MIRA
INFORM REPORT
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Report Date : |
12.11.2011 |
IDENTIFICATION DETAILS
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Name : |
BORGHI SPA |
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Registered Office : |
Via Cristoforo Colombo 12 Cavazzona Castelfranco Emilia, 41013 |
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Country : |
Italy |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
14.10.1981 |
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Com. Reg. No.: |
01346250366 |
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Legal Form : |
Public Independent |
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Line of Business : |
Manufacture of other special purpose machinery not elsewhere classified |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Italy |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
Borghi SpA
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Business
Description
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Borghi SpA is primarily engaged in manufacture of machinery for
working soft rubber or plastics or for the manufacture of products of these
materials (extruders, moulders, pneumatic tyre making or retreading machines
and other machines for making a specific rubber or plastic product);
manufacture of printing and bookbinding machines; manufacture of machinery
for producing tiles, bricks, shaped ceramic pastes, pipes, graphite
electrodes, blackboard chalk, foundry moulds, etc.; manufacture of moulding
boxes for any material; mould bases; moulding patterns; moulds; manufacture
of dryers for wood, paper pulp, paper or paperboard; manufacture of
centrifugal clothes dryers; manufacture of diverse special machinery and
equipment (machines to assemble electric or electronic lamps, tubes (valves)
or bulbs; machines for production or hot-working of glass or glassware, glass
fibre or yarn; machinery or apparatus for isotopic separation; rope-making
machinery, etc.); and manufacture of industrial robots for multiple uses. |
Industry
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Industry |
Miscellaneous Capital Goods |
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ANZSIC 2006: |
2499 - Other Machinery and Equipment
Manufacturing Not Elsewhere Classified |
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NACE 2002: |
2956 - Manufacture of other special
purpose machinery not elsewhere classified |
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NAICS 2002: |
333298 - All Other Industrial Machinery
Manufacturing |
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UK SIC 2003: |
2956 - Manufacture of other special
purpose machinery not elsewhere classified |
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US SIC 1987: |
3569 - General Industrial Machinery and Equipment,
Not Elsewhere Classified |
Key Executives
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News
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1 - Profit &
Loss Item Exchange Rate: USD 1 = EUR 0.7550783
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7454064
Corporate Overview
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Executives Report
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Football: Chile bans five partying players
Agence France-Presse: 09 November 2011
[What follows is the full text of the news story.]
SANTIAGO, Nov 9,
2011 (AFP) -
Chile coach
Claudio Borghi has suspended five players who turned up late for training
visibly the worse for wear after attending a party.
The banned quintet
are Premier League side West Brom's Gonzalo Jara and English Championship
outfit Birmingham's Jean Beausejour, Serie A midfielders Arturo Vidal and
Carlos Carmona, and Brazil-based Jorge Valdivia.
They will miss
Chile's qualifiers against Uruguay in Montevideo on Friday and Paraguay in
Santiago next Tuesday.
The five were
hauled over the coals by Borghi after attending the baptism of Valdivia's son.
After the party
they arrived for training 45 minutes late, reportedly inebriated.
Borghi told a
press conference: "They arrived in a state that wasn't appropiate for the
national team of Chile nor for a professional player.
"From that
monent I decided to suspend them from the squad."
The five have been
replaced by players from the domestic league.
Borghi added that
he had acted "not because they had broken a written rule but because they
broke their word, which is more serious".
The bans come at a
tricky time for Chile who are lying in sixth place after one win and one defeat
in qualifying for Brazil 2014.
pa/pbl/ag/nr/pi11
5 Chile players
dropped after drunken night out
Associated Press: 09 November 2011
[What follows is the full text of the news story.]
SANTIAGO, Chile --
Juventus midfielder Arturo Vidal was among five players dropped by Chile coach
Claudio Borghi on Wednesday after they returned to the team hotel late and
drunk.
Borghi told a news
conference the players missed their curfew by 45 minutes on Tuesday and were
"in a state not adequate for the Chilean national team, for a professional
player."
Birmingham City winger
Jean Beausejour, Atalanta defender Carlos Carmona, Palmeiras playmaker Jorge
Valdivia and West Bromwich Albion defender Gonzalo Jara were the other players
involved.
Borghi said he was
"hurt" by the players' behavior and will not consider them for the
World Cup qualifiers away to Uruguay on Friday and at home to Paraguay four
days later.
"It's
hurtful, not just for me, but for the whole coaching staff," Borghi said,
adding that the players had "broken their word."
All five players
are established members of the Chile team, though Jara is currently carrying an
injury and Beausejour is suspended for the match with Uruguay.
Borghi said Vidal,
a (EURO)12.5 million ($17 million) signing for Serie A giant Juventus in July,
would have played on Friday along with Valdivia.
Local media
reports suggested the players were returning from Valdivia's daughter's
baptism.
Borghi said the
five players were "unable to defend themselves" and "not in good
condition" when he went to their rooms to demand an explanation.
"If you ask
me what they drank, I have no idea," Borghi said.
Chile lost its
opening qualifier 4-1 away to Argentina last month before beating Peru 4-2 at
home, with all five players involved in both matches.
They have now
returned to their clubs and Borghi has called up five players from Chilean
clubs as replacements.
Borghi said it
would be up to the Chilean football federation to decide on any long-term
punishment.
"I can't
sanction the players," he said. "But I can leave them out of the
national side."
Hinkle passing the
torch
Hawk Eye, The (Burlington, IA): 19 October 2011
[What follows is the full text of the news story.]
Oct.
19--"Today, I'm announcing my retirement as president and CEO of the
Greater Burlington Partnership as of Sept. 30, 2012," Dennis Hinkle told a
gathering Tuesday afternoon in the partnership offices in RiverPark Place.
Jason Hutcheson,
executive director of Grow Greater Burlington Inc. the past four years, was
named his successor.
Hinkle, 59, joined
the organization 10 years ago when it was known as the Burlington/West
Burlington Area Chamber of Commerce. Starting as vice president of economic
development, he worked his way up to president and CEO.
He led the charge
to adopt a regional approach to economic development and created the umbrella
group known as the Greater Burlington Partnership, which includes Downtown
Partners Inc., Greater Burlington Convention & Visitors Bureau, the
business and industry aspect and other entities.
Hinkle declined to
list his greatest accomplishments over the past decade but said he took great
pride in the formation of Greater Burlington Partnership.
"It's always
been my view to build a team. We have a very strong team here," Hinkle
said of the GBP staff. "I'd put our staff members up against any in the
state. I take a little credit for that."
Rick Buller,
chairman of the chamber of commerce, didn't hesitate to list Hinkle's
accomplishments. Buller credited Hinkle for building a stronger organization in
the Greater Burlington Partnership and for helping it earn a four-star
accreditation.
Buller also
mentioned Hinkle's leadership in the Partnering for the Future campaign, which
raised $1.5 million. The campaign started two years ago and intends to add
1,000 jobs to the area by 2013. It also wants $100 million in private capital
investment and increase tourism expenditures from $450 million to $500 million
in the same period.
Hinkle helped
recruit three Italian firms to the area in Alfagomma America Inc., Borghi USA
Inc., and Cobo International.
"I'm truly
humbled and honored to lead this great organization," Hutcheson said of
assuming his new duties in a year.
Hutcheson also
mentioned what had been accomplished in the past decade, which included
improving the local quality of life. The Greater Burlington Partnership is in
the midst of an Imagine campaign, which will identify five ideas the community
can get behind and achieve.
Hutcheson helped
Federal-Mogul and Case-New Holland with plans to modernize their plants. He
also instituted the business plan competition, which helps new businesses get
off the ground.
About Hinkle,
Hutcheson said, "Dennis definitely raised the bar."
Fuller said naming
a successor who was familiar with southeast Iowa was important, and Hutcheson's
experience fit the bill.
"I'm very
pleased the executive committee chose Jason to be the CEO and president of this
organization," Hinkle said. "He's hard working. He's going to be very
successful in leading the Greater Burlington Partnership."
