Line Tunnel, traditional underground excavation was made for 1.9 km using a TBM/EPB. Weekly productions maintained levels that allow meeting the deadlines of the implementation programmes.
With regard to the stations S.Pasquale, Chiaia and Municipio, works still continued slowly because of interferences with the archaeological excavations.

For the Arco Mirelli station, where works are subject to archaeological excavations, the works for the completion of the cover flooring for the station shaft are nearing completion.

Copenhagen

Regarding the contract signed at the end of the prior year, an order was issued for the construction of civil works and systems for the CMC and major orders to the sub-suppliers are being defined. The “VOC” (Verification of Contract) Milestone was completed in May.
As a result of the agreement signed with the Customer last March, the date of completion for construction works is the end of 2017.

Rome Metro Line C

Works are under way at all the Stations as well as the Line works for the 1st Strategic Phase of the Pantano – Centocelle line; in particular, the installations relating to the Pantano – Torre Gaia Experimental Line were completed, and tests are being carried on the main sub-systems. With regard to the ATC, wayside testing procedures relating to the sections of SERs of Pantano and Bolognetta were completed and wayside testing procedures relating the SER of Grotte Celoni are nearing completion.
Civil works have been substantially completed in the Pantano Depot, except for the finishing activities in the PCO (Operational Central Point) and some other buildings; MIS activities of electro-railway plants have been carried out.

Thessaloniki Metro

In the second quarter 2011, technical and management meetings continued between the Management of Ansaldo and the Customer in order to carry on with the formal approval of the GFD2 documents now at an advanced stage. With regard to the signalling system, Ansaldo STS submitted the technical offer proposal and the Customer has to provide its comments thereon.
The present temporary situation is pushing Ansaldo STS to consider through a feasibility study the possibility of partially opening the line with the New Railway Station – Analipsi Functional Section.
With regard to the design claim, which was strongly demanded by Ansaldo STS, negotiations are still under way with the partners and will be later formalised to the customer.

Milan line 5

With the end of the detailed engineering of the line linking Bignami depot and Garibaldi station, supplies are essentially ready for installation, while construction engineering is continuing regularly. In this quarter, the activities mainly related to assembling (Depot-Zara) and to the start of commissioning activities (trial runs).
At present, all efforts have been focused on the opening of the Functional section (Depot–Zara) within the second half of 2012.
With regard to the extension of the line to the San Siro station, in February an agreement was signed between the Concessionaire Metro 5 and the Municipality of Milan. The entire line is expected to be activated in the first half of 2015.
At present sites are being built for civil works and the material procurement phase was started together with the designing preliminary to the definition of supplies.

Riyadh Automated People Mover System (APM)

The construction designing activities and interfacing with civil works were completed; at the moment, Engineers are working on the field to provide support in the Commissioning phase and the as-built designing phase is starting (this phase will end as system Commissioning ends).
Logistically, the shipping of the supplies of all the sub-systems were organised and finalized, including spare parts, and the materials damaged during testing are being replenished/repaired.
Assembling activities for the technological system were essentially completed.
In March 2011 a change to the contract was signed, whereby the Customer recognised an increase in revenue against an extension of time that shifts the delivery of the plant to mid-2012 with two new intermediate milestones: Ceremonial Opening and Start of Reduced Service.
In particular the Ceremonial Opening was held in May with the participation of King Abdullah, and the Reduced Service, a manual service from 8:00 to 17:00 with 6 vehicles (+2 spare vehicles) will operate from September.

Circular Line Taipei Metro

Engineering activities continued in the course of the period and the customer has not given its approval yet. Contracts for the civil works are being delayed by the customer, and this will cause heavy delays in the end of the works.

Naples Metro Line 1

The Licensee is revising the Works General Programme; in particular, the opening of the entire section Dante-Garibaldi (with the exclusion of Municipio and Duomo stations and including the second exit of Montecalvario) is scheduled for the end of 2012.

Metro Brescia

The installation of signalling and telecommunications equipment was completed, except for minor equipment, along the entire line, except for the section between the two stations of the troublesome route, and activities for operation are continuing.
Testing activities for the Vehicle and for the various technological sub-systems are continuing on the Test Track and on the Functional Line.
With regard to the civil works to be made by the partner, the line, station and shaft construction activities are proceeding. With reference to the rolling stock for which AnsaldoBreda is responsible, six out of the eighteen fleet vehicles are now on site and completion is scheduled for the first months of 2012.
In May, the Customer and the Temporary Business Grouping ended the dispute over the Performance of Contract regarding the date of Commencement of Commercial Operation by setting it at the start of 2013, the incorporation of a NewCo for O&M and the settlement of the dispute in economic terms, with the Customer paying the sums agreed to the Temporary Business Grouping.

Australia

Production mainly developed on the projects related to the Framework Agreement of Rio Tinto. In particular, activities commenced on the Rail Capacity Enhancement and Hope Down 4; together with the operating estimate phase of the remaining part of the Programme, these activities will mark most of the overall production for the year.

Malaysia

With regard to the Malaysia North Double Tracking project, discussions are under way with the Customer for the signalling project, in relation to the final technological solution to be provided. These discussions should come to an end by the end of the year as the customer acknowledges that Ansaldo STS’ technical solution is cogent.

EBIT for the Transportation Solutions Business Unit at 30 June 2011 came to EUR 21,135 thousand (9.3% of the value of revenues) compared with EUR 18,158 thousand at 30 June 2010 (8.2% of the value of revenues); this increase is a result of the the different mix of orders worked in the two comparison periods.

Operating Working Capital at 30 June 2011 came to a negative EUR 123,498 thousand, as compared with a negative EUR 105,299 thousand at 31 December 2010; this change includes the increase in advances from customers due to the collection of the new Copenhagen project and the increase in gross work in progress for an overall net increase of EUR 8,259 thousand, as well as the decrease in trade receivables and payables of EUR 28,038 thousand and EUR 11,340 thousand respectively.

Research & Development costs charged to the income statement amounted to EUR 952 thousand, a slight decrease over the value recorded at 30 June 2010 (EUR 1,350 thousand).

The workforce at 30 June 2011 was equal to 565 units, up by 116 units compared with 31 December 2010 (449 units). This change is attributable to the reallocation of the resources made in the scope of the ongoing group reorganisation.