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Sogefi — Earnings Release 2017
Apr 26, 2017
4192_10-q_2017-04-26_4de737b2-81fe-43f9-ae00-a973eafdc93a.pdf
Earnings Release
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| Informazione Regolamentata n. 0246-15-2017 |
Data/Ora Ricezione 26 Aprile 2017 16:00:07 |
MTA - Star | |
|---|---|---|---|
| Societa' | : | SOGEFI | |
| Identificativo Informazione Regolamentata |
: | 88435 | |
| Nome utilizzatore | : | RODOLFI | SOGEFIN03 - YANN ALBRAND / NIVES |
| Tipologia | : | IRAG 03 | |
| Data/Ora Ricezione | : | 26 Aprile 2017 16:00:07 | |
| Data/Ora Inizio Diffusione presunta |
: | 26 Aprile 2017 16:15:08 | |
| Oggetto | : | Sogefi (CIR Group): strong growth in results in Q1 2017 |
|
| Testo del comunicato |
Vedi allegato.
PRESS RELEASE
Board of Directors approves results as of March 31 2017
SOGEFI (CIR GROUP): STRONG GROWTH IN RESULTS IN Q1 2017
Revenues up by 12.6% to € 439.1m
Sales higher in all geographical areas and Business Units
EBITDA at € 45.1m, up by 30.2%
Net income at € 11.6m (€ 2.9m in Q1 2016)
Net debt reduced to € 291.4m (€ 322.6m as of end March 2016)
| Q1 2017 | Q1 2016 | Δ% | |
|---|---|---|---|
| Revenues | 439.1 | 390.1 | 12.6 |
| EBITDA | 45.1 | 34.6 | 30.2 |
| EBIT | 26.8 | 16.0 | 67.5 |
| Net Result | 11.6 | 2.9 | |
| Free Cash Flow | 6.9 | -0.2 | |
| Net debt (end of period) | 291.4 | 322.6 |
Highlights from Q1 2017 results
Milan, April 26 2017 - The Board of Directors of Sogefi S.p.A., which met today under the chairmanship of Monica Mondardini, has approved the Interim Financial Report of the group for the first quarter of 2017.
Laurent Hebenstreit, Chief Executive Officer of Sogefi, made the following statement:
(in €m)
"Results of the first quarter of 2017 confirm the effect of the turnaround actions aimed at increasing profitability and cash generation".
Revenues up by 12.6%
In the first quarter of 2017 the global automotive market reported an increase in production of 5.8%, with steady growth in Asia (+6.8%) and in Europe (+4.2%), a more modest increase in North America (+2.5%) and a rebound in South America (+19.1%).
In this environment, Sogefi reported revenues of € 439.1 million, up 12.6% compared to € 390.1 million of the first quarter of 2016 (+11% at constant exchange rates).
Sogefi: outperformed reference market including in Europe
| €m | Q1 2017 | Q1 2016 | reported change |
Constant exchange rates |
weight based on Q1 2017 |
reference market |
|---|---|---|---|---|---|---|
| Europe | 274.0 | 253.2 | 8.2% | 9.5% | 62.4% | 4.2% |
| North America | 81.2 | 70.3 | 15.4% | 10.8% | 18.5% | 2.5% |
| South America | 48.9 | 37.5 | 30.6% | 14.1% | 11.1% | 19.1% |
| Asia | 39.5 | 31.3 | 26.4% | 25.7% | 9.0% | 6.8% |
| Intercompany eliminations | -4.5 | -2.2 | -1.0% | |||
| Total | 439.1 | 390.1 | 12.6% | 11.0% | 100.0% | 5.8% |
Source: Sogefi and IHS data
All geographical areas contributed to the significant growth in sales in the quarter.
In Europe, revenues increased 8.2%, outperforming the reference market (+4.2%).
Business continued to develop vigorously in North America (+15.4%) and in Asia (+26.4%) which together now represent 27.5% of total revenues.
In South America, sales increased by 30.6%, reflecting the market rebound and the positive exchange rates (+14.1% at constant exchange rates).
Positive performance for the three Business Units
| €m | Q1 2017 | Q1 2016 | reported change |
Constant exchange rates |
|---|---|---|---|---|
| Suspensions | 153.2 | 143.1 | 7.1% | 6.0% |
| Filtration | 149.2 | 131.1 | 13.8% | 12.1% |
| Air & Cooling | 137.9 | 117.0 | 17.8% | 15.7% |
| Intercompany eliminations | -1.2 | -1.1 | ||
| Total | 439.1 | 390.1 | 12.6% | 11.0% |
In the first quarter, all three Business Units reported significant growth: Air & Cooling +17.8% (+15.7% at constant exchange rates), Filtration +13.8% (+12.1% at constant exchange rates) and Suspensions +7.1% (+6% at constant exchange rates).
Operating results and net income
EBITDA, at € 45.1 million, increased 30.2% compared to € 34.6 million for the same period of 2016. The increase benefitted from the revenue growth and from the improvement in profitability, which increased from 8.9% to 10.3%.
The increase in profitability was due to a further improvement in the contribution margin and to the reduced impact of indirect costs. In particular, the ratio of total labour costs to revenues declined from 21.7% in first quarter 2016 to 20.5% in the same period of 2017.
EBIT, at € 26.8 million, increased by 67.5% compared to the first quarter of 2016 (€ 16 million) and represents 6.1% of total sales.
The result before taxes and non-controlling interests was € 20.4 million (€ 7.5 million in the first quarter of 2016), after financial expense of € 6.4 million, lower than the € 8.5 million in the same period of 2016.
The net result was € 11.6 million (€ 2.9 million in the first quarter of 2016).
Regarding the risks resulting from the claims made against Sogefi Air & Cooling S.A.S. (formerly Systèmes Moteurs S.A.S.), in the first quarter of 2017 there were no developments.
Net debt
Free Cash Flow in first quarter of 2017 amounted to a positive € 6.9 million, compared to a cash flow breakeven in the same period of 2016 (€ -0.2 million). The improvement is attributable to a better operating performance of the Group.
Net financial debt at March 31 2017 stood at € 291.4 million, showing an improvement of € 7.6 million versus December 31 2016 (€ 299 million) and of € 31.2 million versus March 31 2016 (€ 322.6 million).
Shareholders' equity
At March 31 2017 shareholders' equity excluding minority interests amounted to € 186.5 million (€ 172.9 million at December 31 2016).
Employees
The Sogefi group had 6,815 employees at March 31 2017 compared to 6,801 at December 31 2016.
Outlook for the year
For the automotive market, after a first quarter of sustained growth, the outlook for 2017 shows a positive trend, albeit at a slower pace.
Concerning Sogefi, the positive performance recorded in the first quarter confirms the projected improvement in profitability for 2017.
***
The executive responsible for the preparation of the Company's financial statements, Yann Albrand, hereby declares, in compliance with the terms of paragraph 2 Article 154-bis of the Finance Consolidation Act (TUF), that the accounting figures contained in this press release correspond to the results documented in the Company's accounts and general ledger.
Contacts: Sogefi Investor Relations Yann Albrand Laura Pennino Email: [email protected] tel.: +39 02 467501 www.sogefigroup.com
CIR Group Communication Department Salvatore Ricco tel.: +39 02 722701 e-mail: [email protected] www.cirgroup.com
This press release can also be consulted on the website: http://www.sogefigroup.com/it/area-stampa/index.html
***
Attached are the key figures from the Income Statement and the Statement of Financial Position as of March 31 2017 of the Sogefi Group. Please note that these figures have not been audited by the Firm of Auditors.
SOGEFI GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(in millions of Euro)
| ASSETS | 03.31.2017 | 12.31.2016 |
|---|---|---|
| CURRENT ASSETS | ||
| Cash and cash equivalents | 76.1 | 93.7 |
| Other financial assets | 5.2 | 5.9 |
| Working capital | ||
| Inventories | 168.9 | 165.0 |
| Trade receivables | 204.7 | 158.5 |
| Other receivables | 8.1 | 6.8 |
| Tax receivables | 20.9 | 24.2 |
| Other assets | 5.9 | 3.6 |
| TOTAL WORKING CAPITAL | 408.5 | 358.1 |
| TOTAL CURRENT ASSETS | 489.8 | 457.7 |
| NON-CURRENT ASSETS | ||
| Fixed assets | ||
| Land | 12.8 | 12.8 |
| Property, plant and equipment | 242.5 | 243.3 |
| Other tangible fixed assets | 6.2 | 6.4 |
| Of wich: leases | 7.6 | 8.1 |
| Intangible assets | 280.4 | 281.7 |
| TOTAL FIXED ASSETS | 541.9 | 544.2 |
| OTHER NON-CURRENT ASSETS | ||
| Investments in joint ventures | - | - |
| Other financial assets available for sale | 0.1 | - |
| Non-current trade receivables | - | - |
| Financial receivables | 14.6 | 15.8 |
| Other receivables | 30.5 | 29.8 |
| Deferred tax assets | 54.1 | 56.8 |
| TOTAL OTHER NON-CURRENT ASSETS | 99.3 | 102.4 |
| TOTAL NON-CURRENT ASSETS | 641.2 | 646.6 |
| NON-CURRENT ASSETS HELD FOR SALE | 3.4 | 3.4 |
| TOTAL ASSETS | 1,134.4 | 1,107.7 |
| LIABILITIES | 03.31.2017 | 12.31.2016 |
|---|---|---|
| CURRENT LIABILITIES | ||
| Bank overdrafts and short-term loans | 22.3 | 11.0 |
| Current portion of medium/long-term financial debts and | ||
| other loans | 110.3 | 137.2 |
| Of which: leases | 1.7 | 1.7 |
| TOTAL SHORT-TERM FINANCIAL DEBTS | 132.6 | 148.2 |
| Other short-term liabilities for derivative financial instruments | 0.5 | 0.4 |
| TOTAL SHORT-TERM FINANCIAL DEBTS AND DERIVATIVE | ||
| FINANCIAL INSTRUMENTS | 133.1 | 148.6 |
| Trade and other payables | 370.9 | 339.1 |
| Tax payables | 10.9 | 8.7 |
| Other current liabilities | 9.8 | 8.2 |
| TOTAL CURRENT LIABILITIES | 524.7 | 504.6 |
| NON-CURRENT LIABILITIES | ||
| MEDIUM/LONG TERM FINANCIAL DEBTS AND | ||
| DERIVATIVE FINANCIAL INSTRUMENTS | ||
| Financial debts to bank | 39.1 | 48.3 |
| Other medium/long-term financial debts | 208.9 | 209.9 |
| Of which: leases | 8.5 | 9.0 |
| TOTAL MEDIUM/LONG-TERM FINANCIAL DEBTS | 248.0 | 258.2 |
| Other medium/long term financial liabilities for derivative financial | ||
| instruments | 6.3 | 7.6 |
| TOTAL MEDIUM/LONG-TERM FINANCIAL DEBTS AND DERIVATIVE | ||
| FINANCIAL INSTRUMENTS | 254.3 | 265.8 |
| OTHER LONG-TERM LIABILITIES | ||
| Long-term provisions | 91.3 | 89.3 |
| Other payables | 15.5 | 15.0 |
| Deferred tax liabilities | 44.8 | 44.0 |
| TOTAL OTHER LONG-TERM LIABILITIES | 151.6 | 148.3 |
| TOTAL NON-CURRENT LIABILITIES | 405.9 | 414.1 |
| SHAREHOLDERS' EQUITY | ||
| Share capital | 62.1 | 62.1 |
| Reserves and retained earnings (accumulated losses) | 112.8 | 101.5 |
| Group net result for the period | 11.6 | 9.3 |
| TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE HOLDING | ||
| COMPANY | 186.5 | 172.9 |
| Non-controlling interests | 17.3 | 16.1 |
| TOTAL SHAREHOLDERS' EQUITY | 203.8 | 189.0 |
| TOTAL LIABILITIES AND EQUITY | 1,134.4 | 1,107.7 |
CONSOLIDATED INCOME STATEMENT FROM 1.1.2017 TO 3.31.2017
| (in millions of Euro) | Period | Period | |||||
|---|---|---|---|---|---|---|---|
| 01.01 – 03.31.2017 | 01.01 – 03.31.2016 | Change | |||||
| Amount | % | Amount | % | Amount | % | ||
| Sales revenues | 439.1 | 100.0 | 390.1 | 100.0 | 49.0 | 12.6 | |
| Variable cost of sales | 314.1 | 71.5 | 280.9 | 72.0 | 33.2 | 11.8 | |
| CONTRIBUTION MARGIN | 125.0 | 28.5 | 109.2 | 28.0 | 15.8 | 14.5 | |
| Manufacturing and R&D overheads | 39.9 | 9.1 | 36.3 | 9.3 | 3.6 | 10.0 | |
| Depreciation and amortization | 17.9 | 4.1 | 16.6 | 4.3 | 1.3 | 7.9 | |
| Distribution and sales fixed expenses | 11.2 | 2.5 | 11.5 | 2.9 | (0.3) | (2.6) | |
| Administrative and general expenses | 19.1 | 4.3 | 18.1 | 4.7 | 1.0 | 5.2 | |
| Restructuring costs | 4.6 | 1.1 | 1.9 | 0.5 | 2.7 | 147.0 | |
| Losses (gains) on disposal | (0.1) | - | - | - | (0.1) | - | |
| Exchange losses (gains) | (0.2) | - | 1.1 | 0.3 | (1.3) | (115.3) | |
| Other non-operating expenses (income) | 5.8 | 1.3 | 7.7 | 1.9 | (1.9) | (24.8) | |
| - of which not ordinary | 0.7 | 2.0 | (1.3) | ||||
| EBIT | 26.8 | 6.1 | 16.0 | 4.1 | 10.8 | 67.5 | |
| Financial expenses (income), net | 6.4 | 1.4 | 8.5 | 2.2 | (2.1) | (25.1) | |
| Losses (gains) from equity investments | - | - | - | - | - | - | |
| RESULT BEFORE TAXES AND NON | |||||||
| CONTROLLING INTERESTS | 20.4 | 4.7 | 7.5 | 1.9 | 12.9 | 171.4 | |
| Income taxes | 7.7 | 1.8 | 3.4 | 0.9 | 4.3 | 129.5 | |
| NET RESULT BEFORE NON | |||||||
| CONTROLLING INTERESTS | 12.7 | 2.9 | 4.1 | 1.0 | 8.6 | 205.2 | |
| Loss (income) attributable to non | |||||||
| controlling interests | (1.1) | (0.3) | (1.2) | (0.3) | 0.1 | 10.4 | |
| GROUP NET RESULT | 11.6 | 2.6 | 2.9 | 0.8 | 8.7 | 296.8 |
CONSOLIDATED NET FINANCIAL POSITION
| (in millions of Euro) | 03.31.2017 | 12.31.2016 | 03.31.2016 |
|---|---|---|---|
| A. Cash | 76.1 | 93.7 | 122.9 |
| B. Other cash at bank and on hand (held to maturity | |||
| investments) | 4.0 | 4.0 | 4.0 |
| C. Financial instruments held for trading | - | - | - |
| D. Liquid funds (A) + (B) + (C) | 80.1 | 97.7 | 126.9 |
| E. Current financial receivables | 1.2 | 1.9 | 1.1 |
| F. Current payables to banks | (22.3) | (11.0) | (25.3) |
| G. Current portion of non-current indebtedness | (110.3) | (137.2) | (101.1) |
| H. Other current financial debts | (0.5) | (0.4) | (0.3) |
| I. Current financial indebtedness (F) + (G) + (H) | (133.1) | (148.6) | (126.7) |
| J. Current financial indebtedness, net (I) + (E) + (D) | (51.8) | (49.0) | 1.3 |
| K. Non-current payables to banks | (39.1) | (48.3) | (107.6) |
| L. Bonds issued | (199.8) | (200.2) | (205.1) |
| M. Other non-current financial debts | (15.3) | (17.3) | (19.7) |
| N. Convertible bond embedded derivative liability | - | - | - |
| O. Non-current financial indebtedness (K) + (L) + (M) + (N) | (254.2) | (265.8) | (332.4) |
| P. Net indebtedness (J) + (O) | (306.0) | (314.8) | (331.1) |
| Non-current financial receivables | 14.6 | 15.8 | 8.5 |
| Financial indebtedness, net including non-current | |||
| financial receivables | (291.4) | (299.0) | (322.6) |
CONSOLIDATED CASH FLOW STATEMENT
| (in millions of Euro) | March 31, 2017 |
December 31, 2016 |
March 31, 2016 |
|---|---|---|---|
| SELF-FINANCING | 36.4 | 109.1 | 21.2 |
| Change in net working capital | (14.1) | (2.1) | (7.0) |
| Other medium/long-term assets/liabilities | 0.4 | 17.5 | 1.9 |
| CASH FLOW GENERATED BY OPERATIONS | 22.7 | 124.5 | 16.1 |
| Net decrease from sale of fixed assets | 0.3 | 0.3 | - |
| TOTAL SOURCES | 23.0 | 124.8 | 16.1 |
| Increase in intangible assets | 6.8 | 30.3 | 7.4 |
| Purchase of tangible assets | 7.8 | 58.8 | 8.7 |
| TOTAL APPLICATION OF FUNDS | 14.6 | 89.1 | 16.1 |
| Exchange differences on assets/liabilities and equity | (1.5) | (4.5) | (0.2) |
| FREE CASH FLOW | 6.9 | 31.2 | (0.2) |
| Holding Company increases in capital | 0.3 | 0.8 | - |
| Increase in share capital of consolidated subsidiaries | - | 0.2 | 0.1 |
| Dividends paid by subsidiaries to non-controlling interests | - | (8.2) | - |
| Change in fair value of effective derivative instruments | 0.4 | (0.7) | (0.2) |
| CHANGES IN SHAREHOLDERS' EQUITY | 0.7 | (7.9) | (0.1) |
| Change in net financial position | 7.6 | 23.3 | (0.3) |
| Opening net financial position | (299.0) | (322.3) | (322.3) |
| CLOSING NET FINANCIAL POSITION | (291.4) | (299.0) | (322.6) |