Reclassified income statement

First half of
(€’000) 2014 2013 restated***
Revenue 581,065 571,759
Purchases and personnel expense (*) 522,797) (516,982)
Amortisation, depreciation and impairment losses (7,798) (7,719)
Other net operating income (**) 2,228 3,416
Change in work-in-progress, semi-finished products and finished goods 2,173 1,915
Adjusted EBIT 54,871 52,389
Restructuring costs (2,900) (401)
Operating profit (EBIT) 51,971 51,988
Net financial income (expense) 495 (2,789)
Income taxes 16,178) (16,924)
Profit for the period from continuing operations 36,288 32,275
Discontinued operations 10 92
Profit for the period 36,298 32,367
  attributable to the owners of the parent 36,250 32,359
  attributable to non-controlling interests 48 8
Earnings per share    
Basic and diluted 0.20 0.18^
^Recalculated following the bonus issue of 15 July 2013. Reconciliation between the reclassified income statement and the income statement included in the consolidated financial statements: (*) Includes the captions “Purchases”, “Services”, “Personnel expense” (net of restructuring costs) and “Accrual to (use of) the provision for expected losses to complete contracts” net of “Internal work capitalised”. (**) Includes the net amount of “Other operating income” and “Other operating expense” (net of restructuring costs, impairment losses and accruals to (use of) the provision for expected losses to complete contracts). (***) Restated figures due to the adoption of IFRS 11 governing joint arrangements, whereby the group’s interests in joint ventures are measured using the equity method as from 1 January 2014 (when the group adopted the new standard). The 2013 figures have been restated for comparative purposes.

Adjusted EBIT is up by €2.5 million to €54.9 million on the restated figure for June 2013 (€52.4 million) following the increase in the overall volume of revenue. The increase, which is mainly due to the different mix of contracts in the two periods, offset the rise in restructuring costs for the current period, triggered by the continuation of the ongoing restructuring plan and related to the redundancy procedure covering the employees who meet the requirements of the agreement reached with the trade unions.
The overall improvement in net financial income, also due to the positive effects of using the equity method, and the decrease in income taxes, led to a significant increase in the profit for the period (€3.9 million).

Registered Office: 16151 Genoa Via Paolo Mantovani, 3 - 5
Paid-in Share Capital EUR 100,000,000 R.E.A. n. 421689 Register of Enterprises of Genoa Tax Code 01371160662
A Finmeccanica Company