Indesit Company: results of the first nine months of 2014

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Indesit Company has recently published its financial highlights for the first nine months of 2014. EBIT was €58.3 million, up 37% compared to the same period last year (€42.5 million). The operating margin rose to 3.1% of sales, from 2.2% in the same period last year. Adjusted EBIT, being operating profit before net non-recurring charges, was €64.3 million, up 17.2%. The operating margin rose to 3.4% of sales, from 2.8% in the same period last year. Consolidated profit for the first nine months was €3.8 million (- €8.2 million in the same period of 2013). Revenues for the first nine months of 2014 totaled €1,885.2 million, down 4.2% (-1% at constant exchange rates) compared with the same period last year. Revenues for the third quarter 2014 amounted to €700.9 million, down 2.5% (-0.9% at constant exchange rates) compared with the same period last year. Net financial indebtedness now amounts to €530 million, having improved considerably from €553 million one year ago. “The Group profitability has been achieved principally via selective price increases and action to achieve product cost efficiencies. By contrast, the results have been adversely affected by a contraction in market demand and the consequences of serious currency depreciation in the Ukraine and, especially during the third quarter, in Russia. Efficient working capital management has significantly improved the level of indebtedness”, commented Indesit Company CEO Marco Milani. The company explained that the home appliances market (in terms of industry unit shipments) expanded during the first nine months of 2014 by about 1.4% in Western Europe compared with the same period in 2013, but contracted by 2.1% in Eastern Europe. Overall market demand in Greater Europe was essentially stable (+0.2%). Besides, during the third quarter, the market expanded by 2% in Western Europe compared with the same period in 2013, but contracted sharply in Eastern Europe (-5.9%). Overall market demand in Greater Europe declined by 0.9%. For the full year the Group expects sales slightly lower than in the prior year, an operating margin excluding non-recurring charges (adjusted EBIT) of around 3.5% of sales and net financial indebtedness broadly in line with the prior year.

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