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The Piaggio Group continued its positive
performance in the third quarter of 2007, in
both the two-wheeler business with net sales
up 6.1 pct, and in the light transport
vehicle business, up 7.1 pct. |
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At a meeting
in Milan chaired by Roberto Colaninno, the Board of
Directors of Piaggio & C. S.p.A. examined and approved
the quarterly report at 30 September 2007. The Piaggio
Group continued its positive performance in the third
quarter of 2007, in both the two-wheeler business (net
sales +6.1% YoY) and the light transport vehicle
business (+7.1% YoY).
In the first
nine months of 2007 the Group sold 569,300 vehicles, an
improvement of +4.1% on the first 9 months of 2006, which
included a non-recurring delivery of 24,300 scooters to the
Italian Post Office. Consolidated net sales in the first
nine months of the year rose to 1369.8 million, an
improvement of 6.5% on 1285.8 million in the year-earlier
period. Revenues made significant progress in all the Group
core businesses. Specifically, excluding the spares and
accessories business, motorcycle net sales amounted to
231.7 million (+12.2% YoY), scooter net sales to 718.1
million (+3% YoY), while the light transport vehicles (LTV)
business unit reported net sales of 255.5 million (+7.6%
YoY), of which 163.8 million by the Indian company PVPL,
an improvement of 15.3% compared with the year to 30
September 2006. Net sales in spare parts and accessories
continued to strengthen ( 150.3 million, +12.4% YoY).
The industrial
gross margin gained 2.3% to reach 412.7 million, for a
return on net sales of 30.1%. Consolidated EBITDA in the
first nine months rose to 200.4 million, up 9.2% from
183.5 million in the year-earlier period. The continuous YoY
improvements in quarterly EBITDA in 2007 reflected on-going
gains in operating efficiency. The EBITDA margin for the
first nine months of 2007 was 14.6%, a YoY increase of 0.3
percentage points compared with the year to 30 September
2006.
Operating profit
for the nine months was positive at 138.3 million, an
improvement of 16.7% over 118.5 million in the
year-earlier period. Profitability strengthened from the
previous year (+0.9 percentage points), to reach 10.1% of
net sales. The Group posted a net financial charge of 23.8
million ( 21.0 million in the first nine months of 2006),
of which 11.3 million relating to the parent company bond
issued in 2005. Income tax for the first nine months
amounted to 48.1 million ( 19.9 million for the year to
30 September 2006); this included an accounting adjustment
of 20.5 million to deferred tax assets provided in
previous years.
Net profit for
the year to 30 September 2007 was 66.4 million (-14.5% on
the result for the first nine months of 2006). Net debt
decreased to 259.5 million, down from the figure at 30
June 2007 ( 277.1 million) and at the end of 2006 ( 318.0
million). The positive performance in cash flow from
operating activities, which financed dividend payouts,
own-share buybacks and investments, produced a net cash flow
of 58.8 million since the beginning of the year.
Shareholders' equity at 30 September 2007 was 478.0
million, compared with 438.7 million at 31 December 2006.
Significant
events after 30 September 2007
On 9 October
2007 the project for the production of Vespa scooters for
sale on the local market was inaugurated in Vietnam at a
ceremony during which the Governor of the Province of Vinh
Phuc, Nguyen Ngoc Phi, presented the manufacturing licence
to the Groups top managers. On 15 October, Tommaso
Giocoladelli was named Chief Executive Officer and President
of Moto Guzzi S.p.A., while Daniele Bandiera was confirmed
as Moto Guzzi Chairman.
Outlook
The results for
the first nine months of 2007 are in line with targets.
Consequently, the Group is confident of continuing the
growth and improvement programmes outlined in its 2007-2009
business plan and reaching the plan objectives.
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