2008 FIRST HALF: FINANCIAL STATEMENTS IN COMPLIANCE WITH IFRS 5 (TURKEY) AND DECONSOLIDATING CALCESTRUZZI
ITALMOBILIARE GROUP:
- REVENUES: 3,028.1 MILLION EURO (3,156.1 MILLION EURO IN THE FIRST HALF OF 2007)
- TOTAL NET PROFIT: 237.6 MILLION EURO (367 MILLION EURO)
- GROUP NET PROFIT: 67.8 MILLION EURO (131.1 MILLION EURO)
- INVESTMENTS IN FIXED ASSETS: 490.7 MILLION EURO (410.9 MILLION EURO)
- SHAREHOLDERS’ EQUITY: 5,675.8 MILLION EURO (6,300.2 MILLION EURO AT THE END OF 2007)
- NET DEBT: 2,375.3 MILLION EURO (2,149.6 MILLION EURO AT DECEMBER 31, 2007)
- GEARING AT 41.85% FROM 34.12% AT THE END OF 2007
- NET ASSET VALUE: 2,543.5 MILLION EURO (2,902.6 AT MARCH 31, 2008)
Milan, August 8, 2008 – At a meeting today, the Italmobiliare S.p.A. Board of Directors examined and approved the consolidated half-year report at June 30, 2008, drawn up in compliance with the International Financial Reporting Standards, deconsolidating Calcestruzzi and accounting for operations in Turkey as discontinued operations (IFRS 5). The first half of the year was a period of continuing difficulties on the international financial market stemming from the crisis in the second half of 2007, which had a negative impact on the financial sector and caused a downturn in operations in the banking sector. In the manufacturing industries, demand slackened on mature markets and operating costs increased, especially for energy. These conditions narrowed profit margins in all the sectors in which the Group operates.
In this context, the Italmobiliare Group, whose performance was stronger in the second quarter of the year than the first, reported a total net profit of 237.6 million euro and Group net profit of 67.8 million euro (compared with 367.0 million euro and 131.1 million euro respectively in the first half of 2007). In the first half, revenues amounted to 3,028.1 million euro (-4.1% but up 3.5% at constant size and exchange rates); investments in fixed assets remained high, rising by approximately 80 million euro from the year-earlier period to reach 490.7 million euro. At the end of June, total shareholders’ equity was 5,675.8 million euro, from 6,300.2 million euro at December 31, 2007. Consolidated net debt at the end of the half-year was 2,375.3 million euro (2,149.6 million euro at the end of 2007); the financial sector had a positive net financial position of 276.3 million euro (299.4 million euro at December 31, 2007).
After the changes in shareholders’ equity and net debt, the gearing ratio at the end of the first half was 41.85% (34.12% at December 31, 2007).
Italmobiliare Net Asset Value (NAV) was 2,543.5 million euro at June 30, 2008 (2,902.6 million euro at March 31, 2008).
The difficult conditions on the financial markets and the price increases in oil and the main commodities have begun to have adverse effects on the real economy, where significant signs of a slowdown are appearing, especially in the mature economies. Severe and deeprooted inflationary pressures have developed that could also produce an economic downturn in the emerging countries.
Given this situation and the risks and uncertainties regarding the remaining six months of the year, it remains difficult to draw up a valid full-year forecast. The half-year results and the projections for the individual lines of business indicate that, subject to currently unforeseeable events, Group operating results for full-year 2008 will be down on 2007.
Attached the full press release