ITALMOBILIARE GROUP
- REVENUES: 4,775.7 MILLION EURO (4,952.9 MILLION EURO IN 2011)
- TOTAL RESULT FOR THE PERIOD: -472.6 MILLION EURO (-60.6 MILLION EURO) REFLECTING THE ACCOUNTING IMPACT FOR MORE THAN 366 MILLION EURO OF SIGNIFICANT EXTRAORDINARY IMPAIRMENT ON NON-CURRENT ASSETS AND FINANCIAL ASSETS
- NET DEBT: DOWN TO BELOW 2 BILLION EURO TO 1,930.5 MILLION EURO (2,039.6 MILLION EURO)
- GEARING RATIO 40.2% (36.8% AT END 2011)
- POSITIVE NET FINANCIAL POSITION OF PARENT AND FINANCIAL COMPANIES, 115.5 MILLION EURO (105.2 MILLION EURO)
- NET ASSET VALUE: 1,075.8 MILLION EURO AT DECEMBER 31, 2012 (1,138.5 MILLION EURO AT THE END OF 2011)
*****
Milan, March 26, 2013 – The Italmobiliare S.p.A. Board of Directors today examined and approved the consolidated financial statements and the draft separate financial statements for financial year 2012.
The negative signs in the economic cycle observed in the euro zone in the second half of 2011 intensified in 2012, leading to an open recession, with a severe impact on industrial operations in most of the advanced economies. In the emerging countries too, economic growth slowed, reflecting restrictive measures and weak international demand. The climate on the financial markets was highly unstable, despite an improvement in the second half of the year.
In this economic scenario, where the Group industrial segments were adversely affected by the long recessionary phase and the financial and banking segments were exposed to continuous market tension, the Italmobiliare Group closed 2012 with a negative result. Significant factors affecting performance were the extraordinary effects of the material impairment on goodwill on industrial operations in the construction materials and food packaging segments, for 334.1 million euro (148.1 million euro in 2011) and impairment on financial assets – particularly in the banking segment and on the investment in Burgo Group – for 32.2 million euro. Apart from these non-recurring charges, additional effects were the reduction in dividends received from investees as well as recognition of the share of the loss posted by equity-accounted investee RcsMediaGroup for 28.7 million euro. Taking these effects into account, the Italmobiliare Group posted a total loss for 2012 of 472.6 million euro and a loss attributable to owners of the parent of 270.3 million euro, compared respectively with a total loss of 60.6 million euro and a loss attributable to owners of the parent of 147.7 million euro in 2011.
Among the Group operating segments, in the industrial sector, the construction materials segment consisting of the Italcementi group (which released its results on March 5, 2013), posted revenues of 4,480.1 million euro, down by 3.8% due to the fall in demand, especially in mature countries. Recurring EBITDA, at 632.4 million euro, was down 9.8%. After net non-recurring expense of 17.5 million euro, amortization and depreciation of 456.4 million euro and impairment on non-current assets for 309.4 million euro, EBIT was negative at 150.9 million euro (positive EBIT of 138.9 million euro in 2011). Considering the accounting effect of non-recurring transactions, the group posted a loss for the period of 362.4 million euro (profit of 91.2 million euro). Net of non-recurring expense the group would have posted a profit for the period of approximately 113 million euro.
The food packaging and thermal insulation segment, consisting of the Sirap Gema group, reported revenues of 239.8 million euro (235.6 million euro in 2011), despite a reduction in demand in food packaging. EBIT was negative at 31.0 million euro (-2.1 million euro in 2011), reflecting an increase in raw material costs as well as goodwill impairment at the rigid containers division, and other non-recurring expense. The group posted a loss for the period of 38.2 million euro (-8.9 million euro).
The financial segment – which includes the parent Italmobiliare – was affected by the tensions which were particularly severe in some euro zone countries in the first half of the year. The reduction in dividends received and material impairment on equities for 55.5 million euro generated a loss for the period of 70.6 million euro (an improvement from
-96.2 million euro in 2011) thanks to positive cash operations.
In the banking segment(Finter Bank Zurich and Crédit Mobilier de Monaco) operating income of 30.5 million euro (-8.4%) reflected the decrease in commissions and third-party assets under management. Nevertheless a significant reduction in operating expense enabled the segment to post a gross operating profit of 1.6 million euro (-3.5 million euro in 2011). After non-recurring expense of 7.4 million euro, a loss was posted for the period of 8.7 million euro (-23.1 million euro in 2011).
2012 revenues were 4,775.7 million euro, down by 3.6% from 4,952.9 million euro in 2011.
Recurring EBITDA at 641.8 million euro was down 43.0 million euro from 2011, with a reduction arising in all segments except the financial segment (+17.1 million euro from 2011).
After non-recurring expense of 28.2 million euro, largely due to restructuring expense in the industrial segment, EBITDA was 613.6 million euro (722.5 million euro in 2011). In addition to amortization and depreciation expense of 471.9 million euro, EBIT was heavily affected by significant impairment (334.1 million euro from 148.1 million euro in 2011), whose impact generated a loss for the period of 192.4 million euro (profit of 89.4 million euro). Specifically, impairment arose in the construction materials segment for 309.4 million euro and food packaging and thermal insulation for 24.8 million euro.
Impairment on financial assets generated losses of 32.2 million euro (compared with
-86.6 million euro in 2011) and referred mainly to impairment on bank stocks in the financial segment (22.0 million euro) and on the investment in Burgo Group (10.0 million euro). The share of profit (loss) of equity-accounted investees showed a loss of 20.0 million euro (+9.7 million euro in 2011), caused mainly by the losses reported by the investees in the financial segment (-31.1 million euro).
The Group posted a loss for the period of 472.6 million euro (loss of 60.6 million euro in 2011 which included capital gains of 106.5 million euro from the sale of operations in Turkey) with a loss attributable to owners of the parent of 270.3 million euro (-147.7 million euro in 2011).
At December 31, 2012 Italmobiliare Group total equity amounted to 4,799.0 million euro from 5,539.6 million euro at December 31, 2011. At the same date net debt was 1,930.5 million euro with an improvement of more than 109 million euro from the end of 2011; the gearing ratio passed to 40.2% in December 2012 from 36.8% at the end of 2011, while leverage was substantially stable at 3.01% (2.98% at the end of 2011).
The net financial position of Italmobiliare and the wholly owned financial companies was positive at the end of 2012 at 115.5 million euro (105.2 million euro at December 31, 2011).
The parent Italmobiliare S.p.A. closed 2012 with a loss of 66.7 million euro (loss of 57.3 million euro in 2011), arising substantially from impairment on subsidiaries and on equities for 62.7 million euro and from the reduction in revenues due to lower dividends received in 2012 compared with 2011 (-52.8%).
Italmobiliare Net Asset Value (NAV) at December 31, 2012, was 1,075.8 million euro (1,138.5 million euro at December 31, 2011).
At the Annual General Meeting of May 29 the Italmobiliare Board of Directors will propose that no dividend be paid out for financial year 2012.
Outlook – All factors considered, the difficulties in the real economy and the uncertainty in financial conditions are significant and difficult to quantify, with the result that it is not possible at the present time to provide guidance on the Group overall results for the current year.
Attached the full press release