ITALMOBILIARE GROUP
- REVENUE: 4,519.9 MILLION EURO (4,772.2 MILLION EURO IN 2012)
- TOTAL LOSS FOR THE YEAR: 154.4 MILLION EURO (LOSS OF 474.2 MILLION EURO IN 2012 AFTER MATERIAL EXTRAORDINARY IMPAIRMENT LOSSES)
- NET FINANCIAL DEBT: IMPROVEMENT OF MORE THAN 95 MILLION EURO TO 1,835.0 MILLION EURO
- GEARING RATIO 42.3% (40.9% AT END OF 2012)
- POSITIVE NET FINANCIAL POSITION FOR PARENT AND WHOLLY OWNED FINANCIAL COMPANIES AT 146.6 MILLION EURO (115.5 MILLION EURO)
- NET ASSET VALUE: 1,283.1 MILLION EURO AT DECEMBER 31, 2013 (1,075.8 MILLION EURO AT DECEMBER 31, 2012)
- ITALMOBILIARE S.p.A. RETURNS TO PROFIT, AND WILL DISTRIBUTE A DIVIDEND OF 0.15 EURO TO ORDINARY SHARES AND 0.255191 EURO TO SAVINGS SHARES
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Milan, March 26, 2014 – The Italmobiliare S.p.A. Board of Directors today examined and approved the consolidated financial statements and the draft separate financial statements as at and for the year ended December 31, 2013.
During 2013, despite some signs of improvement toward the end of the year, the economic crisis continued to have severe repercussions on industrial operations in the Group’s core businesses, which were affected by the persistent weakness in demand. The financial markets were also characterized by an initial phase of instability, although this was followed by an improvement toward the end of the year.
In this scenario, although the Italmobiliare Group again reported a loss for the year, its performance showed a significant improvement compared with 2012, which was conditioned in particular by the extraordinary effects of large goodwill impairment losses on industrial and financial assets. Impairment losses were also posted in 2013, but for a smaller amount: 55 million euro, compared with more than 366 million euro in 2012. The improvement in profit margins on industrial operations and financial assets, together with positive management of liquidity, combined with the reduced impact of impairment losses, generated a decrease of more than 65% in the loss for the year to 154.4 million euro (474.2 million euro in 2012), of which 129.7 million euro (272.4 million euro) attributable to owners of the parent.
Among the Group core businesses, the construction materials segment led by the Italcementi group (which reported its results on March 6 last) reported revenue of 4,235.4 million euro, a decrease of 2.2% on a like-for-like basis and at constant exchange rates (-5.5% in absolute terms) reflecting a reduction in sales volumes, counterbalanced by an overall positive dynamic in sales prices. Recurring gross operating profit was 631.0 million euro, a reduction of 1.9%, while operating profit amounted to 159.3 million euro (operating loss of 140.2 million euro in 2012). The group posted a loss for the year of 88.4 million euro, a significant reduction with respect to the loss of 361.7 million euro reported in 2012.
In food packaging and thermal insulation, where the Sirap Gema group operates, given a situation of continuing weak demand and rising prices for raw materials, revenue was stable at 239.7 million euro. Thanks to the commercial action taken and the notable benefits arising from restructuring and cost-cutting measures, recurring gross operating profit improved by 12% to 15 million euro; the segment reported an operating profit of 1.1 million euro, compared with an operating loss the previous year.
In the financial segment, which includes the Italmobiliare parent, gains from liquidity management and from the sale of some equity investments were offset by the losses reported by associates and by impairment losses. The segment posted a loss for the year of 32.1 million euro, an improvement with respect to the loss of 72.7 million euro in 2012.
In the banking segment, consisting of Finter Bank Zürich and Crédit Mobilier de Monaco, performance reflected the reduction in commission income and the contraction in net trading revenue. The significant reduction achieved in costs during the year enabled the segment to limit the impact on the gross operating result, which reflected a loss of 2.7 million euro (gross operating profit of 1.4 million euro in 2012). After amortization and depreciation, provisions and extraordinary impairment losses, applied in compliance with new laws, the segment reported a loss for the year of 17.6 million euro (a loss of 8.9 million euro).
The parent Italmobiliare S.p.A. closed 2013 with a return to profit of 1.7 million euro (a loss of 66.7 million euro in 2012), driven by a revenue increase of 53.7%. 2012 was affected by significant impairment losses of 62.7 million euro on equity instruments, offset only by small gains on the sale of securities and equity investments.
The Italmobiliare Board of Directors will ask the Shareholders’ Meeting of May 27, 2014 to approve a dividend for 2013 of 0.15 euro per ordinary share and 0.255191 euro per savings share (including 0.105191 euro as part of the preferential dividend with respect to financial year 2011). The dividend payment date will be next June 26, the ex-dividend date will be June 23.
2013 revenue totaled 4,519.9 million euro, down 5.3% from 4,772.2 million euro in 2012.
Recurring gross operating profit was 615.3 million euro, a decrease of 5.4% (650.4 million euro in 2012) due to the smaller contributions of the construction materials segment (affected by a negative exchange-rate effect), the financial segment and the banking segment, whereas the contribution of the food packaging and thermal insulation segment increased.
After amortization and depreciation of 442.1 million euro, down 6.3% from 2012, and impairment losses of 32.6 million euro (334.1 million euro in 2012), operating profit amounted to 129.8 million euro (compared with an operating loss of 183.8 million euro in 2012). The impairment losses referred mainly to plant in the construction materials segment and, to a lesser degree, to companies in the food packaging segment.
Net finance costs amounted to 129.3 million euro, an increase of 31.1 million euro from 2012, when the Group posted a gain from the sale of assets in Turkey.
Impairment losses on financial assets totaled 22.1 million euro (losses of 32.2 million euro in 2012) and referred to the construction materials segment for 16.0 million euro and the financial segment for 6.0 million euro.
After a loss of 11.0 million euro on the share of the profit (loss) of equity-accounted investees (compared with a loss of 20.0 million euro in 2012), and income tax expense of 121.7 million euro, the Group posted a loss for the year of 154.4 million euro (a loss of 474.2 million euro in 2012). This comprised a loss attributable to owners of the parent of 129.7 million euro (loss of 272.4 million euro) and a loss attributable to non-controlling interests of 24.7 million euro (loss of 201.8 million euro).
At December 31, 2013 Italmobiliare Group total equity amounted to 4,332.8 million euro from 4,715.2 million euro at December 31, 2012. At the same date, net financial debt was 1,835.0 million euro, an improvement of more than 95 million euro from the end of 2012; the gearing ratio passed to 42.3% at December 2013 from 40.9% at the end of 2012, while leverage was substantially steady at 2.98%.
The net financial position of Italmobiliare and the wholly owned financial companies at the end of 2013 was positive at 146.6 million euro (115.5 million euro at December 31, 2012).
Italmobiliare Net Asset Value (NAV) at December 31, 2013 was 1,283.1 million euro (1,075.8 million euro at December 31, 2012).
Outlook – Since the economic and financial outlook remains uncertain, it is difficult to formulate projections for the Group’s consolidated results for the current year. Nevertheless, the Group is constantly committed to action to recover profitability and strengthen its capital base.
Attached the full press release