Compared with June 30, 2009, there was a significant reduction in working capital (€39 million), achieved through reduced inventories (€51 million) and higher trade payables (€21 million), in spite of higher receivables.
Net financial indebtedness at June 30, 2010 was €508 million, down by €48 million compared with December 31, 2009, underlining the strong cash generation in the first half year.
Summary of consolidated cash flows Cash flow generated by operating activities totalled €150 million, against €145 million in the comparative period.
In the first half of 2010, the Group made net investments of €54 million. To be noted, were €44 million of commercial and real estate investments and €6 million of investment in industrial activities.
Outlook for the year The cost reduction actions, introduced last year, are having the desired effects and the general level of efficiency in the production area, together with the strength of the brands and the capillary sales network are supporting the strong improvement in results achieved in the first half year.
The 2nd half of 2010 will see, among other things, significant commercial investments, with the relaunch and creation of innovative spaces in the larger Flagship Stores, in cooperation with famous architects and the acquisition of strategic locations in emerging markets.
All company efforts are therefore focussed on creating the right conditions for the resumption of growth, also with the support offered to the Asian markets, accompanied by an unchanged and continuing commitment to greater efficiency.
However, new orders taken for the Fall/Winter collection demonstrate continuing weakness in the economies of markets historically of greater relevance to the Group.
Expected trends in the second part of 2010 confirm estimates for the current full year of a slight reduction in operating margins compared with 2009 levels, in the presence of significant non-recurring costs of an amount similar to the previous year, a greater cost of borrowing due to the loan arranged in June to replace the expired loan and, as already mentioned, a slight increase in the average tax rate.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
