(Alliance News) - SAES Getters Spa reported Monday that it closed the third quarter with a loss of EUR12.9 million from a profit of EUR3.8 million in the corresponding period of 2022. The reduction, the company specified in a note, "is exclusively attributable" to ancillary charges of EUR19.8 million related to the sale of the Nitinol business, net of which the net result would have been EUR6.9 million positive. In fact, on October 2, the transaction to sell the Nitinol business and, in particular, the U.S. subsidiaries Memry Corporation and SAES Smart Materials, Inc. to the U.S. company Resonetics, LLC was finalized.

Consolidated revenues for the third quarter were EUR33.8 million, compared to EUR33.8 million in the corresponding quarter of 2022. The decrease is solely attributable to the negative effect of foreign exchange while revenues grew organically by 1.7 percent or EUR600,000, the company announced.

Consolidated operating income for the third quarter was negative EUR2.5 million, from an all-time negative figure of EUR900,000 corresponding to the same period in the previous year: the decrease reflects the decline in gross industrial profit to EUR12.2 million from EUR13.4 million in the third quarter of 2022.

Operating expenses, the company explains, were in line with those in the corresponding period of the previous year, but it should be noted that in the third quarter they included nonrecurring costs of EUR1.9 million for the settlement to the heirs of a strategic employee of the parent company.

Ebitda was EUR100,000 from EUR1.7 million in Q3 2022, reflecting the decline in gross industrial profit and operating income.

The decrease is concentrated in the Packaging and High Vacuum Divisions, compounded by higher corporate operating expenses, i.e., increase in labor costs, higher costs for executive directors' compensation, higher consulting for corporate projects, and higher marketing expenses of the parent company related to the B!POD project.

Consolidated Net Financial Position as of September 30 was negative EUR20.8 million from a positive EUR64.3 million as of December 31, 2022. This amount "does not include net financial assets of EUR20.5 million related to the two U.S. companies subject to future sale, which have been reclassified to assets (liabilities) held for sale. Gross of this amount,

the NFP would have been minus EUR300,000, down from a positive EUR50.9 million as of June 30, 2023.

In the first nine months of the year, the company had revenues of EUR91.1 million, down from EUR96.6 million in the same period of 2022.

Consolidated gross industrial profit was EUR37.2 million in the first nine months, compared to EUR40.3 million in the same period of 2022, while the gross industrial margin decreased from 41.7 percent to 40.8 percent.

Consolidated EBITDA was negative EUR800,000 from a positive EUR4.7 million in the same period of 2022.

The first nine months ended with a consolidated operating loss of EUR8.5 million from a loss of EUR2.2 million in the corresponding period of the previous year.

In the coming quarters, the company points out, "we expect further consolidation of sales and earnings growth, which will also benefit from the effects of the very strong financial position."

"Very strong satisfaction with the successful divestment of the Nitinol business and the associated enormous value creation. The extremely strong financial position, thus generated, will enable the group to start and sustain a new cycle of both organic and inorganic growth over the next few years," said Massimo della Porta, president of SAES Getters. "We are also pleased with the improvement in consolidated results, although negatively affected, on the one hand, by lower sales in the first part of the year and, on the other, by the increase in some operating costs, which is necessary to ensure future growth, supported by research and development activities. In the coming quarters we expect sales growth to consolidate further, as well as results, which will also benefit from the effects of the very strong financial position."

SAES Getters' stock trades in the red by 0.2 percent at EUR33.50 per share.

By Chiara Bruschi, Alliance News reporter

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