Outlook

The Group’s order backlog at 31 December 2010 has expanded compared with the same previous year-end, thanks to the excellent performance in the acquisition of new orders mainly in the transportation solutions sector.
Moreover, actions oriented to improve efficiency will continue in order to obtain the expected profitability targets.

Since 1 January 2010, and for the American area since the early 2011, the Group has availed itself of the new  organisational structure through the project of internal reorganisation called “Fast Forward Driven By Business” (FFDB). This reorganisation is directed to recover industrial and commercial efficiency, and therefore additional margins of profitability, through a more rational and centralised organisation of activities related to R&D, production, procurement, presence on the markets, management of job-orders.
With regard to the reference markets, the signalling and transportation solutions sectors in both the inter-city and urban railway context are still marked by slight growth.

The recent destabilisation of the political scenario in North Africa, and in particular the riots occurred in Libya, brought about a sudden suspension of the activities on the projects that Ansaldo STS has acquired in that country.
Therefore, the uncertainty over the future pattern of events makes it difficult to forecast the impacts of possible delays on the execution of the works in the course of 2011.

Genoa, 1 March 2011

On behalf of the Board of Directors
The Chairman
Alessandro Pansa

The chairman Alessandro Pansa