ITALMOBILIARE GROUP:
- TOTAL NET INCOME: 451.8 MILLION EURO (+2.2%)
- GROUP NET INCOME: 166.1 MILLION EURO (-1.5%)
- CASH FLOW: 845.5 MILLION EURO (-1.5%)
- NET DEBT: 1,352.6 MILLION EURO (DOWN BY 253.6 MILLION EURO FROM 31 DECEMBER 2003). GEARING AT 35.3%
ITALMOBILIARE SPA:
- NET INCOME AT 76.4 MILLION EURO (+37.9%)
- DIVIDEND UP TO 1.10 EURO FOR ORDINARY SHARES AND 1.178 EURO FOR SAVINGS SHARES. COUPON TEAR-OFF ON 23 MAY
- UNREALIZED GAINS: 1,145.5 MILLION EURO ON PARENT COMPANY’S LISTED EQUITY INVESTMENTS (1,004.5 MILLION EURO AT THE END OF 2003)
Milan, 30 March 2005 – At a meeting today chaired by Giampiero Pesenti, the Italmobiliare S.p.A. Board of Directors examined and approved the parent company and consolidated report on operations and the financial statements for 2004. The Board also discussed a proposal to pay a dividend of 1.10 euro to ordinary shares (1 euro for 2003) and 1.178 euro (1.078 euro) to savings shares, with coupon tear-off scheduled for 23 May and payment on 26 May. The Board will also ask the Shareholders’ Meeting convened for 18 and 19 May (first and second call respectively) to renew for a further 18 months its authorization to dispose of and purchase own shares up to the equivalent of 50 million euro, in order to exert a stabilizing effect on market prices where appropriate and to service employee and director stock option plans. The company currently holds 892,346 ordinary shares and 28,500 savings shares.
In financial 2004, the Italmobiliare Group reported earnings growth at Italcementi, good results for its food packaging and thermal insulation production activities headed by Sirap Gema and a positive contribution from the main financial subsidiary companies, all of which reported a profit, although the aggregate amount was lower than in 2003. The Italmobiliare Group’s consolidated financial statements closed with net income for the year of 451.8 million euro (+2.2%) and a slight decrease in Group net income to 166.1 million euro (-1.5%).
The parent company Italmobiliare S.p.A. reported an improvement of 37.9% in net income to 76.4 million euro. A significant factor in this growth were positive adjustments of 15.9 million euro arising from the elimination of previous tax postings. Without these adjustments, net income would have been 60.5 million euro, for growth of 9.2% on the 2003 figure.
2004 also saw a further reduction in Group net debt, which decreased by 15.8% to 1,352.6 million euro; total shareholders’ equity rose to 3,898.3 million euro (+7.1%).
Italmobiliare S.p.A. – together with the wholly owned financial subsidiaries - had a positive net financial position of 208 million euro at 31 December 2004 (198.8 million euro at the end of 2003).
At the end of 2004, the Italmobiliare S.p.A. portfolio of securities listed on the Milan Stock Exchange reflected an unrealized gain of 1,145.5 million euro (1,004.5 million euro at the end of 2003).
Full-year projections for 2005 are as follows:
- for the construction materials business, a still favorable outlook featuring a positive business trend, countered however by high energy costs and volatile exchange rates. In this scenario, despite a difficult start of the year owing to adverse meteorological conditions in many European countries, Italcementi Group aims to maintain operating income at the 2004 level, thanks in part to industrial programs and investments to improve operating efficiency;
- for the food packaging and thermal insulation business, operating income is expected to be in line with 2004, in part as a result of progress by the operations recently acquired in eastern Europe;
- for the financial sector, uncertainty in interest rates and on the bond market could lead to a downturn in the global result, also because the significant value improvements reported in previous years are not considered probable.
For full-year 2005, therefore, at constant accounting standards and subject to unforeseeable extraordinary events, the consolidated results of the Italmobiliare Group is expected to be lower than in 2004, while income for 2005 at the parent company Italmobiliare S.p.A., considering the dividends already approved by many investee companies, is likely to be in line with the 2004 result, excluding upward adjustments arising from the elimination of previous tax postings.
Italmobiliare will publish consolidated reports prepared in accordance with the IAS/IFRS accounting standards as from the first quarter of 2005 – first-quarter results will be announced on 13 May – together with a reconciliation with the main data from the 2004 financial statements.
Attached the full press release