ITALMOBILIARE GROUP:
- REVENUES TOP 6 BILLION EURO (6,216.5 MILLION EURO, +17.7%)
- TOTAL NET PROFIT: 748.5 MILLION EURO (+23.5%)
- GROUP NET PROFIT: 264.4 MILLION EURO (+25.1%)
- INVESTMENTS IN FIXED ASSETS: 865.2 MILLION EURO
- NET DEBT: 1,857.3 MILLION EURO (1,865.1 MILLION EURO AT DECEMBER 31, 2005)
- SHAREHOLDERS’ EQUITY UP TO 6,407.9 MILLION EURO (FROM 5,916.7 MILLION EURO AT THE END OF 2005). GEARING AT 29% FROM 31.5%
ITALMOBILIARE S.p.A.:
- NET PROFIT: 161.6 MILLION EURO (62.6 MILLION EURO, +7.1%, NET OF CAPITAL GAINS ON SALE OF EQUITY INVESTMENTS TO THE SUBSIDIARY FRANCO TOSI)
- DIVIDEND: UP TO 1.45 EURO FOR ORDINARY SHARES (1.27 EURO FOR FY 2005) AND 1.528 EURO FOR SAVINGS SHARES (1.348 EURO). COUPON TEAR-OFF ON MAY 21, PAYMENT FROM MAY 24, 2007
Milan, March 21, 2007 – At a meeting chaired by Giampiero Pesenti, the Board of Directors of Italmobiliare S.p.A. examined and approved the consolidated financial statements, the report and the financial statements of the parent company for financial year 2006. Full-year consolidated revenues for the Italmobiliare Group topped 6 billion euro (6,216.5 million euro, +17.7%). 2006 total net profit was 748.5 million euro, an improvement of 23.5%; Group net profit was 264.4 million euro (+25.1%). The Board of Directors will ask the Shareholders' Meeting convened for next April 26 and 27 on first and second call respectively to approve distribution of a dividend of 1.45 euro to ordinary shares (1.27 euro for FY 2005) and 1.528 euro to savings shares (1.348 euro).Coupon tear-off will be May 21, with payment from May 24. In 2006, the Italmobiliare Group posted record results in the construction materials business, despite significant increases in some operating expenses. The financial business reported very important improvements, and the banking business confirmed its positive growth trend. Results were positive for the packaging and insulation business, which acquired the Amprica group during the year, but affected by difficult conditions on some markets, notably France.
Investments in fixed assets remained at high levels in 2006, totaling 865.2 million euro; investments in financial assets referred to acquisitions in the construction materials business (in India, Turkey and Egypt) and in packaging and insulation (in Italy and central-eastern Europe). Thanks to significant cash flows from operating activities (1,013.9 million euro), the acquisitions did not have repercussions on Group debt (1,857.3 million euro), which was substantially unchanged from the prior-year levels.
Shareholders’ equity rose to nearly 6.5 billion euro (6,407.9 million euro, an increase of 491.1 million euro from the end of 2005), producing an improvement in gearing to 29%, from 31.5% at the end of 2005.
The parent company Italmobiliare S.p.A.—which adopted the IAS/IFRS accounting standards as from 2006—reported a net profit of 161.6 million euro (58.5 million euro in 2005 restated in accordance with IAS/IFRS). During the year, Italmobiliare S.p.A. sold its voting trust interests to the Franco Tosi subsidiary: excluding these sales, which generated a net capital gain of 99 million, net profit would have risen to 62.6 million euro (+ 7.1% on 2005 restated net profit).
Although the excellent 2006 results place the Group in a stronger position to meet the challenges of the current year, equally they set a demanding standard for the coming months. This, together with a possible weakening in economic conditions in some areas (notably the USA) and the uncertain climate on the financial markets—following an impressive year for equities in 2006—mean that the 2007 objective of reporting operating results in line with those of 2006 is an ambitious goal.
The parent company Italmobiliare S.p.A. projects net profit growth in 2007, subject to unforeseen events, excluding the capital gains on the sales to the Franco Tosi subsidiary.
Additionally, the Board of Directors named Professor Mauro Bini as lead independent director and decided to ask the Shareholders' Meeting to renew its authorization to sell and dispose of treasury shares.