Panariagroup reports continued increase in revenues

The ceramic floor and wall tile manufacturer Panariagroup Industrie Ceramiche has reported continued growth in the European and emerging markets in the third quarter of 2007.

The consolidated net sales revenues in the first nine months of the year amounted to 271.6 million euro (2.3% up on the same period in 2006). The increase is due to the excellent performance of the European business units, which have reported 3.9% overall growth. As of 30 September 2007, the Italian market accounted for revenues of 81.6 million euro (29% of the total), in line with the results of the first 9 months of 2006.

Sales in Europe (42% of total turnover) have continued to increase at a rate of 8.4%. Outstanding results were achieved in the French and British markets (up 10.4% and 24.5% respectively), while sales also performed very positively in Portugal, Holland and Belgium.
The group performed strongly in Eastern European countries and the main Asian markets, where turnover increased by approximately 4 million euro (35% up on 2006).

The US market (23% of total turnover), where the Group operates through American subsidiary Florida Tile, showed a slight fall in turnover due to the sharp depreciation of the US dollar and the subprime mortgage crisis.
In September Florida Tile stared up a new porcelain tile production line at the Lawrenceburg, Kentucky facility. The new plant will allow for an annual production of around 2 million sq.m. When fully operational the facility will have a total production of 3.5 million sq.m.

Gross operating margin (EBITDA) consolidated to 30 September 2007 amounted to 37,760 million euro, slightly down on the same period in 2006 (38,832 million euro), while EBIT reached 23,871 million euro (compared to 25,313 million euro to 30 September 2006).
The slight fall in margins was due to the effects of the radical restructure underway at the American subsidiary Florida Tile and the sharp depreciation of the dollar.
However, operating margins showed a significant improvement in the third quarter. EBITDA amounted to 10.3 million euro (compared to 9.1 million euro in the third quarter of 2006) and EBIT 5.4 million euro (4.5 million euro in the third quarter of 2006).

Consolidated net profits amounted to 11.5 million euro, 4% of the value of production, while the Group's net assets rose from 151.6 million euro in the first 9 months of 2006 to 152.6 million euro in the same period this year. (JF)