Board of Directors approves first quarter 2016 results

Weak markets, reduced volumes, improvement in industrial margins

Turnover down by 12.8%, influenced by the negative effects of the exchange rate and a different scope of consolidation.

Net of costs for the planned reorganization of Carraro Argentina, an extraordinary component amounting to EUR 4.4 million, revenues improved as a percentage, thanks to process efficiency.

  • Consolidated turnover for the quarter amounted to EUR 157.6 million, a 12.8% decrease compared to EUR 180.7 million registered in the first quarter of 2015. Turnover for the quarter was impacted by the negative effect of exchange rates, net of which the decrease would be 10%. On a like-by-like basis, excluding the contribution from O&KA, which was sold at the end of last year, the decrease would be equal to 7.3%.
  • Consolidated EBITDA for the quarter was considerably affected by extraordinary costs related to restructuring activities at Carraro Argentina. As a result, EBITDA amounted to EUR 7 million (4.4% of turnover), down 38.3% compared to EUR 11.4 million (6.3% of turnover) for the same period of 2015. Net of these extraordinary components, EBITDA would be equal to EUR 11.4 million (7.2 of turnover), down 6.9% compared to EUR 12.2 million (6.8% of turnover) for the first quarter of 2015. EBITDA in the mechanical engineering business areas amounted to EUR 7.7 million (5.1% of turnover), down 31.2% compared to EUR 11.1 million (6% of turnover) for the first quarter of 2015. Net of non-recurring costs, EBITDA for the core business would be equal to EUR 12.1 million (8.1% of turnover), up 0.4% compared to the first quarter of 2015. Elettronica Santerno recorded a negative EBITDA of EUR 730 thousand (-5% of turnover), up 44.9% compared to the negative value of EUR 1.3 million (-31.2% of turnover) as at 31 March 2015.
  • Consolidated EBIT for the quarter amounted to EUR 1.5 million (0.9% of turnover), 63.5% down on the figure of EUR 4 million (2.2% of turnover) for the first quarter of 2015. Net of non-recurring costs and on a like-by-like basis, EBIT would be equal to EUR 5.9 million (3.7% of turnover), up 19.8%. EBIT in the mechanical engineering business areas amounted to EUR 3.1 million (2.1% of turnover) compared to EUR 5.1 million (2.8% of turnover) as at 31 March 2015. Net of non-recurring costs, adjusted EBIT for the core business would be equal to EUR 7.5 million (5% of turnover), up 26%. Elettronica Santerno recorded a negative EBIT for EUR 1.1 million (-7.5% of turnover) compared to a negative value of EUR 2 million (-47.4% of turnover) for the first quarter of 2015.
  • A net loss of EUR 4.9 million (-3.1% of turnover) was recorded, compared to a loss of EUR 2 million (-1.1% of turnover) for the first quarter of 2015. Net of non-recurring costs, the net loss as at 31 March 2016 would be EUR 465 thousand (0.3% of turnover), compared to a loss of EUR 1.1 million (-0.6% of turnover) for the first quarter of 2015.
  • The net financial position as at 31 March 2016 was negative at EUR -240.6 million, worsening compared to EUR -227.8 million as at 31 December 2015, mainly due to changes in net working capital for the period, but improving, in absolute terms, compared to 31 March 2015, when this figure stood at EUR -281.4 million.

“In view of markets that are still weak, the start of 2016 has seen us improve our industrial margin, mainly thanks to considerable efficiencies in our internal processes– commented Enrico Carraro, Group Chairman – During the period, the Group was also impacted by the necessary reorganization of Carraro Argentina, which has been moved forward a few months ahead of schedule”.

“As for the second quarter, based on our market visibility today, we expect a small growth in volumes compared to the first three months of the year, albeit with turnover down compared to the previous year, but above all – concluded Enrico Carraro – in the core business we will have more and more evidence of the positive effects of the industrial actions we have taken, that will slightly improve margins compared to the beginning of the year”.

Go to Press release 29.04.2016