The BoD approves the results for the third quarter of 2016
The Group is back in profit in the third quarter of the year to the tune of 2.1 million Euros, as a result of the benefits brought by the reorganisation of the company in recent years.
Despite being faced with a negative trend in the main markets of reference, the Group is back in profit in the third quarter of the year to the tune of 2.1 million Euros, as a result of the benefits brought by the reorganisation of the company in recent years.
Consolidated turnover is down by 4.8%. With the same area of consolidation (net of the sale of O&KA) and in light of the exchange rate effect, this drop is reduced to 2.7%.
The profitability of Elettronica Santerno has worsened, which further affects the results for the third quarter, with a loss of 1.7 million Euros.
The Drive Tech margin has improved significantly, which, with the same area of consolidation and net of non-recurring costs related to restructuring activities, has recorded an EBITDA of 11.3 million Euros, a growth of 39.1% compared to the 8.1 million Euro figure recorded for the third quarter of 2015. Agritalia (tractors) continues the positive performance trend recorded in the first half of the year, with stable turnover and an increase in the EBITDA of 7.2% compared to the same period of 2015.
The net financial position of the company is continuing to recover, improving even net of the payment of 34 million Euros of increased capital in June, increasing from 256.2 million Euros at 30 September 2015 to 190.6 million at 30 September 2016.
"The Group's return to profit in the third quarter of this year confirms the validity of the actions we have taken in order to optimise our industrial structure. This is even more apparent against the current backdrop, which has seen a decline in our main areas. – comments Enrico Carraro, Group Chairman – Despite the lower volumes recorded, Drive Tech and Agritalia, has enjoyed a marked improvement in profitability both in absolute terms and as a percentage of turnover. We can also confirm that the Group’s competitiveness remains well established, maintaining our market share across all areas. In line with the budget forecasts for the last quarter of 2016, the Group's normal operations are expected to improve compared to 2015, albeit with a further slowdown in sales and a slight decline in terms of economic results".