The Board of Directors of Natuzzi S.p.A. (NYSE:NTZ) (“Natuzzi” or “the Company”) has approved its consolidated financial results for the first quarter of 2014.
After the meeting of the board of directors, the Chief Executive Officer, Pasquale Natuzzi, commented:
“First quarter 2014 results represent a first check-point for monitoring the progress of the 2014-2016 Business Plan (the “Plan”), that was approved by the board of directors on February 28, 2014, as well as the effectiveness of the actions already undertaken.
Consolidated net sales in the period were equal to €98.4 million, down 11.2% from €110.7 million reported in the first quarter of 2013.This reduction – largely anticipated by the Plan – is attributable principally to the following factors:
- The negative impact from foreign currency movements that have eroded 3.2% of total net sales when translated into Euro;
- The negative performance of some of the Group’s largest dealers located in the North America region, following the adverse weather conditions that occurred on the Atlantic coast and that have affected the first few months of the year;
- Production delays, particularly in Italy and China. As for Italy, we reported a low level of productivity since we staffed our Italian plants with workers on rotation, in accordance with the agreement we entered into with the unions on October 10, 2013; as for China, we experienced a higher than expected level of turnover among workers after the Chinese New Year holiday period, consequently lowering the level of productivity for the Chinese plant.
It is worth highlighting that, notwithstanding the 11.2% reduction in revenue reported for the period, the Group’s industrial margin was substantially the same as last year, passing from 29.0% in 2013 first quarter to 28.5% in the first three months of 2014.