- GROUP NET PROFIT MAKES SIGNIFICANT PROGRESS
- POSITIVE NET FINANCIAL POSITION OF APPROXIMATELY 300 MILLION EURO FOR THE FINANCIAL SECTOR; GROUP DEBT IMPROVES BY APPROXIMATELY 100 MILLION EURO
ITALMOBILIARE GROUP:
- REVENUES: 1,173.0 MILLION EURO (1,276.2 MILLION EURO IN THE FIRST QUARTER OF 2009)
- TOTAL NET PROFIT: 17.7 MILLION EURO (-2.9 MILLION EURO)
- GROUP NET PROFIT: 11.6 MILLION EURO (- 28.0 MILLION EURO)
- SHAREHOLDERS' EQUITY: 5,950.6 MILLION EURO (5,767.1 MILLION EURO AT DECEMBER 31, 2009 )
- NET DEBT: IMPROVEMENT OF MORE THAN 100 MILLION EURO TO 2,099.2 MILLION EURO (2,200.8 MILLION EURO AT DECEMBER 31, 2009)
- NET ASSET VALUE: 2,042.6 MILLION EURO (1,674.9 MILLION EURO AT MARCH 31, 2009, 2,166.1 MILLION EURO AT DECEMBER 31, 2009
*****
Milan, May 14, 2010 – The Board of Directors of Italmobiliare S.p.A. has examined and approved the consolidated quarterly report at March 31, 2010.
The Italmobiliare Group closed the first quarter of 2010 with a total net profit of 17.7 million euro and Group net profit of 11.6 million euro, on revenues of 1,173.0 million euro. The positive performance in the first three months compared with a year-earlier period of losses (net loss of 2.9 million euro and Group net loss of 28.0 million euro) and was substantially due to the contribution of the Group’s financial operations.
The quarterly result reflects an increase in net finance costs, which rose to 38.2 million euro from 31.0 million euro in the first quarter of 2009, after non-recurring costs of 21.7 million euro.
The financial sector, which includes the parent company Italmobiliare and the wholly owned financial companies, benefited from the positive performance of the financial markets, posting measurement gains on the equities and bond portfolio and also realizing significant capital gains, on equities in particular. The sector reported a profit of 26.6 million euro compared with a loss of 17.8 million euro in the first quarter of 2009.
In the construction materials sector, the subsidiary Italcementi – which published its results on May 7, 2010 – reported a decrease in revenues to 1,072.5 million euro and a net loss of 8.6 million euro, after the non-recurring finance costs mentioned above relating to early redemption of the U.S. Notes issued by Ciments Français in 2002 and 2006.
In the food packaging and thermal insulation sector, the Sirap Gema group reported a small reduction in revenues to 53.9 million euro, while the increase in the cost of raw materials had an impact on EBIT (0.8 million euro) and on net earnings, with a net loss for the period of 0.6 2 million euro; however, this was an improvement on the year-earlier period (-2.2 million euro).
The banking sector (Finter Bank Zurich and Crédit Mobilier de Monaco) posted a small loss (-0.1 million euro) due to lower commission income and interest income.
Italmobiliare Group net debt at March 31, 2010, was 2,099.2 million euro, an improvement of more than 100 million euro from the end of 2009 (2,200.8 million euro). Total shareholders' equity increased to 5,950.6 million euro from 5,767.1 million euro at December 31, 2009. Group shareholders' equity was 2,449.6 million euro, an increase of 52 million euro from the end of 2009.
The changes in shareholders' equity and debt produced an improvement in the gearing ratio, from 38.16% at the end of December 2009 to 35.28% at the end of March 2010. Leverage was 1.98%, compared with 2.08% at the end of 2009.
The net financial position of Italmobiliare and the wholly owned financial companies was positive at 298.8 million euro, an improvement of approximately 44 million euro from December 31, 2009.
Italmobiliare Net Asset Value (NAV) at the end of the first quarter remained above 2 billion euro: at March 31, 2010, it was 2,042.6 million euro (1,674.9 million euro at March 31, 2009, and 2,166.1 million euro at the end of 2009).
With regard to the full-year outlook, although positive indications can be seen in demand in non-European countries, the great uncertainty about developments in the international economic situation is reflected in the operating results of the Group’s industrial companies.
Furthermore, the scenario on the financial markets depends on the consequences of the Greek public debt crisis and, at a more general level, on debt sustainability in a number of Western countries. During 2010 the financial markets will presumably be influenced by the possibility for the global economic cycle to pick up more strongly than expected and thereby generate the conditions for a recovery in public finances.
Consequently, in a volatile situation subject to these uncertainties, full-year earnings, while positive, could be down on last year’s results.
Disclaimer
This press release, and in particular the section entitled “Outlook”, contains forward-looking statements. These statements are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: continued volatility and further deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation (in each case, in Italy or abroad), and many other factors, most of which are beyond the Group’s control.
Attached the full press release