Industrial business

The table below shows the results compared with the corresponding period of 2013:

INDUSTRIAL
(in millions of euro)
1 Q 2 Q 3 Q 4 Q TOTAL 
 2O142O132O142O132O142O132O142O132O142O13
Net sales 340.8 388.3 351.7 429.2 361.2 366.2 343.5 368.0 1,397.2 1,551.7
yoy -12.2%   -18.1%   -1.4%   -6.7%   -10.0%  
Gross operating margin before restructuring expenses 60.9 63.0 63.6 77.3 59.2 70.4 58.5 69.6 242.2 280.3
% of net sales 17.9% 16.2% 18.1% 18.0% 16.4% 19.2% 17.0% 18.9% 17.3% 18.1%
Operating income (loss) before restructuring expenses 47.6 49.5 49.3 63.0 44.4 58.0 41.9 56.4 183.2 226.9
% of net sales 14.0% 12.7% 14.0% 14.7% 12.3% 15.8% 12.2% 15.3% 13.1% 14.6%
Restructuring expenses (1.5) (1.2) (1.5) (0.9) (2.3) (3.5) (1.7) (2.0) (7.0) (7.6)
Operating income (loss) 46.1 48.3 47.8 62.1 42.1 54.5 40.2 54.4 176.2 219.3
% of net sales 13.5% 12.4% 13.6% 14.5% 11.7% 14.9% 11.7% 14.8% 12.6% 14.1%

The table below provides a detailed breakdown of the market trend:

  1 Q2 Q1st half 2O143 Q9 months 2O144 QTotal year
EUROPE (*) Original Equipment +7% -4% +1% -5% -1% -12% -4%
  Replacement +14% +2% +8% -3% +4% -1% +2%
NAFTA Original Equipment +10% +11% +10% +19% +13% +29% +16%
  Replacement +5% +12% +8% +10% +9% +12% +10%
SOUTH AMERICA Original Equipment -1% -28% -16% -29% +20% -33% -23%
  Replacement +3% -4% 0% -3% -1% -10% -3%
CHINA Original Equipment +13% -7% +2% -11% -2% -16% -5%
  Replacement +3% +4% +4% +5% +8% -2% +3%

*Including Turkey; excluding Russia

Net sales totalled euro 1,397.2 million, a 10% decrease compared to 2013 (euro 1,551.7 million), with the negative exchange rate component of 8.5%.

The significant improvement in the mix and the increase in prices (+5.0% growth in the price/mix) almost entirely offset the decline in volumes (-6.5%), mainly attributable to the contraction of the Latin American market from the second quarter of 2014.

Below is the breakdown of the change in sales:

 1 Q 2 Q 3 Q 4 Q Cumulative at 12/31
 2O142O132O142O132O142O132O142O132O142O13
Volume -2.2% 11.7% -12.2% 20.6% -3.6% 4.0% -7.3% -0.3% -6.5% 8.7%
Price/mix 5.4% 1.4% 6.5% 3.6% 4.0% 0.9% 3.9% 2.5% 5.0% 2.1%
Change on a like-for-like basis 3.2% 13.1% -5.7% 24.2% 0.4% 4.9% -3.4% 2.2% -1.5% 10.8%
Translation effect -15.4% -8.2% -12.4% -6.0% -1.8% -13.6% -3.3% -8.4% -8.5% -9.2%
Total change -12.2% 4.9% -18.1% 18.2% -1.4% -8.7% -6.7% -6.2% -10.0% 1.6%

Operating income before restructuring costs amounted to euro 183.2 million, equivalent to 13.1% of sales (12.6% EBIT margin including restructuring costs of euro 7.0 million) and in reduction respect to euro 226.9 million as of 2013 (14.6% of net sales).

The operating income, in decrease compared to 2013, reflects the decline in volumes, the previously mentioned actions regarding the reduction of production and cost inflation of production factors in Latin America.