Carraro : Board of Directors approves first quarter 2016 results

The turnover decreased by 12.8%, influenced by the negative effects of the exchange rate and an uneven area of consolidation.

Net of the costs of the planned Carraro Argentina reorganization, an extraordinary cost worth 4.4 million Euros, revenues are improving in percentage term thanks to process efficiency.

• Consolidated turnover for the quarter amounted to EUR 157.6 million, a 12.8% decrease against EUR 180.7 million in Q1 2015. The negative effect of exchange rates impacts on the quarter turnover, net of which the contraction would be 10%. With the same perimeter, excluding the contribution of O&KA, sold at the end of last year, the contraction would be equal to 7.3%.
• Consolidated EBITDA for the quarter is deeply influenced by the extraordinary costs associated to Carraro Argentina's restructuring activities. As a result, EBITDA amounted to EUR 7 million (4.4% of turnover), 38.3% less in comparison to EUR 11.4 million (6.3% of turnover) of the first quarter 2015. Net of these extraordinary components, EBITDA would be equal to EUR 11.4 million (7.2 of turnover), 6.9% less in comparison to EUR 12.2 million (6.8% of turnover) of the first quarter 2015. EBITDA in the mechanical engineering business areas amounted to EUR 7.7 million (5.1 of turnover), down 31.2% compared with EUR 11.1 million (6% of turnover) for the first quarter of 2015. Net of non-recurrent costs, EBITDA for the core business would be equal to EUR 12.1 million (8.1% of turnover), up 0.4% compared with the first quarter of 2015. Elettronica Santerno registers a negative EBITDA for EUR 730k (-5% of turnover), up 44.9% compared with the negative value of EUR 1.3 million (-31.2% of turnover) at 31 March 2015.
• Consolidated EBIT for the quarter amounted to EUR 1.5 million (0.9% of turnover), 63.5% less in comparison to EUR 4 million (2.2% of turnover) for the first quarter of 2015. Net of non-recurrent costs and like-for-like, EBIT would be equal to EUR 5.9 million (3.7% of turnover), up 19.8%. EBIT in the mechanical engineering business areas amounted to EUR 3.1 (2.1% of turnover) compared with EUR 5.1 million (2.8% of turnover) at 31 March 2015. Net of non-recurrent costs EBIT for the core business would be equal to EUR 7.5 million (5% of turnover), up 26%. Elettronica Santerno registers a negative EBIT for EUR 1.1 million (-7.5% of turnover) compared with the negative value of EUR 2 million (-47.4% of turnover) for the first quarter of 2015.
• Net loss of EUR 4.9 million (-3.1% of turnover), compared to a loss of EUR 2 million (1.1% of turnover) for the first quarter of 2015. Net of non-recurrent costs, the net loss at 31 March 2016 would be EUR 465k (0.3% of turnover), compared with the loss of EUR 1.1 million (-0.6% of turnover) in the first quarter of 2015.
• Net financial position as at 31 March 2016 was negative at EUR -240.6 million, worsening compared with EUR -227.8 million as at 31 December 2015, mainly because of the variations of net working capital of the period, but absolutely improving in comparison with 31st March 2015, when it was equal to EUR -281.4 million.

'In a market environment that confirms its weakness, the start of 2016 sees us improving in terms of industrial margin, mainly thanks to the important efficiencies of our internal processes.- commented Enrico Carraro, Group Chairman - In the period, we also suffer the impact of the necessary reorganization of Carraro Argentina, which has been anticipated by a few months with respect to previous forecasts'.

'As for the second quarter, based on the visibility on markets we have today, we expect a small growth of volumes compared with the first three months of the year, even with a turnover inferior to the previous year, but mostly - concluded Enrico Carraro - in the core business we will have more and more evidence of the positive effects of the undertaken industrial actions, which will determine a small improvement in marginality compared to the beginning of the year'.

Go to Press release 29.04.2016