ITALMOBILIARE GROUP:
- TOTAL NET INCOME: 606.1 MILLION EURO (+15.1%)
- GROUP NET INCOME: 211.3 MILLION EURO (+10.3%)
- INVESTMENTS: 1,253.7 MILLION EURO (439.3 MILLION EURO IN 2004)
- NET DEBT: 1,896.1 MILLION EURO (1,470.3 MILLION EURO AT JANUARY 1, 2005)
- SHAREHOLDERS EQUITY RISES TO 5,916.7 MILLION EURO (FROM 4,459.8 MILLION EURO AT THE BEGINNING OF THE YEAR). GEARING MAKES SLIGHT IMPROVEMENT TO 32%
ITALMOBILIARE S.p.A.:
- NET INCOME: 71.3 MILLION EURO (76.4 MILLION EURO IN 2004 WITH EXTRAORDINARY INCOME OF APPROXIMATELY 16 MILLION EURO RELATING TO REVERSAL OF PRIOR-YEAR FISCALLY DRIVEN ITEMS)
- DIVIDEND: UP TO 1.27 EURO FOR ORDINARY SHARES (+15.5%) AND 1.348 EURO FOR SAVINGS SHARES (+14.4%). COUPON TEAR-OFF MAY 22, PAYMENT MAY 25, 2006
- UNREALIZED GAINS: MORE THAN 1,547 MILLION EURO ON PARENT COMPANY LISTED EQUITY INVESTMENTS AT DECEMBER 31, 2005
Milan, March 22, 2006 – The Board of Directors of Italmobiliare S.p.A. yesterday examined and approved the report and the parent company and consolidated financial statements for financial year 2005. In compliance with the IAS/IFRS standards, the Group posted total net income of 606.1 million euro, an improvement of 15.1% from 2004.
At the Shareholders’ Meeting convened for April 27 and 28 (first and second call respectively), the Board of Directors will propose a dividend of 1.27 euro to ordinary shares (1.10 euro on 2004 income) and 1.348 euro to savings shares (1.178 euro). Coupon tear-off will be May 22, with payment as from May 25.
Financial 2005 saw a sharp rise in investments (1,253.7 million euro against 439.3 million euro in 2004), with increases in both capital expenditure (466.2 million euro) and financial investments largely in relation to the enlargement of the consolidation in the construction materials business in Egypt (Suez Cement consolidated line-by-line as from April 1 and Asec Cement as from August 1, 2005). A portion of the year’s financial investments also focused on strengthening the Group’s equities portfolio. As a result of this important program, net debt rose to 1,896.1 million euro (with a limited increase of 425.7 million euro). End-of-year gearing, however, improved slightly from 33% to 32% thanks in
part to the substantial rise in shareholders’ equity to 5,916.7 million euro (an increase of 1,456.9 million euro since the beginning of the year).
Among the Italmobiliare Group’s core businesses, performance in 2005 in construction materials reflected growth in sales and margins in the countries covered by Italcementi (with the exception of Greece, Italy and Thailand), driven by the contribution of the emerging countries and the enlargement of the consolidation to operations in Egypt; the food packaging and thermal insulation business of Sirap Gema also made a positive contribution. Similarly, profit performance improvements were reported in the banking and financial sectors compared with 2004.
The parent company Italmobiliare S.p.A. – using Italian GAAP – reported net income for the year of 71.3 million euro (76.4 million euro in 2004 which included extraordinary upward adjustments of 15.9 million euro on the reversal of prior-year fiscally driven items). Unrealized gains on listed securities at the end of the year totaled 1,547.6 million euro (1,145.5 million euro at the end of 2004).
For the current year, the Group’s core businesses should benefit from higher growth rates for operations in the emerging countries and from some improvements on more mature markets. Despite the lively performance of equities in the last few months, the outlook for the financial market as a whole is uncertain, due in part to higher interest rates.
Consequently, projections for 2006 indicate that, subject to currently unforeseeable events, the Group may post higher consolidated operating income than in 2005. On the basis of the information available at present and subject to unforeseeable events, the parent company Italmobiliare S.p.A., which will adopt the IAS/IFRS standards as from financial year 2006, expects to post an improvement in its separate income, after reclassification of the 2005 result for consistency with the new accounting standards.
The Board of Directors approved an amendment in Corporate Governance in line with “Market abuse” regulations and the “Law on savings”. The Board also decided to ask the Shareholders to renew the authorization to purchase and dispose of treasury shares, to renew powers to increase share capital to service the stock option plan for managers and to amend art. 10 of the By-laws (Participation and representation at Shareholder’s Meeting).
Attached the full press release