ITALMOBILIARE GROUP:
- REVENUE: 2,292.7 MILLION EURO (2,446.6 MILLION EURO IN H1 2012)
- LOSS FOR THE PERIOD: 89.0 MILLION EURO AFTER IMPAIRMENT LOSSES ON FINANCIAL ASSETS OF 27.8 MILLION EURO (LOSS OF 50.8 MILLION EURO)
- CONSOLIDATED NET FINANCIAL DEBT: 1,929.7 MILLION EURO (AN IMPROVEMENT OF 295.7 MILLION EURO FROM JUNE 30, 2012)
- POSITIVE NET FINANCIAL POSITION FOR PARENT AND FINANCIAL SUBSIDIARIES AT 127.3 MILLION EURO (an improvement of 11.8 million euro from the end of 2012)
- NET ASSET VALUE 1,081.1 MILLION EURO AT JUNE 30, 2013
Milan, August 6, 2013 – The Italmobiliare S.p.A. Board of Directors examined and approved the half-year financial report as at and for the year to June 30, 2013.
In the second quarter of 2013 the Italmobiliare Group posted an increase in profit before tax to 29 million euro compared with 11.5 million euro in the second quarter of 2012. Although the January-June 2013 period reported a loss, the trend improved with respect to that of the first three months of the year. Overall, the first half of the year was characterized by the continuing economic crisis, which had a negative impact on the Group’s industrial operations, while the financial segment was affected by market volatility, especially at the end of the period.
In this context, after reporting revenue of2,292.7 million euro (2,446.6 million euro at June 30, 2012), the Italmobiliare Group closed the first half of 2013 with a loss of 89.0 million euro (loss of 50.8 million euro in the first half of 2012). Among factors with a material impact on this result were impairment losses on financial assets (27.8 million euro) and the loss arising from equity-accounted investees (20.5 million euro), chiefly as a result of performance at RCS Mediagroup.
Consolidated net financial debt at the end of the first half of 2013 stood at 1,929.7 million euro, a significant improvement (295.7 million euro) from June 30, 2012, and an improvement of 112.6 million euro from the first quarter of 2013. Total equity at June 30, 2013 was 4,459.8 million euro (4,616.6 million euro at March 31, 2013). The gearing ratio (net financial debt/consolidated equity) was down to 43.3% at the end of the period, from 44.2% at the end of the first quarter.
The net financial position of the financial segment (Italmobiliare S.p.A. and the wholly owned financial companies) was positive at 127.3 million euro, an improvement of 11.8 million euro from 115.5 million euro at the end of 2012.
At June 30, 2013, Italmobiliare Net Asset Value (NAV) was 1,081.1 million euro, an increase from 1,065.8 million euro at March 31, 2013 and 1,075.8 million euro from December 31, 2012.
In construction materials, the subsidiary Italcementi – which published its half-year figures on July 30, 2013 – reported a contraction in revenue to 2,156.6 million euro (-6.2% from the first half of 2012) due to the continuing reduction in demand. Thanks in part to the effects of the plan to cut operating expense and boost efficiency, operating performance showed a contained reduction compared with the decline in the first quarter, but was substantially in line with the first half of 2012, net of income on CO2 rights sales and the negative exchange-rate effect. Recurring gross operating profit, at 298.6 million euro, was down 10.6%, while operating profit, at 77.4 million euro, was down 27.1%.
The food packaging and thermal insulation segment, consisting of the Sirap Gema group, reported stable revenue of 115.4 million euro, arising from a small recovery in the food packaging business and a contained downturn in thermal insulation. The increase in commodity costs and high energy costs impacted the benefits achieved from the re-organization and cost-cutting measures. Gross operating profit was 6.0 million euro (6.5 million euro in the first half of 2012) and operating profit was 0.5 million euro (1.4 million euro).
The financial segment was affected by market volatility in the second quarter, after a slight upward trend in the first quarter. In this context, the segment posted a loss for the period of 31.9 million euro (loss of 29.9 million euro in the first half of 2012), chiefly arising from the reduction in dividends from investees (-35.1%), impairment losses of 18.9 million euro and the losses reported by equity-accounted investees (18.6 million euro).
In the banking segment (Finter Bank Zürich and Crédit Mobilier de Monaco), total income at 11.0 million euro was down from 15.5 million euro for the year to June 30, 2012, largely as a result of the reduction in assets under management and in commission income. The measures taken to contain expense for services and personnel cut the loss for the period to 2.7 million euro, from a loss of 5.1 million euro in the first half of 2012.
Outlook – Economic growth prospects continue to be characterized by a high degree of uncertainty regarding the direction of international monetary policies, by the weakness of world demand and by the slow introduction of structural reforms in the euro zone.
Although the Italian economy shows some limited signs of recovery, it is still characterized by persistent stagnation.
The 2013 full-year results will reflect the impact of the losses reported by the Group for the first half and the high level of volatility and the weakness of the economic and financial situation.
In this context the Group will continue, with determination, to implement production and commercial re-organization plans designed to raise its efficiency.
Attached the full press release