Failure to continue transformation could harm Italian aerospace and defence giant’s future prospects, he adds.
Outgoing Leonardo chief executive Roberto Cingolani has urged his successor to continue the company’s transformation, warning that any change of course “could be detrimental” to its future success.
Cingolani, whose three-year mandate has not been renewed by the Italian ministry of finance – the firm’s majority shareholder – will be replaced on 7 May by Lorenzo Mariani, Leonardo’s co-general manager.
Briefing journalists on 6 May ahead of the release of its first-quarter results, Cingolani pointed to his achievements over the last three years, including the “clean-up” of its portfolio, the launch of multiple joint-ventures – notably the LBA Systems uncrewed air vehicle business with Baykar Technologies.
It has also switched from a pure manufacturing concern to one focussed on “bytes and bullets”, with advances in the digital arena such as cyber-security.
On top of which, the Italian aerospace and defence giant has seen its finances transformed, with a record order backlog of €57 billion ($67 billion), “debt under control”, and showing “growth unprecedented in the history of Leonardo or [predecessor] Finmeccanica”.
Cingolani had in early March presented his vision for the next five years, launching an updated industrial plan – a strategy subsequently approved by Leonardo’s board.
However, the government-mandated change at the top of the company – which also sees current non-executive director Francesco Macri nominated as chair – has been viewed in some quarters as a rejection of the direction proposed by Cingolani.
Nonetheless, he insists he is leaving the business in the best possible position with “everything in order and with a very strong roadmap and industrial plan” in place.
“The job now is execution, not strategy,” he adds, warning: “Deviation from this plan could be detrimental to the success of Leonardo in the future.”
Despite the upheaval, he remains confident there will be continuity, pointing out that Macri and Mariani were both part of the firm’s decision-making process over the last three years.
“I’m proud of the work done so far and I’m sure this will be continued by the next management,” he says.
While admitting he would be “surprised” if there was a significant change of tack, he says the new leadership is “fully empowered to change what they want… and if they do I’m sure it will be because there is a change in context”.
Many of the joint ventures formed under his leadership have been made possible through the personal connections Cingolani has formed with his counterparts at other firms.
Although he acknowledges there is a “risk” they may founder without him he stresses that “a multi-national company as big as Leonardo cannot depend on one individual”.
Besides, he says, partners were chosen “based on competencies” rather than the identity of their chief executive.
As for Cingolani though, what are his plans when he leaves the business? “I’m going to get my motorbike and travel around Europe for a while,” he says.
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