Articles recently about Merloni.
MERLONI ELETTRODOMESTICI : Russia and Poland: two new plants
Peterborough (UK), 29th October 2003 – Merloni Elettrodomestici announced in the UK today a project to open a new washing machine plant in Russia and a new refrigerator plant in Poland and to double the capacity of the cooker plant already operating in Lodz, in Poland. The project will cost a total ?100m over three years.
This development of production capacity meets the need for a more even balance between output levels in Eastern and Western Europe. 86% of the Company’s total production is provided by its plants in Western Europe, a region that only delivers 67% of the Company’s sales though. Further, while Western European markets are showing growth of slightly over 2%, Eastern European markets are enjoying double-digit growth rates.
This extension of production capacity is geared to the Company’s growth objectives, especially in Eastern European markets.
MERLONI ELETTRODOMESTICI : Continual growth in first nine months:sales and operating margin up 23%
Peterborough, 29th October 2003 – Meeting in Peterborough (UK) today the Board of Directors approved the results for the 3rd quarter and reviewed the figures for the first nine months of 2003, in which sales and operating margin continued to grow, both being up 23%.
Growth in Eastern and Western European markets, improved production efficiency and increased economies of scale enabled the Company to more than offset the negative effect of the declining UK sterling. Also contributing to these results was the success of the new Ariston and Indesit products, featuring exclusive innovations, such as the vacuum refrigerator and the silent washing machine.
‘The Board’s meeting here in Peterborough,’ said Vittorio Merloni, ‘is a gesture towards the local management for the great job they’ve made of this Hotpoint integration, which has been completed as planned, and on schedule.’
Today’s board meeting was followed by the opening of the new UK headquarters in Peterborough.
Main results in the first nine months of 2003
Sales at 30th September 2003 stand at ?2.199bn, up 23% on the same period in 2002 (?1.795bn). Sales in the first nine months of 2003 include the 100% consolidated figures of the UK company (Hotpoint) acquired last year. In 2002 Hotpoint’s sales were consolidated for only nine months and at 50%.
The gross operating margin stands at ?266m, up 24% on the first nine months of 2002 (?214m). Gross operating margin over sales rose to 12.1% from the 11.9% of the same period in 2002.
The operating margin is ?162m, up 23% on the same period in 2002 (?132m). This figure over sales stays at 7.4% in spite of the loss in value of the UK sterling.
Profit before tax amounts to ?134m, up 15.3% on the same period in 2002 (?116m).
Net financial indebtedness at 30th September 2003 stands at ?331m, an improvement with respect to 30th June (?374m), with a debt/equity ratio of 0.66 (0.83 at 30th June 2003).
Main results of 3rd quarter 2003 The 3rd quarter of 2003 closed with sales of ?803m, up 17% on the 3rd quarter of 2002 (?687m). The operating margin was ?70m, or 8.8% of sales, against 8.6% in the same period in 2002 (?59m). Profit before tax was ?61m, up 19.3% on the 3rd quarter of 2002 (?51m). In the 3rd quarter of 2003 the sales of UK Hotpoint, taken over in 2002, were 100% consolidated, where they were only 50% consolidated in the same period the previous year. Sales in the first six months of 2003 include the 100% consolidated figures of the UK company taken over last year, whereas in 2002 that company’s sales were consolidated from April onwards and at only 50%.
Today’s board meeting also approved the first half report, the figures for which were reviewed by the board meeting held on 24th July 2003. The report, which confirms all the data already published, will be available on the Company’s website – www.merloni.com – from tomorrow.
Both the above from La Bourse