Indesit Company: the operating margin has improved in the second quarter 2014

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Indesit Marco MilaniThe financial highlights published by Indesit Company show that Group revenues, in the second quarter 2014, totaled € 624.2 million, down 3.8% on the same period in 2013 (€ 648.5 million). Revenues from finished products declined by 4.2% due to lower volumes and adverse currency movements (except in relation to the British pound). These effects were offset during the quarter by the positive price mix. The operating margin excluding non-recurring charges (i.e. adjusted EBIT) was € 21 million (€ 13 million in Q2 2013). The operating margin net of non-recurring charges was € 20 million (€ 1 million in Q2 2013). Besides, in the second quarter 2014, net financial charges amounted to € 11.8 million (€ 18.5 million in the correspondent quarter of 2013) and the consolidated net profit for Q2 2014 was € 5.3 million. Net financial indebtedness now amounts to € 498 million, having improved from € 520 million one year ago. “The second quarter results reflect the business actions implemented to defend the Group’s profitability. The operating margin has improved as a result of higher prices and greater product cost efficiencies and general costs which have more than offset the adverse effect of relevant exchange-rate movements. In addition, efficient working capital management has lowered the level of indebtedness”, said Indesit Company CEO Marco Milani (in the picture). As regard to the outlook for the second half of the year, the Group expects sales essentially unchanged with respect to the prior year, an operating margin excluding non-recurring charges (adjusted EBIT) of at least 3.5% of sales and net financial indebtedness broadly in line with the prior year. “We expect market demand to improve slightly during the rest of 2014, with uncertainties over Russia and the Ukraine. The company confirms its commitment to continue to improve the profitability of the Group”, commented Marco Milani.