Hinkle and
Hutcheson will have plenty of time for a smooth transition. The goals, however,
will not change.
"We are going
to stay focused on the Partnering for the Future goals," Hinkle said.
He added tourism
will be important for Burlington's future, and he doesn't rule out trying to
draw an additional attraction to the city. He also sees another challenge for
the Greater Burlington Partnership.
"We are going
to have a challenge to provide the workforce to industry here," Hinkle
said.
The workforce
issue could be handled by working closely with local manufacturers and
educational entities, such as Southeastern Community College, he said.
"I look
forward to the next 12 months," Hinkle said.
He thanked many
people, including his predecessor, Mike Brouwer, the board of directors, the
businesses and entities who contributed to the success of the Greater
Burlington Partnership, and his wife, Monica.
"She did
nothing but encourage me to step out and try something new," Hinkle said
when he left SCC, where he'd been 19 years, first as director of the Job
Training Partnership Act program, then as director of the Center for Business
and Industry.
When Hinkle
retires, he plans to spend more time with his wife and grandchildren, play more
golf and ride his Harley-Davidson motorcycle more often.
___
(c)2011 The Hawk
Eye (Burlington, Iowa)
Visit The Hawk Eye
(Burlington, Iowa) at www.thehawkeye.com
Distributed by MCT
Information Services
BRIEF: Economic
development leader announces retirement
Hawk Eye, The (Burlington, IA): 18 October 2011
[What follows is the full text of the news story.]
Oct. 18--Dennis
Hinkle, president and CEO of the Greater Burlington Partnership, announced his
retirement at a Tuesday afternoon press conference in the Winegard Board Room
of the Partnership offices in RiverPark Place.
He's giving the
organization plenty of notice. His last day will be next Sept. 30.
Hinkle was hired
in 2001 as vice president of economic development for the Burlington/West
Burlington Area Chamber of Commerce. He helped steer a regional approach to
economic development, and with that formed the Greater Burlington Partnership.
He helped attract
several Italian firms to the community, including Alfagomma America Inc., Cobo
International and Borghi USA Inc. His accomplishments include keeping General
Electric and Dresser Rand jobs in town.
"It's always
been my view to build a team. We have a very strong team here," said
Hinkle, of one of greatest accomplishments. "I would put our staff members
against any in the state. I take a little credit for that."
Jason Hutcheson,
executive director of Grow Greater Burlington Inc., will replace Hinkle.
___
(c)2011 The Hawk
Eye (Burlington, Iowa)
Visit The Hawk Eye
(Burlington, Iowa) at www.thehawkeye.com
Distributed by MCT
Information Services
Data on Alzheimer
Disease Reported by Researchers at University of Genova
Alzheimer Disease
Health & Medicine Week: 28 September 2011
[What follows is the full text of the news story.]
Researchers detail
in "Upregulation of presenilin 1 in brains of sporadic, late-onset Alzheimer's
disease," new data in Alzheimer disease. "The activity of the
�-secretase involved in the cleavage of amyloid-� (A�) is increased in
sporadic late-onset Alzheimer's disease (AD). Whether the corresponding
?-secretase activity is altered is still uncertain," scientists in Genova,
Italy report (see also Alzheimer Disease).
"We evaluated
mRNA expression and protein levels of presenilin 1 (PS1) and ?-secretase
activity in the frontal cortex of 32 cases with late-onset sporadic AD and
those of 29 control subjects. We found a significant increase in PS1 mRNA,
protein levels and ?-secretase activity in AD cases," wrote R. Borghi and
colleagues, University of Genova.
The researchers
concluded: "These findings suggest that upregulation of PS1 leads to A�
overproduction and accumulation in sporadic AD."
Borghi and
colleagues published their study in the Journal of Alzheimer's Disease
(Upregulation of presenilin 1 in brains of sporadic, late-onset Alzheimer's
disease. Journal of Alzheimer's Disease, 2010;22(3):771-5).
For additional
information, contact R. Borghi, Dept. of Internal Medicine, University of
Genova, Genova, Italy.
The publisher's
contact information for the Journal of Alzheimer's Disease is: IOS Press,
Nieuwe Hemweg 6B, 1013 BG Amsterdam, The Netherlands.
1H 2011 Banca
Popolare dell Emilia Romagna Societa cooperativa Earnings Conference Call -
Final
FD (Fair Disclosure) Wire: 19 September 2011
[What follows is the full text of the news story.]
Presentation
OPERATOR: Ladies
and gentlemen, good morning, this is the Chorus Call operator. Welcome to the
presentation of the results of the first half of 2011 of the BPER Group.
Following the
initial presentation, you will have the possibility to ask questions to the
management of the Group. I will now hand you over to Mr. Fabrizio Viola, who is
the Chief Executive Officer of BPER Group.
FABRIZIO VIOLA,
CEO, BANCA POPOLARE DELL'EMILIA ROMAGNA SCRL: Ladies and gentlemen, good
morning, and thank you for joining in our conference call. We are here, together
with Mr. Simonazzi and Mr. Borghi, and also with Mr. Annovi, to illustrate and
present the results of the first half of the year 2011.
Now the results
that we are presenting, of course, need to interpreted, considering the
non-favorable economic scenario. Both the economic conditions and the market
conditions, through which the entire banking system are going, are well known
to you all. And for this reason, some of the details that you will find in
these results are to be connected by the -- to this scenario.
The first six
months of the year, were closed last Friday, with a net result of EUR96.1
million, which cannot be compared to the similar period of last year which, as
you will remember, was positively affected by the capital gains that we cashed
in because of the Arca Assicurazioni/Arca Vita deals. If we net last year data
from non-recurring items, the net profit of this year, look quite reasonable.
Now when it comes
to the P&L, what I think is positive, is the top part of the P&L, that
is the gross margin, the net interest income, both on a six-month period and on
a quarterly period, shows a growth which is quite considerable I believe. And
this, I think, has to be considered good -- a very good performance,
considering the market conditions.
Now, also net
commissions, though they are decreasing year-on-year, well, despite this, net
commissions have a good performance. The decrease that you see here on the
first six months, is somewhat related to the change of the perimeter, because
of the exit from our perimeter, of two companies of the Group, Meliorbanca
Private, of which you knew, and Sis.Pa. The deal was closed in July, but in
June this company was deconsolidated and included among the assets available
for sale.
And then trading
activity, quite a good -- quite a positive contribution and this certainly
contributes to improving our revenues.
Continuing with
the presentation, let me tell you that provisions are to be looked at with some
attention. Provisions are going down, year on year, but they are increasing
quarter on quarter. We shall come back to this and we shall try to understand
what the reasons are behind these increased provisions, during the quarter. And
we shall try and understand what is going to happen going forward, when it
comes to the quality of credit.
As you know,
because of the economic conditions, what we are focusing on, is the quality of
credit, the quality of loan. And as you know, our Bank Group has a traditional commercial
model, and the loan quality risk is what we have to focus on.
When it comes to
operating costs, well, they are growing by 2.2%, and this is mainly driven by
non-recurrent items. We are, as we shall see later on, managing ordinary costs,
with a lot of attention and I have to say that we are seeing results. And we
have constantly been financing or funding our investments, so as to make sure
that the Banca and the Group becomes more modern, without having this
investment impacting negatively upon the growth of overall costs.
When it comes to
volumes, well, let me tell you that the first six months of the year, compared
to the same period last year, shows loans going up by 5%, and funding is going
up, though less so, it's going up by 2.1%. If we compare the same period of
year, we can see that loans and funds are -- funding are going up, and a better
trend in terms of customer loans and direct funding growth.
And then another
note to be said about Sis.Pa; this company, which is a service company, was placed
among us. It's available for sale in our business plan. We took it more than
expected, but we work to make sure that this operation be associated to
positive results. We managed to finalize this operation and this once again
confirms that what we put into our business plan is being delivered, in terms
of results and in terms of timing.
Page 5 of the
presentation, you have the main events of the first six months of the year.
