Italmobiliare Group: positive operating performance in the third quarter of 2002. Consolidated net sales of 1,144.7 million euro (+ 6.6%) and gross operating profit 328 million euro (+11.5%); in the nine months total net income of 266.5 million euro
Milan, 13 November 2002 – The Board of Directors of Italmobiliare Spa today examined and approved the report on operations as of 30 September 2002 and passed further provisions relating to the company’s corporate governance.
In the third quarter - The Italmobiliare Group realized consolidated net sales of 1,144.7 million euro, an increase of 6.6% compared to the same period last year. Gross operating profit rose by 11.5% to stand at 328 million euro, while operating income was 230.8 million euro, up by +17.4%. The performance in operations in the quarter was helped by the growth in the consolidated results of the Italcementi Group and by the contribution made by the subsidiary Sirap Gema. Compared with an improvement in operations, results for the period were, however, down owing to some large write-downs of equity investments held, the lower level of capital gains realized compared to the previous year and some provisions made for prudence concerning disposals. In the third quarter of 2002 gross capital gains of 18.5 million euro were realized on the sale of SAB Autoservizi, while last year gross capital gains of 89.5 million euro were accounted for on the sale of the equity investment Montedison.
Therefore, total consolidated net income before minority interest for the quarter totaled 100.2 million euro and Group net income 16.2 million euro, compared with 138.1 million euro and 71.4 million euro respectively in the same period in 2001.
In the first nine months - Consolidated net sales were 3,304.4 million euro (+4.2%) compared to the same period in 2001; the increase was caused by growth in operations (+4%) and by the change in the consolidation area (+0.8%) and in exchange rates (-0.6%). Gross operating profit rose by 7.1% and reached 842.6 million euro, while operating income for the period totaled 551.8 million euro, up by 12.1%.
At 30 September 2002 the Group had overall net income before minority interest of 266.5 million euro and Group net income of 79.6 million euro, compared with 295.1 million euro and 133.1 million euro at 30 September 2001.
Outlook - The Group’s industrial equity investments, in particular Italcementi, forecast better results at a consolidated level compared to last year. Nevertheless, owing to the lower level of capital gains realized on the sale of equity investments by the Parent Company and to the downward trend in the financial markets, it is forecast that the consolidated result for the year, while still good, will be lower than in the previous year.
Corporate Governance - The Board of Directors of Italmobiliare approved the Code of Conduct relating to internal dealing in application of the regulations issued by the Italian Stock Exchange, that govern the obligations regarding the communication of operations involving the Group’s listed shares undertaken by “Interested Parties” and adapted its own Code of Conduct to the new regulations.
Attached the full press release