Press Release
BOARD APPROVES REPORT
ON THE 1st QUARTER OF 2009
CEMBRE (a STAR listed company):
THE GLOBAL ECONOMIC DOWNTURN
AFFECTS REVENUES AND MARGINS
GREAT IMPROVEMENT OF THE NET FINANCIAL POSITION
- At April 30, further improvement of the Net Fin. Position: reached a surplus of € 2.8 million
| Consolidated figures (€ ‘000) |
1st Qtr. 2009 |
marg. % | 1st Qtr. 2008 |
marg.%. | var.% |
Sales |
18.239 | 100 | 25.609 | 100 | -28,8% |
Gross
operating
profit |
2.474 | 13,6 | 5.488 | 21,4 | -54,9% |
Operating
profit |
1.735 | 9,5 | 4.785 | 18,7 | -63,7% |
Pre-tax profit |
1.786 | 9,8 | 4.407 | 17,2 | -59,5% |
Net financial position |
2.294 | (283) |
Brescia, May 14, 2009 –The Board of Directors of Cembre Spa, chaired by the Managing Director
Giovanni Rosani, approved at today’s meeting the Consolidated Financial Statements at March 31,
2009.
The Group’s turnover was strongly affected by the global economic downturn. In the first three
months of 2009, consolidated sales revenues declined by 28.8% on the 1st Quarter of 2008, from €25.6 million to €18.2 million, while domestic sales (€7.2 million) declined by 33%, and exports
(€11 million) decreased by 25.7%, on the 1st Quarter of 2008.
In the 1st Quarter of 2009, 39.5% of sales were represented by Italy, 49% by the rest of Europe and
11.5% by the rest of the world.
Consolidated gross operating profit declined by 54.9% from €5.5 million in the 1st Quarter of
2008 (representing a 21.4% margin on sales), to €2.5 million (a 13.6% margin on sales) in the 1st
Quarter of 2009. In 2009, raw materials costs declined by 30.8% as a result of lower market prices.
The weight of personnel costs as a percentage of sales grew from 25.8% in the 1st Quarter of 2008,
to 34.2% in the corresponding period in 2009, despite the reduction of personnel costs from €6.6
million to €6.2 million in the same period.
Consolidated operating profit for the 1st Quarter of 2009 amounted to €1.7 million, representing a
9.5% margin on sales, down 63.7% on €4.8 million in the 1st Quarter of 2008 (when it represented
an 18.7% margin on sales).
Consolidated profit before taxes for the 1st Quarter of 2009 was equal to €1.8 million,
representing a 9.8% margin on sales, down 59.5% on €4.4 million in the 1st Quarter of 2008, when
it represented 17.2% of sales.
The consolidated net financial position of the Group improved from an indebtedness of €0.3
million at March 31, 2008, to a surplus of €2.3 million at March 31, 2009. With respect to
December 31, 2008, the net financial position improved by €1.1 million. Short-term financial debt
does not include dividends payable to shareholders on May 21, 2009, amounting to €2.72 million,
as resolved by the Shareholders’ Meeting on April 28, 2009. At March 31, 2008, dividends resolved
and not included in the net financial position amounted to €4.42 million.
Capital expenditure of the Group made in the 1st Quarter of 2009 amounted to €0.5 million, as
compared with a capital expenditure of €1.2 million in the 1st Quarter of 2008.
“Sales for the 1st Quarter of 2009 are strongly affected by the global downturn, and figures for
April show a continuation of the trend. In the first months of the year the Group has however
generated a positive cash flow that resulted in a further improvement in the consolidated net
financial position to a surplus of about €2.8 million at the end of April” – commented Cembre’s
Managing Director, Giovanni Rosani.
Cembre designs, manufactures and distributes electrical connectors and cable accessories. It
enjoys a leadership position in Italy and significant market shares in the rest of Europe. It is also
the world's largest producer of connector installation tools (mechanical, pneumatic and hydraulic)
and tools for cable shearing. The products it has developed for connection to the rail and for other
railway applications are used by major companies in the sector round the world.
Cembre owes its success to an insistence on innovative, high-quality products, a broad and
thorough collection, and an extensive distribution network both in Italy and abroad.
Established in Brescia in 1969, the Cembre Group is now a full-fledged international force. Along
with the parent company in Brescia it has seven subsidiaries: five trading companies (in Germany,
France, Spain, the United States and Norway) and two manufacturing and trading subsidiaries
(Cembre Ltd. in Birmingham, U.K. and General Marking S.r.l. in Bergamo), for a total workforce
of 545 as of December 2008. Since 1990 its products have been certified by Lloyd's Register
Quality Assurance for the design and production of accessories for cables, electrical connectors
and tools for their installation.
Cembre has been listed on the Italian Stock Exchange since December 15, 1997, and on the STAR
section since September 24, 2001.
Attachments: Financial Statements at March 31, 2009
The Quarterly Report at March 31, 2009 has not been audited.
The manager responsible for preparing the Company’s financial reports, Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.
In the present press release use is made of certain alternative performance indicators that are not envisaged in IFRS-EU accounting principles, and whose significance and content are illustrated below, in line with the CESR/05-178b recommendation published on November 3, 2005:
Gross operating profit (EBITDA): defined as the difference between sales revenues and costs for
materials, of services received, and the net balance of operating income and charges. It represents
the profit before depreciation, amortization and write-downs, cash flow from financial activities and
taxes.
Operating profit (EBIT): defined as the difference between Gross operating profit and the value of
depreciation, amortization and write-downs. It represents the profit achieved before financial
activities and taxes.
Net financial position: represents the algebraic sum of cash and cash equivalents, financial
receivables and current and non-current financial debt.
Contact:
Ferruccio Peroni (Peroni e Vitale comunicazione) f.peroni@peronievitale.it
For further information please contact Mr. Claudio Bornati
Cembre S.p.A. - Tel. +390303692269
