COMPAGNIE INDUSTRIALI RIUNITE S.P.A.
Board of Directors approves results as of June 30 2015
SOGEFI (CIR GROUP):
REVENUES UP BY 11.8% TO € 763.7 MLN (+7.9% AT THE SAME EXCHANGE RATES)
NET INCOME AT € 9.7 MLN (LOSS OF € 7.3 MLN IN H1 2014)
Revenue growth accelerates in second quarter (+13.7%) thanks to the positive contribution of all geographical areas and in part to favourable exchange rates
In the first half year revenues up in Europe (+10.4%), North America (+17.3%), Asia (+35.7%). Sales in South America also up slightly despite continuing market weakness
EBITDA up significantly on 2014 (€ 62.4 mln versus € 51.7 mln)
Milan, July 24 2015 - The Board of Directors of Sogefi S.p.A., which met today under the chairmanship of Monica Mondardini, has approved the Interim Financial Report of the group for the first half of the year 2015.
Sogefi, the automotive components company of the CIR group, is one of the main world producers of engine systems and suspension components and is present with 42 production plants in 21 countries.
Performance of operations
In the first half of 2015 the car sector saw a positive performance in almost all of the main world markets, with a rise in the production levels of passenger cars and light commercial vehicles in Europe (+4.9%), NAFTA (+2%) and Asia (+5.1%). The recessionary phase continued, however, in the South American market with production down by 15.8% in the first half compared to the same period of 2014.
In this environment Sogefi reported revenue growth in the period of 11.8%, with an acceleration in the second quarter (+13.7%) thanks to the positive contribution of all the geographical areas. Growth was very significant even excluding the exchange rate factor (+7.9%) with an important expansion of sales in Europe, which remains the company's main market.
The rise in revenues, the slight reduction in the impact of costs, and the lower non-recurring financial expense enabled Sogefi to achieve a positive net result which compares with a loss in the first half of 2014.
During the first half, on June 5 a new top management was appointed for the company. Specifically, Laurent Hebenstreit was appointed as Chief Executive Officer and Yann Albrand as Chief Financial Officer. One of the priorities of management is to formulate a new multi-year plan for the Sogefi group.
Consolidated results
Sogefi closed the first half of the year with consolidated revenues of € 763.7 million, up by 11.8% on the first half of 2014 (+7.9% at the same exchange rates). The figure benefited from the positive performance in Europe, which reportedrevenue growth of 10.4% (€ 498.7 million; +9.1% at the same exchange rates) thanks to the contribution of both business units and to that of the aftermarket sector. Sales were also up in North America (€ 120.8 million; +17.3%; +4.6% at the same exchange rates) and Asia (€ 50.6 million; +35.7%; +15.8% at the same exchange rates). In South America Sogefi reported slightly higher sales (+1.3%; +0.9% at the same exchange rates), despite the continuing weakness of the market.
The Engine Systems business unit reported a rise in revenues of 12.1% to € 477.8 million, up from € 426.2 million in the first half of 2014, while the Suspension Components business unit reported revenues of € 287.1 million, which were up by 11.3% on the same period of last year (€ 258 million).
EBITDA came in at € 62.4 million, significantly higher than the € 51.7 million reported in the first half of 2014.
It should be remembered that in the first half of 2014 the group incurred restructuring costs for a total of € 14.4 million (€ 2 million in the first six months of 2015). In first half 2015, considering the overall exposure to liabilities connected with product quality risks, the company prudentially decided to set aside a provision of € 12.8 million for product warranties.
Excluding in both financial years the above non-recurring items, EBITDAin the first six months of 2015 would have been € 77.2 million, compared to € 65.8 million in the first half of last year, with a ratio to sales higher at 10.1% (9.6% in H1 2014) thanks to the lower impact of fixed costs which more than compensated for the trend of declining contribution margins.
EBIT was € 30.5 million (€ 21.8 million in the first half of 2014).
The result before taxes and minority interests was a positive€ 15.8 million (€ 0.8 million in the first half of 2014), after net financial expense of € 14.7 million.
The consolidated net result of the first half of 2015 was a positive€ 9.7 million, compared to a loss of € 7.3 million in the same period of last year.
Net financial debt stood at € 348 million at June 30 2015, which was substantially in line with the figure reported at the end of June 2014 (€ 340.8 million). The increase from € 304.3 million at December 31 2014 was due to the rise in working capital and to the cash disbursement made for the restructuring costs reported last year. The net financial position was also affected by the outflow of € 18 million as payment of provisional amounts relating to product quality guarantee charges.
At June 30 2015 shareholders' equity excluding minority interestsamounted to € 185.6 million (€ 161.2 million at December 31 2014).
The Sogefi group had 6,736employees at the end ofthe first half of2015 compared to 6,668 at December 31 2014.
Results of the parent company Sogefi S.p.A.
The parent company Sogefi S.p.A. reported a positive net result of€ 9.1 million in the first half year compared to net income of € 0.2 million in the same period of 2014. The increase came mainly from lower net financial expense (€ 9.5 million) than in the first half of 2014.
Net debt stood at € 286.9 million at June 30 2015 (€ 307.7 million at December 31 2014).
The shareholders' equity of the companyamounted to € 182.7 million at June 30 2015 (€ 161.3 million at December 31 2014).
Outlook for the year
In the second half of 2015, in a global car market that is forecast to grow, Sogefi expects to continue the positive trends seen in North America and in Europe. In China and India, the company should achieve further growth, while in the South American market it is likely that the current phase of weakness will continue.
Officer Responsible
The Board of Directors has appointed the CFO Yann Albrand as the Executive responsible for the preparation of the company's financial statements and corporate documents and as Investor Relator starting from August 1 2015.
24 July 2015 | 14:09 CEST
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