Leonardo SpA - Company Strategy & Performance Analysis
Leonardo SpA (Leonardo) is a global high technology player in the aerospace, defense and security sectors. It designs and manufactures helicopters, defense and security electronic systems, civil and military aircraft, aero structures, satellites, space infrastructure and defense systems. Some of its major products include unmanned aerial systems, multi-mission transport aircraft, naval combat systems, radar systems, optronics systems, communication systems, air and maritime traffic control systems and mobility solutions.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading defence and security companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including: arms sales, order backlog, and contracts.Key Highlights
The company showcased strong performance in the defense and security electronics segment:
The strong performance of the defense and security electronics segment is one of the company’s major strengths, since the segment is the company’s major revenue generator. In 2016, the segment accounted for 43.5% of the company’s total revenue. The segment operates through DRS technologies and Selex ES. DRS Technologies offers solutions to military forces, intelligence agencies and prime contractors worldwide. Selex ES (SES) provides electronic and information technologies for defense systems, aerospace, data, infrastructure, land security and protection and sustainable ‘smart’ solutions.
The company has a strong global presence:
The company’s strong global presence helps it to serve a wide customer base and gain a competitive edge over its counterparts. Leonardo has operations in 15 countries, with a total of 180 sites, of which 42% are in Italy and 58% are in other international locations. The company owns 83 production facilities, of which 42 were in Italy and 41 in other global locations. The company classifies its business operations into five geographical regions: Italy, the UK, Rest of Europe, North America and Rest of the World.
Aims to improve its industrial efficiency and identify cross-divisional centres of excellence:
The company is focusing on increasing its industrial efficiencies through supply chain procurement, manufacturing and engineering. It is also focusing on using commonalities of transversal technologies which includes the reduction of off-load on core activities. Due to these measures, it reported an increase in its return on sales, which increased from 6.4% to 10.4% in 2016.