EBIT1 REPORTS MAJOR IMPROVEMENT TO A POSITIVE €17.9 MILLION FROM A LOSS OF €9.2 MILLION AT END OF JUNE 2009
EBIT FROM SERVICE ACTIVITIES2 IS A POSITIVE €11.2 MILLION VERSUS A LOSS OF €3.2 MILLION AT JUNE 2009, IN LINE WITH FULL-YEAR TARGET RANGE OF BETWEEN +€20 AND +€30 MILLION
FIRST-HALF REAL ESTATE SALES OF €562.1 MILLION (€351.9 MILLION AT JUNE 2009), REACHING €771.3 MILLION IF THE ANASTASIA FUND'S IMMINENT LAUNCH IS INCLUDED: FULL-YEAR TARGET CONFIRMED AS BETWEEN €1.3 AND €1.5 BILLION
FIXED COST SAVINGS OF €25.4 MILLION MADE IN FIRST SIX MONTHS: FULL-YEAR TARGET RANGE ALREADY ACHIEVED (BETWEEN €25 AND €30 MILLION)
CONSOLIDATED NET RESULT IS A LOSS OF €20.9 MILLION, ALMOST ALL OF WHICH DUE TO PROPERTY WRITEDOWNS (€18.3 MILLION) AND MORE THAN HALVED FROM LOSS OF €42.3 MILLION IN FIRST HALF 2009
NET FINANCIAL POSITION, EXCLUDING SHAREHOLDER LOANS GRANTED: -€452.3 MILLION (STABLE AGAINST -€445.8 MILLION AT DECEMBER 31ST, 2009);GEARING3 STABLE AT 0.7
GENERAL MANAGER PAOLO BOTTELLI HAS RESPONSIBILITY EXTENDED TO BUSINESS IN ITALY AS WELL
NEW MANDATES TO MANAGE THIRD-PARTY ASSETS FOR 2010-2012 REACH AN ESTIMATED VALUE OF BETWEEN €1.6 AND €2.2 BILLION
At today's meeting, the Board of Directors of Pirelli & C. Real Estateexamined and approved the half-year financial report at June 30th, 2010.
The Company has continued to improve all its key performance indicators in the first halfof 2010 relative to the same period in 2009. In terms of operating results, EBIT is €17.9million (-€9.2 million in the first half of 2009), while EBIT from service activities hasclimbed to €11.2 million (-€3.2 million in the same period of 2009). In light of theseresults, the Company confirms all its EBIT and other financial targets for full year 2010.
1 Includes results from service and investment activities, and income from shareholder loans which includes interest income on financial receivables from associates and joint ventures.