Some of this information you know them already, others you don't. Among the ones
that you know is the closing of Meliorbanca Private disposal that took place in
February 2011. Plus, the IT and back office concentration within BPER Services
Consortium, and this occurred in January 2011. And then we completed the roll
out of the new CRM platform, to all of the banks of the Group.
Among new events
that I'd like to disclose to you today, is for instance, the fact that when
preparing the six months results, we run a number of impairment activities, of
the stakes that we own. And we believed that we had to make provisions or had
to make good will impairment for two affiliated banks that we have in our
portfolio. And this goodwill impairment was about some EUR20 million, for these
two banks, out of value of slightly below EUR36 million.
And then another
new event is EmilRo Factor fully incorporated in EmilRo Factor. This occurred
in April 2011. This completes the rationalization operation of the factoring
activities of the Group.
Page 6 of the
presentation, you see a chart that is well known to you, so I will not get into
the details too much. This is the three month Euribor trend, compared to our
assumptions, and to the business plan worst scenario and budget.
And for the first
time, we find the three month Euribor rate above the assumptions that we made,
and this is certainly a positive factor, for an interest sensitive Banca, like
ours. Unfortunately, at the same time, we witnessed the widening of the
BTP/Bund spread, which certainly caused a number of problems to the overall
banking system, particularly when it comes to the cost of funding.
Now, I'm going
very rapidly through the figures then we shall focus later on on the different
items.
Page 8 of the
presentation you have the summary of the assets and liabilities statement. I
already talked about loans. I think it's interesting to underline that despite
the situation being difficult, and has been difficult so far and it is
difficult, but despite this the net interbank position is under control.
At June 30 the net
interbank position is EUR600 million, which certainly finds as a logical
counterparty our loan portfolio. And we know that part of the portfolio can be
used as collateral for funding operations. Now as you can see versus March 2011
there was a slight increase but nothing which can be concerning when it comes
to the net interbank position.
On page 9 we have
the direct funding slide. Direct funding has two slides in our presentation,
because of its importance. Page 9 there is not much to be seen.
When it comes to
the structure of funding you know that basically our funding is mainly
concentrated on the retail market, low incidents of the institutional amount,
say, slightly above 2%. In a period of difficulties we managed to increase the
market share of our funding with corporate customers whereas the retail funding
has remained stable, which testifies to the fact that, despite our position
being quite strong on the retail market, we manage to maintain our competitive
position on this market with all our banks.
Page 10 of the
presentation you have a confirmation of what I have already said; that is here
is the slide about issues. I told you that we had been able to cover our
financial needs for 2011 and we did so in a quarter. We are still issuing on
the retail market.
We have no
maturities on the wholesale market for 2011 and 2012. Well, I have to say that
we -- what we decided to do in the first quarter of 2011 that is to issue
bonds, for instance the EUR400 million senior bond on the institutional market
and the EUR700 million of loyalty to bond six year maturities on the retail
market. That was a good decision; both operations and our work on issuances
allowed us to lengthen the duration of liabilities.
Now page 11 you
have indirect deposits and bancassurance. Well, during the first six months we
had institutional counterparties outflows that did not impact a lot on the
P&L; that was institutional counterparties that switched, that transferred
because of their reasons, securities that they had with us. This did not have
an impact on the P&L. On the contrary this allows us to witness a slight
increase of profitability of indirect deposit.
And then funds and
AUM concentrated the first half of 2011, and bancassurance continues to show a
positive contribution, and we expect good contributions as far as fees and
commissions are concerned.
And then page 12,
loans; well, customer loans have grown over a 12-month period. It slowed down
slightly in the first six months of the year, but this was expected. In the
last part of the year we had a considerable increase in loans. And in the case
of loans the interesting piece of information, over and above what we have said
so far, is represented by our market share. Market share for loans is going up
by 2 basis points, and it has reached 3.18% and it is going slightly down when
it comes to corporate loans.
Doubtful loans;
doubtful loans in the second quarter of this year have increased as they did so
last year, EUR180 million. This is a trend that needs to be monitored, but
which is basically explained because we had some positions moving to doubtful
loans, particularly in BPER and Banco di Sardegna.
You can see the
position is changing. In the first quarter we had growth of watchlist loans and
a moderate growth of NPLs. In Q2 we had an inversion of this trend. What we are
not seeing is a precise trend. We can only say that the growth of this loans
stock is quite considerable. We are monitoring it and we shall come back to
this later on.
What is, however,
positive is that despite the situation not being good, we have the capability
to maintain a physiological situation after the big sacrifices that we have
done in -- within Meliorbanca. As a matter of fact, as you can see, doubtful
loans for Meliorbanca are under control year-on-year. They're going down by minus
17.4%.
Now let's consider
flows; page 14 of the presentation. As far as our watchlist in the first six
months of the year, but I think that the same applies to Q2 of 2011. Basically,
the watchlist inflows are mainly concentrated in BPER and Banco di Sardegna. A
number of big positions have increased this loan stock.
As far as
non-performing loans are concerned, we had a greater concentration of
non-performing loans in the real estate business versus previous quarters;
hence, the decrease of NPLs coverage, a slight reduction. This is a mix effect.
That is the fact that we had loans that had higher collateral getting into
non-performing loans category.
As far as coverage
is concerned, well, you can see that within the first six months of the year
the watchlist coverage is increasing versus what we had at the end of 2010.
Whereas we can say that with June 2011 we have seen an end to the review
activity of doubtful loans coverage thanks to the introduction of a new rating
model on retail small business, which after a few months of experiments, so to
speak, had proved to have coverage levels that were lower to -- than the one
that we were calculating using previous models.
Well, we also
witnessed an average quality of [these events], which is certainly better, because
of the fact that we had the exit of a considerable number of watchlist loans
and NPLs. Watchlist loans is, certainly, the category which tends to come from
performing loans.
Securities
portfolio, page 15; here we see a slight reduction of our securities portfolio
in the first six months of the year, mainly concentrated in HFT; whereas we
have seen an increase of Italian Government portfolio. In August we decided to
exploit the difficult moment of Italian government bonds, and we invested some
EUR500 million.
The reason behind
this was, first of all, the favorable market conditions for this investment;
and then time proved that we were right. And then another reason behind this
investment was the low exposure of our Group to this type of investment versus
our regulatory capital. Since we were under-exposed, we decided to exploit this
opportunity.
And then we have
increased the overall financial portfolio activity by 10%. And then we still have
a low exposure to what's known as PIGS countries, EUR220 million; of which
Spain plays the lion's share, with EUR147 million. Our counter-balancing
capacity is more than EUR5 billion.
Page 16, you have
the usual chart of our securities portfolio. I shall not get into the details
of all the pie charts. Here you find a number of confirmations. The top right
chart shows that Government and Sovranational portfolio is subdivided in three
parts; trading securities with a slow -- little duration, 1.6 years, 44%; then
AFS 38%, duration slightly below three years; and then HTM, only 17% (sic - see
slide 16), with a duration of 4.8 years. Let me remind you that the latter two
categories include those securities that we had purchased with the idea of
supporting the interest margin.
Then if we move on
to the -- with the presentation, profit and loss analysis, page 18. I leave it
to you to read it, because it's the usual analysis of the profit and loss.
Well, here we tried to extrapolate the extraordinary items, which somehow will
help you understand the quality of the results that we have achieved.
Well, let me tell
you that the tax rate is going up. As at June 30, 2011 the tax rate has reached
the threshold of 51.7%; and I'm really glad of this; first of all, the increase
of IRAP, and the non-deductibility of the impairment, which if you remember was
around EUR20 million. Our tax rate was 42.7% in June 2010, and that tax rate
was positively affected by the non-taxability, or low taxation, of the Arca
Vita capital gains.
Page 19 of the
presentation, here you have the analysis of the quarterly profit and loss; here
I will give you some more information. The interest margin is growing, also
quarter on quarter. And this is a good piece of information, and it confirms
what we had already told you during the previous presentations. This is a
trend, in our opinion, and we expect this trend to continue in Q3 and Q4 of
this year as well. And then I shall tell you why we expect this to be the case.
