Emak : The Board of Directors approves results for the first half of 2014

Press release

The Board of Directors approves results for the first half of 2014

• Sales at € 212.5 million (€ 208.5 million in the first half 2013)
• EBITDA at  € 27.4 million (€ 26.9 million in the first half 2013)
• EBIT at € 21.9 million (€ 21.2 million in the first half 2013)
• Net profit at € 12.9 million (€ 12.9 million in the first half 2013)

Bagnolo in Piano (RE), 7 August 2014 - The Board of Directors of Emak S.p.A. (MTA, STAR), one of the main global players in the production and distribution of machines, components and accessories for gardening, agriculture, forestry and industry, today approved the consolidated results for the first half 2014.

Consolidated results for the first half 2014

The consolidated sales turnover for the first half 2014 was € 212.5 million compared to € 208.5 million in the corresponding period of last year.
Sales of "Lawn and Garden" line increased by 5.6% over the corresponding period also thanks to the favourable weather conditions. Revenues of "Construction and Industry" line grew by 8.5%, with a strong recovery in the second quarter. Sales of the "Agriculture and Forestry" were down 5.2% compared to the first half of 2013, due to for the most part to the sale in November 2013 of a non-strategic business unit.

The sales on the European market, amounting to € 159.8 million (€ 150.5 million in the first half of 2013) have performed well, particularly in Italy and in the countries where the Group has a direct presence.
Sales in the "Americas", amounting to € 33.3 million (€ 36.6 million in the first half of 2013) were affected on the North American market by the late start of the season for the products of gardeningonly partially offset by good performance of accessories for washing, and in countries of South America by the continuing difficulties in the Venezuelan market. Positive signs from the Brazilian market, where the subsidiary Emak do Brasil is getting encouraging results.
The result of the "Asia, Africa and Oceania", amounting to € 19.4 million (€ 21.4 million in the first half of 2013) has been penalized by loss of sales related to discontinued business division in the fourth quarter of last year . Progression in sales on the Chinese market.

Consolidated EBITDA for the first half of 2014 amounted to € 27.4 million against € 26.9 million in the corresponding period of last year. The result has been achieved thanks to higher sales volumes and efficiencies achieved in the area of supply chain; while it was negatively affected by higher structural costs arising mainly from enlargement the scope of consolidation.
EBIT for the first half of 2014 amounted to € 21.9 million, compared with € 21.2 million in the corresponding period of the previous year.
Net income for the first six months of 2014 was € 12.9 million, in line with the same period last year. The result was affected by the negative currency management for € 0.4 million, while in the first half of 2013 had given a neutral contribution to the final result.

In first half the cash flow from operations (calculated as the sum of net income and depreciation and amortization) amounted to € 18.4 million.

Investments in tangible and intangible assets completed during the period amounted to € 4.7 million, mostly focused on product innovation.

At 30 June 2014, the consolidated net equity amounted to € 159.2 million against € 150.8 million at 31 December 2013.

At 30 June 2014, the net negative financial position amounted to € 96.8 million, compared to € 95.5 million at June 30, 2013 and € 76.4 million at December 31, 2013 The increase compared to the end of last year is mainly attributable to the increase in net working capital, linked to the seasonality of sales.

Significant events during the period

During the period, the Group has carried out extraordinary transactions aimed at acquiring new technologies (Geoline Electronic), to verticalize  the production process (Speed Industrie), to complete the range of products (Master Fluid) and to expand its presence in the Mexican market (S.I.Agro).
The effects on turnover for the period of these transactions were not significant. The overall impact of the acquisitions on net financial position amounted to approximately € 5 million.

"We are pleased with the results so far achieved." - Commented Fausto Bellamico, Group President - "In the first half of the year we faced the challenges posed by the external environment still uncertain, and we have completed several transactions with interesting potential. The acquisitions are an integral part of our strategy of growth, both as regards the evolution and the completion of the range of the product, both for the penetration in attractive markets. "

Aimone Burani, the executive responsible for the preparation of the corporate accounting documents, declares and certifies in accordance with article 154 bis, paragraph 2, of the Consolidated Finance Act, that the financial statements contained in the present press release correspond to the underlying accounting documents, records and accounting entries.

For additional information:
Mr. Andrea La Fata
Investor Relation Office
Phone [phone];Fax [phone]
[e-mail]; www.emak.it

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Emak is one of the main global players in the production and distribution of machines, components and accessories for gardening,
agriculture, forestry and industry such as chainsaws, brushcutters, lawnmowers, garden tractors, motor hoes, power cutters, high pressure pumps, pressure washers. The Group distributes its products through commercial branches and a network of distributors and specialized dealers in more than 80 countries in all five continents. In 2013 Emak Group realized a total turnover of € 355 million and counted more than 1,500 employees. .The parent company Emak S.p.A. has obtained the following certifications: Quality ISO 9001, Ethical SA 8000 and Environmental ISO 14001.

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