- In a weak and competitive environment, Indra announces 2011 revenues growth target of 2%.
- International business is expected to remain very buoyant.
Following 2010 closing, as in recent years, Indra has disclosed its financial targets for 2011 in a filing with the Spanish stock market regulator. The company’s guidance for 2011 is as follows:
- Revenue growth of at least 2%, with significantly higher growth in the international markets offsetting the slight decline in the Spanish market.
- Order intake slightly ahead of last year’s, and significantly higher than revenues.
- An EBIT margin of at least 10.5%.
In the wake of the preliminary 2010 closing, Indra is in a position to ratify all its targets for 2010, having even surpassed some of the targets announced at the beginning of last year. The strength of the Group’s performance outside Spain in terms of revenue and order intake is particularly noteworthy:
- 2010 order intake will come in at €2.88bn, year-on-year growth of 7% and above initial guidance for growth of 5%. The international order intake will account for 44% of the total, having expanded by 23%, while the home market order intake narrowed by 3%.
- Revenue will amount to €2.56bn in 2010, growth of 2% on 2009 and within the targeted growth range. International revenue will account for 40% of the total, having grown by 10% year-on-year. In Spain, revenue narrowed by 3%.
- Recurring EBIT margin (before one-off expenses) will reach 11.2%, meeting target of ensuring a recurring margin similar to that of 2009 (11.4%).
The company has delivered these targets despite having to tackle especially challenging market conditions which, as the company advanced at the beginning of last year, required capacity cuts entailing non-recurring expenditure of €33M. As a result, 2010 net profit will amount to €189M; stripping out these non-recurring expenses, net profit would have risen by more than 10%.
Based on all the above the company will maintain in 2011 its redistribution policy via dividends, with ordinary dividend per share to be distributed in 2011 against 2010 profits, equal, at least, to the one distributed in the previous year.
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