Oct. 20 (Bloomberg) -- Finmeccanica SpA, the Italian defense contractor that's buying U.S. electronics maker DRS Technologies Inc., confirmed full-year targets and said it has ``strong'' finances to withstand the global credit market crisis.

``We confirm our guidance'' for 2008 and 2009, Chief Executive Officer Pier Francesco Guarguaglini said today in an interview at the company's headquarters in Rome. ``We don't see a slowdown in the Italian defense budget.'' Finmeccanica won't feel the effects of the global financial turmoil and expects governments to step up defense spending, Guarguaglini said earlier during a press conference.

The state-controlled manufacturer is expanding in the U.S., the world's biggest defense market, and agreed on May 13 to buy Parsippany, New Jersey-based DRS to add military electronics to contracts it's pursuing with the Pentagon. The purchase will increase the share of revenue Finmeccanica gets from the faster- growing defense electronics business.

``I've already had contacts with the Democratic party,'' Guarguaglini said in the interview. ``The U.S. defense expenditure policy shouldn't change'' if Democratic presidential nominee Barack Obama wins.

The company has forecast 2008 sales growth of as much as 11 percent to 14.9 billion euros ($20 billion) and an increase in adjusted earnings before interest and taxes of as much as 19 percent to 1.24 billion euros.

Finmeccanica predicts sales of as much as 15.9 billion euros in 2009 and adjusted Ebit of 1.42 billion euros.

Share Sale

The defense contractor started a 1.2 billion-euro share sale today. That's part of the company's funding plan for the $4 billion acquisition of DRS, which includes selling bonds and a stake in its Ansaldo Energia power-plant unit. The company expects to complete the acquisition of DRS in about 10 days, Guarguaglini said.

The purchase will add $500 million to $700 million to revenue in the next three years from the integration with DRS, Co-General Manager Alessandro Pansa said today in an interview.

Finmeccanica makes fuselage panels for Airbus SAS's A380 superjumbo and also sections for Boeing Co.'s 787 Dreamliner. The Italian company has also a contract from Lockheed Martin Corp. to supply the U.S. presidential helicopters.

Deliveries of 787 sections to Chicago-based Boeing will continue at ``a medium rate'' in 2009 and pick up after that, Guarguaglini said.

To contact the reporters on this story: Marco Bertacche in Milan at mbertacche@bloomberg.net; Flavia Rotondi in Rome at frotondi@bloomberg.net

Last Updated: October 20, 2008 08:50 EDT