And then as far as
commissions are concerned, commissions have decreased, and this particularly in
Q2; and this is basically related to the deconsolidation of Sis.Pa. Meliorbanca
had an effect on the six months period. We had a good contribution from the
trading income, but we know that this component is volatile, and so I shall not
focus on this every month. The figures here are different.
As far as
provisions are concerned, they went up versus Q1, which then was reflected in
the cost of credit. It's not so much the growth of growth provisions, but we
had a decrease of write-backs. Now, the negative effect was basically related
to the effect that in Q2 we had lower write-backs versus Q1. So, basically
that's the issue.
As far as costs
are concerned, Q2, you know, has some seasonal factors. If you compare Q2 2011
and Q2 2010, the cost basis hasn't changed that much. On the contrary, if you
compare Q2 with Q1, well, you will realize that there are a number of factors
to be taken into account. For instance, the different accounting approach in
staff costs in Banco di Sardegna, where we hired a new General Manager at the
beginning of the year. And, certainly, this is a factor that will be absorbed
during the year, and will not contribute to an increase in operating costs,
year on year.
Of course, there
are a number of factors to be taken into account, like bonds to be paid; and
holidays which have not been enjoyed by the personnel when it comes to Banco di
Sardegna. And then we have, as far as costs are concerned, the higher
provisions for risks and charges; and I shall come back to this later on.
Interest margin,
page 20 of the presentation; the interest margin has grown, year on year, by
2.6%, and this has been supported by volume, whereas the spread effect was
negative. Please remember that this result, particularly the Q2 result versus
Q1, which is even positive, even net of a calendar effect. Well, please
remember that this result was achieved also because of the effect of the cost
of funding, due to the retail subordinated bond and wholesale funding issued in
the first quarter of 2011, with a total impact year on year of EUR5.5 million.
Page 21, you have
the last slide on the interest margin. Here we are focusing on the spread
effect. In Q2 the mark down for funding improved considerably. And this is
related to the fact that we improved our position, despite the higher market
interest rate and the higher Euribor rate and, I have to say, despite the
spread widening that we had in the first half of 2011. Now despite this, we
managed to improve the mark down. And we managed to do so because the cost of
funding increased in a more limited manner versus the interest rate's growth.
Here you can see
sight deposits, bonds and repos. And you can see the average change or the
change of the average cost of this type of funding, both on a six month period
and on a yearly basis. If you compare this data with the Euribor increase and
the spread increase, you will find the confirmation of the cost of funding in
our case, which is less elastic versus interest rate trends.
Now the mark down
is a result of the effect that the three months Euribor rate, but not only, has
considerably increased, particularly at the end of the year and this did not
allow us to benefit from this increase. And I expect a positive contribution
from this spread component in the second part of the year, also because of the
pricing opportunities that we are putting in place.
Page 22, you have
commissions. Well, commissions have gone down year on year by EUR9.8 million.
Here you have the list of the main negative components. I have already
mentioned the deconsolidation of the Meliorbanca Private and Sis.Pa.
Then there is an
item which is certainly related to a management issue, although it is not a
recurring factor; the fact that we had a disappearance of fees from retail CDs
placed into the retail market. Well, this component will tend to have no effect
going forward, because there will be no changes going forward.
And then as far as
the non-interest income, we can move on to page 23; slightly below EUR50
million the contribution of financial trading. Please remember that we had some
EUR26 million of other contribution, which is a non-recurring item, related to
Arca Assicurazioni in the first half of 2010. And then EUR18 million of fair value
option for financial liabilities, which was a positive contribution.
Then operating
costs, page 24; going up by 2.2% year on year, net of Banco di Sardegna and new
accounting methods for personnel costs; well, this increase would go down if
you considered these factors.
Admin costs are
under control. We have closed the fiscal settlement at a Group level related to
the fiscal treatment of currency CDs placement. If you remember, this matter
was closed with the provision to the loan loss provision of EUR10 million. This
closes this problem, and we do not have any other fiscal litigation that needed
to be settled, which might have any impact on the results of the Group.
I would like to
underline the positive work that we are carrying out on headcount. And we are
doing this, say, in a silent manner, but we are seeing a positive contribution.
And this will also be the case going forward. Versus June 2010 we had minus 103
units, which is 11%; 102 from December. Please remember that we have a program
plan that should lead to a further reduction of headcount.
If we now move on,
the loan loss provisions; here you see the usual chart. I already told you that
the increase that we've witnessed on overall provisions that have moved from
EUR74.8 million to EUR106 million in Q2, so Q1 versus Q2. Well, this is
basically the result of reduction of write-backs. Later on, thanks to the
presence of Mr. Simonazzi here, we might take questions if you have any in this
direction.
And then as far as
the cost of credit is concerned, 74 basis points annualized and for the whole
six month period.
Now the good news
for Meliorbanca, which is continuing to operate with a cost of credit, which is
in line with the rest of the Group, and which confirms what we have been saying
for some time. That is that Meliorbanca is no longer a problem from this point
of view, and I believe this has to be underlined.
Let me conclude
the presentation with capital adequacy slides. Well, please remember that these
figures can change from now and the end of the year, considering what we are
doing, what we have in store. For instance, let me remind you that next
Saturday, we shall have a Shareholders' Meeting that will take decisions. And
we might decide to resort [a pretty soft] mandatory bond. So these are going to
be two operations that will change the capital profile of our Group.
Well, I have to
say that as far as the capital profile of the Group is stable, both in terms of
the effective Core Tier 1. Let me tell you that there is something which is not
very much looked at, but we have focused our attention on this as of late,
which is the leverage ratio, which in our Group was already low and this was
positive. It was positive -- it was low in December. It has further gone down.
Now it's 15.5 times versus 16.4 times in December 2010, which is quite
important.
The risk-weighted
assets on total assets is quite high, it is almost 82%. On the one hand, this
is the result of the model of our Bank. But also, it is due to the fact that we
still use criteria to weight risks which are still based on a standard model,
which tend to overestimate the risk of assets.
And we are now
working so as to make sure that we can submit the internal models to the
regulatory authorities. And, as you know, the overall system if asking the
regulatory authorities to approve the Bank's internal models, so as to have a
clearer picture of capital adequacy and capital absorption.
So this is it as
far as the formal presentation is concerned. Please remember that on Saturday,
we shall have the Shareholders' Meeting, where OPS will be decided upon.
Moreover, we shall also have to decide a soft mandate on the conversion of the
mandatory bond. And considering the time when the Shareholders' Meeting takes
place, decisions will be taken also related to salaries and wages, and changes
to our articles of association, making the contribution of the shareholders
more active when it comes to the life of the Bank.
Let me also inform
you that, as foreseen, we are working out the new business plan. We are at the
beginning of this work and the goal is that of preparing the business plan by
the end of the year. And so we shall disclose the business plan to the market
by the end of the year or beginning of next year at the latest.
I think I can stop
here, and we can now take your questions about the presentation. Thank you.
Questions and
Answers
OPERATOR: Elena
Perini, Centrobanca.
ELENA PERINI,
ANALYST, CENTROBANCA: Good morning I have a couple of questions to ask if I
may. The first question, can you give us the overall amount of liabilities
subject to a fair value option?
Second question
about the cost of credit, considering the increase witnessed or recorded in Q2
and considering the limited liability that we -- limited visibility, I'm sorry,
that we have on next quarter's trend, I'd like to know with you can confirm our
guidance of around 70 basis points that you gave us for the whole 2011 that you
gave us some time ago? Thank you.
FABRIZIO VIOLA:
Now, let me take your second question first, considering the nature of the
growth of provisions, let me tell you that such growth is related to the fact
that, first of all, we had a second quarter which witnessed a lower amount of
write-backs.
