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Natuzzi S.p.A. Announces 2011 Consolidated Results
 The Board of Directors of Natuzzi S.p.A. (NYSE: NTZ), today approved its consolidated results for the quarter and fiscal year ended on December 31, 2011. 2011 CONSOLIDATED RESULTS
FOURTH QUARTER 2011
Consolidated Net Results for Fiscal Year 2011. In 2011 Total Net Sales (including raw materials and semi-finished products sold to third parties) were €486.4 million, decreasing 6.2% as compared to 2010. Total upholstery net sales were €425.3 million, down by 7.6% with respect to full year 2010. The break-down of upholstery net sales in 2011 by geographic area was the following:
The best sales results were reached in the “Rest of the World” region (+5.7% over 2010), with Brazil, Russia, India and China (“BRIC”, hereafter) reporting, as a whole, a 64% increase over the previous year. In Europe, Americas and Italy, the Group reported negative sales performance (specifically, Europe -6.5%, the Americas -12.6% and Italy -10.8%, as compared to 2010), mainly because of the global persisting economic crisis affecting in particular mature markets, Europe above all, even if it should be noted the +13.1% sales increase reported for Germany. The Industrial Margin, equal to 33.0% of total net sales (as compared to 38.0% in 2010), worsened as the result of the following factors:
The incidence of Selling expenses on net sales improved, passing from 17.2% in 2010 to 16.4% in 2011, notwithstanding the reduction in sales. The incidence of General and Administrative expenses on net sales worsened by 1.5%, passing from 20.7% in 2010 to 22.2% in 2011. The Company reported a negative EBITDA in 2011 of €8.3 million, as compared to a positive EBITDA of €23.8 million for full year 2010. For 2011, EBIT margin was negative at €27.3 million, versus a positive margin of €0,4 million in 2010. The Group reported for 2011 a consolidated net loss of €19.6 million, despite the positive contribution of extraordinary items. Fourth Quarter 2011 Consolidated Net Results. Total Net Sales totaled €129.6 million, down by 1.8% with respect to the same quarter of 2010. Upholstery Net Sales amounted to €114.6 million, decreasing by 1.0% with respect to the last quarter of 2010, but improving if compared with sales trend in the first nine months of 2011 with particular reference to sales from the Americas. The breakdown of upholstery net sales by geographic region was the following: Europe (ex-Italy) 43.2%; Americas 33.3%, Italy 10.0%, and the Rest of the World 13.5%. The Industrial Margin was equal to €43.1 million, or 33.3% of the quarter’s total net sales, worsening as compared to prior year’s fourth quarter, mainly due to the increase in raw material prices and a different product mix, characterized by higher sales within the lower-price segments. EBITDA was negative at €6.3 million from a positive EBITDA of €5.5 million reported for the same quarter in 2010. The Group reported a negative EBIT of €10.3 million versus a positive EBIT of €0.2 million for the same comparable quarter of 2010. The Group reported for the fourth quarter of 2011 a consolidated net loss of €15.9 million as compared to a consolidated net loss of €1.4 million for the fourth quarter of 2010. Consolidated Balance Sheet Group’s Net Financial Position as of December 31 2011, remained positive at €55.4 million, improving with respect to the Net financial position at €45.6 million of the previous year-end, mainly because of the refund from the local Chinese authorities following the plant relocation. Such improvement in liquidity was partially absorbed by the operating loss as well as capital expenditures and working capital. Pasquale Natuzzi, Chairman and CEO of Natuzzi S.p.A., thus commented: “In 2011 we faced a difficult economic situation, characterized by the Sovereign debt crisis in Europe and the consequent decline in consumer confidence. The historical presence of the Group in such market has caused a sales reduction, even if the Group market shares, distribution network, and customer portfolio remained substantially stable. On the top of that, we also experienced during the course of the year, an increase in raw material prices and cost of labor, as well as unfavorable trends in currency markets, together with the negative effects deriving from the Chinese plants relocation. The decrease in sales in Europe and North America was partially offset by an encouraging sales performance in the BRIC region of about +64% on yearly basis. The Group presence in this area is now well established, with offices, plants and qualified distribution network. In particular, the “made-in-Italy” Natuzzi branded products are sold through 32 Natuzzi Stores in China, 5 in India and 7 in Russia. In 2011, according to an independent and international survey (“World Luxury Tracking”) the Natuzzi brand was ranked as the best-known global brand in the furniture industry by a sample of 8,800 luxury consumers from seven Countries (Italy, France, Germany, Spain, UK, USA and Japan). That is an important result that encourages us to carry on with the work of rationalizing our brand portfolio, and qualifying the Group’s distribution network, so to let us differentiate from competitors by leveraging on brand values and product innovation. There are many challenges in front of us, among which, the continuous search for greater efficiencies of production assets as well as a more integrated management of services to reduce general costs and to let the Company be closer to the market and final consumer.” About Natuzzi Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and manufactures a broad collection of residential upholstered furniture. With consolidated revenues of EUR 486.4 million in 2011. Natuzzi is Italy's largest furniture manufacturer. Natuzzi Group exports its innovative high-quality sofas and armchairs to 130 markets on five continents under two brands, Natuzzi and Italsofa. Cutting-edge design, superior Italian craftsmanship and advanced, vertically integrated manufacturing operations underpin the Company's market leadership. Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001.
Contacts:
Silvia Di Rosa, cell +39 335 78 64 209 sdirosa@natuzzi.com or Natuzzi Corporate Communication Giacomo Ventolone, cell.: +39 335 7276939 gventolone@natuzzi.com or Vito Basile (Media Press), + 39 080 8820676 vbasile@natuzzi.com |
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