The Board of Directors of Linificio e Canapificio Nazionale SpA which met today has approved the report for the first quarter of the fiscal year 2006.
The aggressiveness of the Chinese operators –who did not respect the 25-member EU import quotas for linen yarns - had distorting effects on the prices of linen products.
The difficulties due to prices have also been increased by the end of yarn 'sales' from the part of the three European spinners that in 2005 have permanently stopped their production. Linificio has therefore become the main reference point for European qualified customers for its quality level, the reliability of its services and the wide range of products offered.
In this quarter, the Linificio Group –thanks to the good trend in linen product sales at the end of Spring-Summer season 2006 and to the positive start of the following season- focused its attention on keeping the market quota and on limiting the stock, with a positive impact on cash-flow.
The consolidated turnover was equal to €17.6 million, in comparison with €17.4 million on 31.03.2005, with a 0.8 percent increase. The Group operating results have been equal to €0.1 million in comparison with a profit of €1.5 million in the same period of 2005 (-95.2 percent).
The period results have registered a net loss of €0.2 million, in comparison with a profit of €6.8 million in the same period of the previous fiscal year, which was positively influenced (€6.1 million) by real estate transfers. The quarterly negative results have also been partly due to the delayed start-up of extended production in the subsidiary company Lietlinen (Lithuania) and to the charges following the winding up of the subsidiary company Licana SpA.
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