Board of Directors approves results as of June 30 2013
SOGEFI (CIR GROUP): FIRST HALF YEAR POSITIVE WITH STRONG GROWTH IN SECOND QUARTER
OPERATING RESULT € 51.3 MLN (+4.7%), EBIT € 43.2 MLN (+16.6%), NET INCOME € 16.2 MLN (+3.9%)
In the first half the group reports higher margins and net income, inverting the trend of the first quarter.
Operating result is over € 50 million and grows by 4.7% (+20.1% just in the second quarter).
EBIT grows by 16.6% on 2012 in the first six months with a margin of 6.3% (up by 0.9 points).
In the second quarter the EBIT margin is at 7.1% versus 4.9% in the same period of 2012
Revenues, substantially stable, up by 2.2% at same exchange rates (+6.7% just in the second quarter) despite the crisis in the car sector in Europe.
Growth continues in non-European markets, their contribution to the revenues of the group rising to 35% (31% in first half 2012).
North America, with sales of around € 90 million (+18.4%), represents 13.1% of the total.
Revenues in Asia +34%, Mercosur +9.2%
Consolidated results of H1 2013
Revenues: € 681.7 million (-0.7% from € 686.8 million in H1 2012; +2.2% at the same exchange rates)
Operating result: € 51.3 million (+4.7% from € 49 million in H1 2012)
EBIT: € 43.2 million (+16.6% from € 37.1 million in H1 2012)
Net income: € 16.2 million (+3.9% from € 15.6 million in H1 2012)
Net debt: € 341.1 million (€ 311.9 million at 31/3/2013)
Milan, July 23 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 for the first half of 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 six months of the year with revenues substantially unchanged (but 2.2% higher with the same exchange rates), Sogefi succeeded in obtaining a significant increase in its profitability compared to the same period of 2012, inverting the trend seen in the first quarter. This result was obtained thanks to its ongoing strategy of focusing on non-European markets, which reached 35% of the total revenues of the group, and were up by four percentage points compared to the first half of 2012.
Regarding the performance of the world car market in the first six months of 2013, the rise in new car registrations in the United States (+8% on the first six months of 2012), in Brazil (+4.8%) and in China (13%) compensated for the continuing weakness in Europe (-6.6%).
Consolidated results
Sogefi closed the first half with consolidated revenues of € 681.7 million, substantially in line with the figure of € 686.8 million reported for the first half of 2012 (-0.7%; +2.2% with the same exchange rates). The figure benefited particularly from the positive performance of the second quarter, with consolidated revenues reported up by 3.7% (+6.7% at the same exchange rates) at € 352.5 million (€ 339.9 million in the second quarter of 2012).
In the first half, the Engine Systems Division reported revenues of € 416.7 million and the Suspension Components Division revenues of €266.2 million (€ 412.9 million and € 275.1 million respectively in the same period of 2012). In the second quarter in particular, both divisions contributed to the growth in revenues: the Engine Systems Division achieved the highest increase (+5.0% at € 214.8 million versus € 204.6 million in the second quarter of 2012), while the Suspension Components Division reported growth of 1.8% to € 138.3 million (€ 135.8 million in the same period of 2012).
An important factor is the continuing growth in North America, which with revenues close to € 90 million in the first half (+18.4%) currently represents 13.1% of the total sales of the group (+2.1 percentage points on last year). Growth in Asia was also particularly significant, with revenues up by 34% compared to the first half of 2012. Lastly, the result of the Mercosur area was also very positive (+9.2%), with performance 2.3 percentage points higher than the market despite the effect of unfavourable exchange rates. In Europe Sogefi reported revenues of € 443.1 million, with a contraction of 6.6% on the previous year but in line with the market trend.
The better geographical mix led to an increase in the consolidated operating result in the first half of € 51.3 million (+4.7%). The figure was driven by the strong growth (+20.1%) reported in the second quarter (€ 29.3 million up from € 24.4 million), with a ratio to sales rising to 8.3% from 7.2%.
Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) came to € 71.2 million and was up by 3.9% on the same period of 2012 (€ 68.5 million). In the second quarter the increase was 15% (€ 39.1 million), with a ratio to sales of 11.1% (€34 million in the second quarter of 2012, with a ratio to sales of 10%).
EBIT for the first half came in at € 43.2 million and was up by 16.6% compared to the same period of last year (€ 37.1 million). In the second quarter the growth was 49.4% reaching € 25 million, with a ratio to sales of 7.1%. This was an improvement of 2.2 percentage points compared to second quarter 2012 (€ 16.8 million with a ratio to sales of 4.9%).
The result for the first half before taxes and minority interests came to € 30.5 million, posting growth of 10.7% compared to the previous year (€ 27.6 million). The result for the second quarter came in at € 18 million and was up by 50.4% compared to the figure of € 12 million last year. Although higher, this figure was impacted by higher financial expense following the recent debt refinancing process which led to credit facilities signed before the crisis being replaced by new credit lines set at current market prices.
The consolidated net result for the first half was a positive € 16.2 million, up by 3.9% on the same period of 2012 (€ 15.6 million), with a ratio to sales stable at 2.4%. The net income for the second quarter was up by 39.1% at € 9.2 million with a ratio of 2.6% to sales, an improvement on the 1.9% reported in the second quarter of 2012 (€ 6.6 million).
At June 30 2013 net debt stood at € 341.1 million (€ 311.9 million at March 31 2013 and € 295.8 million at December 31 2012). The rise in the quarter was due to the distribution of dividends for € 17.2 million and to the increase in working capital linked to the expansion of business activity in non-European countries.
At June 30 2013 consolidated equity including minority interests totalled € 192 million (€ 200.2 million at December 31 2012).
At the close of the first half of 2013 the Sogefi group had 6,727 employees, substantially unchanged from the 6,735 on the payroll at December 31 2012.
OUTLOOK FOR THE YEAR
For 2013 the expectation of slight growth in the global car market is confirmed, with weakness in both production and sales in Europe, growth in Asia and continuing solidity in the markets of North America and Latin America.
In this context Sogefi plans to:
– intensify the internationalization of the group;
– continue to take action to increase efficiency even through a greater integration of the group.
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