Operating performance

New orders for the year totalled €1,336.0 million compared to €1,825 million in the previous year.

Key orders acquired in 2015 are as follows:

Country Project Customer Amount (€m) 
USA  MBTA Positive Train Control  MBTA  305
Australia  Rio Tinto  Rio Tinto  162
Denmark  Copenhagen Cityringen + O&M – order variation  Metroselskabet  119
Saudi Arabia  Riyadh metro - Iconic Stations  ADA  62
USA  SEPTA Sharon Hill  SEPTA  48
Spain  Extension of the maintenance contract for the Madrid - Lleida line  ADIF  42
Italy  Line 6 Mergellina San Pasquale Municipio  Naples municipality  30
USA  Los Angeles West Side subway  LACTMA  28
France  Bistandard on-board devices  SCNF  18
USA  NYCT 4th - 6th Avenue  NYCT  15
Italy  Repairs for Trenitalia  Trenitalia  13
Italy  CTO upgrade of Trenitalia STB rolling stock  Trenitalia  12
China  Tianjin metro - Line 5  Insigma  10
Sundry  Components  Various  73
USA  Components  Various  54
Sundry  Service & Maintenance  Various  44

New orders for 2015 - 2014 (€m)

Key orders

New orders acquired in 2015 approximated €1,336 million (2014: €1,825 million).

Specifically, the key events of the year are described below:

Italy

New orders acquired in 2015 approximate €174 million, mainly relating to variations and extensions of existing contracts as well as contracts for components, maintenance and services. They include updates and customised work for Line 6 of the Naples metro (€30 million), variations to the Turin-Padua line (€19 million) and the master agreement with Trenitalia covering the repair of devices (€13 million).

Rest of Europe

New orders approximate €352 million. They include contracts in France worth approximately €75 million, including those for the SNCF (France’s state-owned railway company) to develop software for on-board devices on the high-speed trains (€18 million), contracts for approximately €48 million in Spain, including the extension of the maintenance contract for the high-speed Madrid-Lleida line until 2018 (roughly €42 million) and in Denmark where new orders of approximately €120 million nearly entirely relate to variations for the Copenhagen Cityringen metro to increase the number of trains and extend the operation & maintenance contract.

North Africa and the Middle East

The contracts in this area amount to approximately €76 million and mainly relate to the variation for the Iconic Stations as part of the Riyadh metro project (€62 million) and the order variation relating to the contract for the maintenance of the Princess Noura University for Women metro in Riyadh (€7 million).

Americas

New orders amount to approximately €480 million, of which the most important one is the contract to furnish a complete PTC (Positive Train Control) system on the entire commuter rail network managed by the Massachusetts Bay Transportation Authority worth approximately €305 million. They also include the CBTC (Communication Based Train Control) contract to upgrade the Sharon Hill tram lines of the Southeastern Pennsylvania Transportation Authority (SEPTA) network in Philadelphia (roughly €48 million) and the contract to supply an S&TC (Signalling & Train Control) system for the west side subway extension of the Los Angeles subway (approximately €28 million).

New orders from the freight market approximate €54 million for the sale of components and maintenance.

Asia Pacific

New orders come to approximately €225 million, of which roughly €180 million for Australia, mainly related to heavy haul mining and freight railways (the Rio Tinto contract of about €162 million), and approximately €46 million for China. New Chinese orders include the contract for the supply of 160 on-board devices featuring “C3 Chinese high speed” technology worth roughly €11 million and another contract for Line 5 of the Tianjin metro using CBTC technology for another approximate €10 million.

Business performance

Revenue in 2015 came to €1,383.8 million, compared to €1,303.5 million in the previous year.

The key production activities are summarised by geographical segment below.

Italy

With respect to the high-speed railways business segment, production activities were focused on the Treviglio-Brescia section as part of the Saturno consortium and in particular on the in-house construction of cabinets and sundry equipment while the construction of the equipment rooms continued.

With respect to the on-board SCMT/ERTMS systems, work to equip the ETR1000 high speed trains for the Trenitalia fleet continued. By year end, 18 trains had been completed and delivered.

Production by the central automated system business unit mainly related to the project for the technological upgrade of the Turin-Padua line. Two important contractual milestones were reached in the last quarter of the year: the 3.2 milestone at the end of November and the 2.3 milestone in December for the activation of five ACCM systems at the Milan Greco control room and an SCCM system at the Milan junction.

Work on the civil works continued for Line 6 of the Naples metro as well as the electro-mechanical installations for the Mergellina-S.

Pasquale line. As scheduled, the first tests on the wayside/on-board communication systems started in October under the supervision of the ministerial commission.

The customer continues to encounter difficulties in obtaining the funds necessary to complete the contract.

With respect to Line C of the Rome metro, after the inauguration of Parco di Centocelle-Lodi section in June 2015 with the opening of six stations, civil works on the San Giovanni station were again delayed and completion has now been postponed to mid 2016.

Work on section T3 (from San Giovanni to Fori Imperiali) has been suspended by the Metro C consortium due to the financial dispute with the customer.

The contract for Line 5 of the Milan metro is nearly finished after completion of the entire line and opening of the Tre Torri station to the public in November (the last of the 19 stations).

Rest of Europe

In France, activities continued to focus on the on-board systems and equipment for the country’s high-speed network (specifically the LGV Sud Europe Atlantique – Tours Bordeaux Tours line and the LGV Bretagne Pays de la Loire line), as well as the maintenance, assistance and production of individual parts contracts.

