ITALMOBILIARE GROUP:
- ITALMOBILIARE GROUP:
- REVENUES OF MORE THAN 6 BILLION EURO (6,397 MILLION EURO +2.9%)
- TOTAL NET PROFIT: 660.9 MILLION EURO (-11.7%)
- GROUP NET PROFIT: 217.2 MILLION EURO (-17.9%)
- INVESTMENTS IN FIXED ASSETS: 1,107.0 MILLION EURO (+27.8%)
- NET DEBT: 2,149.6 MILLION EURO (1,857.3 MILLION EURO AT DECEMBER 31, 2006)
- SHAREHOLDERS' EQUITY RISES TO 6,300.2 MILLION EURO (6,407.9 MILLION EURO AT DECEMBER 31, 2006 ). GEARING AT 34.12% FROM 28.98%
ITALMOBILIARE S.p.A.
- NET PROFIT: 73.6 MILLION EURO (161.6 MILLION EURO) +17.5% on 2006 (62.6 MILLION EURO) NET OF CAPITAL GAINS ON THE SALE OF EQUITY INVESTMENTS TO THE FRANCO TOSI SUBSIDIARY
- DIVIDEND RISES TO 1.6 EURO ON ORDINARY SHARES (1.45 EURO FOR FY 2006) AND 1.678 EURO ON SAVINGS SHARES (1.528 EURO). COUPON TEAR-OFF MAY 19, PAYMENT MAY 22, 2008
Milan, March 28, 2008 – The Board of Directors of Italmobiliare S.p.A. examined and approved the consolidated financial statements, the Directors’ report and the parent company financial statements for financial year 2007. The Board of Directors will ask the Shareholders' Meeting convened for next April 29 and 30 (on first and second call respectively) to approve distribution of a dividend of 1.6 euro to ordinary shares (1.45 euro for FY 2006) and 1.678 euro to savings shares (1.528 euro). Coupon tear-off will be on May 19, with payment from May 22, 2008. Italmobiliare Group 2007 full-year consolidated revenues rose by 2.9% to 6,397 million euro (growth was marginally affected by the fact that, as reported by the Italcementi parent company on March 26, consolidation of the Calcestruzzi S.p.A. and its subsidiaries was limited to the year to September 30, 2007).
EBITDA (1,462.7 million euro) decreased by 78.3 million euro (-5.1%); the change reflected positive contributions from the packaging and insulation sector and the banking sector, and reductions in the construction materials sector and the financial sector. Total net profit for 2007 amounted to 660.9 million euro (-11.7%). This reflected a rise in net finance costs as a result of increased interest expense (generated by higher interest rates and the rise in debt) and larger negative exchange-rate differences, despite lower income tax expense. Net profit attributable to the Group was 217.2 million euro, compared with 264.4 million euro in 2006.
The Parent Company Italmobiliare S.p.A had a net profit of 73.6 million euro for the year to December 31, 2007 (161.6 million euro for the year to December 31, 2006, which benefited from capital gains totaling 99.0 million euro on the sale of equity investments to the subsidiary Franco Tosi). Excluding this effect from 2006 earnings, net profit for 2007 shows an improvement of 17.5%.
The Italmobiliare Group reported a small rise in revenues in the construction materials sector. The diversification strategy adopted in the emerging countries in the last few years enabled the sector to counter the market downturn in some mature countries and the rise in operating expenses (energy, raw materials and logistics), which together with higher depreciation and amortization determined a reduction in results. The food packaging and thermal insulation sector reported significant growth in revenues, while EBIT showed a sharp decline due to higher costs for raw materials and the negative impact of nonrecurring transactions. The banking sector confirmed its growth trend thanks to the performance of Finter Bank Zürich. Conversely, the financial sector—affected by the negative performance of the markets especially in the second half of the year—reported a slowdown compared with 2006, which also benefited from non-recurring income items.
2007 was a year of high investments in fixed assets, totaling 1,107.0 million euro, up by 241.8 million euro from 2006. Investments focused in particular on enhancement and rationalization of existing industrial facilities and the acquisition of new equity investments. During the year Italmobiliare purchased Italcementi shares, raising its investment to 60.3% of ordinary capital and 2.9% of savings capital.
At December 31, 2007, Group net debt stood at 2,149.6 million euro (+292.3 million euro), while total shareholders' equity, at 6,300.2 million euro, was down by 107.7 million euro from December 31, 2006. Consequently, year-end gearing (net debt/consolidated equity) was 34.12% (28.98% at December 31, 2006).
Italmobiliare and the wholly owned financial subsidiaries had a positive net financial position of 299.4 million euro at the end of 2007 (383.9 million euro at the end of 2006).
Outlook – In view of the developments forecast in the various business sectors and their relative importance, the Group expects 2008 consolidated EBIT to be close to the levels reported in 2007, subject to currently unforeseeable events.
Based on current information and subject to unforeseeable events, the parent company Italmobiliare S.p.A. expects 2008 separate net profit for the year to be in line with net profit for 2007.
Attached the full press release