The meeting of the Board of Directors of Holding di Partecipazioni Industriali, held today under the chairmanship of Nicolò Nefri, examined the consolidated results and those of the parent company for the year 2000. Consolidated net profit pertaining to HdP Group amounted to ITL 76,6 billion with a decrease of ITL 20,1 billion as compared to ITL 96,7 billion in 1999.
The results of the Group in the year 2000 were influenced by the development and reorganization plans of the various companies, by a negative economic situation on some markets, by extraordinary events that occurred during the last part of the year and by the performance of the exchange rates between ITL Lira and US Dollar. The year 2000 was the most demanding in the life of HdP because of the work undertaken for its development and organization.
Consolidated revenues in the three activity sectors of HdP amounted to ITL 6,501 billion as compared to ITL 6,109 billion in 1999. The increase by ITL 392 billion (+ 6.4%) as compared to 1999 was realized notwithstanding a contraction in the sector of formal clothing amounting to ITL 191 billion, following the restructuring process of GFT NET Group and the interruption of some licencing contracts.
As a matter of fact the increase in the revenues was attributable for ITL 404 billion to the RCS publishing sector and for ITL 185 billion to the FILA sector of sportswear and footwear.
During the year 2000 revenues related for 50.1% from Italy, for 22.8% from other European Countries, for 16.7% from the United States, for 7% from the Far East and for 3.4% from the rest of the world. The internationalisation was much higher for FILA (87.8% of its revenues outside of Italy, of which 24.3% in the United States) and GFT NET (73.2% of its revenues outside of Italy, of which 46.7% in the United States).
The costs of materials and services amounted to ITL 4.997 billion (compared to ITL 4.520 billion in 1999). The increase of ITL 477 billion as compared to the previous year was mainly attributable to the increase in the exchange rate between ITL Lira and US Dollar that influenced purchasing (of FILA particularly).
Labour costs amounted to ITL 1.111,1 billion (almost unchanged, as compared to ITL 1.107,8 billion in 1999); depreciations, amortizations and write-downs were reduced from ITL 295,9 billion in 1999 to ITL 280,3 billion. The consolidated operating profit increased from ITL 103.1 billion in 1999 to ITL 109,7 billion.
The net invested capital increased from ITL 3.461,9 billion at the end of 1999 to ITL 3.858,9 billion at the end of 2000. The consolidated Shareholders’ equity at 31st December 2000 amounted to ITL 2.690,4 billion as compared to ITL 2.663,4 billion at the end of the previous year; net indebtedness passed from ITL 350,2 billion to ITL 792,2 billion. The increase in both net invested capital and net indebtedness was mainly attributable to the acquisitions made by the subsidiaries.
Personnel (yearly average) changed from 12.203 units in 1999 (6.820 in Italy) to 11.269 units in 2000 (6.254 in Italy).
HDP S.p.A. closed the year 2000 with a net profit of ITL 124,1 billion, thus showing an increase of ITL 14,1 billion as compared to the previous year (+ 12,8%). The result was mainly attributable to the following factors:
dividends (and the relevant tax credits) for ITL 386.6 billion (+ ITL 287.8 billion) and net financial income for ITL 58.8 billion (+ ITL 23.1 billion);
extraordinary incomes for ITL 303,8 billion (+ ITL 46 billion) that was almost entirely attributable to the gains realized on the disposal of the share interest in Burgo;
operating costs for ITL 74,1 billion, the increase by ITL 32,1 billion being mainly attributable to the leasing charge of ITL 20,3 billion in respect of the premises situated at Via Turati, Milan, and to the increase of professional services received that the parent company partially charged to the subsidiaries. The net increase amounted to about ITL 5 billion;
write-downs of financial activities for ITL 387,1 billion (+ ITL 177,3 billion), that was almost entirely attributable to the alignment to book value of FILA and GFT NET, now again in line with the respective consolidated Shareholders’ equity at the end of 2000.
During the year 2000 the profit of HdP S.p.A. before taxation increased from ITL 159,2 billion to ITL 306,3 billion, on which taxes for the period amounted to ITL 182,2 billion, a figure that is much higher than that registered at the end of the comparative period (ITL 49,2 billion).
Net invested capital amounted to ITL 2.526,9 billion and remained substantially unchanged as compared to the previous year. The reduction in net liquid funds, that passed from ITL 1.089,1 billion to ITL 809,3 billion, is related to medium-term investments in the subsidiaries for a total amount of ITL 447 billion.
RCS consolidated revenues increased from ITL 2.992,2 billion to ITL 3.396,0 billion, or by 13.5% in percent. As far as its traditional areas of activity are concerned, RCS realized an improvement by 25,3% in advertising, thus strengthening its leading position in the market; the consolidation of its leadership in the sector of dailies in Italy, with Corriere della Sera that maintained a considerable advantage (63.000 copies) in the yearly average of circulation as compared to the second national newspaper; the consolidation of the second position in dailies in Spain; an increase by 9,4% in the sector of books and particularly in the area of instalment sales. RCS registered a net operating profit amounting to ITL 207,2 billion, with an increase of ITL 10,2 billion as compared to 1999; anyway, it suffered an operating loss amounting to ITL 25 billion that was incurred for the development of its on-line activities. RCS net profit amounted to ITL 186,6 billion as compared to ITL 178,3 billion in 1999.