Secondly, we had
some positions which -- particularly in BPER and Banco di Sardegna, which led
to such a situation. Third, in Q3 I don't expect this quarter to be very
different from Q2 or Q1, but Q4 can be somewhat lighter, let me say. So I would
not go far away from the guidance I gave you, 70 basis points.
What does that
mean? Well, between 70 basis points and the annualized data that we have
presented for the six months period is not out of reach, also considering the
limited amount of write-backs that we had during this last period.
I don't know
whether Simonazzi wants to add something, then I'll answer the other questions
about fair value option.
ALESSANDRO
SIMONAZZI, HEAD OF PLANNING & CONTROL, BANCA POPOLARE DELL'EMILIA ROMAGNA
SCRL: Well, let me tell you as far as -- now to anticipate questions you might
have on write-backs, the gross write-backs of the last three quarters are
stable. What explains the difference there is -- sorry, write-downs are stable
in the next three quarters.
What explains the
difference is the decrease of write-backs in Q2? As Mr. Viola said, Q3 is not
going to be very different, and we hope in Q4 to witness [a reversion] of this
trend. However, the 70 basis points we mentioned can be within our reach, and I
don't think we shall get very far from there.
FABRIZIO VIOLA:
Well, I am glad to hear from my co-workers that I say things which have some
ground of truth. This is something which is not usually recognized, not only
for me but in general.
Now, as far as
liabilities are subjected to fair value option, amount to EUR4 billion.
OPERATOR: Christian
Carrese, Intermonte.
CHRISTIAN CARRESE,
ANALYST, INTERMONTE: I 'd like to have some detail about customer deposits,
which in June are EUR48.6 billion, slide 8. I'd like to know the quarter by
quarter trend, because I think they went down from EUR45.6 billion to EUR44.6
billion with the inter-banking position which has slightly increased. Sight
deposits, there's some competitive pressure, but I'd like to know the trend of
all of this?
FABRIZIO VIOLA:
Could you please repeat the number of the slide that you are making comments
to?
CHRISTIAN CARRESE:
Page 8, now if I compare the data of the press release, it goes down from
EUR45.6 billion to EUR44.6 billion and the inter-banking position moved up from
EUR3 billion to EUR3.3 billion.
FABRIZIO VIOLA:
What are you referring to, deposits or the inter-banking position?
CHRISTIAN CARRESE:
Both, I wonder whether you have a slight increase of your inter-banking
position, because you've had a decrease of sight deposits?
FABRIZIO VIOLA:
Just a second we'll take your question in a minute.
CHRISTIAN CARRESE:
Then as far as interest margin is concerned, in August you said that you had
increased by EUR500 million, the exposure to government bonds. Now my question
is how much can you add to your government bonds considering your regulatory
capital? I think you can still increase your exposure to government bonds by
EUR1 billion and then the impact of this EUR500 million on the interest margin
on the second half of the year?
And then loan
provisions, you have answered 70/75, this is your result, I know that it is
difficult to say something about next year, maybe in September you have some
more visibility. But do you expect things to deteriorate or things to remain
stable? I know that you are preparing a business plan, and so I don't know
whether you can say something about your guidance here?
And then capital
ratios, I've seen that the risk weighted assets have slightly increased, I'd
like to understand why. Whether the reason is the quality of credit or quality
of loan or problems with the affiliate banks? We know that the Banca of Italy
has stepped in with some banks. So I'd like to know something about this if you
can.
And then, capital
ratios a question here; these 10 basis points -- at least this is the result of
my calculations, 10 basis points difference for core Tier 1. I'd like to know
whether this result -- how does it compare to your plan to strengthen your
capital. 7.3 of core Tier 1; at the end of the year; should we interpret this
as a 7.2; and then, from there on, let's see the impact of the capital increase
that you shall approve during the next Shareholder Meeting.
FABRIZIO VIOLA:
Let me ask Simonazzi to answer your question about deposits.
ALESSANDRO
SIMONAZZI: Now you made a lot of questions. If I understood well, you are
asking the trend funding between deposits and inter-banking position.
CHRISTIAN CARRESE:
I'd like to know what is the breakdown, trend, so to speak of deposits?
ALESSANDRO
SIMONAZZI: Now as far as deposits in June are concerned; well, first of all
taxation; certainly has taken away the volume effect. Then there a financial
effect related to repos, which have slightly gone down versus March. And as far
as traditional deposits are concerned, this was not an issue.
In the second quarter
we forced the banks of the Group to keep a balance between use of assets,
[management] assets, and deposits.
FABRIZIO VIOLA:
Well, let me tell you, as far as deposits I have to say that my opinion is
positive. Some of you, I remember, had some difficulties in believing that we
could hold on to our positions in difficult times. Well, what I can see is that
the network is responding quite well. Well, we are paying funding somewhat more
as we transparently disclosed. But as of today I am not particularly concerned
about our capability to hold on, one of our strong assets, which is represented
by the retail funding.
As far as
investment in government bonds is concerned, to answer your question, the
impact of this on the interest margin is around EUR8 million on the first six
months of the year.
Let me say
something about what we can do. That is the decision had been made between what
we would like to do and what we can do. As far as what we can do is concerned,
we have quite a good room for maneuver. If we consider the incidence of our
Government bonds versus the regulatory capital, and we compare this to what
other banks are doing.
So there we can
see that we still have some room for maneuver. Something else is what we would
like to do, because of a philosophical reason, we would not go beyond these
levels. This investment was a tactical investment.
Let me tell you
something else; we decided to sell some of our call options and we shall do
this by the end of the year. These call options included very high levels of
volatility, so don't expect a major structural change in our strategy.
We wanted to
continue to remain a commercial bank; a bank which certainly operates and
exploits its trading portfolio when market conditions allows it to do so. But
we do not want to change our basic approach.
As far as your
question about the cost of credit is concerned; well, it is difficult for me to
give you an answer as to what is going to happen in the medium term. Between
now and the end of 2011, I don't think that things should not be very different
from what we had assumed in our business plan. This is my feeling.
However, this
being said, the scenario, the economic market conditions are very difficult,
very uncertain, so to speak. And it is difficult for us to make some
assumptions between now and the end of the year, although as I told you, we are
preparing our business plan. But before giving you some figures, I'd like to
understand the effect of what has occurred during the summer; and, basically,
the cost of credit and the widening of the spread between Italian BTPs and
Germany Bund.
And then, of
course, in these days we also have the approval on the part of Parliament of
the financial bill. So I think that when we disclose the next quarter results,
I shall be able to give you some figures.
I see your
question about capital ratios; well, the increase of 10 basis points is the
result of what we have basically done during the quarter. For instance, the
Meliorbanca IT system was integrated within the BPER IT system. That was the
last bank outside of the IT system that certainly led to accounting alignment
of risk weighted assets. This was an accounting alignment, nothing more.
And as far as the
core Tier 1 is concerned, I can confirm the data that we gave you already, considering
the 10 basis points less that we had during the first six months of the year.
But as far as
capital is concerned, Q2 certainly is important. Please remember that we took
an intelligent decision; that is that of bringing home, so to speak, some capital;
trying to leverage on those -- or playing around with those factors, that are
associated to more absorption -- in terms of absorption in view of Basel 3.
I believe that
this is an intelligent decision that we have taken, so issuing OPS in the next
few months, it's not easy, but I believe that the advantages of these
operations, if successful, certainly can help us to increase the number of
shares; can certainly help us to decrease the dilution effect; and this I
believe justifies the type of work that we are called upon to make between now
and the next few weeks.
OPERATOR: Giovanni
Razzoli, Equita SIM.
GIOVANNI RAZZOLI,
ANALYST, EQUITA SIM: I have a few questions. It appears to be a long list, but
I'm sure that you can give us very short answers.
FABRIZIO VIOLA:
Giovanni, please do not talk fast, because otherwise I can't take note.
GIOVANNI RAZZOLI:
First question about write-downs on equity stakes in Saluzzo and Savigliano.
Are they strategic implications in these write-downs? And do we have to expect
similar write-downs in the stakes that you have in the other two banks in
Fossano?
