The Group sustained a loss of Euro 936 thousand during the year, as compared to a profit of Euro 41,833 thousand achieved during the comparative year. It should be noted that the results of 2003 were influenced by the gain realised on the sale by Leonardo Holding Sa of 44.74% equity in Aeroporti di Roma SpA. 

Although net results show a downturn, there has been a marked improvement in Gross Operating Margin (+Euro 10,787 thousand) and in Operating Profit (+Euro 8,945 thousand). This represents a confirmation and a significant progress in the realisation of the industrial plan of Actelios SpA in the Renewable energy sector (biomass and waste to energy), a promising start by the Wind farm sector and good results achieved by the Steel sector. 

Revenue from sales and services amounted to Euro 142,360 thousand which amount is only minimally effected by long term contracts as was the case during 2003. The increase in revenues is principally attributable to the operation of the waste to energy plants at Trezzo sull’Adda (Milano) and Rende (Cosenza), as well as, the good results obtained by the plant at Granarolo dell’Emilia (Bologna) and the good results of the Steel sector. Another plant is expected to commence operating at Granarolo dell’Emilia (Bologna).

The consolidated results are summarized below:

Group revenues from sales show a substantial increase as compared to the previous year.

Revenue by sector is as follows:

As indicated above, there has been a marked improvement in revenue generated by the Steel sector and a good start up in the Renewable energy from wind farms sector, while the decrease in the Renewable energy from biomass and waste to energy sector is attributable to the fact that the comparative year included the final invoicing of a long term contract amounting to Euro 31,407 thousand, offset by the decrease in contract work in progress of Euro 31,002 thousand.

Gross operating margin amounting to Euro 22,920 thousand is substantially higher than the previous year. Gross operating margin by sector is as follows:

Total net earnings of the Group and Minorities as at 31 December 2004 amount to a loss of Euro 5,986 thousand as compared to a profit of Euro 45,810 thousand for 2003.

Net earnings by sector are as follows:

Net financial position show a net increase in exposure as compared to the previous year mainly attributable to the investments carried out by the Renewable energy from biomass and waste to energy sector and by the Renewable energy from wind farms sector.

Investments were mainly concentrated in the Electric energy sectors mentioned above were principally in connection with the construction of new power plants. Investments by Sector are as follows: