Carraro: banks support the Group's development
Important agreement signed with major banks to review medium-to-long-term and confirm short-term loans.
Campodarsego (Padua), 21 May 2013 - Carraro SpA, world leader in power transmission systems, has signed an important agreement with the major banks aimed at optimising its financial structure.
The interventions envisage:
- rescheduling of the repayment plan of medium-to-long-term loans with reference to the instalments for 2013 and the first half of 2014
- confirmation of short-term loans in place for an overall period of 24 months
- review of the performance of covenants, consistent with the results of the 2013-2016 Business Plan
This agreement has been reached based on the new 2013-2016 Business Plan presented to the banks, which envisages investments of over 150 million euros in 4 years in order to adequately support expected growth in the main markets and the launch of new products, with particular reference to the project for upgrading the capacity of Asian (China and India) and Italian manufacturing sites in view of significant in-sourcing of strategic components.
Thanks to this plan, which will provide greater industrial efficiency, it will be possible to significantly improve profitability with a consequent increase in cash generation.
“This agreement demonstrates the validity of our development plans and lays the foundations for a further improvement in the Group's results, especially in terms of profitability, contributing to a more effective presence on the various markets with a positive impact on our competitive position. – commented Enrico Carraro, Group Chairman – Following the market downturn of 2009, we have demonstrated a resolute ability to respond, reorganising ourselves to relaunch our activities, entering new markets thanks to new products. The Group's main banks have accompanied us along this path and today confirm their willingness to continue to do so”.