IRCE S.P.A. PRESS RELEASE
HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2014
The Board of Directors has today approved the consolidated financial statements as at June 30th 2014.
In the first six months of 2014, IRCE Group (hereinafter the "Group") recorded better results than in the same period of 2013.
Sales of the winding wire sector recorded an increase mainly due to the sales growth on the Brazilian market; in the cable segment, where the demand remains weak, sales were in line with those of the first half of 2013, but with a reduction of the margins.
Consolidated turnover amounted to € 182.99 million, versus € 189.64 million in the first half of 2013, down by 3.5%, because of the decrease in the average price of copper, although volumes of winding wire sales increased. Margins and net income have grown: the latter amounted to € 2.17 million (€ 0.93 million in the first six months of last year).
Details are reported in the following table:
Consolidated income statement data
(€/million)
1° half-year 2014 1° half-year 2013 Change
Turnover 1 182.99 189.64 -3.5% EBITDA 2 7.26 4.30 68.8% EBIT 3.11 0.02
Profit before taxes 4.32 1.84 134.8% Net profit 2.17 0.93 133.3%
Adjusted EBITDA 3 8.35 6.16 35.6% Adjusted EBIT 3 4.20 1.88 123.4%
Consolidated statement of financial position data
(€/million)
As of 30.06.2014 As of 31.12.2013 Change
Net invested capital 200.58 194.37 3.2% Shareholders' Equity 139.30 133.04 4.7% Net financial debt 61.28 61.33 -0.1% For details of the reclassifications of the 1° half year 2013, please refer to the explanations in the Half Year Financial Report as of 30 June 2014.
1 The item "Turnover" represents the "Revenues" reported in the income statement.
2 EBITDA is a performance indicator used by the Management of the Group in order to assess the operating performance of the company and is not identified as an accounting item within IFRS; it is calculated by IRCE S.p.A. by adding amortisation/depreciation, allocations and write-downs to EBIT.
3 Adjusted EBITDA and EBIT are respectively calculated as the sum of EBITDA and EBIT and the income/charges from operations on copper derivatives transactions (€ +1.09 million in the first half year 2014 and € +1.86 million in the first half year 2013). These indicators are used by the Management of the Group in order to monitor and assess the operational performance of the Group and are not identified as accounting items within IFRS. Given that the composition of these measures is not regulated by the reference accounting standards, the criterion used by the Group could potentially not be consistent with that adopted by others and therefore not be comparable.
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PRESS RELEASE
Consolidated net financial debt, at the end of June 2014, was € 61.28 million, in line with the € 61,3 million recorded at end of 2013. The increase in working capital and the capital expenditures were offset by the cash flow generated by operating activities.
The Group's investments in the first half of 2014 were € 1.42 million, mostly related to the purchase of machineries for the production of winding wires.
Although the market uncertainties emerged in the last period, the first six month performances confirm the expected improvements of the operating results for the 2014.
The board has approved the proposal of authorization to the purchase and hold of own shares, the shareholders meeting is called on October 13th 2014 (first call) and on October 14th 2014 (second call).
The manager responsible for preparing the company's financial reports, Elena Casadio, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance that the accounting information contained in this press release corresponds to our books and accounting records.
Imola, 29th August 2014
IRCE SPA
Contacts:
Investor relation. Sepriano Gianfranco
Tel. + 39 0382 77535 e-mail gianfranco.sepriano@irce.it
IRCE Group is an important player in the winding wires and electric cable sector. The production is deployed in 4 facilities in Italy and 5 facilities abroad: Nijmegen (NI), Blackburn (UK), Joinville SC (Brazil), Kochi (India) and Kierspe (Germany). The Group includes also 5 commercial companies; four of them are located outside Italy (Germany, Spain, Switzerland and Turkey) and the Group employs about 780 employees.
