The Board of directors of Natuzzi S.p.A. (NYSE:NTZ) (“Natuzzi”
or “the Company”), a world leading manufacturer of
leather-upholstered furniture, today announced the financial
results for the third quarter and first nine months of 2009.
Third Quarter 2009 Summary:
- Net Sales were €118.3 million as
compared to €142.3 million in 3Q 2008;
- Gross profit was € 47.5 million,
an increase of 29.5% as compared to €36.7 million for the same
quarter last year;
- Operating income was €2.8
million, compared to an operating loss of €12,3 million in 3Q 2008;
and
- Net group loss was €0.9 million
as compared to a loss of €16.2 million for the same period of
2008.
Third Quarter Results
Natuzzi Group net sales during the third quarter of 2009
totaled €118.3 million and decreased by 16.8% as compared to the
same quarter of last year. This decrease in sales was primarily due
to the world-wide economic recession that had a negative impact on
the consumer sector. Upholstery net sales were €102.9 million or
87.0% of total net sales, compared to €125.1 million or 87.9% of
total net sales in the third quarter of 2008. The contribution to
upholstery net sales by geographic area was as follows: Europe
54.5%; Americas 32.6% and rest of the world 12.9%.
Gross profit totaled €47.5 million or 40.1% of net sales
versus 25.8% in the same period of 2008. The significant
improvement was the result of internal restructuring processes and
a reduction in raw materials costs.
Pasquale Natuzzi, Chairman and CEO, commented: “Third quarter
results represent the second consecutive quarter during which we
achieved positive operating income, despite the unfavorable
economic environment. The restructuring and rationalization process
continue to benefit our results. During this time we set up various
initiatives and processes such as product standardization and
innovation, improvement of the raw material procurement and
reduction in lead times”.
Mr. Natuzzi concluded, “I am confident that all of these
activities will continue to generate positive results.”
Nine months Results 2009
For the first nine months of 2009, net sales were €363.2
million, a decrease of 24.9% as compared to €483.9 million in the
first nine months of 2008. Upholstery sales were €316.7 million (a
decrease of 25.8%) as compared to €426.6 million in the first nine
months of 2008. The contribution of nine months upholstery net
sales by geographic area was as follows: Europe 59.2%; Americas
30.3% and rest of the world 10.5%.
In the first nine months of 2009 the Group reported a gross
profit of €126.3 million or 34.8% on total net sales versus
26.6% in the same period of 2008. Operating loss was €12.6
million as compared to a loss of € 29.5 million for the same period
of 2008.
Net Group result for the first nine months 2009 shows a
loss of €15.2 million as compared to a loss of €42.1 million in the
same period of 2008.
Balance Sheet Highlights
The Natuzzi Group ended the third quarter of 2009 with cash of
€70,4 million. The increase of €23.1 million in net cash as
compared to December, 31 2008 was mainly due to a reduction in
working capital. Long term debt totaled €6.0 million. Shareholder’s
equity was €326.4 million at the end of the third quarter.
The Company will host a conference call on Tuesday, November 24,
2009 at 10:00 a.m. Eastern Time to discuss third quarter and nine
months 2009 financial results. A live web cast of the conference
call will be available online at http://www.natuzzi.com/ under the
Investor Relations section. A replay will be made available for a
period of 30 days following the live call at 888-203-1112 in North
America and 719-457-0820 International; Pin Number 4291259.
About Natuzzi
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and
manufactures a broad collection of residential upholstered
furniture. With 2008 consolidated revenues of EUR 666,0 million on,
Natuzzi is Italy's largest furniture manufacturer. The Natuzzi
group exports its innovative high-quality sofas and armchairs to
123 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 certified.
Forward looking
statement
Statements in this press release other than statements of
historical fact are “forward-looking statements”. Forward–looking
statements are based on management’s current expectations and
beliefs and therefore you should not place undue reliance on them.
These statements are subject to a number of risks and
uncertainties, including risks that may not be subject to the
Group’s control, that could cause actual results to differ
materially from those contained in any forward-looking statement.
These risks include, but are not limited to, fluctuations in
exchange rates, economic and weather factors affecting consumer
spending, competitive and regulatory environment, as well as other
political, economical and technological factors, and other risks
identified from time to time in the Group’s filings with the
Securities and Exchange Commission, particularly in the Group’s
annual report on Form 20-F. Forward looking statements speak as of
the date they were made, and the Group undertakes no obligation to
update publicly any of them in light of new information or future
events.
