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 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2O14 | 2O13 | 2O14 | 2O13 | 2O14 | 2O13 | 2O14 | 2O13 | 2O14 | 2O13 | |
| 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 Q | 2 Q | 1st half 2O14 | 3 Q | 9 months 2O14 | 4 Q | Total 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2O14 | 2O13 | 2O14 | 2O13 | 2O14 | 2O13 | 2O14 | 2O13 | 2O14 | 2O13 | |
| 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.