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PRESS RELEASE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS | 30.06.2014 | 31.12.2013 |
NON- CURRENT ASSETS Goodwill and intangibles assets Property, plant and equipment Equipment and other tangible assets Fixed assets under construction and advance Non-current financial assets and receivables Non-current tax receivables Deferred tax assets | 2,601,776 63,144,057 1,425,644 1,559,249 103,814 4,677,180 3,621,998 | 2,503,175 63,366,928 1,509,226 1,372,790 110,908 4,371,500 4,016,426 |
TOTAL NON -CURRENT ASSETS | 77,133,718 | 77,250,953 |
CURRENT ASSETS Inventory Trade receivables Tax receivables Receivables due from other Current financial assets Cash and cash equivalents | 90,810,130 75,475,750 1,025,164 1,530,264 26,926 7,024,380 | 82,516,486 66,345,511 2,656,182 945,167 619,476 5,625,260 |
TOTAL CURRENT ASSETS | 175,892,614 | 158,708,082 |
TOTAL ASSETS | 253,026,332 | 235,959,035 |
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PRESS RELEASE
SHAREHOLDERS EQUITY AND LIABILITIES 30.06.2014 31.12.2013
SHAREHOLDERS' EQUITY
SHARE CAPITAL 14,626,560 14,626,560
RESERVES 122,236,342 118,033,800
PROFIT OF THE PERIOD 2,172,176 110,978
TOTAL GROUP SHAREHOLDERS' EQUITY OF THE GROUP
139,035,078 132,771,338
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO NON- CONTROLLING INTERESTS
267,452 264,351
TOTAL SHAREHOLDERS' EQUITY 139,302,530 133,035,689
NON -CURRENT LIABILITIES
Non-current financial liabilities | 3,265,877 | 1,629,195 |
Deferred tax liabilitieS | 1,249,632 | 1,391,840 |
Provisions for risks and charges | 1,500,634 | 1,303,198 |
Employee benefits' provisions | 5,551,089 | 5,667,233 |
TOTAL NON- CURRENT LIABILITIES | 11,567,232 | 9,991,466 |
CURRENT LIABILITIES Current financial liabilities | 65,820,377 | 66,397,663 |
Trade payables | 23,930,875 | 16,818,767 |
Tax payables | 2,949,420 | 1,470,348 |
Social security contributions | 2,224,298 | 2,128,585 |
Other current liabilities | 7,231,600 | 6,116,517 |
TOTAL CURRENT LIABILITIES | 102,156,570 | 92,931,880 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 253,026,332 235,959,035
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PRESS RELEASE
CONSOLIDATED INCOME STATEMENT
30.06.2014 | 30.06.2013 | |
Revenues Other revenues and income of which: non-recurring | 182,986,751 557,963 163,000 | 189,638,683 578,967 25,663 |
TOTAL REVENUES | 183,544,714 | 190,217,650 |
Cost for raw material and consumables Change in inventories of work in progress and finished goods Cost for services Personnel costs Amortization/depreciation Allocation and write-downs Other operating costs | (147,866,891) 5,036,329 (16,976,348) (15,748,120) (3,499,950) (643,950) (731,955) | (156,419,315) 3,440,260 (17,506,028) (14,919,575) (3,639,023) (641,914) (514,654) |
EBIT | 3,113,829 | 17,401 |
Financial incomes / (charges) of which: non-recurring | 1,204,946 - | 1,823,362 (932,365) |
PROFIT / (LOSS) BEFORE TAXES | 4,318,775 | 1,840,763 |
Income taxes of which: non-recurring | (2,145,481) | (907,765) |
PROFIT / (LOSS) BEFORE NON-CONTROLLING INTERESTS | 2,173,294 | 932,998 |
Non-controlling interests | (1,118) | (3,472) |
PROFIT / (LOSS) FOR THE PERIOD | 2,172,176 | 929,526 |
Earnings (loss) per share (EPS)
- basic EPS of the year ascribable to ordinary shareholders of the parent company
- diluted EPS of the year ascribable to ordinary shareholders of the
parent company
0,0828 0,0355
0,0828 0,0355
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PRESS RELEASE
CONSOLIDATED STATEMENT OF CASH FLOWS | 30.06.2014 | 30.06.2013 |
€/000 OPERATING ACTIVITIES Profit for the year Adjustmenrts for: Amortization/depreciation Net change in (assets) provision for (advance) deferred taxes (Gains)/losses from sell-off of fixed assets (gains)/losses on unrealized translation differences Taxes Financial income/(charge) Operating profit/(loss) before change in working capital Taxes paid Decrease (increase) in inventory (Increase) decrease in current assets and liabilities (increase) decrease in non-current assets and liabilities Exchange difference on translation of financial statement in foreign currency | 2,172 3,500 252 (13) (96) 1,723 (1,073) 6,465 (260) (8,294) 45 92 2,015 | 930 3,639 (189) (8) 548 1,247 (1,362) 4,805 (318) (5,483) (6,526) (577) (2,001) |
CASH FLOW GENERATED BY OPERATING ACTIVITIES INVESTING ACTIVITIES Investments in intangible assets Investments in tangible assets Exchange difference on translation of financial statement in foreign currency Amount collected fromsale of tangible and intangible assets | 63 (155) (1,260) 45 149 | (10,100) (64) (3,333) (93) 9 |
CASH FLOW USED IN INVESTMENTS FINANCIAL ACTIVITIES Borrowing refunds Increase in funding Exchange difference on translation of financial statement in foreign currency (Increase) decrease in current other financial debt Change in current financial assets Payment og interest Receipt of interest Change in minority shareholders' capital Dividend paid Change in translation of financial statements in foreign currency with effect in shareholders' equity | (1,221) (1,088) 1,637 (572) 511 593 (1,465) 2,538 3 (262) 519 | (3,481) (1,083) 425 12,131 (197) (1,701) 3,064 10 (524) 234 |
CASH FLOW GENERATED FROM FINANCIAL TRANSACTION NER CASH FLOW FOR THE PERIOD | 2,413 1,255 | 12,358 (1,223) |
CASH BALANCE AT START OF YEAR TOTAL NET CASH FLOW FOR THE PERIOD EXCHANGE DIFFERENCE CASH BALANCE AT THE END OF YEAR | 5,625 1,255 144 7,024 | 5,666 (1,223) (141) 4,302 |
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