Carraro Group Annual Review 2014
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
-
Carraro GroupAnnual Review 2014
-
Carraro GroupAnnual Review 2014
-
The complete version of the Annual Report 2014 is available on linecarraro.com/ar14en
7 Letter from the Chairman 11 Ownership Structure 14 Consolidated Income Statement 15 Consolidated Statement of Financial Position 16 Cash Flow 17 Analisys of Net Working Capital
Highlights 21 The Carraro Group 22 Breakdown by Sector of Application 25 Reference Markets 30 Summary of Financial Year 2014 40 Main Markets 42 Summary Data and Graphs
Key Factors of Success 51 Research and Innovation
Timeline 58 2014 Figures and Facts 63 Significant Events in Financial Year 2014 65 Share Performance 66 Business Outlook and Projections for 2015
-
7
Let
ter
fro
m t
he
Ch
airm
an
Dear Shareholders,
After a start to the year which, based on the expectations shared with our customers, envisaged a 2014 of growth, the market unexpectedly and abruptly changed course, returning to sales levels not only lower than the forecasts but also than the previous twelve months. The year that today we leave be-hind us therefore recorded a generalised decline in demand, especially in the agricultural sector, which led to a turnover of 727 million euros, down 16.5% compared to 2013. Let us, however, bear in mind that 45 million euros of such decrease are attributable to the sale of the Mini Gears subsidiary, which we will return to later.
As extensively explained in the notes to the financial statements, the decrease in rev-enues naturally had negative consequences right down to the bottom line of the income statement of the Group which, one year after the significant recovery recorded in 2013, shows a loss of 7.9 million euros. It should be considered, however – because it is import-ant – that the operating loss only amounts to 3.1 million euros, while over 4.8 million are to be attributed to restructuring costs, the positive results of which, already tangible in the first months of the year, will be reflected in full in the current year.
Worthy of special mention is Elettronica Santerno which, with a sharp reduction in sales due to the postponement to 2015 of a number of important contracts, alone nulli-fied the results of the core business, recording a loss of 8 million euros. We should also point out, moreover, that, in these first weeks of March, significant commercial agree-ments were concluded that allow us to confirm at least the return to breakeven of this unit already during this year.
In the agricultural machinery sector, which for Carraro accounts for 44% of total rev-enues, the decrease was widespread and significant in every part of the world with few exceptions, including countries such as China, India and Brazil, which had sustained de-mand in recent years. The reduction in spending power in the agricultural sector, mainly
Letter from the Chairman
-
An
nu
al
Rev
iew
20
14
8
due to the decline in commodity prices, played a significant role, in addition to which - for Europe - is the higher cost of tractors due to alignment with the new emission regulations. More complex is the analysis of the context of the construction equipment sector (38% of turnover) in which, in addition to the continued stagnation in direct sales to the mining market, there are contrasting elements that, on the one hand, see growth in the utility sec-tor (particularly in the US) and, on the other, bring a decrease in the sectors of machinery for large infrastructure.
It should be pointed out that the Group as a whole has reacted promptly to the mar-ket situation, striving in every area to limit the loss and accelerating completion of the restructuring programme planned a couple of years ago. Today we have the objective to dedicate all our efforts and resources to the markets that have always represented the basis of our success, in which our technology leadership is recognized and undisputed and in which, even in this difficult 2014, we were able to consolidate our competitive position, also thanks to the introduction of new products in new sales areas. In this con-text of focusing on the core business are to be considered the sale of Mini Gears and the restructuring of the Santerno product portfolio, increasingly addressed to areas closer to our main business.
Given the foregoing, it is therefore precisely on the core business that we are concen-trating our attention and, in particular, on the research and innovation front, the action plan in place, involving more than 200 people engaged at various levels in Research and Development activities, continues with growing emphasis. This renewed path involves the simultaneous start up of over 30 strategic projects aimed at the development of ad-vanced transmissions, both in the agriculture and construction equipment sectors. In the former, focus has been placed on dual clutch solutions, inspired by the automotive world, for tractors between 50 and 180 hp. In the latter, on the other hand, new gearboxes for retro-excavators, optimised for maximum fuel efficiency and higher vehicle productivity, are nearing completion.
Axles, that before the crisis of 2009 represented a large part of our sales, are increasing-ly flanked by transmissions and gearboxes for off-highway use (construction equipment and agriculture) in a strategy that will see the Group increasingly extend its sales portfolio to complete transmission systems.
Based on this strategy, in 2014, thanks to the merge into a single entity of Carraro re-search and development centres, we have already been able to develop new synergies and implement major integrated projects in Agritalia, also in the tractor sector. Here we have successfully completed the common platform project to support key customers, while launching the new “low orchard” range with very favourable market feedback.
Consistent with the new strategic plan, the entire governance of the Group has been re-designed, replacing the outdated industrial holding structure with an organisation chart, which is more efficient and responsive to market evolution and to the new operational dynamics. To manage this new approach, on 29 October 2014 the Board of Directors ap-pointed as CEO Alberto Negri, who will have a decisive role in completing the restructur-ing described above.
The important phase of change that we are currently experiencing has the primary goal
-
9
Let
ter
fro
m t
he
Ch
airm
an
of redesigning our Group in order to make it much more competitive in increasingly com-plex markets. In every field, therefore, we are faced with a series of wide-ranging actions that must bring about a reversal of the negative result recorded in 2014. To achieve this we know we can rely on an extensive network of partners, customers and suppliers, facilitated by the industrial and commercial presence of the Group, strategically deployed in every region of the planet.
These are the premises of the new work plans which, in the medium term, in addition to revenue growth, can ensure a substantial recovery of profitability, while at the same time establishing the target for a more balanced debt ratio.
Let’s look at 2015, therefore, as a true turnaround year. A year in which we can reap the benefits of what we have sown. With a wider product range and with a much more efficient organisation that focuses on and develops its resources, starting from human capital.