And then
provisions, you have already explained the reasons behind this trend, but I'd
like to know whether the positions that you mentioned were positions that moved
to watchlist or NPLs?
And then the
effect of the new accounting criteria used for Banco di Sardegna; I also would
like you to clarify your slide number 27. The core Tier 1, quarter to quarter,
has gone down by 10 basis points. But in the bullet points you are indicating
to an improvement of core Tier 1. Is that a typo? Or is it a mistake? Or is
there something else that we need to take into consideration?
And then Sis.Pa
deconsolidation, what is the effect of this on the net commissions in the first
part of the year?
FABRIZIO VIOLA: As
far as the write-downs for as Saluzzo and Savigliano there is no strategic
consideration behind the write-down. Well, this was due considering the
economic projections that we've made on these two banks versus the projections
that were incorporated, or that were made, when we purchased these two banks
with their related goodwills.
I don't expect
further write-downs, certainly not from Fossano, which shows results which are
in line with what we expected when we purchased that bank, which shows that the
bank is performing quite well despite the difficulties of the overall banking
system.
As far as Bra is
concerned we have talks ongoing to understand what kind of strategic evolution
our stake might have in that bank. And we decided to update the goodwill at the
end of the year, so we decided to wait. I believe that, in a few months, we
shall complete this kind of work that we are doing with the foundation.
Certainly, we are speaking of a possible limited intervention with real
limited, if not a negligible, effect on the P&L.
Now should we
revise the impairment, well, we are speaking really of a very low amount. The
big chunk has already been done. Fossano doesn't need an impairment. Bra, if we
were forced to make an impairment, well, we are really speaking of a very
limited amount of money.
Now, as to your
second and third question, I'll ask Mr. Simonazzi to take these two questions,
who will give you precise data.
ALESSANDRO
SIMONAZZI: So it's the provisions or the reclassification of loans. Now, as far
as the big positions in the quarter BPER witnessed an increase of watchlist
loans and restructured loans, particularly restructured loans because of one
position. Whereas, for the other banks of the Group, I'd like to underline
major flows of Meliorbanca from watchlist loans to NPLs.
Well, there was no
impact in terms of write-downs, because they had already been written down. It
was just an accounting procedure. But there was a decrease of doubtful loans in
Meliorbanca. Watchlist loans went down by EUR51 million; and EUR30-odd-million
of NPLs went up. This had no impact on write-downs. Basically, we are in line
with our budget as far as write-downs are concerned -- sorry, adjustments not
write-downs.
We had one position
moving to restructured loans for EUR60 million, [where] we were looking at
Meliorbanca. EUR127 million went down in a year referring to doubtful loans as
of December. They went down by more than EUR50 million. So Meliorbanca really
has certainly done a lot of work to restructure its loan portfolio and to
recover a positive position.
Banco di Sardegna
had, in Q1, an important flow of watchlist loans, and Q2 had an increase in
NPLs. Well, let me tell you Banca [in] Abruzzo had an increase in doubtful
loans.
When it comes to
provisions a major item was related to bonuses, which, last year, were provided
for in Q2; whereas, this year, were provided for in Q1 though this, however,
should be reabsorbed by the end of the year. So by the end of the year the
effect of this should be zero. Last year we provided for EUR800,000, this year
EUR5.3 million; a net difference of EUR5.4 million that should be reabsorbed by
the end of the year. I'm referring to provisions for bonuses and so on.
The other
question, if I remember well, was about the pro forma capital, page 27 of the
presentation. Now when we speak of improvement among the bullet points, it's
the effective improved [on] Core Tier 1, which from 6.7% moved up to [6.8%].
The worsening of 10 basis points is basically the fact that risk weighted
assets have grown, and this is basically related to accounting adjustments, and
to the review of weighting criteria for certain category of assets,
particularly in the real estate industry. Well, that was above the profits that
were earmarked in Q2 of the year.
Basically this is
the effect. I don't know whether I have to add something, let me ask my
colleagues if they want to add something. No.
As far as Sis.Pa
is concerned I'd like to ask Mr. Simonazzi to take this question.
ALESSANDRO
SIMONAZZI: Well, the effect of Sis.Pa is not immediate. In Q1 Sis.Pa
contributed EUR1.9 million in terms of revenues, to the consolidated revenues.
In Q2 we did not have this contribution. And since it has now moved to assets
available for sale, we also had to net this in Q1 as well. So basically when it
comes to Sis.Pa, the overall effect on the year is going to be EUR4 million, so
it's not going to be there.
OPERATOR: Andrea
Vercellone, Exane.
ANDREA VERCELLONE,
ANALYST, EXANE BNP PARIBAS: Now let me ask a couple of questions. Well, all of
the banks tend to be very transparent as of -- these days. Can you tell us
whether you resorted to the ECB in June or whether you resorted to the ECB in
July?
Then the new
Government bonds that were purchased in August were they classified as AFS or
trading assets?
Then, I think you
already met your funding needs for 2011 and for 2012 at a strategic level,
given also the very high costs. Are you going to resort to prefunding
operations in 2012? Or do you think that you can relax your strategy since so
far your funding needs are met?
Then another
question about the spreads; considering the new law on usury, can you give us
an idea to what extent the spread has improved in July and August? Can you give
me the breakdown between corporate and retail customers? Thank you.
FABRIZIO VIOLA:
Well, I can tell you that the June data for ECB was around EUR1 billion in
June. In July, it went up by some hundreds in euros; it's now EUR1.5 million.
We still have some counter-balancing capacity to use.
In July there was
worsening, which is typical of the season, because of the taxes that we had to
pay. You know that the greatest effect occurs at the middle of the year and at
the end of the year, so there are peaks that need to be considered. Then the
EUR500 million are all classified as AFS. So this is the investment in
Government bonds.
Considering the
situation, we do not have any intention to resort to the institutional market
in the short term; we don't need it. And I don't think we will resort to the
institutional market, although we are completing the program for our covered
bonds. I think that the whole of the situation should be completed by, say, a
few weeks.
But considering
the market conditions, we haven't decided to resort to this type of funding,
whereas, we are not going to decelerate our activities on -- retail funding
activities. The minimum goal is that of renewing whatever comes to maturity,
although we have already done some pre-funding activities at the beginning of
the year. Then, of course, we will have to see the market conditions, in terms
of spread.
This means, as you
know, that for retail customers you need to have a more stable approach, unlike
what usually happens on the institutional market. Basically, if you do not
renew a bond to a private customer for cost reasons, well, you lose that
customer for that bond. And so we need to really continue to have considerable
attention on our retail market.
As far as spreads
are concerned, let me ask Mr. Simonazzi to step in once again. Let me tell you,
however, that over the past two months, we have issuing information about our
network, and this information is very precise. We've been very strict,
especially when it comes to medium to longer -- medium to long-term technical
spreads.
Well, there we
really have been very strict, because we believe that the spread of the overall
system is such that it does not allow us to lend money, especially to corporate
customers, unless with spreads that are adequately profitable for us. We apply
this approach to also short-term lending activities like hot money or
self-liquidating financing activities.
Certainly, when it
comes to the retail customers, and particularly, retail mortgages, well there
we've witnessed an increase in spreads. And there, of course, we need to take
into account a number of factors, like the profitability of retail customers.
ALESSANDRO
SIMONAZZI: Yes, I'd like to say something about the strategy that we are
adopting. Well, we do not want to lose private customers and so whenever bonds
come to maturity, we tend to renew them. I think that the problem in our case
is not represented by bonds in terms of funding, but sight deposits, corporate
funding certificates. There we -- there -- what is suddenly affecting costs is
represented by repos and CDs.
Now, let me give
you a piece of data, corporate spread went up by 77 -- that's basis points. Of
course, we are focusing -- of course, we pay attention to the maturity of our
bonds, but this is not the greatest problem. We are trying to keep a balance
between deposits and loans. Loans have to be of good quality, which means with
a spread which is sufficiently high, which certainly pays risk and allows us to
have a good liquidity, so 400 basis points, a minimum level in the medium term.
