“Economically, 2012 was a very tough year in Europe and above all in Italy, however our Group continued to see a rise in profitability thanks to the good performance of its core businesses, tyre retreading and the construction of advanced machinery and systems for the tyre industry”.
This is how CEO Massimo De Alessandri opened the meeting with the Group’s international management last week in Rovereto.
Although more precise data will be published in the official financial statements, Marangoni Spa, the Group’s parent company, announced that despite a drop in turnover due to a reduction in sales volumes, 2012 was a year in which the Group, through decisive action taken regarding product mix and related revenues as well as operating costs, achieved a substantial increase in operating profits, thus improving its net financial position.
In a general economic context characterised by extreme uncertainty and strong recession on the domestic market and in Europe generally, the Group recorded a positive trend both in the machinery sector, with important orders from foreign markets, and in retreading where, in addition to recovering profitability in Europe, we saw our subsidiaries in North America (Nashville – Tennessee) and in Latin America (Belo Horizonte, Brazil, and Rosario, Argentina) exploit the growth opportunities offered by their respective markets.
Good performance in the Group’s core businesses and on foreign markets more than made up for a drop in profits in the business units most exposed to the recession and the fall in consumption on the European and domestic markets, such as the car tyres and wholesale-retail distribution units.
Commenting on plans for the current year, Massimo De Alessandri stressed how “2013 will once again be a year of uncertainties and potential crises, as despite an expected gradual improvement in the global economy, developments in Europe and especially in Italy are quite unclear”. As a result, the Rovereto company will need to differentiate its efforts in the different areas.
On the American markets, where Marangoni’s sales total over 100 million euros, the aim will in fact be to grow sales further, “taking advantage of the technological capabilities of our local production plants and further improving profitability by fully exploiting the manufacturing capacity achieved in recent years”.
As regards European business, and with the exception of tyre machinery production, which is buoyed by demand in emerging markets, continuing weak domestic demand “will force our companies to maintain profitability by implementing strict and specific policies to defend sales quality in the various different customer segments, making all company processes more efficient and adapting operational structures to the expected continuing recession and stagnation scenario”.