Indesit Results for 3rd Quarter 2008

Indesit Company's 3rd quarter figures reflect the worsening of the macro-economic and financial crisis that culminated, in the last few weeks of the quarter, in an unprecedented slump in consumer spending, which also affected countries in Eastern Europe and Russia for the first time. The period was also characterised, like the previous quarters, by extreme volatility on money markets, which penalised results. Indesit Company managed to defend its profitability by improving the market positioning of its products and continuing the drive to contain industrial and general costs initiated in previous periods.

3rd quarter sales amounted to €858.3m (down 5.4% at constant rates and 9.1% at current rates). At constant rates, EBIT was €74.3m (up 17.9%), with a ratio to sales of 8.3%. At current rates, EBIT was €48.9m (down 22.4%), with a ratio to sales of 5.7% (6.7%). The Group's net profits amounted to €25.7m (down 24.7%), with a ratio to sales of 3% (3.6%).

The Company expects a difficult last quarter, in which the crisis in consumer spending will continue, and estimates sales of around €3,200m and an operating result between €140m and €150m. At constant rates, sales in 2008 are expected to be down 2.3% on the previous year, while the operating result should be up between 17% and 22%.

‘We are dealing with an unprecedented international crisis,’ commented Indesit chairman Vittorio Merloni, ‘which is also affecting our particular industry. Our Company has reacted promptly. We remain confident about the Company's future and are ready to take up opportunities for growth. The unfavourable exchange rates and the negative trend in our markets have not compromised our underlying strengths’.

Key figures for 3rd quarter 2008 (3Q07 results in brackets 2007)
The figures for 3rd quarter 2007 were reclassified as already specified when the figures for 1st quarter 2008 were approved. Such reclassification of data for 3rd quarter 2007 entailed the statement of lower operating costs (under Cost of sales and Commercial and distribution expenses) and revenues lower by €5.9m.

Sales: €858.3m (down 9.1%, €944.2m)
EBITDA* before non-recurring income and expenses: €83.4m (down 20.4%, €104.7m)
Ratio to sales: 9.7% (11.1%)
EBITDA €81.7m (down 18.2%, €99.9m)
Ratio to sales: 9.5% (10.6%)
EBIT* before non-recurring income and expenses: €50.5 m (down 25.5%, €67.8m)
Ratio to sales: 5.9% (7.2%)
EBIT: 48.9m (down 22.4%, €63.0m)
Ratio to sales: 5.7% (6.7%)
Non-recurring charges and costs: €1.6m (down 66.6%, €4.8m)
Profit before tax: €40.4m (down 23.1%, €52.5m)
Net profits (Group interest): €25.7m (down 24.7%, €34.2m)
Ratio to sales: 3.0% (3.6%).
Net financial indebtedness: -€626.2m (up 13.5%, -€551.6m)
Net financial position: -€633.7m (up 4.8%, -€604.7)
The change in net financial position with respect to 30th June 2008 was 4.6%.
Net working capital stands at €318.6m, with a ratio to sales on a 12-month rolling basis of 9.7%, which is up on the figure for 30th September 2007 (€268.3m, 7.9% of sales).

Key figures for the first nine months of 2008 (results for the first nine months of 2007 in brackets)
The figures for the first nine months of 2007 were reclassified as already specified when the figures for 1st quarter 2008 were approved. Such reclassification of data as of 30th September 2007 entailed the statement of lower operating costs (under Cost of sales and Commercial and distribution expenses) and revenues lower by €21.1m.
Sales: €2,383.6m (down 4.3%, €2,491.5m)
EBITDA* before non-recurring income and expenses: €233.2m (down 11.8%, €264.4m)
Ratio to sales: 9.8% (10.6%)
EBITDA €218.6m (down 10.7%, €244.7m)
Ratio to sales: 9.2% (9.8%)
EBIT* before non-recurring income and expenses: €139.7m (down 10.1%, €155.3m)
Ratio to sales: 5.9% (6.2%)
EBIT: €121.3Xm (down 10.6%, €135.6m)
Ratio to sales: 5.1% (5.4%)
Non-recurring charges: €18.4m (down 6.7%, €19.7m)
Profit before tax: €98.9m (down 12.4%, €112.9m)
Net profits (Group interest): €59.4m (down 12.7%, €68.0m)
Ratio to sales: 2.5% (2.7%).

Main awards in the first nine months of 2008
In the first nine months of this year, Indesit Company received numerous awards and acknowledgements from prestigious international juries. The Moon washing machine, designed by Giugiaro, entered the Greek Best of the Best, a ranking organised by the prestige fashion, design and luxury magazine of the same name. It was also judged ‘Product of the Year’ by Get Connected, a UK consumer electronics/home technology magazine.

Further, the Chicago Athenaeum-Museum of Architecture and Design gave the Moon the Good Design Award 2007 as a new concept washing machine with both high performance and great personality, while Appliance Design - an American magazine for industrial designers - gave it a Gold at the Excellence in Design Awards for its boldly innovative aesthetics and capacity to offer intelligent solutions for the home. In May, Indesit Company won an award for its Refrontolo agreement in the human capital category at the 6th Sodalitas Social Awards (promoted by Sodalitas and recognised by the President of the Republic). The adjudication cited the project's outstanding social impact.

In July, the Company received two major awards for its logistics network at the Motor Transport Awards 2008 in the UK: for Customer Care and as Network of the Year.

And in October, Indesit Company won two major accolades in the space of a few days: it was judged 1st overall at the Intellectual Capital Value Awards for its promotion and development of intellectual capital, while the Moon washing machine was ‘Product of the Year’ at the ERT Industry Awards in the UK.

Web: http://www.indesitcompany.com