In the short term, things change considering the different banks.
ANDREA VERCELLONE:
Okay, thank you.
OPERATOR: Mr.
Viola, there are no other questions from the conference call.
FABRIZIO VIOLA:
Well, thank you very much. Thank you and have a good day.
EDITOR: Statements
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Quiz Answers
Sunday Mail (Scotland): 10 July 2011
[What follows is the full text of the news story.]
1 - Argentina 2 -
12 3 - Argentina and Uruguay 4 - Eight times 5 - The Confederations Cup 6 - The
Copa Bolivia 7 - Colombia and Bolivia 8 - Brazil won 3-0 9 - False 10 - Just
once in 1959 when he finished with 8 goals. 11 - Costa Rica and Mexico 12 -
River Plate 13 - Japan 14 - Mexico in 1993 15 - Argentina 16 - Uruguay with 41
appearances 17 - Argentina; Sergio Batista (Argentina), Gerardo Martino
(Paraguay), Gustavo Quinteros (Bolivia), Ricardo La Volpe (Costa Rica) and
Claudio Borghi (Chile) 18 - Argentina, Uruguay, Brazil, Paraguay, Peru,
Colombia and Bolivia 19 - Eight cities; Buenos Aires, Cordoba, La Plata, Mendoza,
Santa Fe, San Juan, San Salvador de Jujuy and Salta 20 - Zizinho 21 - Brazil 22
- Argentina's 12-0 drubbing of Ecuador in 1924 23 - False 24 - Venezuela 25 -
Uruguay, Argentina and Brazil.
Steward wants to
keep closer eye on GE
Hawk Eye, The (Burlington, IA): 08 July 2011
[What follows is the full text of the news story.]
July 08--WEST
BURLINGTON -- Councilwoman Kara Steward wants to keep a close watch on General
Electric to ensure the behemoth multinational conglomerate lives up to its
promise to retain 190 employees for five years and six months at its West
Burlington switchgear plant in return for $2.4 million local and state
incentives.
Provisions of the
$2 million in direct financial assistance from the Grow Iowa Values Financial
Assistance Program stipulate the Greater Burlington Partnership perform audits
of the company's compliance with the contract, which officials expect to happen
once a year.
That is not enough
for Steward.
"I'd prefer
to have that (reporting) done a little more often. I don't want them to try to
finagle in between that year. And I'd like to have it set up on a regular
schedule, so we don't forget about it." Steward said Wednesday during a
meeting of the West Burlington City Council. "I just want to make sure
that nothing is flying under the radar."
Steward made her
comment prior to the council voting unanimously to approve a contract for its
portion of the incentives. The council also unanimously approved an internal
advance necessary to use tax increment finance dollars to pay for its pledge to
GE.
GE announced Oct.
5 it planned to close the switchgear plant unless employees and local economic
development officials came up with a plan to lower overhead costs and make the
facility more profitable.
In response,
employees offered wage concessions while the state and local governments
offered economic incentives, including $200,000 from West Burlington, $75,000
from Burlington and $125,000 from Des Moines County.
GE officials said
last December the company plans to use the incentives to offset the cost of a
$30 million upgrade of the plant that includes adding a powder coat paint line,
bring back a wire harness line and add a customer excellence center.
City Administrator
Dan Gifford said the city could require as much reporting as it likes and
recommended twice a year. He feared more frequent reporting would be onerous
for the company.
Councilman Rod
Crowner agreed twice a year should not be too much of a burden for GE.
"I don't
think it would be too much to ask after giving the richest company in the world
$200,000," Crowner said.
The contract
approved by the city included a few minor changes from what was originally
proposed, including changing the 190-worker requirement from
"production-related jobs" to simply "employees;" the
termination date of the contact was extended from July 1, 2016, to December 31,
2016; and the company will be considered defaulting on the contract if the
number of employees drops below 190 for 20 business days instead of the
previously stipulated five days.
In other business,
the council:
-- Approved an
economic incentive agreement with local businessman Wally Day for the
development of condominiums at 707 Van Weiss Boulevard.
The incentives
come in the form of a forgivable loan not to exceed $200,000. The loan will be
forgiven when 11 planned residential units are completed. If they are not done
by Dec. 31, 2026, Day will have to repay the loan on a pro rata basis.
The loan is to be
paid out in two equal installments, the first upon approval of the contract and
the second upon completion of street construction.
-- Awarded a
$999,361.01 contract to Rock Island, Ill.-based Langman Construction for work
on the city's Broadway Street and Agency Road storm sewer project. Langman
submitted the lowest of seven bids.
The contract for
most of the 3,400-foot storm sewer includes a late start date of Aug. 15.
Because the contractor will not be billed working days during the winter, the
120-day contract likely could go through next June or July, according to
project engineer Steve Hausner of Fairfield-based French-Reneker Associates.
The new storm
sewer will run from the intersection of Agency and Broadway to behind the strip
mall at 411 W. Agency Road, to the Honda dealership under construction, past the
West Pines Mobile Home Park and eventually connect to an existing waterway near
the Borghi USA Inc. oil hydraulic facility.
___
To see more of The
Hawk Eye or to subscribe to the newspaper, go to http://www.thehawkeye.com.
Copyright (c)
2011, The Hawk Eye, Burlington, Iowa
Distributed by
McClatchy-Tribune Information Services.
For more
information about the content services offered by McClatchy-Tribune Information
Services (MCT), visit www.mctinfoservices.com, e-mail
services@mctinfoservices.com, or call 866-280-5210 (outside the United States,
call +1 312-222-4544)
School News: July
8 paper
Stafford County Sun (VA): 06 July 2011
[What follows is the full text of the news story.]
July 06--Rockhill
Elementary
The following are
Students of the Month for Forgivenenss including: Michael Adeoye, Mackenzie
Ayriss, Byron Benavides, Darien Benavides, Shantell Berryman, Jonathan Best,
Christopher Bonilla-Ortiz, Joseph Borghi, Jordan Brown, Drew Card, Jabez Clark,
Nick Cirelli, Katherine Crisp, Jacob Deditch, Daniel Delgado, Rachel Delgado,
Jocelyn Dorado, Iyana Evans, Kira Fearing, Hayden Fitzgerald, Natalie Frampton,
Christian Frey, Keonte Futrell, Abbie Gobie, Austin Gray, Lauren Gregory,
Gabriel Habel, Daniel Heffern, Ethan Heitchew, Zarr Holmes, Titan Hovey,
Jalissa Johnson, Jessica Johnson, Ashlin Kenney, Sydney Kimble, Elyssa Lewis,
Nyonna Managio, Justin Marcsis, Julianna Martinez, Aamirah McDonald, Anthony
Mickens, Austin Mufengi, Benjamin Mufengi, Jamison Mulvihill, Thomas Mustafa,
Amir Naserian, Caleb Nichols, Matthew Payne, Forrest Penninger, Jeremiah
Pimentel, Heaven Potts, Izaac Ramos, Corbin Reed, Zachary Reed, Xavier
Robinson, Shane Rucker, Austin Rupertus, Jason Sablan, Safi Sanogo, Hayden
Schapell, Abigail Seybert, Azan Shahbaz, Kacie Shifflett, Scott Shwedo, Allen
Stone, A.J. Strother, Abby Sussman, Jake Sweeney, Jake Taylor, McKayla Thomas,
Anthony Thompson, Christopher VanLiew, Hayden Whitney, Michiah Wilson, Nicholas
Woods, Chloe Woody, Bradley Zendek.
Students who
earned the Presidential Award for Academic Excellence, signed by President
Obama: Austin Mufengi, Caroline Bingham, Braydon Collier, Rebecca Lazerson,
Dalton Muterspaw and Matthew Klocek.
School Nurse Patty
Slebonick is P.T.O. Employee of the Month. Chosen employees receive a front row
parking space, gift certificate to a local restaurant, banner for their
classroom and a certificate of appreciation.