ENRICO CARRARO
Chairman
-
11
Ow
ner
ship
Str
uct
ure
Board of DirectorsIn office until approval of the 2014 financialstatements (Appointments, Shareholders’ Meeting of 20/04/2012)
Enrico Carraro 2
Chairman
Tomaso CarraroDeputy Chairman
Alberto Negri 4
Chief Executive Officer
Alexander BossardDirector
Arnaldo Camuffo 1/2/3
Director
Antonio Cortellazzo 1/2/3
Director
Gabriele del Torchio 3
Director
Marina Pittini 1/2/3
Director
Marco Reboa 1/3
Director
1 Members of the Auditing and Risk Committee2 Members of the Nominations, Human Resources and Remuneration Committee3 Independent Directors4 Co-opted by the Board of Directors on 29 October 2014
Board of Statutory AuditorsIn office until approval of the 2014 financialstatements (Appointments, Shareholders’Meeting of 20/04/2012)
Roberto SaccomaniChairman
Saverio BozzolanRegular Auditor
Marina MannaRegular Auditor
Barbara CantoniAlternate Auditor
Stefania CentorbiAlternate Auditor
Independent Auditors2007–2015PricewaterhouseCoopers Spa
Parent CompanyFinaid Spa
Under the terms and for the purposes of Consob Communication no. 97001574 of 20 February 1997, we state that: The Chairman, Mr Enrico Carraro and the Chief Executive Officer, Mr Alberto Negri, have been given severally powers of legal representation and use of the corporate signature in relations with third parties; they carry out their work within the limits of the powers conferred on the Chairman by the Board of Directors in the meeting of 20 April 2012 and on the CEO in the meeting of 29 October 2014, in accordance with applicable legal constraints, in terms of matters which cannot be delegated by the Board of Directors and of responsibilities reserved for the Board itself, as well as the principles and limits provided for in the Company’s Code of Conduct.
Carraro SpaHeadquartersVia Olmo, 3735011 Campodarsego(Padova), ItalyP +39 049 9219111F +39 049 [email protected]
Share CapitalEuro 23,914,696fully paid-upTax Code/VAT No.and Padua Registerof CompaniesNo. 00202040283Padua REA No. 84033
DISCLAIMERThis document contains forward-looking statements, in particular in the section “Business outlook and projections for 2014”, in relation to future events and the operating, economic and financial results of the Carraro Group. These forecasts have by
their very nature a component of risk and uncertainty, as they depend on the occurrence of future events and developments. The actual results may differ, even significantly, from those announced in relation to a multiplicity of factors.
Ownership Structure Carraro SpaFrom 20 April 2012
-
Carraro Spa
Carraro International Sa
Carraro Drive Tech Spa
ElettronicaSanterno Spa
An
nu
al
Rev
iew
20
14
12
100%
0.0001%
0.04
79%
8.43%
Friulia
Siap S
pa
Carrar
o Driv
e Tech
Poggi
ofiori
to Spa
Minige
ars Inc
.
Gear W
orld
North
Ameri
ca Llc
Minige
ars
Proper
ty
48.68%
43.
31%
100%
99.9521%
8.01%
100%
1%
91.57%
98.6352%
Carrar
o
Deuts
chland
Gmbh
Carrar
o
Techno
logies
Ltd.
Carrar
o Drive
Tech
do Bra
sil Inc
.
Carrar
o
Argent
ina Sa
100%
100%
99.9999%
Carrar
o Nort
h
Ameri
ca Inc
.
Carrar
o India
Pvt Ltd
.
Carrar
o Chin
a
Drives
Syst C
o. Ltd.
O&K A
ntrieb
stechn
ik
Gmbh
100%
Fon Sa
100%
99%
100%
100%
100%
100%
100%
67%
33%
0.34%
99.66%
100%
Santer
no Inc
.
Zao Sa
nterno
Santer
no
India P
vt Ltd
Elettro
nica S
antern
o
España
Sl
Santer
no Sou
th Afric
a
Pvt Ltd
Santer
no
Shanga
i Trad
Ltd
Eletro
nica S
antern
o
Indust
ria e C
omerc
io Ltda
Ger
ardo
E. Fran
cia
100%
100%
100%
-
Carraro Spa
Carraro International Sa
Carraro Drive Tech Spa
ElettronicaSanterno Spa
13
Ow
ner
ship
Str
uct
ure
100%
0.0001%
0.04
79%
8.43%
Friulia
Siap S
pa
Carrar
o Driv
e Tech
Poggi
ofiori
to Spa
Minige
ars Inc
.
Gear W
orld
North
Ameri
ca Llc
Minige
ars
Proper
ty
48.68%
43.
31%
100%
99.9521%
8.01%
100%
1%
91.57%
98.6352%
Carrar
o
Deuts
chland
Gmbh
Carrar
o
Techno
logies
Ltd.
Carrar
o Drive
Tech
do Bra
sil Inc
.
Carrar
o
Argent
ina Sa
100%
100%
99.9999%
Carrar
o Nort
h
Ameri
ca Inc
.
Carrar
o India
Pvt Ltd
.
Carrar
o Chin
a
Drives
Syst C
o. Ltd.
O&K A
ntrieb
stechn
ik
Gmbh
100%
Fon Sa
100%
99%
100%
100%
100%
100%
100%
67%
33%
0.34%
99.66%
100%
Santer
no Inc
.
Zao Sa
nterno
Santer
no
India P
vt Ltd
Elettro
nica S
antern
o
España
Sl
Santer
no Sou
th Afric
a
Pvt Ltd
Santer
no
Shanga
i Trad
Ltd
Eletro
nica S
antern
o
Indust
ria e C
omerc
io Ltda
Ger
ardo
E. Fran
cia
100%
100%
100%
-
An
nu
al
Rev
iew
20
14
14
Consolidated Income Statementas at 31/12/2014
31.12.14 % 31.12.13 % Changes
31.12.14 31.12.13
Revenues from sales 727,757 100.00% 871,936 100.00% -144,179 -16.54%
Purchases of goods and materials (net of changes in inventories)
-433,193 -59.52% -515,686 -59.14% 82,493 -16.00%
Services and Use of third-partygoods and services
-118,739 -16.32% -146,048 -16.75% 27,309 -18.70%
Personnel costs -133,181 -18.30% -145,828 -16.72% 12,647 -8.67%
Amortisation, depreciationand impairment of assets
-28,130 -3.87% -32,642 -3.74% 4,512 -13.82%
Provisions for risks -11,128 -1.53% -11,003 -1.26% -125 1.14%
Other income and expenses 4,161 0.57% 6,486 0.74% -2,325 -35.85%
Internal construction 4,559 0.63% 4,007 0.46% 552 13.78%
Operating costs -715,651 -98.34% -840,714 -96.42% 125,063 -14.88%
Operating profit/(loss) (Ebit) 12,106 1.66% 31,222 3.58% -19,116 -61.23%
Income from equity investments 475 0.07% - 0.00% 475
Other financial income 3,906 0.54% 2,649 0.30% 1,257 47.45%
Financial costs and expenses -18,552 -2.55% -19,695 -2.26% 1,143 -5.80%
Net gains/(losses) on foreign exchange -2,905 -0.40% -1,428 -0.16% -1,477
Value adjustments of financial assets - -0.00% - 0.00% -
Gains/(losses) on financial assets -17,076 -2.35% -18,474 -2.12% 1,398 -7.57%
Profit/(loss) before taxes -4,970 -0.68% 12,748 1.46% -17,718
Current and deferred income taxes -2,871 -0.39% -10,698 -1.23% 7,827 -73.16%
Net profit/(loss) -7,841 -1.08% 2,050 0.23% -9,891
Profit/(loss) pertaining to minorities -72 -0.01% -760 -0.09% 688 -90.53%
Group consolidated profit/(loss) -7,913 -1.09% 1,290 0.15% -9,203
Ebitda 38,763 5.33% 61,544 7.06% -22,781 -37.02%A
mou
nts
in E
uro/
