Sabaf SpA reported consolidated interim management statement for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported total operating revenue and income from continuing operations of EUR 33.812 million against EUR 32.933 million a year ago. EBITDA was EUR 6.581 million against EUR 6.149 million a year ago. EBIT was EUR 3.326 million against EUR 3.121 million a year ago. Profit before taxes was EUR 3.262 million against EUR 3.270 million a year ago. Net profit was EUR 2.362 million against EUR 2.292 million a year ago. Cash flow from operating activities was EUR 7.676 million against EUR 5.742 million a year ago. Net financial debt was EUR 29.590 million against EUR 25.646 million a year ago. Taking into consideration the same area of consolidation (that is excluding the contribution of A.R.C.), sales in the third quarter were stable compared with the same period last year. In the third quarter, the group was again affected by the difficult economic situation in the Middle East and North Africa, which penalized both direct sales to these markets and the activity of Italian export customers in such areas. By contrast, very positive results were achieved in South America, due to the production in Brazil of a special burner for the local market, and in North America where Sabaf is constantly increasing its presence in the high-end market.

For the nine months, the company reported total operating revenue and income from continuing operations of EUR 100.015 million against EUR 107.421 million a year ago. EBITDA was EUR 18.947 million against EUR 20.513 million a year ago. EBIT was EUR 9.369 million against EUR 11.511 million a year ago. Profit before taxes was EUR 9.178 million against EUR 11.493 million a year ago. Net profit was EUR 6.297 million against EUR 7.747 million a year ago. Cash flow from operating activities was EUR 16.366 million against EUR 17.809 million a year ago. Net financial debt was EUR 29.590 million as at September 30, 2016 against EUR 25.646 million as at September 30, 2015.

For the fourth quarter of 2016, the group sales are expected to be in line with the same period of 2015. The group therefore believes that it can close 2016 with sales of approximately EUR 132 million, down by between 4% and 5% compared with the amount of EUR 138 million in 2015.

For the full year 2016, the group expected to gross operating margin (EBITDA %) will total a value similar to 2015, when it amounted to 19%. the group expects to be able to reach sales of around EUR 140 million and improved operating margins compared to 2016.