Panariagroup: financial statements 1st quarter 2010

In the first quarter of 2010, Panariagroup's earnings showed a marked improvement on 2009, thus confirming the validity of the action taken by the Group over the past year aimed at reducing operating costs.

Net earnings from sales amounted to 147.61 million euro, representing a fall of 1.14% on the same period the previous year, which was shared unequally between the company's three main markets. Europe (which accounts for 42% of total turnover) is still feeling the burden of the international crisis, and this was borne out by a fall in turnover of some 4 million euro (-6.27%) in western Europe. Eastern Europe, by contrast, saw growth of 26%, bringing the overall contraction on the European market down to about 3.2 million (-4,8%).  Earnings in Italy (which accounts for 30% of turnover), fell by about 2.4 million euro (down 5% on 2009) as a result of continuing stagnation on the construction market, whereas in the United States, whose performance in the first quarter of 2010 ran counter to that of the other areas, the Group reported an increase in turnover of 4.6 million USD (+13%).

Earnings saw marked growth thanks to an effective cost-cutting programme and the streamlining of operating facilities, with particular reference to the American subsidiary Florida Tile. EBITDA reached 15.6 million euro (up 5.7 million on the first quarter of 2009), while EBIT rose to 5.6 million euro (up 6.2 million). The Group's financial position and net equity also improved on 2009.

The result was a consolidated net profit for the period of 3.6 million euro, representing a rise of 8 million on the consolidated net loss of approximately 4.4 million euro in the first quarter of 2009.

Despite uncertainty about developments on international markets, the forecasts for the second half of 2010 are also positive. On the strength of its economic and capital position, the Group will direct substantial resources towards technological research and innovation, while remaining committed to making further efficiency gains and cost reductions.