STRONG INCREASE IN GROUP OPERATING INCOMES
Gross operating profit rises 13%, operating income rises 17.7% - Net income total 61.6 million euro – 2000 first-half income (119.2 million) was influenced by large capital gains and non-recurring income – In the second half 2001, the sale of the equity investment in Montedison gives Italmobiliare S.p.A. a gross capital gain of 75.9 million euro.
Milan, 13 September 2001 – The key consolidated figures of Italmobiliare S.p.A. at 30 June 2001 were examined and approved today at a meeting of the Board of Directors chaired by Giampiero Pesenti. In the first half of 2001, the Italmobiliare group reported significant growth in operations and operating incomes, while net earnings decreased compared to the first half of 2000, largely as a result of the absence of the capital gains and non-recurring income of more than 100 million euro recorded in the year-earlier first half. Net sales totaled 2,118.1 million euro (+8.3%), operating income was 299.7 million (+17.7%), financial charges were 24.4 million (financial income of 68.6 million in the year-earlier first half), total income amounted to 158.3 million compared to 205.7 million in 2000, while Group net earnings were 61.6 million (119.2 million at 30 June 2000).
Group figures reflect the positive performance of the main subsidiary, Italcementi, which closed the first half with net earnings after minority interests of 89.2 million euro, and of SAB (public transport) which reported net earnings of 5.6 million euro, while Sirap Gema (food packaging and thermal insulation) had a loss of 9.4 million euro arising from restructuring costs following the closure of the Manage facility in Belgium. Among the Group’s financial companies, Italmobiliare International Finance (active on international securities markets) reported earnings of 10.4 million euro, Société de Participation Financière Italmobiliare (which manages the Group’s main equity investments and liquidity) reported net earnings of 6.5 million euro, while Fincomind (which controls Finter Bank Zürich and Finter Bank France) had earnings of 2.2 million Swiss francs.
Key portfolio operations by the parent company Italmobiliare and its financial subsidiaries included the acquisition of 10% of the Tredicimarzo company, with an investment of approximately 14 million euro; an equity investment in Fin.Priv. and the subscription of the sharecapital increase with a total outlay of 4.3 million euro (the share rose by 14.28%); Through the subsidiary Société de Participation Financière Italmobiliare, the Group subscribed the sharecapital increases at Consortium with an outlay of 12.8 million euro and holds now an equity investment of 2.27%; with an investment of 3.5 million euro, the Group also acquired 856,754 IntesaBci shares, selling put warrants to raise proceeds of 3.2 million euro. During the first half, Italmobiliare raised its direct and indirect equity investment in Italcementi to 56.73% of ordinary capital.
Significant events subsequent to closure of the first half included take-up of the Italenergia public tender offer for Montedison; Italmobiliare S.p.A. tendered a share of 3.04% to realize 168.5 million euro and obtain a gross capital gain of 76.1 million euro. With an investment of 36.9 million euro, the company acquired 1.51% of Banca Popolare di Bergamo-Credito Varesino. The subsidiary Société de Participation Financière Italmobiliare invested 12.5 million euro to exercise its pre-emption rights on the Dieci S.r.l. stake put up for sale by Montedison, raising its equity investment in the company from 10% to 15.38%. It also purchased 0.9 of HdP with an outlay of approximately 31.7 million euro.
The parent company Italmobiliare S.p.A. reported first-half net earnings of 26.2 million euro against 59.3 million euro in the year-earlier first half, when capital gains of more than 50 million euro were a highly significant factor. Dividends, including related tax credits, increased from 50.7 million euro to 60.8 million euro, due in particular to larger payouts by Italcementi S.p.A. and Intermobiliare S.p.A. Together with its wholly owned financial subsidiaries, the holding had a positive financial position of 72.6 million euro (102.3 million euro at 31 December 2000).
Outlook. In the absence of unforeseeable events, Italcementi Group, Italmobiliare’s core business, and SAB Autoservizi should report improved results for 2001, while Sirap Gema, despite better operating incomes, will be unable to absorb the effects of the Belgian facility restructuring.
The weakened international situation and the sharp decline of the financial markets are creating great uncertainty in the reference scenario, particularly with regard to conversion of the Mediobanca-UniCredito loan expiring at December 2001. In this context, while the full-year outlook for Italmobiliare at both consolidated and statutory level is very favourable, also considering the capital gain already obtained in the Montedison operation, results could be down on those for 2000, when higher capital gains were recorded on the sale of equity investments.
CONSOLIDATED FINANCIAL HIGHLIGHTS – Net sales rose by 8.3% from 1,956.3 million euro to 2,118.1 million euro; +5.0% like-for-like.
Gross operating profit and operating income rose respectively by 13% (from 440.5 to 497.8 million euro) and by 17.7% (from 254.6 to 299.7 million euro). The increase was mainly due to the building materials business, where important steps were taken to improve efficiency.
First-half financial charges totaled 24.4 million euro (financial income of 68.6 million euro in the first half of 2000); the change was determined by the absence of capital gains compared to the year-earlier first half, by translation losses arising from the devaluation of the Turkish lira and by increased financial charges relating to the acquisition and the consolidation of India’s Zuari Cement.
Non-recurring income/charges and value adjustments generated a negative balance of 5.5 million euro compared to a positive balance of 26.1 million euro in the first half of 2000.
After taxes of 111.5 million euro (143.6 million euro), total net earnings amounted to 158.3 million euro (205.7 million euro).
Total investments amounted to 276.8 million euro compared with 265.4 million euro in the first six months of 2000 and comprised investments in financial fixed assets for 121.2 million euro relating mainly to Zuari Cement, Tredicimarzo, Consortium, Italcementi, Trieste Trasporti and Fin.Priv.
The net debt reflected a slight downturn, at 1,755 million euro. The net debt-to-equity ratio (with net debt including floating rate subordinated securities) passed from 47.3% at 31 December 2000 to 51.1% at 30 June 2001.
Total shareholders’ equity stood at 3,652.6 million euro, an increase of 152.3 million euro from the end of 2000, while Group shareholders’ equity at 1,469.4 million euro rose by 36.5 million euro.
Attached the full press release