Tables follow:
Natuzzi S.p.A. and
Subsidiaries
Unaudited Consolidated Profit & Loss for the quarter
ended on September 30, 2009 on the basis of Italian GAAP
(expressed in millions Euro except for share data)
Three
months ended on Change Percent of
Sales 30 September 09 30 September
08
%
30 September 09 30 September 08
Upholstery net sales 102.9 125.1 -17.7 % 87.0 % 87.9 % Other
sales 15.4 17.2 -10.4 % 13.0 %
12.1 %
Total Net Sales 118.3
142.3 -16.8 %
100.0 % 100.0 % Purchases
(47.9 ) (71.7 ) -33.2 % -40.5 % -50.4 % Labor (17.5 ) (21.7 ) -19.1
% -14.8 % -15.2 % Third-party manufacturers (0.8 ) (2.0 ) -59.6 %
-0.7 % -1.4 % Manufacturing costs (9.7 ) (12.6 ) -23.5 % -8.2 %
-8.9 % Net Inventoris 5.1 2.4 110.2 %
4.3 % 1.7 %
Cost of Sales (70.9
) (105.6 ) -32.9 %
-59.9 % -74.2 %
Gross Profit 47.5 36.7
29.5 % 40.1 %
25.8 % Selling Expenses (33.6 ) (36.7 ) -8.6 %
-28.4 % -25.8 % G&A Expenses (11.1 ) (12.2 ) -9.3 % -9.3 % -8.6
%
Operating Income/(Loss) 2.8
(12.3 ) 123.1 %
2.4 % -8.6 % Other
Income/(Cost), Net (0.9 ) (4.2 ) -77.9 % -0.8 % -2.9 %
Earning before Income Taxes 1.9
(16.4 ) 111.7 %
1.6 % -11.5 % Current
taxes (2.7 ) 0.1 -2814.4 % -2.3 % 0.1 %
Net result
(0.8 ) (16.3 )
95.1 % -0.7 %
-11.5 % Minority interest 0.1 (0.1 ) -243.4 %
Net Group Result (0.9 )
(16.2 ) 94.2 %
-0.8 % -11.4 %
Net
Group Result per Share (0.02 )
(0.30 )
Outstanding Shares 54,824,277
54,824,277
Key Figures in U.S. dollars Three
months ended on Change
Percent of Sales
(millions)
30 September 09 30 September 08
%
30 September 09 30 September 08
Total Net Sales 169.4 203.6
-16.8 %
100.0 % 100.0 % Gross Profit
67.9 52.5
29.5 % 40.1 %
25.8 % Operating Income (Loss) 4.1
(17.5 )
123.1 % 2.4 % -8.6
% Net Group Result (1.4 ) (23.2 )
94.2 % -0.8 % -11.4 %
Net Group Result per Share (0.0 ) (0.4 )
Average exchange rate (U.S.$ per €) 1.4311
UPHOLSTERY NET SALES BREAKDOWN
Geographic breakdown
Net sales million euro
Net sales seats
3 months ended on 3 months ended on
30 September
09
30 September 08
Change % 30 September 09 30
September 08
Change %
Americas 33.6 32.6% 51.0
40.8% -34.2% 197,506 43.3%
326,795 52.9% -39.6% Natuzzi 17.4 16.9% 22.9
18.3% -24.0% 82,768 18.1% 115,139 18.6% -28.1% Italsofa 16.1 15.7%
28.1 22.5% -42.5% 114,737 25.2% 211,655 34.3% -45.8%
Europe 56.1 54.5% 60.1 48.1%
-6.8% 204,695 44.9% 227,741
36.9% -10.1% Natuzzi 34.0 33.0% 33.5 26.7% 1.6%
91,073 20.0% 83,888 13.6% 8.6% Italsofa 22.1 21.4% 26.7 21.3%
-17.4% 113,622 24.9% 143,853 23.3% -21.0%
Rest of the
world 13.3 12.9% 13.9 11.1%
-4.2% 53,861 11.8% 62,848 10.2%
-14.3% Natuzzi 8.2 7.9% 8.2 6.5% -0.1% 20,522 4.5% 22,619
3.7% -9.3% Italsofa 5.2 5.0% 5.7 4.6% -10.0% 33,339 7.3% 40,230
6.5% -17.1%
Total 102.9 100.0% 125.1 100.0%
-17.7% 456,061 100.0% 617,384
100.0% -26.1%
Brands breakdown
Net sales million euro
Net sales seats
3 months ended
on 3 months ended on
30 September 09 30 September
08 Change % 30 September 09
30 September 08 Change % Natuzzi
59.6 57.9% 64.5 51.6% -7.7%
194,363 42.6% 221,646 35.9%
-12.3% Italsofa 43.4 42.1%
60.5 48.4% -28.4% 261,698 57.4%
395,738 64.1% -33.9%
Total 102.9 100.0%
125.1 100.0% -17.7% 456,061
100.0% 617,384 100.0% -26.1% Natuzzi
S.p.A. and Subsidiaries Unaudited Consolidated Profit &
