- NET SALES: LARGELY UNCHANGED AT 4,397.1 MILLION EURO (+0.7%)
- CONSOLIDATED NET INCOME: 442 MILLION EURO (+17.5%)
- CASH FLOW: 858.2 MILLION EURO, AN INCREASE OF 9.3%
- NET DEBT: 1,606.2 MILLION EURO AT THE END OF 2003, A DECREASE OF 307 MILLION EURO (-16%)
- SHAREHOLDERS’ EQUITY: UP FROM 3,609.7 TO 3,638.7 MILLION EURO
- PROPOSED DIVIDEND INCREASES TO 1 EURO TO ORDINARY SHARES AND 1.078 EURO TO SAVINGS SHARES (TO BE PAID AS FROM 27 MAY)
- UNREALIZED CAPITAL GAINS: 1,004.5 MILLION ON ITALMOBILIARE SPA LISTED SECURITIES (AVERAGE SHARE PRICES IN THE LAST SIX MONTHS OF 2003)
Milan, 30 March 2004 – The Italmobiliare S.p.A. Board of Directors today examined and approved the parent company and consolidated report on operations and the financial statements for 2003. The Board also approved a series of amendments and supplements to the by-laws in connection with the introduction of the “Vietti law” and decided that together with Italcementi it would form the “Fondazione Italcementi - Cavaliere del Lavoro Carlo Pesenti”.
The Italmobiliare Group reported net sales of 4,397.1 million euro (+0.7%), with total net income of 442 million euro (+17.5%) and Group net income of 168.7 million euro (+ 40.8%).
The increase in consolidated net income reflected the improvement in results at Italcementi, the significant increase in results at Sirap Gema and the positive contribution from the main financial subsidiaries. Operating income totaled 661.2 million euro, representing 15% of net sales, a decrease of 6.7% from the previous year, after depreciation, amortization and other write-downs on fixed assets totaling 416.2 million euro. The decrease was caused by the appreciation of the euro and by increases in other cost.
Consolidated net debt, which reflected a decrease of 306.9 million euro in indebtedness, was 1,606.2 million at 31 December 2003, compared with 1,913.1 million euro at the end of 2002.
Italmobilare S.p.A. and the wholly owned financial subsidiaries had a positive net financial position of 198.8 million euro, compared with 181.2 million euro at the end of 2002.
Group total shareholders’ equity was 3,638.7 million euro, an increase of 29 million despite a negative exchange-rate effect of 209 million.
The parent company Italmobiliare S.p.A. reported net income of 55.4 million euro compared with 62.5 million euro in 2002, when it posted significant non-recurring capital gains on the closing of the Sigesa disposal and on the sale of its equity investment in SAB Autoservizi.
The Board of Directors will ask the Shareholders’ Meeting to approve payment of a dividend of 1 euro to ordinary shares (0.94 euro in 2003) and 1.078 euro to savings shares (1.018 euro), an increase of 6.38% and 5.89 respectively. Once approved by the shareholders (called to an ordinary and extraordinary general meeting to be held next 17 and 18 May, on first and second call respectively), the dividend will be paid as from 27 May (coupon tear-off on 24 May).
2 In brief, the Group outlook for the current year is as follows: in construction materials, results are expected to be similar to 2003, before taking account of non-recurring items and new exchange-rate effects; in food packaging and thermal insulation, operating income should be in line with 2003; in the financial sector, the uncertain international political and economic climate could have negative repercussions on the equity investment portfolio, which in 2003 reflected significant gains and upward revaluations. Furthermore, non-recurring items similar to 2003 are not forecast for the current year, hence the consolidated result is expected to be lower than that of 2003.
The parent company, Italmobiliare S.p.A., expects 2004 net income to be in line with 2003, considering the dividends already approved by many investee companies.
Attached the full press release