Rocket maker Avio's first-half core profit grows as US growth comes into focus (updated)
UPDATE 1-Rocket maker Avio's first-half core profit grows as US growth comes into focus Adds bullets on results, US expansion, comments from call, share move
Sept 10 (Reuters) - Italian rocket maker Avio AVI.MI said on Thursday its first-half adjusted core earnings rose 7.3% from a year earlier, as it pursues its expansion in the United States and ramps up launcher production.
Avio is currently setting up a solid rocket motor facility in Virginia and selling a minority stake to private equity firm Advent International to finance its US operation.
• Net revenue rose 17.5% to €276.0 million, driven by increased production for its Vega-C launchers and Ariane 6 boosters.
• Order backlog stood at €2.05 billion at the end of June, down 5.4% compared to the figure seen at December end.
• CEO Giulio Ranzo said during a conference call that some of the cash gained in its stake sale to Advent could also be deployed for M&A deals in the United States, to hasten its production ramp-up.
• Design of the Virginia plant is moving forward and a ground-breaking ceremony is set for the end of September, according to slides published during the call.
• Shares closed at 2.7% following the publication of the results, paring losses after falling as much as 9.5%.
($1 = 0.8601 euros)
(Reporting by Enrico Sciacovelli, editing by Susan Fenton and Matt Scuffham)
((Enrico.Sciacovelli@thomsonreuters.com; +48587720309;))