Indesit: Ever-Decreasing Shipments in 2013
Feb 13, 2014
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Appliance maker Indesit Company (Fabriano, Italy) reported its preliminary full-year 2013 results, including a year-long downward trend in quarterly shipment volumes. Indesit said that, compared to the same period of the previous year:
• 1Q 2013 shipment volumes were down 1.3%
• 2Q 2013 shipment volumes were down 4.3%
• 3Q 2013 shipment volumes were down 6.4%
• 2Q 2013 shipment volumes were down 8.1%

Volume shipments ended the year down 5.3%.

By comparison, Indesit estimated that industry-wide appliance shipments in Greater Europe—its primary market—were down 0.7%.

Indesit's full-year 2013 sales in its preliminary reporting were EUR 2,671 million, down 7.7% from EUR 2,894 million in 2012. Sales were down 4.6% at constant exchange rates.

Net group income for the year was EUR 3 million, down 94.7% from EUR 62 million in 2012.

Earnings before interest and taxes (EBIT) was EUR 84 million, down 25.9% from EUR 113 million in 2012.

The company blames the decrease in sales volume on unfavorable trends in its main markets as well as price enhancement activity. It saw a significant negative impact from Euro appreciation.

Profitability benefited from a cost reduction plan on products and on SG&A (selling, general & administrative) expenses. Profitability was negatively impacted by volume loss and exchange rates.

Indesit's strategic commercial priorities in 2014 include:
• Leveraging and protecting 2013 price increases in key markets of the UK, Russia, and Turkey, as well as further price increases to offset negative exchange rates in Russia, Turkey, and Argentina.
• Taking steps to foster business turnaround and share recovery in France.
• Continue to improve its business in its home market of Italy.

The company plans substantial new product launches in 2014. Planned launches for major domestic appliances (MDA):
• Hotpoint-brand built-in cooking appliances
• Indesit-brand and Hotpoint-brand washers, dryers, and slim dishwashers
• Hotpoint-brand washers and refrigerators featuring Dialogic control technology to allow remote smartphone operation

In small domestic appliances (SDA):
• Products to complete the line of clothes irons
• Extension of the lines of food preparation and vacuum cleaners

Manufacturing changes planned for 2014:
• Investments in Italy in production of high-end and built-in appliances
• Start-up of a new laundry appliances plant in Turkey before the end of the year

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