Group earnings reach 230.8 billion (68.7 billion in the first half of 1999)
ITALMOBILIARE GROUP REPORTS STRONG IMPROVEMENT IN H1 2000 RESULTS
Milan, September 13, 2000 – Net sales totaling 3,788 billion, operating income of 493 billion, financial income of 132.8 billion (charges of 60.1 billion in the same period of 1999), total earnings to 398.2 billion, group net earnings up by more than 300% from 68.7 billion to 230.8 billion. These are the main consolidated figures for Italmobiliare Spa at June 30, 2000 approved today by the Board of Directors.
The significant improvement in results reflects the strong performance of the main industrial subsidiary Italcementi, the favorable trend of the group’s financial business and capital gains from the sale of equity investments, mainly by the parent company Italmobiliare.
Key portfolio operations included the sale of Crea, the delivery of Burgo stake (2.68%) to the public tender offer, the reduction in the Poligrafici equity investment (down to 6.6% of capital at June 30), the sale of a portion of the shares held in Banca Intesa and Comit (stakes at June 30 were 0.27% and 0.11% respectively). The combined gains generated by these operations totaled 145 billion.
In view of first-half consolidated results, capital gains and the foreseeable performance of Italmobiliare and its financial subsidiaries, and excluding unforeseeable events, the group expects to post significantly higher net earnings for full-year 2000 compared with 1999.
The parent company Italmobiliare Spa recorded net earnings for 114.9 billion compared with 61.9 billion in the same period last year. The significant improvement was largely due to capital gains for about 98 billion. Dividends, comprehensive of related tax credits, remain stable even if H 1 1999 numbers were comprehensive of an extraordinary dividend distributed by Franco Tosi International for 41.8 billion.
Italmobiliare has continued its asset enhancement strategy in the second part of the year byselling the 2.50% Falck shares to Compart, with proceeds of 50.3 billion and a capital gain of 40.6 billion.
Attached the full press release