The Board of Directors approves the results of the third quarter of 2014

Consolidated turnover declined due to the slowdown in the main reference markets, the negative exchange effect and the sale of the business division Mini Gears.

The industrial margin increased slightly. EBIT and EBITDA were affected by the drop in volumes.

The reorganisation process continued according to the programme already decided, with adaptation of the Group structure to the new dynamics of the global markets. A 15% reduction in fixed costs is forecast, which will produce its first effects in the 2015 financial year, with approximately 50 people leaving the Group comprising executives and office workers, and approximately 100 factory workers, mostly in foreign plants.

The handover at the top of the Group, scheduled at the natural term with the approval of the 2014 financial statement, was anticipated. Alberto Negri, General Manager of Carraro SpA, was co-opted onto the Board of Directors and appointed new Chief Executive Officer, replacing Alexander Bossard, who will remain on the Board of Carraro SpA and of the subsidiary Elettronica Santerno.

Upon the proposal of the Chairman Enrico Carraro, the Board resolved not to pay out any MBO to the Board members, and to all the executives, managers and employees of the Group.

Consolidated turnover of third quarter 184.7 mln € -14.9% compared to the 217 mln € of the third quarter of 2013; in progressive terms the turnover reaches 556.2 mln € compared to the 666.2 mln € at 30.09.2013.

Consolidated EBITDA for third quarter of 10 mln € (5.4% of the turnover), -34.8% compared to the 15.3 mln € of the third quarter 2013 (7.1% of the turnover); in progressive terms EBITDA of 29.2 mln € (5.3% of the turnover), -36.3% compared to the 45.9 mln € at 30.09.2013 (6.9% of the turnover); net of the non-recurrent costs, relative to the reorganisation of Elettronica Santerno, the progressive EBITDA would have been 31.6 million Euros (5.7% of the turnover).

Consolidated EBIT for third quarter 3.7 mln € (2% of turnover), -53.2% compared to the 7.8 mln € of the third quarter 2013 (3.6% of the turnover); in progressive terms EBIT of 8.8 mln € (1.6% of turnover), -62.1% compared to the 23.2 mln € at 30.09.2013 (3.5% of the turnover); net of the non-recurrent costs the progressive EBIT would have been 11.1 million Euros (2% of the turnover).

▪ Negative net result in the amount of 1.6 mln € (-0.9% of turnover), a deterioration compared to the profit of 177 thousand Euros (0.1% of the turnover) of the third quarter 2013. In progressive terms the loss is 11.7 million Euros (-2.1% of the turnover) compared to the profit of 329 thousand Euros (0.1% of the turnover) at 30th September 2013.

Net financial position at 30th September 2014 debit of 281.9 million Euros compared to the 263.7 million Euros at 30th June 2014 and the 248.2 million Euros at 31st December 2013. This deterioration is a consequence of the trend of the net circulating capital, in particular due to warehouse overstocking resulting from an unexpected drop in volumes generated in the third quarter. However, the programmes currently under way with the main customers will result in re-absorption of this phenomenon over the next few months.

A further reduction in the Carraro Drive Tech portfolio is forecast, only partly counterbalanced by the recoveries of Agritalia and Elettronica Santerno. In the light of this, a negative result is expected also for the fourth quarter.

Campodarsego (Padua), 29th October 2014 – The Board of Directors of Carraro SpA, world leader in power transmission systems, chaired by Enrico Carraro, has today approved the Group’s results for the third quarter 2014.

“The important action resolved by the Board today will re-focus the Group on its core business, relying on its relationships going back over a decade with the main global players and the constant addition of new customers, also in new areas of the world – comments Enrico Carraro, Chairman of the GroupAlso Santerno, now reorganised, is concentrating on the industrial applications market, in line with the business model of the Group.”

“The actions scheduled to adapt our organisation to the new business dynamics – concludes Enrico Carraroenable us to look ahead to 2015 as a year with concrete development prospects, with a return to profit, leaving behind the loss that will be recorded at the end of this financial year”.

Go to Press release 29.10.2014