ROMI
Liquidation of Italian subsidiary has begun / Operating loss of 173% in first quarter / End of an era for Sandretto
Machine manufacturer Industrias Romi SA (Santa Barbara d'Oeste / Brazil; www.romi.com.br ) is liquidating its Italian subsidiary, Romi Italia. In a statement released by the company at the end of April, it said it will be forced to lay off the entire workforce and sell its assets to cover the liquidation costs. Italian media reports estimate 145 individuals will be affected by the closure.
Romi believes the shutdown of its Italian operations will take up to a year to finalise. For Italian industry, it marks the sad end to a once proud brand, "Sandretto", stamped on the injection moulding machines it manufactured since its founding in 1946. In 2005 it was briefly run by US company HPM North America (Gilead, Ohio; www.hpmmachinery.com) before it was taken over by Romi in 2008 – Plasteurope.com from 01.08.2008. Romi will continue to produce Sandretto machinery, but it will be manufactured in Brazil, which has reportedly already been the case for quite some time.
Financial figures from the first three months of 2013 show that Romi achieved sales in the segment of machinery for processing of plastics, at BRL 18.9m, roughly EUR 7.1m, a decrease of about 18.9% compared with the same period last year and 30.5% against the previous quarter.
In the first three months of 2013, Romi achieved sales in the segment of machinery for processing of plastics, BRL 18.9m, roughly EUR 7.1m; a decrease of about 18.9% compared the same period last year and 30.5% against the previous quarter.
Sales at Romi Italy have suffered a steady decline in the past three years, from BRL 35.7m in 2010 to BRL 32.8m in 2011, before finally falling to BRL 18.4 million last year (just under EUR 7m). The EBITDA of the Italian activities in the same period, increased from BRL 11.4m to BRL 14.8m.
Negotiations were already underway as early as March 2012 according to the statement released by Romi. The Italian subsidiary was constantly putting up a deficit with an EBITDA of -31% in 2010 dropping to -57% in 2011 and a whopping -80% last year. For the first quarter of 2013, the Italian site had an operating loss of 173% bringing in a meagre EUR 500,000 in revenues.
Italian media reports blame the dismal economic situation of their country along with the „tug of war“ with the national unions for sealing the traditional company’s fate with its Brazilian owner.
Romi believes the shutdown of its Italian operations will take up to a year to finalise. For Italian industry, it marks the sad end to a once proud brand, "Sandretto", stamped on the injection moulding machines it manufactured since its founding in 1946. In 2005 it was briefly run by US company HPM North America (Gilead, Ohio; www.hpmmachinery.com) before it was taken over by Romi in 2008 – Plasteurope.com from 01.08.2008. Romi will continue to produce Sandretto machinery, but it will be manufactured in Brazil, which has reportedly already been the case for quite some time.
Financial figures from the first three months of 2013 show that Romi achieved sales in the segment of machinery for processing of plastics, at BRL 18.9m, roughly EUR 7.1m, a decrease of about 18.9% compared with the same period last year and 30.5% against the previous quarter.
In the first three months of 2013, Romi achieved sales in the segment of machinery for processing of plastics, BRL 18.9m, roughly EUR 7.1m; a decrease of about 18.9% compared the same period last year and 30.5% against the previous quarter.
Sales at Romi Italy have suffered a steady decline in the past three years, from BRL 35.7m in 2010 to BRL 32.8m in 2011, before finally falling to BRL 18.4 million last year (just under EUR 7m). The EBITDA of the Italian activities in the same period, increased from BRL 11.4m to BRL 14.8m.
Negotiations were already underway as early as March 2012 according to the statement released by Romi. The Italian subsidiary was constantly putting up a deficit with an EBITDA of -31% in 2010 dropping to -57% in 2011 and a whopping -80% last year. For the first quarter of 2013, the Italian site had an operating loss of 173% bringing in a meagre EUR 500,000 in revenues.
Italian media reports blame the dismal economic situation of their country along with the „tug of war“ with the national unions for sealing the traditional company’s fate with its Brazilian owner.
14.05.2013 Plasteurope.com [225299-0]
Published on 14.05.2013
German version of this article...