Indesit Company reported sales in the last quarter of 2005 reached 841 million euros (approx. U.S. $1.003 billion), up 3.5 percent on the fourth quarter of 2004. Growth in the fourth quarter enabled the company to make up ground lost in the first half of the year, bringing sales in 2005 to 3.064 billion euros (approx. $3.655 billion), down 1.2 percent from 2004. The improvement in the last quarter was attributed to increased volumes and a small reduction in the price/mix.
Indesit profits for 2005 amounted to 51 million euros (approx. $61 million), down 49 percent due to decreased sales and substantially increased raw material prices. Indesit said its net financial position was stable at 517 million euros (approx. $616 million), compared to 512 million euros (approx. $610 million) in 2004.
“In a year characterized by high costs of raw materials, steel and oil and by a 12 percent downturn in the UK market, the company reacted well and managed to close the year with a decent profit,” commented Indesit Company Chairman Vittorio Merloni. “Given our results, we are confident about the company’s future and ready to exploit any opportunities for growth that arise.”
“These results confirm our forecasts,” stated CEO Marco Milani. “In 2005 we continued to re-organize and develop a result-oriented management structure fully integrated with the company. In 2006 we will continue to invest in research and development of products that are increasingly innovative and high quality. To guarantee optimum customer service and consolidate our leadership in Russia we opened the largest logistics pole in the white goods industry in Europe, in Lipetzk. And lastly, we brought under control our raw materials costs for 2006, thus limiting the impact of any new price rises.”
Key Indesit Events in 2005
A name change in 2005 is designed to give Indesit Company a more effective identity at an international level, as well as boosting the power of its best-known brand.
Indesit revamped its organizational structure to achieve stronger focus on innovation for new product development and on product and supply chain quality processes.
A new distribution and logistic hub in Lipetzk, Russia, opened on October 4 and was fully operational by the end of 2005.
A new Ariston washing machine line, the Aqualtis, was launched 4 months ago in Italy and is already said to be proving a success with consumers there. In March, the line will be launched in Russia, the United Kingdom and other major European markets. In the coming weeks, a new line of Scholt¨s appliances designed by David Lewis will also be launched.