Cembre

BOARD APPROVES THE INTERIM REPORT AT SEPTEMBER 30, 2016

CEMBRE (A STAR LISTED COMPANY): IN THE FIRST NINE MONTHS OF 2016 CONSOLIDATED TURNOVER DECLINED SLIGHTLY BY 0.8% NET FINANCIAL POSITION AT SEPTEMBER 30, 2016 AMOUNTED TO A SURPLUS OF €23 MILLION

14/11/2016

(Brescia, 14th November 2016, 11:52 am)

  • Consolidated sales for the first nine months of 2016 declined by 0.8% worldwide, with domestic sales up 0.2% and exports down 1.5% (the latter negatively affected by the devaluation of the British pound against the euro)
  • Capital expenditure for the first nine months of 2016 amounted to €4.3 million
  • At October 31, the net financial position improved further to a surplus of €25.2 million, while sales for the first eight months of 2016 declined slightly by 1.7%
  • The Board of Directors resolved to continue to publish an Interim Report for the 1st and 3rd Quarter
     

(€’000)

First nine months 2016

Sales margin

First nine months 2015

Sales margin

% change

3rd Qtr. 2016

Sales margin

3rd Qtr. 2015

Sales margin

% change

 

 

%

 

%

 

 

 

 

 

 

Sales

90,518

100

91,278

100

-0.8%

27,833

100

28,241

100

-1.4%

Gross operating profit (Ebitda)

22,237

24.6

22,216

24.3

0.1%

7,027

25.2

6,959

24.6

1.0%

Operating profit (Ebit)

17,824

19.7

17,975

19.7

-0.8%

5,530

19.9

5,509

19.5

0.4%

Profit before taxes

17,770

19.6

18,092

19.8

-1.8%

5,576

20.0

5,403

19.1

3.2%

Net profit

12,716

14.0

12,928

14.2

-1.6%

4,206

15.1

3,976

14.1

5.8%

Net financial position

23,122

 

16,132

 

 

 

 

 

 

 

 

Brescia, November 14, 2016 - The Board of Directors of Cembre Spa – a company listed in the STAR segment of the Milan Stock Exchange and one of the largest European manufacturers of electrical connectors and tools for their installation – chaired by its Chairman and Managing Director Giovanni Rosani, approved at today’s meeting the Interim report for the 3rd Quarter of 2016.

 

Consolidated sales for the first nine months of 2016 declined by 0.8% on the corresponding period in 2015 from €91.3 million to €90.5 million. In the 3rd Quarter of 2016, consolidated revenues declined by 1.4% on the 3rd Quarter of 2015 from €28.2 million to €27.8 million. Results were strongly affected by the sharp decline of the British pound against the euro on the translation of sales of the UK subsidiary into euros. Applying the same exchange rates used in the first nine months of 2015 in the translation of financial statements of subsidiaries (respectively denominated in British pounds, US dollars and Norwegian crowns), consolidated sales in euro terms would in fact have increased by 0.9%.

 

In the first nine months of 2016, 40.6% of Group sales were represented by Italy (as compared with 40.1% in the first nine months of 2015), 42.9% by the rest of Europe (42.5% in the first nine months of 2015), and the remaining 16.5% by the rest of the World (17.4% in the first nine months of 2015).

Consolidated domestic sales grew in the period by 0.2% while exports declined by 1.5%.

 

Consolidated gross operating profit (Ebitda) for the first nine months of 2016 amounted to €22.2 million, corresponding to a 24.6% margin on sales, unchanged from €22.2 million reported in the first nine months of 2015 (24.3% of sales).

Gross operating profit for the 3rd Quarter of 2016 was also in line (up 1%) with the 3rd Quarter of 2015.

 

Consolidated operating profit (Ebit) for the first nine months of 2016 amounted to €17.8 million, corresponding to a 19.7% margin on sales, down 0.8% on €18.0 million in the first nine months of 2015, when it represented a 19.7% margin on sales. Consolidated operating profit for the 3rd Quarter of 2016 is in line with the corresponding period in the previous year (up 0.4%).

 

Consolidated profit before taxes for the first nine months of 2016 amounts to €17.8 million, representing a 19.6% margin on sales, down 1.8% on the profit before taxes reported in the first nine months of 2015, amounting to €18.1 million and corresponding to a 19.8% margin on sales.

Profit before taxes for the 3rd Quarter of 2016 amounts to €5.6 million, corresponding to a 20% margin on sales, up 3.2% on €5.4 million in the 3rd Quarter of 2015, when it amounted to a 19.1% margin on sales.

 

Consolidated net profit for the first nine months of 2016 amounted to €12.7 million, representing a 14.0% margin on sales, down 1.6% on €12.9 million in the first nine months of 2015, when it represented an 14.2% margin on sales.

Net profit for the 3rd Quarter of 2016 amounted to €4.2million, representing a 15.1% margin on sales, up 5.8% on €4.0 million in the 3rd Quarter of 2015, when it represented an 14.1% margin on sales.

 

The consolidated net financial position at September 30, 2016 amounted to a surplus of €23.1 million, improving on June 30, 2016, when it amounted to a surplus of €14.5 million. The consolidated net financial position at September 30, 2015 was equal to a surplus of €16.1 million.

 

Capital investments in the first nine months of 2016 amounted to €4.3 million, down slightly on the corresponding period in 2015 when they amounted to €4.9 million.

 

“In the first nine months of 2016 consolidated sales declined slightly by 0.8% on the corresponding period in 2015 due to the devaluation of the British pound against the euro. Applying exchange rates used in the first nine months of 2015 in the translation of financial statements of subsidiaries, consolidated sales in euro terms would in fact have increased by 0.9%. Sales for the ten months to October 2016 declined by 1.7% for the same reason commented the Chairman and Managing Director, Giovanni Rosani. We expect therefore to close 2016 reporting a turnover in line with the previous year and achieving a further strengthening of the net financial position which at October 31, 2016 amounted to a surplus of €25.2 million continued Giovanni Rosani.

 

Resolutions regarding the disclosure of “additional financial information” on the first and third Quarter in compliance with Article 82-ter of the Self-conduct Code of Listed Companies

 

The Board of Directors, at the same meeting, resolved to continue to disclose additional financial information relating to the 1st and 3rd Quarter, continuing therefore to publish, at set dates that will be communicated in the calendar of company events, an Interim Report for the 1st and 3rd Quarter of each year, as approved by the Board of Directors, that will be made available within 45 days of the closing of the Quarter, will have the same contents as the ones published up to the present date and will ensure to comparability of information provided with the corresponding information contained in the Reports previously published.

 

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 the main companies in this 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.

Founded in Brescia in 1969, the Cembre Group is now a full-fledged international force. Along with the parent company in Brescia it has six subsidiaries: five trading companies (in Germany, France, Spain, the United States and Norway) and one manufacturing and trading subsidiary (Cembre Ltd. in Birmingham, U.K.), for a total workforce of 677 as of September 30, 2016. 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.

 

Contacts:

Cembre S.p.A. - Claudio Bornati      +39 030 36921    claudio.bornati@cembre.com

Further information is available on the Company’s institutional site www.cembre.com

 

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.

 

Attachments: Financial Statements at September 30, 2016

 

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.

 

The present Interim Report for the 3rd Quarter of 2016 has not been audited.

 

 

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