00
0
-
15
Dir
ecto
rs’ R
epo
rt o
n O
pera
tio
ns
Consolidated Statement of Financial Positionas at 31/12/2014
31.12.14 31.12.13
Property, plant and equipment 185,403 202,230
Intangible fixed assets 91,335 89,521
Real estate investments 708 709
Holdings in subsidiaries and associates - -
Financial assets 2,064 2,867
Deferred tax assets 43,524 26,375
Trade receivables and other receivables 4,120 3,596
Non-current assets 327,154 325,298
Closing inventory 146,745 145,849
Trade receivables and other receivables 113.877 133,232
Financial assets 5,040 3,799
Cash and cash equivalents 62,822 72,712
Current assets 328,484 355,592
Total assets 655,638 680,890
Share Capital 23,915 23,915
Reserves 35,919 41,735
Foreign currency translation reserve -13,562 -18,180
Profit/loss for the year -7,913 1,290
Minority interests 2,848 6,103
Shareholders’ equity 41,207 54,863
Financial liabilities 127,039 180,892
Trade payables and other payables 1,361 1,814
Deferred tax liabilities 5,353 2,297
Provision for severance indemnity and retirement benefits 19,387 19,349
Provisions for risks and liabilities 3,869 5,077
Non-current liabilities 157,009 209,429
Financial liabilities 164,673 146,847
Trade payables and other payables 271,797 247,742
Current taxes payables 5,178 5,977
Provisions for risks and liabilities 15,774 16,032
Current liabilities 457,422 416,598
Total shareholders’ equity and liabilities 655,638 680,890
Am
ount
s in
Eur
o/0
00
-
An
nu
al
Rev
iew
20
14
16
Cash Flowas at 31/12/2014
31.12.14 31.12.13
Opening Net Financial Position -248,150 -213,703
Group profit/(loss) -7,913 1,290
Profit/(loss) pertaining to minorities 72 760
Amortisation, depreciation and impairment of fixed assets 26,657 30,322
Cash flow before Net Working Capital 18,816 32,372
Change in Net Working Capital 38,569 -39,420
Investments in fixed assets -34,674 -37,539
Disinvestments in fixed assets 4,227 2,483
Operating Free Cash Flow 26,938 -42,104
Other operating flows -16,065 9,273
Other investing flows 18,819 8,687
Change in Share Capital - -
Dividends paid - -
Conversion differences and other movements -5,815 -10,313
Free Cash Flow 23,877 -34,447
Closing Net Financial Position - 224,273 - 248,150
Am
ount
s in
Eur
o/0
00
-
17
Dir
ecto
rs’ R
epo
rt o
n O
pera
tio
ns
Analysis of Net Working Capitalas at 31/12/2014
31.12.14 31.12.13
Trade Receivables 75,244 94,220
Inventory 146,745 145,849
Trade Payables -232,786 -212,297
Net Working Capital (NWC) -10,797 27,772
Am
ount
s in
Eur
o/0
00
-
Highlights
-
21
Hig
hli
ghts
The Carraro Group
Carraro is an international industrial Group which is world leader in high-efficiency and eco-compatible power transmission systems, with headquarters in Italy, in Campodarsego (Padua).
The Group is increasingly focused on technological solutions or its core areas, i.e. off-highway and industrial applications. In keeping with this direction, in April 2014 the “light gears” business was sold along with two plants of the subsidiary Minigears, which specialised in tiny components and sintered gears.
The Group operates through three Business Areas: › Carraro Drive Tech (Transmission systems and components) Is specialised in the design, manufacture and sale of transmission systems (axles,
transmissions and drives) mainly for agricultural and construction equipment, and also markets a wide range of gears for very diverse sectors, from the automotive in-dustry to material handling, agricultural applications and construction equipment.
› Carraro Divisione Agritalia (Tractors) Designs and manufactures special tractors (for vineyards and orchards from 60 to
100 hp) for third-party brands, and namely John Deere, Massey Ferguson and Claas; Agritalia also provides engineering services for the design of innovative tractor ranges.
› Elettronica Santerno (Power electronics) Designs, develops, manufactures and markets inverters (electronic power convert-
ers) mainly for the photovoltaic industry and industrial automation (HVAC, water treatment, lifting systems and large-scale transport).
-
An
nu
al
Rev
iew
20
14
22
Breakdownby Sector of Application
RenewableEnergies
2.8 %
Automotive
3.1 %
Agriculture
44.4 %
MaterialHandling
3.7 %
-
23
Hig
hli
ghts
ConstructionEquipment
38 %
Other
6.7 %
Industrial
1.4 %
-
25
Hig
hli
ghts
Reference Markets Agriculture
The agricultural segment in 2014 was marked by an overall reduction in demand for farm equipment mostly resulting from a fall in prices for the major agricultural commodities which in turn resulted in lower income to be allocated to the purchase of new machinery.
In Western Europe and North America the market decline was exacerbated by the high-er cost of tractors as a result of engines upgrading to the new emission levels (Tier 4).
In Europe, the most severe contraction was in France, with a decline of about 12% com-pared to 2013, while in Germany the slowdown was more moderate. In addition, the ban on the exports of vehicles to Eastern European markets (former CIS), due to the crisis in Ukraine, undoubtedly exacerbated the general slowdown, especially for high power ma-chines. Early indications for 2015 suggest sales volumes in Europe slightly lower than in the year just ended.
In Turkey – the second European market in terms of demand for farm equipment – the decline in tractor sales was rather limited compared to 2013, despite the effects of con-flicts in Syria and Iraq and the prolonged drought affecting large areas of this country. The signs for a slight recovery of demand in 2015 are already visible.
The United States were equally affected by the aforementioned events, with the agri-cultural machinery market recording a significant slowdown, especially in the second half of the year. The decline mostly affected larger size vehicles and harvesting machines. This trend is expected to continue for most of 2015.
In 2014 the Chinese tractor market dropped by 10% compared to the previous year, especially for over 100 hp tractors. The sales stimulus triggered by government subsidies has now completely tapered off.
