Indra closes 2010 with net profit of €189 M

As indicated by the Company on 24 January when it unveiled its 2011 guidance, in 2010 Indra met all 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:

Revenue rose 2% to €2.6bn, within the target range announced at the beginning of the year. Revenue in the international markets rose 10% and represented 40% of the total, while revenue in the domestic market was down 3%.

Order intake in 2010 rose 7% to €2.8 bn, topping the initial target of 5%.

The order backlog expanded by 12% to €2.9bn at 31 December 2010, 1.14x revenue for the year and higher than the year-earlier figure.

The recurring EBIT margin (i.e. EBIT before one-off expenses/revenue) was 11.2%, in line with the target of defending the 2009 margin.

The Company has delivered these targets despite having to tackle especially challenging market conditions which, as it advanced at the beginning of last year, required capacity cuts entailing non-recurring expenditure of €33M. Extraordinary costs recognised cover all the measures deemed necessary by the Company; no further measures are expected to be adopted in 2011. As a result, 2010 net profit amounted to €189M, 4% lower than in 2009. Stripping out these non-recurring expenses, net profit would have risen by more than 10%.

Revenue growth of 41% in Latin America

The international markets have reinforced their status in recent years as the Company’s growth driver. In 2010, revenue in Latin America soared 41%, representing 15% of the total. Indra also has a strategic commitment to Asia-Pacific.

2011 guidance

In the 2011 guidance issued by Indra on 24 January, the company pointed to a weak and competitive environment, similar to 2010, but with signs of recovery throughout the year, which, in Spain should emerge towards the end of the year.

In this respect, the Company’s targets for 2011 are as follows:

• Revenue growth of more than 2%, with significantly higher growth in the international markets, offset by a slightly negative performance by the Spanish market.
   
• Order intake slightly ahead of last year’s and significantly higher than revenues, further bolstering the order backlog.
• An EBIT margin of at least 10.5%.

Shareholder remuneration policy intact

In 2011 Indra will maintain its redistribution policy via dividends, with ordinary dividend per share to be distributed in 2011 against 2010 profits equal, at least, to the dividend distributed in 2010.
 

KEY FIGURES

The following table lists the key figures for the period: 

 

 
 

REVENUE BY BUSINESS AREA AND COMMERCIAL ACTIVITY

Revenue for 2010 can be broken down as follows: