Carbone Lorraine - Strong Resilience at Operating Level

Carbone Lorraine’s Board of Directors met on March 16, 2004 to approve the accounts for fiscal 2003.

Commenting on the Group’s results for fiscal 2003, Claude Cocozza, Carbone Lorraine’s Chairman and Chief Executive Officer said:“In persistently depressed business conditions, Carbone Lorraine delivered further proof of its strong resilience at operating level during 2003.Its net loss was attributable entirely to provisions covering the fine meted out by the European Commission and to an impairment charge related to the Magnets division. As a result of these decisions, we have now put these two issues behind us.
2004 will mark the beginning of a new period of earnings growth for Carbone Lorraine. We forecast improvement in the Group’s margins this year, even if business conditions remain the same. And if the economic recovery does occur, our earnings growth will be even stronger.”

Consolidated sales: €629 million

Primarily as a result of a volume contraction, 2003 sales showed a decline of 7% on a like-for-like basis compared with the previous year. Excluding Magnets and Anti-corrosion equipment, which benefited from special conditions in 2002, the decline in sales came to just 3%.

Operating income: €39 million

Carbone Lorraine’s operating income held up well in spite of the volume contraction owing to the successful implementation of the savings plan. The plan produced a complementary contribution of €12 million to the operating income on top of the €9 million already saved in 2002, a total figure higher than expected. As a result, the operating margin contracted by just two percentage points to 6.2% even though sales fell by 7 points.

Net non-recurring items: €55 million

Non-recurring items were high and showed a net charge of €55 million, but these charges will enable the Group to start 2004 with a clean slate and in good shape. The principal non-recurring items were as follows:
- a provision for anti-trust litigation of €25 million covering the full amount of the European Commission’s fine, which the Group is vigorously contesting;
- an impairment loss of €17 million recognized on the Magnets division;
- €19 million in restructuring charges related to implementation of the savings plan;
- €7 million in capital gains on asset disposals.

Net loss: €38 million

Net income before non-recurring items came to €22 million. Owing to the heavy non-recurring charges, the Group posted a net loss of €38 million.


To avoid drawing on reserves, the Board of Directors will not propose payment of a dividend to the General Meeting of the Shareholders in respect of 2003. The Group intends to resume dividend payments from next year.

Net debt: down 23%

Strong cash generation coupled with currency fluctuations contributed to the 23% reduction in net debt to €183 million at December 31, 2003 from €236 million at year-end 2002.


A new period of earnings growth is set to start for the Group in 2004, even if economic conditions remain on a par with those prevailing last year. This earnings growth will be driven by the full benefits of the savings plan that has been implemented since 2002.
The pace of earnings growth will be even stronger if the first signs of an economic recovery turn into a full-fledged upswing.

600450 Carbone Lorraine - Strong Resilience at Operating Level

See more news about:

Others also read

The glass sector has the increasingly widespread requirement of having an unlimited catalogue of parametric shapes and creating new ones in a simple way without being an expert in the field.
Shoaib Akhtar is going to be back on Indian TV screens. He is going to be featured in the new TV ad campaign for Asahi Glass.
Glass Confusion is starting the New Year with Beginning Fused Glass group classes. The three-week course will be held Wednesdays from 10 a.m. to 1 p.m. and again from 5 p.m. to 9 p.m.
Worldwide glass-substrate capacity is expected to continue to grow more than 40% each quarter through 2005, as a result of capacity expansion by existing glass-substrate suppliers and new companies joining the market, according to DisplaySearch.
Western Pennsylvania’s once-thriving glassmaking industry is dwindling, as did the domestic steel industry and for many of the same reasons: competition and cost.
Architects Robert and Esteve Terradas of Barcelona describe the city’s newly-renovated and expanded (45,000 m2) Science Museum (completed September 2004) as "a living museum that will set new standards in terms of transparency - a very modern construction that will enable the plants and animals inside to really live and breathe." The project was made possible by the use of an innovative grade of DuPont™ SentryGlas© Plus™ structural interlayer that is "UV-breathable, on the flat roof of an Amazonian rainforest exhibit".The UV-breathable 938 m2 laminated glass roof is rectangular in shape.

Add new comment