Loss for the quarter ended on September 30, 2009 on the
basis of Italian GAAP (expressed in millions Euro except for
share data)
Nine months ended on Change Percent
of Sales 30 September 09
30 September 08
% 30 September 09 30 September
08 Upholstery net sales 316.7 426.6 -25.8% 87.2%
88.2% Other sales 46.5 57.2 -18.7% 12.8% 11.8%
Total Net Sales 363.2 483.9
-24.9% 100.0% 100.0%
Purchases (141.7) (227.6) -37.7% -39.0% -47.0% Labor (57.7) (77.0)
-25.0% -15.9% -15.9% Third-party manufacturers (2.7) (6.9) -61.0%
-0.7% -1.4% Manufacturing costs (28.7) (39.8) -27.8% -7.9% -8.2%
Net Inventoris (6.1) (3.7) 64.2% -1.7% -0.8%
Cost of Sales (236.9) (355.0)
-33.3% -65.2% -73.4%
Gross
Profit 126.3 128.9 -2.0%
34.8% 26.6% Selling Expenses (104.9)
(123.4) -15.1% -28.9% -25.5% G&A Expenses (34.1) (35.0) -2.5%
-9.4% -7.2%
Operating Income/(Loss) (12.6)
(29.5) 57.2% -3.5% -6.1%
Other Income/(Cost), Net 4.3 (10.5) -140.7% 1.2% -2.2%
Earning before Income Taxes (8.3)
(40.1) 79.2% -2.3% -8.3%
Current taxes (6.6) (2.3) 186.0% -1.8% -0.5%
Net result
(14.9) (42.4) 64.9% -4.1%
-8.8% Minority interest 0.3 (0.3) -219.5%
Net Group Result (15.2) (42.1)
63.9% -4.2% -8.7%
Net Group
Result per Share (0.28) (0.77)
Outstanding Shares
54,824,277 54,824,277
Key Figures in U.S.
dollars Three months ended on Change Percent
of Sales (millions)
30 September 09 30
September 08 % 30 September 09
30 September 08 Total Net Sales 496.3
661.2
-24.9% 100.0% 100.0% Gross Profit
172.6 176.1
-2.0% 34.8% 26.6%
Operating Income (Loss) (17.3) (40.3)
57.2%
-3.5% -6.1% Net Group Result (20.7)
(57.5)
63.9% -4.2% -8.7% Net Group Result
per Share (0.4) (1.0)
Average exchange rate
(U.S.$ per €) 1.3664 UPHOLSTERY NET SALES
BREAKDOWN Geographic
breakdown Net sales million euro Net sales seats
9 months ended
on 9 months ended on
30 September 09 30 September
08 Change % 30 September 09
30 September 08 Change %
Americas 95.97 30.3% 145.9 34.2%
-34.2% 539,578 39.8% 920,085
46.2% -41.4% Natuzzi 49.34 15.6% 77.9 18.3% -36.7%
228,469 16.8% 401,666 20.2% -43.1% Italsofa 46.63 14.7% 68.0 15.9%
-31.4% 311,109 22.9% 518,419 26.1% -40.0%
Europe
187.41 59.2% 239.9 56.2% -21.9%
678,913 50.1% 896,174 45.0%
-24.2% Natuzzi 111.16 35.1% 141.7 33.2% -21.6% 286,458 21.1%
366,188 18.4% -21.8% Italsofa 76.25 24.1% 98.1 23.0% -22.3% 392,456
28.9% 529,986 26.6% -25.9%
Rest of the world
33.32 10.5% 40.9 9.6% -18.5%
137,871 10.2% 173,343 8.7%
-20.5% Natuzzi 19.76 6.2% 25.7 6.0% -23.2% 50,723 3.7%
72,728 3.7% -30.3% Italsofa 13.56 4.3% 15.1 3.5% -10.5% 87,148 6.4%
100,616 5.1% -13.4%
Total 316.70 100.0% 426.6
100.0% -25.8% 1,356,363 100.0%
1,989,602 100.0% -31.8%
Brands breakdown
Net sales million euro
Net sales seats
9 months ended on 9 months ended on
30 September
09 30 September 08 Change %
30 September 09 30 September 08
Change % Natuzzi 180.3 56.9%
245.4 57.5% -26.5% 565,650 41.7%
840,581 42.2% -32.7% Italsofa
136.4 43.1% 181.2 42.5% -24.7%
790,713 58.3% 1,149,021 57.8%
-31.2%
Total 316.7 100.0% 426.6 100.0%
-25.8% 1,356,362 100.0% 1,989,602
100.0% -31.8%
Natuzzi S.p.A. and
Subsidiaries
Unaudited Consolidated Balance Sheets (Expressed in millions
of euro)
ASSETS 30 September 09 31
Dec 08 Current assets: Cash and cash equivalents