In Sweden, production mainly related to the development of technological systems for the Stockholm Red Line metro, for which line installations continue (13 stations out of the total 36 have been completed) and the Ester project to upgrade the Swedish railway network to the ERTMS L2 standard.

In Germany, activities continued on the software development project related to the supply of on-board devices for the Siemens Velaro D and Velaro Eurostar high-speed trains for the end customers, DB, Eurostar and SCNF.

The trains are already in use in France and Germany. The model for railway connections to London and Brussels was rolled out in December.

In Turkey, works to install and roll out the multi-station equipment relating to the Mersin-Toprakkale project continued at full speed for the north section. In December, the MS2 (Yesilhisar, Akkoy and Arapli) and MS3 (Huyuk, Ovacik and Nidge) devices were finished and work on the Centralised Traffic Control (CTC) supervision system for the south section installed at Adana was completed.

Work on the Ankara metro was limited to the wayside systems due to the unavailability of the customer’s trains. The aim is to complete the CBTC technology for just the wayside systems for Lines M1, M2 and M3 in 2016.

In Greece, as part of the arbitration to obtain the recognition of sundry greater expense and/or extra costs incurred in executing the contract, the customer invited the consortium of which Ansaldo STS is a member to a negotiating table.

A settlement is being negotiated, which would lay the basis for recommencing work, delayed over the years due to archaeological finds, the problems encountered in expropriation activities and changes in the design of civil works due to hydrogeological conditions as well as Greece’s political/economic instability.

Work on the Copenhagen Cityringen project went ahead in Denmark. The group has been awarded additional work to equip the trains and provide operation & maintenance services, while the design and procurement of the materials continued as did the dynamic testing of the driverless CBTC technology on a trial rail.

Meanwhile, the activities for the design and procurement of the materials to construct the tram line in Aarhus are also going ahead and the related preliminary designs were completed at the end of November.

Americas

Activities for the construction of the Honolulu metro continued, specifically, design and production activities and mobilisation of the construction team. With respect to the technological activities, work for the ATC and power systems commenced along the line during the year. Under the revised work plan, the first part of the line is slated to open by the end of 2017.

Completion of the work to design and implement the Positive Train Control system for SEPTA’s 13 lines in Philadelphia is scheduled for mid 2016.

Production for the sale of components for the existing eight product lines Electronics, Ground Material, Relays, End of Train, Cab Signals, Highway Crossings, Component Projects and Services) continued.

In Peru, the design and procurement activities continued on Lines 2 and 4 of the Lima metro, while the civil works are still affected by the delays caused by the difficulties in acquiring the areas to be expropriated.

North Africa and the Middle East

The Libyan railway project is still on hold and it is difficult to say when it will resume. The arbitration procedure related to the consequences of the work suspension with respect to the Russian customer Zarubezhstroytechnology continued before the Vienna International Arbitral Centre. Following the hearing held in Paris last September and presentation of the documentation requested after that hearing, the company is waiting for the arbitration panel to issue its award (expected in the first half of 2016).

In Saudi Arabia, the design activities for the Riyadh Metro System project have been delayed compared to the initial schedule due to variations requested by the customer. Other variations in the contract scope are being discussed with the customer and the group’s partners, due partly to the Saudi government’s intention to cut the costs of public projects as a result of economic/financial issues.

Asia

In China, the projects to supply the CBTC technology for the Chengdu, Dalian, Hangzhou, Xi’an, Zhengzhou and Shenyang metros continued as scheduled. The milestone for preacceptance of the system designed for Lines 1 and 2 of the Shenyang metro was reached in November. With respect to the project for the Zhuhai cable-free tramway, some technical issues identified during the field tests are being analysed. They have led to a delay in completion of the works now slated for the first half of 2016.

Design and production activities continued for the construction of the Taipei Metro Circular Line metro. The delays in civil works will further impact the construction times of the metro, which is set to be completed in 2020. Initial access to the depot areas is expected to take place in 2016.

Asia Pacific

In Australia, production activities mainly focused on projects covered by the framework agreement with Rio Tinto (RAFA) and the Roy Hill project.

With respect to the RAFA projects and especially the AutoHaul project, the first installation upgrade of on-board devices on locomotives has been completed and the final upgrade is nearing completion. Approval for the new baseline software for the reliability runs and the ATO-A pilot runs has been obtained.

Delivery of the TETRA and the first contractual project stage, the Voice Based Train Order (VBTO), have been completed for the Roy Hill project. Activities for the next two stages are underway although they are behind the original schedule.

Negotiations are taking place with the customer about the claims for higher costs incurred.

In India, work on the signalling systems along the 470 km of railway track for the KFW project continue. Due to the delays accumulated by the numerous variations requested by the customer, the latest agreed extension will not be met and work is not expected to be completed before the second half of 2017.

At present, 41 of the 47 stations have been finished and 45 block sections out of 47.

The Kolkata metro project also continues to incur delays caused by the civil works, the unavailability of design inputs and cancellation of the rolling stock supply contract.

Conversely, the activities for the design and procurement of materials for the Navi Mumbai metro Line 1 continue and the preliminary designs were completed and approved during the year.

In Korea, the design, production and procurement activities continue for the high-speed line of the Sudokwon project. The project team is working to reach the contract milestones, despite the customer’s delays in providing design input.

Work is concurrently continuing on various contracts for the ERTMS 1, ATC and ATS on-board systems for Hyundai Rotem, currently slated for completion by the end of 2016.