Announcement: Frigoglass reports a 8.2 mln euro loss in Q3

Frigoglass SAIC

28/11/2013 06:55

Results for the Third Quarter ended 30 September 2013 
Athens, Greece, 28 November 2013 - Frigoglass SAIC ("Frigoglass" 
or "we" or the "Group") today announces its third quarter and 
nine months unaudited results ended 30 September 2013.  
Third Quarter 2013 Highlights  
    * Sharp reduction in our customers' investments across all 
territories and adverse FX movements resulted in 18% 
year-on-year decline in sales 
    * Russian ICM sales above prior year level in an overall 
continued recessionary environment in Europe  
    * After strong growth in 1H, Glass sales contracted on 
significantly lower customer spend  
    * EBITDA margin improvement of 140bps in the period; still 
under pressure on low capacity utilisation 
    * Inventory improvement trend slowed down on lower sales 
    * Capital spending discipline and cost control preserving 
cash flows and profitability respectively 
 
 Financial                                                       
 Results                                                   
 � 000's        3Q13      3Q12  Chang      9M13     9M12  Change 
                                 e, %                        , % 
 Sales        82,673   100,689  -17.9   395,671  438,894   -9.8% 
                                    %                      
 EBITDA        5,201     4,887   6.4%    52,819   56,372   -6.3% 
 EBITDA         6.3%      4.9%  1.4pp     13.3%    12.8%   0.5pp 
 Margin, %                                                 
 Operating    -2,953    -3,596   n.m.    27,224   31,550  -13.7% 
 Profit                                                    
 (EBIT)                                                    
 Net Profit   -8,219   -10,382   n.m.     1,651    6,039  -72.7% 
 1                                                         
 Inventories       �         �      �   134,453  176,245  -23.7% 
  
1 Net Profit attributable to shareholders 
Torsten Tuerling, Chief Executive Officer of Frigoglass, 
commented: 
"Third quarter sales came in well below our expectations. This 
is due to the unexpectedly sharp reduction of our customers' 
investments as trading conditions continued to deteriorate in 
the quarter. Europe continues to face economic headwinds, while 
market conditions in several emerging markets have recently 
become more volatile. This has significantly impacted our third 
quarter sales in Asia & Africa across both our cooler and glass 
businesses. Our ICM sales in Europe, driven by our performance 
in Russia, were higher than last year. 
Despite lower sales, we improved our EBITDA margin 
year-over-year, benefitting from our cost curtailment focus, 
better product mix and one-off gains. However, low capacity 
utilisation in the quarter and several loss making operations, 
diluted our results significantly.  
As we expect trading conditions to remain soft for the 
near-term, we are putting in place a programme to right-size our 
manufacturing footprint and address the performance of our loss 
making operations. Our primary objective is to improve our cost 
competitiveness and enhance our performance under all market 
conditions."