Domestic demand for tractors in India was only partially down and was offset by growth in exports. For both these Asian markets the trend for 2015 will be in line with 2014 at least until the first half of the year.
The South American market, especially Brazil, reported a significant decrease com-pared to 2013, which is expected to exacerbate in the course of 2015.
In general, forecasts for 2015 in the agriculture segment, which also affect the main partners of the Group, are difficult to make, in view of the geopolitical situation and the uncertain global economic cycle.
-
An
nu
al
Rev
iew
20
14
26
Reference Markets Construction and Mining Equipment
After a year start justifying moderate optimism, in the second half the market slowed down considerably due to the economic situation that affected investments on a global scale.
In Europe the trend continued to be diversified: in the central regions, orders in Ger-many remained at satisfactory levels, while stagnation in all other countries worsened. The outlook for 2015 is moderately optimistic in Europe, following the economic stimulus program put in place by EU monetary authorities and governments, which will lead to increased investments in infrastructure.
In Turkey the decline in the market for construction equipment was confirmed and ac-tually worsened compared to the same period in 2013, and the outlook for 2015 remains uncertain.
In North America the recovery in residential construction continued to support the demand for Utility machines, especially for rental fleets; at the same time the signs of a turnaround in the segment of medium-large size construction equipment strengthened. For 2015 this trend is expected to continue in all segments.
The structural decline in China worsened; this is due to the decline in investment com-bined with excess production in previous years compared to actual demand. The stock of unsold vehicles at factories and in the distribution network is still very high. The level of non-performing loans recorded by OEMs continues to be critical. For 2015 demand is not expected to grow, and will be covered by existing stocks.
In India, the demand for construction machinery remained very weak; however, the most recent signs of economic recovery in this country for 2015 justify moderate opti-mism.
Brazil suffered a deep contraction, in the wake of a general slowdown of the economy; for 2015 this trend is expected to stabilise.
Persistent low commodity prices have a negative impact on the mining equipment seg-ment, strongly penalised and with demand stuck in the doldrums, although some weak signs of recovery can be glimpsed at the global level for the second half of 2015.
-
29
Hig
hli
ghts
Reference Markets Renewable EnergyIndustrial Automation
In the segment of large photovoltaic plants, demand grew unevenly and mainly out-side Europe, with volumes in the market for residential and commercial installations recording a significant decline. On the contrary, demand for maintenance services and technical support, which have become essential factors for winning new contracts, grew considerably.
Demand in the industrial automation segment was stable in the first nine months; during the third quarter it benefited from a weakening of the Euro, which made drives manufac-tured in Europe more competitive.
The global markets, however, were adversely affected by tensions in Ukraine and the Middle East, the lower growth rate in China and the contraction in demand in the mining sector in Australia.
Despite the uncertain environment, the trend in demand for drives in Italy, and in Eu-rope generally, is growing moderately, thanks to new energy efficiency regulations con-cerning electric motors, which will enter into force on 1 January 2015.
-
An
nu
al
Rev
iew
20
14
30 Margins in the first half of the year were adversely affected by the negative performance of Elettronica Santerno, which was involved in a major reorganisation plan started in May, as a result of which the company was able to break-even in the second half, and the oper-ating difficulties, solved during the year, of Divisione Agritalia due to the introduction of a new management system (Erp). In the second half of the year, the volume decline in the core business affected the economic results of Drivetech.
As a result of the complex and concurrent events mentioned above, the Group further accelerated the reorganisation and streamlining of the company and its business process-es. Specifically, the following steps were undertaken: greater integration between Drive-tech and Agritalia; more efficient organisational structure in terms of costs but, especially, more effective and responsive to market dynamics; centralisation of the R&D function, previously separated into two legal entities, within Carraro Spa, in order to promote syn-ergies between the innovation processes in the Drivelines and Vehicles engineering areas, and a number of mergers in India and Italy.
A plan was concurrently launched to curb fixed costs, by adapting them to the new business trends. This plan, mostly completed by 31 December, and with full impact in 2015, includes a reduction in overall costs by 15%, the exit of 50 people from the Group, between managers and employees, and of about 100 workers, mostly in foreign plants, in the next year.
The Group closed 2014 with a consolidated turnover of 727.757 million Euros, down 16.5% compared to 871.936 million Euros in 2013. In comparing figures, the reduction in revenues from the sale of the Mini Gears operations must be taken into account; ex-cluding this sale, the decline in turnover would be reduced to 97 million Euros (-12.1%) compared to 2013.
The BUs in the mechanical engineering segment (Carraro Drivetech and Agritalia) achieved 690.930 million Euros in turnover from third parties, down 13.3% compared to 796.968 million Euros in 2013; as mentioned in the introduction, this decline was largely due to market contraction in the second half of the year for about 50 million Euros, the sale of Mini Gears for 45 million Euros and foreign exchange losses of approximately 8 million Euros.
Summary of Financial Year 2014
-
An
nu
al
Rev
iew
20
14
32 Elettronica Santerno reported a turnover of 36.633 million Euros, significantly down compared to 74.424 million Euros in 2013, reflecting the market trend and the postpone-ment of important photovoltaic projects.
The decrease in revenue significantly impacted on the Group’s profitability which, while improving in percentage as variable sales margin, particularly visible for the core business (21.6% in 2013, 22.3% in 2014), nevertheless declined in terms of operating margin, fur-ther penalised by the non recurring costs incurred for the reorganisation. The sale of Mini Gears’ operations also affected margins, as detailed below.
Ebitda as at 31 December 2014 came to 38.763 million Euros (5.3% of sales), down 37.0% compared to 61.544 million Euros (7.1% of turnover) in 2013. 2014 Ebit amounted to 12.106 million Euros (1.7% of turnover), down 61.2% compared to 31.222 million Euros (3.6% of turnover) in 2013. Excluding non-recurrent costs, Ebitda in 2014 would amount to 45.418 million Euros (6.2% of turnover) and Ebit would be 18.761 million Euros (2.6% of turnover).
Normalising the results for the two years, excluding Mini Gears, adjusted Ebitda in 2014 (excluding non-recurring costs) would amount to 42.669 million Euros (6.0% of turnover) compared to 52.896 million Euros (6.6% of turnover) in 2013; adjusted Ebit would amount to 17.800 million Euros (2.5% of turnover) compared to 28.792 million Euros (3.6% of turnover) in 2013.
With reference to the BUs in the mechanical engineering segment, aggregated Ebitda amounted to 50.281 million Euros (7.0% of turnover) as at 31 December 2014 compared to 66.055 million Euros (8.1% of turnover) in the previous year. Ebit as at 31 December 2014 amounted to 28.394 million Euros (4.0% of turnover) compared to 40.325 mil-lion Euros (4.9% of turnover). Excluding non-recurring costs, aggregated Ebitda in 2014 amounted to 54.361 million Euros (7.6% of turnover), and Ebit to 32.474 million Euros (4.6% of turnover).
Excluding Mini Gears, adjusted Ebitda in 2014 (excluding non-recurring costs) would amount to 51.612 million Euros (7.5% of turnover) compared to 57.407 million Euros (7.7% of turnover) in 2013; adjusted Ebit would amount to 31.513 million Euros (4.6% of turnover) compared to 37.895 million Euros (5.1% of turnover) in 2013.
-
33
Hig
hli
ghts
The Electronics Business Area (Elettronica Santerno) reported in 2014 a negative Ebitda of -7.005 million Euros (-19.1% of turnover) compared to a positive value of 171 thousand Euros (0.2% of turnover) as at 31 December 2013. Ebit was a negative 9.897 million Euros (-27.0% of turnover), against a negative figure of 2.405 million Euros (-3.2% of turnover) in 2013. Excluding non-recurring costs, Ebitda was a negative 4.630 million Euros (-12.6% of turnover), and Ebit was a negative 7.522 million Euros (-20.5% of turnover).
The Group closed with a loss of 7.913 million Euros (-1.1% of turnover) compared to a profit of 1.290 million Euros (0.1% of turnover) in 2013. Excluding non-recurrent items, the loss would amount to 3.091 million Euros (-0.4% of turnover).
The consolidated net financial position as at 31 December 2014 was a negative 224.273 million Euros, an improvement compared to 30 June 2014, when the net exposure was 263.718 million Euros, and to 31 December 2013 when it amounted to 248.150 million Euros; the improved position was due to lower net working capital, positive cash flows arising from the recovery of tax credits in some foreign companies of the Group, sale of the business unit Mini Gears and of the building of Gear World North America in Virginia Beach.
The Group shareholders’ equity as at 31 December 2014 was equal to 41.207 million Euros compared to 54.863 million Euros as at 31 December 2013. The reduction is due to the profit/(loss) for the period and the adjustment of some balance sheet items.
As at 31 December 2014, the financial parameters (covenants) contractually specified for such date in the Reorganisation Agreement entered into with the major relevant banks on 14 may 2013, had been met.
-
Euro/000
20142013
An
nu
al
Rev
iew
20
14
34
Net Revenues
727,757871,936
Operating Income
12,10631,222
Net Income
–7,9131,290
-
35
Hig
hli
ghts
Shareholders’ Equity
41,20754,863
ROI
1.85 %4.58 %
ROE
–20.63 %2.69 %
GrossInvestments
34,67437,539
Workers at 31/12
2,7323,219
R&D
14,27618,671
R&D/Sales
2.0 %2.1 %
Managers andEmployees at 31/12
1,0221,144
-
An
nu
al
Rev
iew
20
14
36
Consolidated Sales Revenues
Consolidated Ebit
Am
ount
s in
Eur
o/0
00
Am
ount
s in
Eur
o/0
00
874,3562012
871,9362013 727,757
2014
6,2552012
31,2222013
12,1062014
-
37
Hig
hli
ghts
Consolidated Net IncomeA
mou
nts
in E
uro/
00
0A
mou
nts
in E
uro/
00
0
Consolidated Net Financial Position(debt balance)
– 7,9132014
– 15,2992012
1,2902013
213,7032012
248,1502013
224,2732014
-
An
nu
al
Rev
iew
20
14
38
Carraro Group Investments(gross of revenues from disposals)
Carraro Group Researchand Innovation Expenditure
Am
ount
s in
Eur
o/0
00
Am
ount
s in
Eur
o/0
00
34,6742014
41,6322012
37,5392013
14,2762014
16,9142012
18,6712013
-
G
G
E
E
D
D
F
F
A
A
C
C
B
B
2013
2014
GED F
A CB
2012
39
Hig
hli
ghts
Consolidated Equity Structure
A — Fixed assetsB — Working capitalC — Liquidity
D — Shareholders’ equityE — Sever, IndemF — M/L terms payablesG — Short-term payables
Sour
ces
Use
sSo
urce
sU
ses
Sour
ces
Use
s
325,298
327,154
54,863
41,207
282,880
265,662
190,080
137,824
19,349
19,387
72,712
62,822
416,598
457,220
331,374
63,116
285,412
184,00419,676
108,857
458,847
-
20142013
An
nu
al
Rev
iew
20
14
40
Main Markets
North America
11.6 %13.3 %
South America
12.8 %12.3 %
Others extra EU
9.4 %8.8 %
Total Export
87.7 %88.6 %
Other EU
7.5 %7.4 %
-
UK
8.1 %6.3 %
Germany
11.4 %11.8 %
Poland
1.8 %2.2 %
China
4.1 %5.9 %
France
6.0 %7.0 %
Italy
12.3 %11.4 %
India
8.1 %5.7 %
Turkey
7.0 %7.9 %
-
Euro/000
20142013
An
nu
al
Rev
iew
20
14
42
Am
ount
s in
Eur
o/0
00
Net revenues
610,453714,724
Gross investments
34,29329,227
R&D
9,67312,590
Workforce at 31/12
3,2533,835
Adjusted for
the ef
fect o
f exc
hang
e di
ffere
nces
Operating income
28,76637,233
Net of
m
inorit
y in
tere
sts
Net income
6,59912,266
Net of m
inorit
y int
eres
ts e
105,
117
Shareholders’ equity
107,96563,342
Turnove
r by G
eogr
aphi
cal A
rea
Total Foreign Countries
88.5 %89.2 %
Turnove
r by G
eogr
aphi
cal A
rea
Total Italy
11.5 %10.8 %
Workf
orce
Bre
akdo
wn
Managers / Employees
711786
Workf
orce
Bre
akdo
wn
Workers
2,5423,049
DrivetechSummary Data and Graphs
In order to perform an analysis that is equal in termsof perimeter, the data should be considered net of those pertaining to MG Mini Gears Spa, which ceased producing and trading in April 2014.
-
43
Hig
hli
ghts
Breakdown by Sector of Application
Other
6.9 %6.9 %
Construction Eq.