Madeline Brence,
Shannon Roberson, Aishah Collison-Cofie and Gabriella Sanchez participated in
Library Media Specialist Kathy Rouse's "Read All the Virginia Reader
Choice Books 10/11 program" and were awarded with an ice cream sundae
party.
Students who
earned the highest number of points in the school-wide Reading Counts program
include Kindergarten: Adrianna Angel, Olivia Vallejo; First Grade: Kelsey
Gregory, Christian Frey; Second Grade: Cassandra Sturgill, Emily McHugh; Third
Grade: Sophia Woody, Jillian Brence; Fourth grade: Catherine McHugh, Aiyanna
Lee, Maya Maguigad; Fifth grade: Aishah Collison-Cofie and Anthony Mickens. Top
Reading Counts points for the school were earned by Sophia Woody and Aishah
Collison-Cofie.
-- Submitted
___
To see more of the
Stafford County Sun, or to subscribe to the newspaper, go to
http://www.staffordcountysun.com/.
Copyright (c)
2011, Stafford County Sun, Va.
Distributed by
McClatchy-Tribune Information Services.
For more
information about the content services offered by McClatchy-Tribune Information
Services (MCT), visit www.mctinfoservices.com, e-mail
services@mctinfoservices.com, or call 866-280-5210 (outside the United States,
call +1 312-222-4544)
FLOATY & FANCY-FREE; fashion; Get ready for your soft-focus close-up
as the 70s flutter back in sorbet shades and dreamy chiffons Photographs
Fiorenzo BorGhi
The Daily Mail (London, England)
08 January 2011
By CAROLINE BAKER
|
[What follows is
the full text of the article.] opposite page
silk chiffon Dress, [euro]3,599, and silk chiffon carDigan, [euro]938, both
made to measure, Jasper Conran. corsages, [euro]13 each, V V Rouleaux this page
silk georgette Dress, [euro]679; silk georgette skirt (worn underneath),
[euro]584, and silk crepe De chine Bra top, [euro]348, all sizes 6-14, John
Rocha. hat, [euro]34, Accessorize. corsage, [euro]58.98, Cherry Chau, from
Selfridges. shoes, [euro]560, sizes 36-41, Terry de Havilland. For stockists,
see page 13 opposite page silk dress, [euro]1,055, sizes 6-14, Mulberry.
Corsages, [euro]13 each, V V Rouleaux. sHoes, [euro]560, sizes 36-41, Terry
de Havilland this page silk dress, [euro]436, and silk skirt (worn
underneath), [euro]293, both sizes 10-12; saNdals, [euro]195, sizes 37-40,
and BaNgles, from a selection, all Betty Jackson. Corsage, [euro]13, V V
Rouleaux Fashion assistant: AMy WilliAMs Hair: KensHin at l'Atelier nyC
Make-up: KiyosHi at Utopia using Mac Pro Model: CHAnTAl sTAFFoRd-ABBoTT at
Marilyn Model Agency sToCKisTs aCCessorize, tel: 01 878 3525, accessorize.com
Betty jaCksoN, tel: 0044 207 589 7884, bettyjackson.com jasper CoNraN, tel:
0044 207 292 9080, jasperconran.com joHN roCHa, tel: 0044 207 495 2233,
johnrocha.ie maria graCHvogel, tel: 0044 207 245 9331 mulBerry, tel: 0044 207
491 3900, mulberry.com selfridges, selfridges.com terry de HavillaNd,
terrydehavilland.com v v rouleaux, tel: 0044 207 730 3125, vvrouleaux.com All
prices were correct at the time of going to press opposite page silk dress,
[euro]1,055, [...]
|
|
Annual Profit & Loss
|
|
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
|
Period Length |
12 Months |
12 Months |
12 Months |
|
Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate
(Period Average) |
0.755078 |
0.719047 |
0.683679 |
|
Consolidated |
No |
No |
No |
|
|
|
|
|
|
Total income |
28.8 |
26.2 |
32.8 |
|
Net sales |
28.1 |
27.3 |
31.5 |
|
Other operating income |
0.8 |
0.8 |
0.9 |
|
Raw materials and consumables employed |
7.2 |
6.1 |
8.2 |
|
Other expenses |
7.2 |
6.5 |
8.9 |
|
Total payroll costs |
11.6 |
11.1 |
12.9 |
|
Fixed asset depreciation and amortisation |
1.2 |
1.3 |
1.2 |
|
Other operating costs |
0.3 |
0.3 |
0.4 |
|
Net operating income |
1.3 |
0.9 |
1.2 |
|
Total financial income |
0.2 |
0.2 |
0.2 |
|
Total expenses |
0.4 |
0.7 |
0.9 |
|
Profit before tax |
1.0 |
0.5 |
0.4 |
|
Extraordinary result |
- |
0.1 |
0.2 |
|
Profit after extraordinary items and before tax |
0.9 |
0.5 |
0.6 |
|
Total taxation |
0.7 |
0.5 |
0.6 |
|
Net profit |
0.2 |
- |
- |
|
Net loss |
- |
0.0 |
0.0 |
|
|
|
Annual Balance
Sheet |
|
Financials in:
USD (mil) |
|
|
|
|
|
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
|
Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate |
0.745406 |
0.696986 |
0.719399 |
|
Consolidated |
No |
No |
No |
|
|
|
|
|
|
Total stockholders equity |
24.2 |
25.5 |
24.8 |
|
Provision for risks |
0.5 |
0.4 |
0.3 |
|
Provision for pensions |
3.1 |
3.4 |
4.2 |
|
Mortgages and loans |
8.0 |
11.0 |
6.1 |
|
Other long-term liabilities |
4.0 |
0.8 |
4.5 |
|
Trade creditors |
3.5 |
3.6 |
3.9 |
|
Bank loans and overdrafts |
4.1 |
4.6 |
6.1 |
|
Other current liabilities |
5.0 |
8.7 |
4.2 |
|
Accruals and deferred income |
0.2 |
0.2 |
0.3 |
|
Total current liabilities |
12.9 |
17.2 |
14.4 |
|
Total liabilities (including net worth) |
52.7 |
58.4 |
54.3 |
|
Intangibles |
0.3 |
0.4 |
0.4 |
|
Buildings |
25.2 |
27.6 |
27.5 |
|
Total tangible fixed assets |
26.9 |
29.6 |
29.7 |
|
Long-term investments |
1.5 |
1.7 |
0.7 |
|
Total financial assets |
5.2 |
5.7 |
0.7 |
|
Receivables due after 1 year |
1.8 |
2.1 |
0.0 |
|
Total non-current assets |
34.2 |
37.7 |
30.9 |
|
Finished goods |
8.2 |
8.9 |
10.5 |
|
Net stocks and work in progress |
9.9 |
10.8 |
12.6 |
|
Trade debtors |
6.5 |
7.0 |
7.4 |
|
Other receivables |
1.2 |
1.4 |
1.6 |
|
Cash and liquid assets |
0.7 |
0.5 |
0.7 |
|
Marketable securities |
- |
0.7 |
1.2 |
|
Accruals |
0.1 |
0.2 |
0.1 |
|
Total current assets |
18.5 |
20.6 |
23.5 |
|
Total assets |
52.7 |
58.4 |
54.3 |
|
|
|
Annual Ratios |
|
Financials in:
USD (mil) |
|
|
|
|
|
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
|
Period Length |
12 Months |
12 Months |
12 Months |
|
Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate |
0.745406 |
0.696986 |
0.719399 |
|
Consolidated |
No |
No |
No |
|
|
|
|
|
|
Sales per employee |
0.23 |
0.21 |
0.22 |
|
Profit per employee |
0.01 |
0.00 |
0.00 |
|
Average wage per employee |
0.10 |
0.08 |
0.09 |
|
Net worth |
24.2 |
25.5 |
24.8 |
|
Number of employees |
178 |
183 |
190 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.28 |
|
|
1 |
Rs.80.08 |
|
Euro |
1 |
Rs.68.44 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.