(Adds detail, forecasts)
MADRID Feb 26 Spanish technology firm Indra
posted a 13 percent fall in 2013 net profit on
Wednesday but indicated the worst may be over for its domestic
business, with a particular improvement expected in defence and
Indra, whose IT business services include energy, finance
and defence, said net profit fell to 115.8 million euros ($158
million), hit by weak sales in its home market - just emerging
from recession - and currency depreciation in more robust
Revenue fell 1 percent to 2.9 billion, in line with
expectations. The net profit beat forecasts in a Reuters poll.
The company said it would target free cash flow of more than
100 million euros in 2014 and expected operating profitability
to be similar to that of 2013.
Pressure on prices would continue in Spain, but
profitability should improve in Latin America, it said.
Its operating profit margin fell to 7.8 percent in 2013 from
8.5 percent in 2012.
"(We expect) a mild economic recovery in Spain in which the
fall in sales will tail off significantly," Indra said.
It foresaw an improvement in Spanish public contracts, which
have suffered most during a crisis that led to deep spending
Its Security and Defence business should see double-digit
sales growth after shrinking in the past five years, it added.
"Order intake (in Security and Defence) at the end of 2013
was very strong (up 21 percent), which could anticipate a change
in trend for domestic sales in coming quarters," the company
Latin America was expected to slow slightly, it said, but
overall sales growth in the region should also exceed 10 percent
in local currencies in 2014.
($1 = 0.7317 euros)
(Reporting By Elisabeth O'Leary; editing by Sonya Dowsett and