42.6 %44.0 %
Agriculture
33.8 %32.0 %
Material Handling
4.3 %4.6 %
Auto & Truck
3.8 %5.5 %
Spare Parts
8.6 %7.0 %
-
Euro/000
20142013
An
nu
al
Rev
iew
20
14
44
Adjusted for
the ef
fect o
f exc
hang
e di
ffere
nces
Net of
m
inorit
y in
tere
sts
Turnove
r by G
eogr
aphi
cal A
rea
Turnove
r by G
eogr
aphi
cal A
rea
Workf
orce
Bre
akdo
wn
Workf
orce
Bre
akdo
wn
AgritaliaSummary Data and Graphs
Am
ount
s in
Eur
o/0
00
Net revenues
102,837102,987
Operating income
– 3723,092
Net income
– 7052,617
Managers / Employees
8888
Workers
187167
Shareholders’ equity
11,23812,059
Total Foreign Countries
87.1 %89.9 %
Total Italy
12.9 %10.1 %
Gross investments
3,7331,743
Workforce at 31/12
275255
R&D
3,7333,780
-
45
Hig
hli
ghts
Agriculture
100 %100 %
Breakdown by Sector of Application
-
Euro/000
20142013
An
nu
al
Rev
iew
20
14
46
Adjusted for
the ef
fect o
f exc
hang
e di
ffere
nces
Net of
m
inorit
y in
tere
sts
Turnove
r by G
eogr
aphi
cal A
rea
Turnove
r by G
eogr
aphi
cal A
rea
Workf
orce
Bre
akdo
wn
Workf
orce
Bre
akdo
wn
Elettronica SanternoSummary Data and Graphs
Am
ount
s in
Eur
o/0
00
Net revenues
36,63374,424
Operating income
– 9,897–2,405
Net income
– 8,197–4,475
Managers / Employees
140192
Shareholders’ equity
23,18831,518
Total Foreign Countries
77.4 %82.4 %
Total Italy
22.6 %17.6 %
Gross investments
1,2772,580
R&D
1,9552,312
Workforce at 31/12
140192
-
47
Hig
hli
ghts
Breakdown by Sector of Application
Renewable Energies
53.0 %81.9 %
Industrial
30.0 %14.1 %
Other
18.0 %4.0 %
-
Key Factors of Success
-
51
Key
Fac
tors
of
Succ
ess
The Group has always been committed to developing power transmission systems with a focus on greater efficiency and ecological sustainability. Today, these requisites are funda-mental for tackling an increasingly competitive market. In keeping with previous years, in 2014 the Group incurred R&D costs amounting to about 2% of turnover.
Transmission systems for agricultural machinery Consistent with the product plan and the strategy to expand our product range, in 2014 we consolidated the production of the T10 transmission; this new product range was ap-preciated by all our customers, who are encouraging us to develop increasingly sophisti-cated versions.
From a strategic standpoint, in mid-year we revised the “road map”of the new product plan, with the objective of winning new market niches within a quite challenging time-frame. The organisation and management of activities/projects were revised, new dedi-cated teams were launched and new business opportunities were identified: dual clutch transmissions from 90hp to 180hp.
As in previous years, in 2014 we carried on the completion and extension of the agri-cultural axles range, to meet the demands of “global” customers according to a “local for local” approach. This step was also taken with a view to streamline and standardise the products in our catalogue.
Research and InnovationThe key success factor in 2014
-
An
nu
al
Rev
iew
20
14
52 Transmission systems for construction equipment The evolution of BHL transmissions (Backhoe loader), which we had announced as a technological innovation in all major world exhibitions, materialised with the TLB 56 and TLB2 evo prototypes. During 2014, we introduced the TLB56 transmission to our major customers, by directly applying it on a demonstration vehicle, obtaining excellent feedback with respect to all innovative aspects: 3+1 speed, optimal performance both for “road transport” and in “rear excavation” activities. The same contents were also included and prototyped in the premium version (TLB2 evo), which will be tested in 2015 directly on customers’ test fields. The automatic version (TLB1 sps) has been designed, but the prototype will be launched in 2015.
Similar to what has been done in agricultural applications, teams dedicated to the de-velopment of new strategic products were also launched in the construction equipment segment. Also for telescopic trucks, design activity totally focusing on the new TC4.0 SD transmission was started. Following benchmarking, competitive analysis and planned sim-ulations, the designs will be released at the beginning of 2015, for the development of a first prototype within the year.
We were actively engaged in the rationalisation of the axles range for construction equip-ment applications, with a project that involved several business areas with cross-function-al teams, seeking the best solution capable of providing availability within a short time, quality processes and margins. The approach was based on functional modules, with the identification of technical parameters characterising size and performance, but not the application. This approach will enable to overcome the differentiation between axles for agricultural applications and those for construction applications, by developing a single range composed of “sub-groups”, which can be modularly assembled according to specific needs.
-
53
Key
Fac
tors
of
Succ
ess
2014 capacity for developmentThe organisational improvement of Engineering & Innovation Drivetech continued in 2014. Our presence and proximity to the markets on the one hand, and to the production sites on the other, was confirmed as a recognised and appreciated competitive advantage. At the same time a team was launched in China to give more impetus to the development of products for the local market.
In addition, in 2014 the expansion of our testing capacity was approved with 4 new test benches in Italy and a power test in India. In October, the continuous cycle (7x24) was introduced in our Italian laboratories. In 2015 additional organisational changes will be needed as a result of the requirements arising from the new test benches, the new “time to market” and the new product content that will be tested for the first time.
Tractors 2014 saw the start of production of the new common platform for the Light Utility and low Orchard range; this event especially reflected the company’s strategy towards pro-duction standardisation and streamlining. This is a complex project which resulted in the launch of a product significantly improved compared to those of the past in terms of qual-ity and reliability and which contributes, in a proactive and innovative manner, to making the Agritalia product range increasingly competitive in the target markets.
The “Next Generation” project, which introduces the engine compliant with the “Stage 4 Final” emission requirements, continued to progress successfully. It envisages the use of the “adBlue” system (to reduce exhaust gases) and in late 2015 will be launched into production also on the American market.
The Engineering Service activities for the design of the new Escorts tractors range for the Indian market continued to be performed successfully.
As regards methodology, the product development process (PDP) was consolidated with the introduction of the new approach to managing resources and generating offers to customers.
-
An
nu
al
Rev
iew
20
14
54 Power electronicsIn the second half of 2014, a development program has started, with greater emphasis and dedicated resources, primarily focused on products and applications for industrial automation, while at the same time overseeing the strategic projects already started for the “Utility Scale” photovoltaic sector. In this regard we also completed the process for the International (UL 1741 and IEC 61727-62116) and Italian (CEI 0-16) Solar Certifi-cations and expanded the range of monitoring and control solutions for Utility Scale PV installations.
In the industrial automation segment, the project has been completed and the “Blue Iris” inverter line has been brought into production during the second half of the year. It is dedicated to the field of water treatment, Hvac, refrigeration compressors, with the development of specific functionalities. The “Iris Blue” line was also equipped with more sophisticated remote management and maintenance tools, compared to those until then used for industrial drives.
In parallel, we developed the new Solardrive Plus range for hydraulic pumping powered by solar energy, which renews a family of Santerno products that achieved great success in the 1984-2006 period. The low cost of photovoltaic panels and technologies in general makes these applications very profitable for the 10KW to 300 kW generators, compared to the diesel generators currently used for irrigation in many rural, semi-desert areas in the world.
During 2014, the preparation of the documentation for the “Safety” certification was successfully completed together with the TÜV Nord, applied to the STO function (Safe Torque Off) of the industrial inverters line. From the first quarter of 2015 the new ES927 CPU will go into production on the Sinus Penta line; thanks to the STO certification, this will enable an expansion of the Santerno products range to the industrial sectors that re-quire these capabilities, aligning performance to those of the major players in the market. During the year we also launched the project for the complete renovation of the Fieldbus communication cards of the Sinus Penta range, which will go into production in the sec-ond quarter of 2015.
In the renewable energy sector, our efforts especially focused on applications, in order
-
55
Key
Fac
tors
of
Succ
ess
to take advantage of the “Utility Scale” conversion technology of Santerno within the large international projects managed by our main customers. Our engineering effort was aimed both at better integration in the field of existing converters (cabins, transformers, instal-lation layout, etc.) and at the production of auxiliary components (string boxes, auxiliary panels, etc.) with better performance and optimised costs. Through this strategy, we were able to maintain Santerno market position and to acquire in 2014 several major contracts for 2015 and 2016.
As for the residential solar segment, the R&D (research and development) team man-aged two major activities: software updating and compliance with standards for the mar-ket of Central America, which sees a significant development for Santerno in this market segment, and placing into production of a line of dedicated “brand label” products for a European customer involved in the distribution of equipment and accessories for electri-cal installations.
Finally, during 2014 the project for the development of new inverter CPUs for industri-al automation and photovoltaic applications was launched, involving two new more mod-ern and better performing control architectures, which will enable Santerno to maintain its competitiveness and develop new market features for the next ten years.
-
TimelineCarraro activities in the last year
-
An
nu
al
Rev
iew
20
14
58
2014 Figures and Facts
01. January
In January, the Santerno integrated system for energy conversion of Mount Signal Solar project 1, located in Imperial Valley in Southern California was introduced and successfully brought to full operation; one of the largest photovoltaic parks in the world (256 MWp) in which Santerno participates as exclusive supplier in its field.
02. February
In February, the activities of O&K Antriebstechnik were moved in a new production site. The new factory, again located in Hattingen at about 2 km from the current site, occupies a total area of 32 thousand square meters, of which 15 thousand indoor, enabling significant improvements in terms of ergonomic layout which will positively impact on the business of drives for construction equipment and stationary applications.
03. March
In March Carraro Drive Tech participated again at the Conexpo in Las Vegas, one of the most important exhibitions in the world dedicated to construction equipment. On this occasion we presented a wide range of products for medium and small size construction equipment, demonstrating our solid know-how and experience in transmissions for different applications such as backhoes, telehandlers, compaction and mining applications. At the end of March an agreement was signed, which was finalised in late April, between MG Mini Gears Spa and the German fund Finatem, for the sale of miniGears operations located in Padua and Suzhou (China). More specifically, it was agreed that as a result of this transaction, the two production companies, specialising in the production of sintered gears, will be operating alongside Herzog GmbH – focused on components and gears and located in southern Germany – already controlled by Finatem. This agreement is part of the process aimed at focusing on the Group’s core business and will contribute to accelerate the investment plan in progress.
-
59
Tim
elin
e
04. April
As a result of the collaboration between Carraro and Fuchs, a leader in the market for the independent production of lubricants and with offices and production facilities in more than 40 countries, in April the new Carrarooil range of oils was announced, which was designed to provide optimal lubrication and high wear protection for a wide range of products such as transmission units, brakes and clutches. This supplements the already extensive range of products and services offered by Carraro Ricambi. Also in April, for the first time Carraro Drive Tech participated with its own booth at the international Agrishow fair, the most important event dedicated to the agricultural market in Latin America, which was held in Ribeirão Preto (Brazil). Our products attracted significant attention, especially the new range of T10 agricultural transmissions.
05. May
In May, the new plant of Carraro Brasil was started in Caxias do Sul, a Brazilian city located in the State of Rio Grande do Sul, near some of the Group’ major customers. With this site, Carraro strengthens its already significant presence in the Brazilian market, one of the most important in the world for both agricultural machinery and construction equipment, with interesting opportunities for further development.
With regard to the development of partnership projects with key suppliers, we should also mention the agreement signed
in May between Carraro and the company GKN Land Systems (suppliers of double joints) with the aim to further strengthen the relationship in place.
In the same month, Carraro Drive Tech was back at the CeMAT in Hannover, the leading international trade show dedicated to logistics and material handling. For this market niche, Carraro exhibited innovative integrated transmission systems both for electric traction applications and internal combustion engines. At the same time, Elettronica Santerno attended the Solarexpo in Milan, the landmark event for the photovoltaic industry in Italy.
06. June
In June, Carraro Agritalia was certified according to OHSAS 18001: 2007 by TÜV Italia. This certification is the reference standard for the implementation of a management system for the protection of health and safety in the workplace and is designed to ensure compliance with specific rules and to continuously improve performance and indicators over time. To date Agritalia is one of the few Italian companies in this industry to have achieved this certification, and, on a local level, it is one of the pioneer in organising initiatives on these issues. At the same time, the company of Rovigo successfully initiated the production of a new range of “low profile” tractors; these were highly appreciated by both direct customers in connection with the “three horses” brand as well as by the primary OEM which requested its insertion within their product offers.
-
An
nu
al
Rev
iew
20
14
60
09. September
In September, the fifth Worldwide Spare Partners Meeting was held in Catania, which saw the active participation of 35 distributors from 28 different countries. This was a new opportunity to share market scenarios and long-term goals with the global after-sales network, based on the motto “Building our future, together”.
10. October
In keeping with the organisational development which aims at replacing the industrial holding approach, that has characterised the management and governance of the Group in recent years, and the integration of the entire organisation within the main business, on 29 October the BoD of Carraro Spa co-opted Alberto Negri, formerly General Manager of Carraro Spa, as member of the Board of Directors and appointed him as new CEO of the Group.
