ITALMOBILIARE GROUP:
- REVENUE: 2,446.6 MILLION EURO (2,564.6 MILLION EURO FIRST HALF 2011
- TOTAL RESULT FOR PERIOD: -51.3 MILLION EURO (PROFIT OF 164.0 MILLION EURO, INCLUDING LARGE CAPITAL GAINS ON SALE OF OPERATIONS IN TURKEY)
- TOTAL EQUITY: 5,382.5 MILLION EURO (5,539.6 MILLION EURO AT DECEMBER 31, 2011) – EQUITY PER SHARE 53.7 EURO
- CONSOLIDATED NET FINANCIAL DEBT: 2,225.4 MILLION EURO(2,177.4 MILLION EURO AT JUNE 30, 2011, AND 2,039.6 MILLIONEURO AT DECEMBER 31, 2011)
- NET FINANCIAL POSITION OF THE FINANCIAL SEGMENT POSITIVE AT 114.9 MILLION EURO
- NET ASSET VALUE 981.1 MILLION EURO AT JUNE 30, 2012
Milan, August 6, 2012 – The Board of Directors of Italmobiliare S.p.A. has examined and approved the half-year financial report as at June 30, 2012.
The first half of the year was characterized by weak growth in the world economy, which, in the businesses in which the Group operates, led to a contraction in demand in some countries accompanied by the effects of inflationary pressures on energy costs in the industrial sector, while the rise in volatility on the equities and debenture markets had a material impact on financial investments, especially in the second quarter.
In this context, after posting revenue of 2,446.6 million euro (2,564.6 million euro in the first half of 2011), the Italmobiliare Group closed the first half of 2012 with a loss of 51.3 million euro, compared with total profit for the period of 164.0 million euro in the first half of 2011 (of which more than 105 million euro for the large capital gains on the sale of Set Group in Turkey). Earnings were very significantly affected by impairment losses on equities (22.2 million euro) and the losses of associates (20.7 million euro), influenced chiefly by the performance and impairment losses at RCS MediaGroup.
In construction materials, the subsidiary Italcementi – which published its half-year figures on July 30 – reported a decrease in revenue to 2,299.8 million euro (-4.9% from the first half of 2011). Operating results were penalized by the reduction in volumes, inflationary pressures on variable costs and lower income on CO2 emission rights. The downturn in results was mitigated however by continuous action to cut fixed costs and recover efficiency in industrial operations in the various countries. Recurring EBITDA, at 328.7 million euro, decreased by 11.6%, while EBIT fell by 37.4% to 100.6 million euro.
In food packaging and thermal insulation, where the Sirap Gema group operates, revenue amounted to 116.1 million euro, in line with the year-earlier period. Thanks to the containment of fixed costs and a lower proportion of commodity costs, EBITDA made significant progress to 6.5 million euro (4.4 million euro at June 30, 2011), while EBIT was positive at 1.4 million euro (negative EBIT of 1.3 million euro). The loss of 1.9 million euro posted for the period was an improvement on the loss of 3.6 million euro in the year-earlier period.
In the financial segment, consisting of the parent company Italmobiliare and the wholly owned financial companies, performance was affected by the adverse impact of high market volatility on share prices, especially bank stocks, and by the losses reported by associates. In this context the segment had a loss for the period of 29.9 million euro, reversing the trend of the first half of 2011, which reported a profit of 8.6 million euro. The segment’s loss arose chiefly from impairment losses on bank stocks (22.2 million euro) and the loss of the associates (24.6 million euro), compensated only in part by net gains on cash investments.
In the banking segment (Finter Bank Zürich and Crédit Mobilier de Monaco), operating income was 15.5 million euro, in line with the 2011 first half. After non-recurring allowances for impairment of trade receivables for approximately 3.5 million euro, the segment posted a loss for the period of 5.1 million euro, narrowing the loss of 7.6 million euro in the yearearlier period.
Outlook – Available economic indicators point to a further weakening in world economic growth and greater market uncertainty in the short term. Specifically, economic prospects in the Eurozone will be closely linked to developments in the sovereign debt crisis, in credit conditions and in the climate of confidence in some member states.
The attainment of new progress in the management of the crisis and the implementation of the decisions taken at the European summit at the end of June could help ease tension on the financial markets providing support for the recovery in Italy and the rest of Europe.
This scenario and its possible repercussions on the real economy will continue to exert an unpredictable influence on the financial markets, with uncertain effects on the results of the Group’s financial and banking segments.
The companies of the industrial segments are constantly focused on achieving industrial and commercial efficiency improvements through programs to rationalize and re-organize their production operations and mitigate the slackening in demand on some markets. These measures should keep operating margins in line with 2011.
Attached the full press release