Indesit Company: preliminary results for 2013 and numbers for the fourth quarter

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The Board of Directors of Indesit Company examined the preliminary results for 2013 and approved numbers for the fourth quarter. “Indesit benefited – commented Indesit’s Chief Executive Officer, Marco Milani – from the solid performance of the UK business in 2013, as well as the recovery of profitability in Italy. These factors were offset by the weakness of the Russian market as a result of poor demand and the marked depreciation of the ruble. Against this background, the Company has managed to safeguard the Group’s margins by continuously focusing on cost containment and making selective price adjustments”. “At the same time – said Milani – careful financial management has enabled us to keep the level of borrowing under control. I am confident that the actions taken in 2013 have prepared the groundwork for continuing the planned efforts to improve the Group’s margins”.
Group revenues in 2013 totalled 2,671.1 million euro, down 7.7% with respect to 2012. In particular, revenue from finished products decreased by 8%, due to a 5.3% decline in sales volume and the adverse effect, 3%, of currency movements. The price-mix effect over the year was 0.1%: the policy of selective price increases, implemented above all during the second semester, more than offset the adverse trend experienced during the first half. Revenue from services was 4.2% lower than in 2012.
Group revenue for the fourth quarter of 2013 was 704.1 million euro, down by 10.2% with respect to the same period in 2012. In particular, revenue from MDA finished products decreased by 11.0%, due to a 8.1% decline in sales volume and the adverse effect, 3.8%, of currency movements. These adverse effects were partially offset by about a 1.0% improvement in the price mix. Revenue from services was 4.6% lower than in the fourth quarter of 2012.
Before non-recurring items, the operating profit (EBIT) for 2013 was 84 million euro. This represents 3.1% of turnover, in line with expectations. Including non-recurring items, operating profit amounted to 68 million euro. This represents 2.6% of turnover. Before non-recurring items, the operating profit for the fourth quarter of 2013 was 29 million euro. This represents 4.1% of turnover. Including non-recurring items, operating profit amounted to 26 million euro, representing 3.6% of turnover. Operating profit was affected by particularly adverse exchange rate movements and the continuing weakness of market demand. Manufacturing efficiencies and the containment of overheads and market costs made marked contributions in support of profitability. The change in the price mix also made a notable contribution, following the action initiated during the third quarter.

 

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