Board of Directors approves results as of September 30 2013
SOGEFI (CIR GROUP): GROWING RESULTS IN THE FIRST NINE MONTHS
REVENUES OVER € 1 BLN (+0.6%; AT SAME EXCHANGE RATES +4.5%
EBIT AT 65.8 MLN (+24%), NET INCOME AT 23.8 MLN (+9.4%)
Growth of the group continues in non-European markets whose contribution to revenues rose in the first nine months to 35.8% of the total (32.9% in 2012), thanks mainly to sales in North America (+20.8% to € 138.8 million, equal to 13.7% of the total) and in Asia (+31.4%). Revenues performed particularly well in the third quarter (+3.3%; +9.6% at the same exchange rates)
The focus continues to be on profitability: EBIT margin for the first nine months was 6.5%, up by 1.2 percentage points. In the third quarter the margin was 6.8% versus 5.0% in the same period of 2012
Consolidated results of the first 9 months of 2013
Revenues: € 1,010.6 million (+0.6% from € 1,005.1 million in 9M 2012, +4.5% at same exchange rates)
Operating result: € 79.7 million (+13% from € 70.6 million in 9M 2012)
EBITDA: € 108.4 million (+9.8% from € 98.7 million in 9M 2012)
EBIT: € 65.8 million (+24% from € 53 million in 9M 2012)
Net income: € 23.8 million (+9.4% from € 21.7 million in 9M 2012)
Net debt: € 339 million (€ 341.1 million at 30/6/2013)
Milan, October 22 2013 – The Board of Directors of Sogefi SpA, which met today under the chairmanship of Rodolfo De Benedetti, approved the Interim Financial Report of the group as of September 30 2013.
Sogefi, the automotive components company of the CIR group, is one of the main world producers of engine systems and suspension components with 43 production plants in 21 countries and 18 commercial offices.
Performance of operations
In the first nine months of the year Sogefi managed to achieve a slight increase in revenues (+0.6%; +4.5% at the same exchange rates) while continuing to improve its margins, an improvement which began in the second quarter, posting a significant rise in profitability. These results were achieved thanks to its ongoing strategy of developing non-European markets, which reached 35.8% of the total revenues of the group, up by 2.9 percentage points compared to the first nine months of 2012.
Regarding the overall performance of the car market in the first nine months of 2013, the rise in new car registrations in North America (+5.7% on the first nine months of 2012), in Mercosur (+2.6%) and in China (+13%) compensated for the weakness of the European market (-4%).
Consolidated results
In the first nine months of the year the Sogefi group reported consolidated revenues of € 1,010.6 million, slightly up on the figure for the first nine months of 2012 (+0.6%).
This result was achieved despite the negative impact of foreign exchange rates, net of which revenues would have risen by +4.5% (+9.6% just in the third quarter).
The Engine Systems Business Unit contributed most to the growth of the group in the first nine months with revenues of € 619.7 million (+2.8%), of which € 203 million (+7%) were just in the third quarter. The Suspension Components Business Unit reported revenues of € 392.5 million (-2.8%), of which € 126.3 million in the third quarter of 2013 (-2%), as it was more affected by the decline of the European market.
A significant factor is the continuing growth of the group in North America, which with revenues close to € 140 million in the first nine months (+20.8%) now represents 13.7% of the total sales of the group (+2.3 percentage points compared to last year). Particularly important is also the growth in Asia, with revenues up by 31.4% compared to the first nine months of 2012. Lastly, performance in the Mercosur area was also positive, posting revenue growth of +2.8%, which was higher than the market, despite the negative impact of exchange rates. In Europe Sogefi reported revenues of € 648.5 million, down by 3.8% compared to last year but which performed slightly better than the market.
The consolidated operating result for the first nine months was € 79.7 million and was up by +13% on the first nine months of 2012. The result was driven by the strong growth (+31.8%) reported in the third quarter (€ 28.4 million up from € 21.5 million), with a ratio to sales of 8.6%, up from 6.8%.
Consolidated EBITDA (earnings before interest, tax, depreciation and amortization) for the first nine months of the year came in at € 108.4 million, up by 9.8% on the same period of 2012 (€ 98.7 million). In the third quarter the rise was of 23.3% (€ 37.2 million), with a ratio to sales of 11.3% which was in line with the figure reported in the second quarter and was 1.8 percentage points higher than the figure for the third quarter of 2012 (€ 30.2 million).
EBIT for the first nine months came to € 65.8 million and was up by 24% compared to the same period of the previous year (€ 53 million). In the third quarter it rose by 41.3% to € 22.5 million, with a margin of 6.8%, which was 1.8 percentage points higher than in third quarter 2012 (€ 15.9 million with a margin of 5%).
The result before taxes and minority interests for the first nine months was € 45.4 million, up by 16.2% on the previous year (€ 39 million). The result for the third quarter came to € 14.8 million and was up by 29.3% from € 11.4 million last year. The rise was even more significant considering the higher financial expense following the refinancing of the debt between the end of 2012 and the beginning of 2013, which led to credit facilities agreed on before 2009 being replaced by new loans set at current market prices.
The consolidated net result of the first nine months was a positive figure of € 23.8 million and was up by 9.4% compared to the same period of 2012 (€ 21.7 million), with an improved ratio to sales of 2.4% (versus 2.2% in the first nine months of 2012). Net income in the third quarter rose by 23.6% to € 7.6 million, with a margin of 2.3% over revenues, which was an improvement on the 1.9% reported in the third quarter of 2012 (€ 6.1 million).
Net debt stood at € 339 million at September 30 2013 (€ 341.1 million at June 30 2013 and € 295.8 million at December 31 2012). The result for the quarter, despite the higher investments made (€ 22.7 million, +12.3% compared to third quarter 2012), was obtained thanks to the good operating performance and the optimization of working capital.
At September 30 2013 consolidated equity including minority interests totalled € 195.1 million (€ 200.2 million at December 31 2012).
The Sogefi group had 6,840 employees at the end of the first nine months of 2013 (6,735 at December 31 2012).
OUTLOOK FOR THE WHOLE YEAR
For the whole year 2013 the expectation of slight growth in the car market at global level is confirmed, characterized more specifically in the fourth quarter by stabilization of the European market at the current low levels of production, continuing solidity of the markets of North America and Asia and more moderate progress in Latin America.
In this context Sogefi plans to continue its medium-term development strategy through the following actions:
– Continuing to increase the internationalization of the group;
– Continuing the integration process of the group;
– Intensifying efficiency enhancing initiatives, which could lead to higher restructuring costs in the later part of the year.
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