70.4 47.3 Marketable debt securities 0.0 0.0 Trade receivables, net
93.9 122.8 Other receivables 49.8 46.2 Inventories 82.6 92.0
Unrealized foreign exchange gains 0.0 4.7 Prepaid expenses and
accrued income 1.2 1.3 Deferred income taxes 2.4 4.2
Total current assets 300.4
318.5 Non current assets: Net property, plant
and equipment 196.4 211.8 Other assets 12.8 13.3 Deferred income
taxes 0.2 0.2
Total current assets 209.3
225.3 TOTAL ASSETS 509.7
543.8 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Short-term
borrowings 8.3 9.7 Current portion of long-term debt 1.1 0.5
Accounts payable-trade 58.3 68.6 Accounts payable-other 28.9 29.2
Unrealized foreign exchange losses 1.3 9.2 Accounts
payable-shareholders for dividends 0.0 0.6 Income taxes 2.0 1.8
Salaries, wages and related liabilities 17.3 16.8
Total current liabilities 117.2
136.3 Long-term liabilities: Employees'
leaving entitlement 30.2 31.7 Long-term debt 6.0 3.3 Deferred
income for capital grants 11.3 12.1 Other liabilities 16.8 14.4
Total current liabilities
64.4 61.4
Minority interest 1.7 0.8
Shareholders' equity: Share capital 54.9 54.9 Reserves 42.8
42.3 Additional paid-in capital 8.3 8.3 Retained earnings 220.5
239.8
Total shareholders' equity
326.4 345.2 TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 509.7 543.8
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated
Statements of Cash Flows
(Expressed in million of euro)
30 September 09
31 Dec 08 Cash flows from operating activities:
Net earnings (loss) (15.2 ) (61.9
)
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 20.7 30.5
Employees' leaving entitlement (1.5 ) (1.7 ) Deferred income taxes
1.8 (3.1 ) Minority interest 0.3 (0.4 ) (Gain) loss on disposal of
assets (0.2 ) 2.1 Unrealized foreign exchange losses and gains (3.2
) 5.4 Impairment of long lived assets - 5.3 Deferred income for
capital grants (0.7 ) (1.0 )
Change in assets and
liabilities: Receivables, net 28.8 (5.1 ) Inventories 9.4 15.3
Prepaid expenses and accrued income 0.1 0.6 Other assets (3.6 ) 1.7
Accounts payable (10.3 ) (20.7 ) Income taxes 0.2 0.2 Salaries,
wages and related liabilities 0.5 (0.7 ) Other liabilities (1.3 )
0.4
Total adjustments 41.1 28.9
Net cash provided by operating activities
26.0 (33.1 ) Cash
flows from investing activities: Property, plant and equipment:
Additions (6.2 ) (15.2 ) Disposals 0.1 0.2 Government grants
received 1.9 1.4 Marketable debt securities: Proceeds from sales -
- Purchase of business, net of cash acquired - - Disposal of
business - 1.1
Net cash used in investing
activities (4.2 ) (12.5 )
Cash flows from financing activities: Long-term
debt: Proceeds 3.9 2.0 Repayments (0.5 ) (0.7 ) Short-term
borrowings (1.4 ) 2.1 Capital injection - 0.5 Dividends paid to
minority interests - -
Net cash used in
financing activities 2.0 4.0
Effect of translation adjustments on cash (0.6 ) 1.4
Increase (decrease) in cash and cash equivalents 23.1
(40.2 ) Cash and cash equivalents,
beginning of the year 47.3 87.5
Cash and cash equivalents, end of the year
70.4 47.3
Natuzzi S P A (NYSE:NTZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Natuzzi S P A (NYSE:NTZ)
Historical Stock Chart
From Jul 2023 to Jul 2024