Merloni Elettrodomestici continues growth in the first half of 2003 as well, with sales up 26%, gross operating margin up 27% and profits before tax up 12% compared to the first half of 2002.
‘We have reached the objectives set for this first half thanks to admirable commitment by the entire organization,’ declared Vittorio Merloni, ‘in spite of a market situation characterized by strong pressure on prices and the sterling’s loss against the euro’.
The provisional results for the first half of 2003 were reviewed today in Milan by the board of directors, which also approved the results for the second quarter of 2003.
The first six months saw the renewal of the Ariston brand image, along with the launch of a whole range of new products that will reach the main European markets during 2003. The company completed the main stages of integration with Hotpoint, covering a common platform for industrial procurement, information systems, technological innovation and production. As of 1st June the company has been operating in Great Britain under the new name of Merloni Elettrodomestici UK, based in new headquarters in Peterborough.
Key figures for the first half of 2003
Sales amounted to 1,396m euro, up 26% on the first half of 2002 (1,108m euro). The figure, which includes the 100% consolidated turnover of Hotpoint, reflects the devaluation of the sterling by around 16m euro, as calculated for the partial consolidation area of 2002.
The gross operating margin was 161m euro, up 27% on the first half of 2002 (127m euro). Gross operating margin over sales was 12% against 11% in the same period of 2002. The devaluation of the sterling in this case accounted for around 7m euro, as calculated for the partial consolidation area of 2002.
The operating margin was 92m euro, up 27% on the same period in 2002 (73m euro). The operating margin over sales was 6.6%, in line with the figure for the first half of 2002.
Profits before tax amounted to 72m euro, an improvement of 12% on the first half of 2002 (65m euro). This result reflects an increase in financial charges, rising to 12m euro against the 7m euro posted in the same period of 2002 and relating to the acquisition of Hotpoint.
Net financial indebtedness at the end of the first half of 2003 stood at 374m euro (against 330m euro at 30th June 2002), while the debt/equity ratio was 0.83 (0.87 in the same period of 2002).
Key figures for the second quarter of 2003
The second quarter of 2003 closed with sales at 693m euro, up 13% on the 2nd quarter of 2002 (613m euro). The operating margin was 50m euro, up 14% on the same period the previous year, with an ROS of 7.2%. Profits before tax stood at 36m euro (39m euro in the 2nd quarter of 2002).
Sustainability Report 2002
Merloni Elettrodomestici has published its statement of sustainability for 2002, drawn up on internationally accepted ‘triple bottom line’ principles. The document discloses figures and details of projects concerning the economic growth, social responsibility and environmental compatibility of its business activities. The company continued to pursue its policy of reducing consumption, both in the production and use of its products, and this in spite of having to integrate the four Hotpoint factories in the UK in 2002.
On the economic front, the company created value added of 650m euro in 2002, up 34% on the 485 euro posted in 2001.
Investments in safety continued to produce significant results. The number of accidents, for instance, dropped 29% in 2002.
Innovations geared to environmental and social sustainability included appliances fitted with silent running devices, controls in Braille and special control knobs for the disabled.
NB. The quarterly report approved today will be available to the public at the company’s headquarters and at Borsa Italiana from 31st July 2003 and will be published, on the same day, on the company’s website (www.merloni.com). This press release and the summary accounts are already on line. The first half report, provisional figures for which were examined today, will be approved by the next board meeting.
Original article from Bourse.