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Investing.com -- Shares of Leonardo, the Italian aerospace and defense group, experienced a 2.06% drop in Wednesday’s morning trade in Europe.
This followed the company’s failure to provide anticipated details on its plan to salvage its ailing aerostructures division. The lack of information came as a disappointment to investors, according to J.P. Morgan analysts.
Investors had been awaiting an update on Leonardo’s strategy to revive the aerostructures division, which has been struggling with losses. However, during a call with investors after the publication of the 2024 results on Tuesday, the company did not provide any substantial details on the rescue plan.
Leonardo’s Chief Executive Roberto Cingolani did reveal that the company has found a partner to assist in the rescue of the division.
However, he refrained from naming the partner, citing confidentiality clauses while the talks continue. Cingolani assured that more information about the rescue plan will be disclosed by the end of this year.
In addition to the disappointment over the lack of a concrete rescue plan for the aerostructures division, the fall in Leonardo’s shares was also attributed to profit-taking activities within the defense sector.
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