Gross operating profit
Net financial position
Brescia, May 15, 2012 – The Board of Directors of Cembre Spa, chaired by the Chairman and Managing Director Giovanni Rosani, approved at today's meeting the Report on the 1st Quarter of 2012.
In the first three months of 2012, consolidated revenues declined by 2.5% on the 1st Quarter of 2011, from €26.8 million to €26.1 million.
In the same period, domestic sales (€10 million) declined by 18.2%, and exports (€16.1 million) increased by 10.9% on the 1st Quarter of 2011.
In the 1st Quarter of 2012, 38.5% of sales were represented by Italy, 44.8% by the rest of Europe and 16.7% by the rest of the world.
Consolidated gross operating profit (EBITDA) declined by 14.5% from €6.2 million in the 1st Quarter of 2011 (representing a 23.3% margin on sales), to €5.3 million (a 20.4% margin on sales) in the 1st Quarter of 2012. In the first three months of 2012, in addition to the mentioned decline in sales, operating profit was affected by the increase in personnel costs, as the average number of employees increased from 579 in the 1st Quarter of 2011 to 602 in the corresponding period in 2012. The cost of services received also grew, particularly those for electricity and gas, maintenance and repair and promotional costs for fairs.
Consolidated operating profit (EBIT) for the 1st Quarter of 2012 amounted to €4.5 million, representing a 17.1% margin on sales, down 19.9% on €5.6 million in the 1st Quarter of 2011 (when it represented a 20.8% margin on sales).
Consolidated profit before taxes for the 1st Quarter of 2012 was equal to €4.3 million, representing a 16.6% margin on sales, down 20.5% on €5.5 million in the 1st Quarter of 2011, when it represented 20.4% of sales.
The consolidated net financial position declined from a surplus of €14.8 million at March 31, 2011, to a surplus of €1.2 million at March 31, 2012 as a result of the strong capital expenditure made in the previous year. With respect to December 31, 2011, the net financial position declined by €1.1 million.
Short-term financial debt does not include €2.7 million of dividends payable to shareholders on May 17, 2012, as resolved by the Shareholders' Meeting on April 27, 2012. At March 31, 2011, dividends resolved and not included in the net financial position amounted to €4.4 million.
Capital expenditure of the Group made in the 1st Quarter of 2012 amounted to €2.5 million, up on a total capital expenditure of €1 million in the 1st Quarter of 2011.
"Cembre closes the 1st Quarter of 2012 reporting a 2.5% decline in consolidated revenues over the corresponding period in 2011. Domestic sales declined by 18.2% while exports grew by 10.9%. The Group has a solid financial position amounting at April 30, 2012 to a surplus of €0.7 million, while sales for the first four months of 2012 declined by 3.8% on the corresponding period in 2011"– commented Cembre's Chairman and Managing Director, Giovanni Rosani – "Despite the negative trend in the first part of the year, in 2012 we expect to achieve a slight increase in sales and profits, confident that the domestic market could show an improvement in the second half of the year" continued 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 602 as of March 2012. 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. In 2008 Cembre obtained an environmental audit certification.
Cembre has been listed on the Italian Stock Exchange since December 15, 1997, and on the STAR section since September 24, 2001.
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.
Ferruccio Peroni (Peroni e Vitale comunicazioni)
For further information please contact Mr. Claudio Bornati
Cembre S.p.A. - Tel. +3903036921 - email@example.comDownload PDF