Landi Renzo, margins down and -25,8% of revenues

The first half of 2011 for Landi Renzo closed with growing turnover, declining margins and a negative net result. The net revenues of the group specialized in gas plants were 127,7 million euros and recorded a decrease of 25,8% compared to 172,1 million euros at 30 June 2010. The gross operating margin (Ebitda) was equal to 10,9 million euros, thus marking a decrease of 66,7% compared to the 32,6 million euros of the first six months of 2010. The net operating margin (Ebit) was equal to 1,8 million euros, against 27,3 million euros in the first half of 2010. The decrease in the EBIT was contributed by a further 1,4 million euros due to the increase in depreciation following the definition of the purchase price allocation on Baytech Corporation, acquired at the end of July 2010. Landi Renzo achieved 82,9% of its consolidated turnover abroad (25,9% in the European area and 57% in the non-European area). In particular, net sales in non-European markets grew by 37,8%, settling at 72,8 million euros as at 30 June 2011. “The results for the first half of 2011 – declared Claudio Carnevale, the group's managing director – are characterized by a second quarter that marks a marked turnaround compared to the first three months of the year, highlighting our ability to seize the opportunities that have emerged in the various countries that have chosen to use alternative fuels systematically, as they are less polluting and cheaper for the whole community”.