11. November
Within the Energetica project launched in 2013 with a view to optimise the energy costs of the Group’s Italian plant, knocking down emissions and simultaneously improving productivity, in November the renovation of the entire lighting system of the 18,000 square meter factory in Campodarsego was completed. Thanks to the installation of a set of innovative low-consumption LED lighting fixtures manufactured by Zumtobel, an international leader in technical lighting, the investment will be recouped in just one year through cost savings in terms of electricity, lamps replacement and cleaning. In addition, CO2 emissions will be cut by 64%.
In the same month, the 2014 edition of the Bauma China in Shanghai, the most important trade fair in Asia dedicated to the construction equipment segment, was an opportunity for reviving the O&K Antriebstechnik brand, which was the focus of our exhibition stand. Within a 200 square meter area we exhibited the new range of drives for crawler excavators, cranes, winches and compaction rollers.
The BoD meeting held on 26 November 2014 also approved the centralisation within Carraro Spa of R&D activities, until then split into two distinct legal entities, with the aim of promoting synergies between the innovation processes of the Drivelines and Vehicles engineering areas.
-
61
Tim
elin
e
12. December
In December, Elettronica Santerno finalised a new important agreement for the supply of an integrated inverter and components for two new solar parks in South Africa, with Enertronica Spa, a leading company in the field of renewable energy and energy saving. This agreement was entered into just a few months after the signing of a similar contract in July, with TerniEnergia; as a result, the company from Bologna has become the largest manufacturer of inverters across the African continent, with an installed base of 381 MW in South Africa alone and a total turnover for the two orders of 35 Million Euros.
-
63
Tim
elin
e
Significant Events in Financial Year 2014
On 27 March 2014, an agreement was signed between MG Mini Gears Spa and the Ger-man fund Finatem for the sale of the production and operating activities of the Mini Gears plant in Padua and its entire stake in the company MG Mini Gears Suzhou Ltd. The total transaction value (Enterprise Value) was approximately 28 million Euros. The transaction was completed on 30 April 2014.
The lower than expected results of Elettronica Santerno and the subsequent reorgan-isation impacted on the Group’s financial forecasts for the medium term. As a result, a waiver was requested to the lending banks in relation to the financial parameters for 30 June 2014 as well as a redefinition of the financial parameters for the period December 2014-June 2016. On 27 June 2014, a positive resolution was obtained from banks in rela-tion to the request for waivers of the covenants of 30 June 2014 and on 25 July 2014, the request for a redefinition of the covenants for the period December 2014-June 2016 was approved.
On 15 July 2014 Carraro Spa and Carraro International Sa purchased from GE Capital Interbanca Spa the participating interest held in Carraro Drive Tech Spa (5.47%) conse-quent to the perfection of the merger by way of incorporation of Gear World Spa in Car-raro Drive Tech Spa.
As GE Capital Interbanca’s role in the original investment project ended, the Group decided to re-purchase said participating interest also in order to continue in a more de-termined and rapid way with the process of simplification of the corporate structure with benefits expected in terms of potential development of new organisational structures and in terms of cost saving.
On 1 October 2014, Turbo Gears India Ltd was merged in Carraro India Ltd, with ac-counting and tax effect from 1 April 2013. This transaction is part of the company simpli-fication process mentioned in the previous paragraphs.
On 23 October 2014, an audit of the Italian Financial Police was completed, following which some charges were formulated concerning the alleged Italian tax residence of some foreign companies of the group. In December, these companies received verification no-tices for the 2008 tax year and they are currently evaluating the appropriate actions to take.
-
An
nu
al
Rev
iew
20
14
64 On 29 October 2014, the Board of Directors resolved to implement changes in the top management earlier than the originally planned expiration date, set at the time of ap-proval of the 2014 financial statements, and co-opted Alberto Negri, formerly General Manager of Carraro Spa, as member of the Board of Directors and appointed him as new Ceo of the Group. At the same meeting, the Board of Directors also approved a reorgan-isation process, proposed by the management, aimed at reducing fixed costs by 15% and envisaging the exit from the group of about 50 people, between managers and employees and about 100 workers, mostly in foreign plants. These personnel changes were partly implemented in the last months of 2014.
The Board of Directors’ meeting held on 3 December 2014 approved the sale of the R&D business from Carraro Drive Tech Spa to Carraro Spa, with the aim of centralising within Carraro Spa the R&D function until then split into two legal entities, thereby pro-moting synergies between the innovation processes of the Drivelines and Vehicles engi-neering areas.
Subsequent EventsAgain as part of the company simplification process, on 15 January 2015, Carraro Drive Tech Poggiofiorito Spa was merged into Carraro Drive Tech Spa, with accounting and tax effect from 1 January 2015.
-
01/1
3
03/1
4
05/
14
07/1
4
09/
14
11/1
4
01/1
5
CARRARO
FTSE MIB
–50 %
–30 %
–20 %
–10 %
+10 %
+20 %
0 %
–40 %
65
Tim
elin
e
Share Performance
In the course of 2014, the Carraro stock price was affected by the Group’s negative eco-nomic results and consequently recorded a downward trend, underperforming market indices (Ftse Mib).
The official average price of 2014 was 2.5 Euros, with a maximum listing at 3.33 Euros on 22 January and a minimum listing at 1.69 Euros on 16 October.
-
An
nu
al
Rev
iew
20
14
66
Business Outlook and Projections for 2015
Despite limited visibility on the order portfolio in 2015, the Group is forecasting sales in line with 2014 and an increase in profitability resulting from the restructuring of the sub-sidiary Santerno and the reduction in fixed costs to be achieved upon completion of the reorganisation program initiated in 2014.
-
Luca Barcellona Milano, born in 1978, is a name that represents a touchstone for the world of modern calligraphy. Working as a graphic designer and freelance calligrapher, letters are the main component of his creations. The aim of his work is to promote coexistence between the manual skill found in antique art forms like calligraphy with the languages and instruments of the digital era. His lettering has been requested by many leading brands in the fashion, clothing, recording and editorial industries (such as Nike, Absolut, Pirelli, Universal, Wall Street English, Carhartt and Mondadori). He has also worked for major museum commissioning bodies and since 2007, Luca has taught calligraphy through the Italian Calligraphy Association. He holds workshops and conferences all over the world, while his artwork has been exhibited in numerous galleries. In 2012, he published his first monograph entitled “Take Your Pleasure Seriously”, which was edited by Lazy Dog Press where he is a partner.
design
Bunker{bnkr.it}
calligraphy
Luca Barcellona{lucabarcellona.com}
typeset in
Amplitude{Schwartz, 2003}
Miller{Carter, 2002}
print
Grafiche RebecchiCeccarelli{Modena}
-
carraro.com
Related Documents
