Board of Directors approves first quarter 2015 results
Turnover and profitability on the up
Significant recovery of earnings before tax, which totalled -€297,000 compared with -€2.2 million of Q1 2014.
Clear impact of the new organisation focused on the core business.
Consolidated turnover for the quarter amounted to €180.7 million, a 1.9% increase against €177.4 million in Q1 2014. Like-for-like, that is excluding the disposal of the Mini Gears business from 2014 data, growth was equal to 12.1%, with a particularly positive performance (14%) for the mechanical engineering business areas.
Consolidated EBITDA for the quarter amounted to €11.4 million (6.3% of turnover), up by 6.1% compared with €10.7 million in Q1 2014 (6% of turnover). Net of non-recurrent costs linked to restructuring activities and like-for-like, EBITDA would have been equal to €12.2 million (6.8% of turnover), up 39.1% compared with €8.8 million (5.5% of turnover). EBITDA in the mechanical engineering business areas (Drive Tech and Agritalia) amounted to €11.1 million (6% of turnover), down 10.9% compared with €12.5 million (7.7% of turnover) for the first quarter of 2014 (net of the Mini Gears business unit). Net of non-recurrent costs, EBITDA would have been equal to €12 million (6.5% of turnover), down 3.8% compared with the first quarter of 2014.
Consolidated EBIT for the quarter amounted to €4 million (2.2% of turnover), up by 24.1% versus €3.2 million in Q1 2014 (1.8% of turnover) and, net of non-recurrent costs and like-for-like, EBIT would have been equal to €4.9 million (2.7% of turnover), an increase of 82.1% compared with €2.7 million (1.7% of turnover). EBIT for the core business amounted to €5.1 million (2.8% of turnover), against €7.9 million (4.9% of turnover) as at 31 March 2014 (excluding Mini Gears). Net of non-recurrent costs, the adjusted EBIT would have been equal to €6 million (3.2% of turnover) - a 24.1% reduction.
Significant recovery of earnings before tax, which totalled -€297,000 (-0.2% of turnover) compared with -€2.2 million (-1.2% of turnover) posted in Q1 2014. Due to taxes for the period of €1.7 million (€2.6 million as at 31 March 2014), the net loss amounted to -€2 million (-1.1% of turnover), an improvement over the loss of -€5 million (-2.8% of turnover) posted in the first quarter of 2014. Net financial position as at 31 March 2015 negative at -€281.4 million, in line with the -€279.4 million as at 31 March 2014, but growing, as anticipated, compared with € 224.3 million as at 31 December 2014 due to the expected effects of the re-absorption of activities carried out on net working capital at the end of 2014.
In the second quarter, Drive Tech is expected to experience a slight decrease in its order portfolio, whereas Agritalia is anticipated to continue the positive trend recorded in the first months of the year. For Santerno, the turnover recovery linked to the start of two major projects in South Africa is confirmed.
Consolidated margin for the second quarter is expected to be in line with that recorded in Q1.
"The first three months of 2015 show a significant improvement in terms of both profitability and turnover. Even if markets are still very far from pre-crisis levels, our Group has been able to regain competitiveness against a new backdrop." – commented Enrico Carraro, Group Chairman – The visibility we now have on the order portfolio enables us to confirm the positive trend started at the beginning of the year also for the second quarter. The new organisational structure will enable us to react quickly to any market development".