Annual Report 2014

Etex Annual Report 2014
Financial report
Consolidated financial statements
IN THOUSANDS OF EUR 2013 2014
Income from investment property 1,517 1,240
Government grant amortisation 2,526 2,771
Royalties and license income 220 215
Amounts recovered from insurance companies 1,524 82
Gain on disposal of assets 4,259 2,215
Past service gain / Settlements 2,568 7,134
Miscellaneous 8,347 7,956
Total other operating income 20,961 21,613
Settlement gains and past service gains relate to defined benefit plans in the Netherlands and in Ireland in 2014 (see note 21).
In 2013, these were generated by defined benefit plans in the United Kingdom, Ireland and the Netherlands.
Note 4 – Non recurring items
IN THOUSANDS OF EUR 2013 2014
Gain on disposal of assets 5,444 7,508
Gains / Losses on disposal of businesses -4,863 -836
Total gains and losses on disposal of assets and businesses 581 6,672
Major restructuring costs -10,643 -49,275
Insurance compensation 3,800 -
Impairment of goodwill - -637
Price adjustment on acquired businesses - 500
Litigation provision 8,717 -1,900
Total other non recurring items 1,874 -51,312
Non recurring items 2,455 -44,640
As in prior years, surplus land could be disposed in 2014: the gain on disposal of assets relates to the sale of a piece of land in Quilicura
(Chile) for € 10,193 thousand; in 2013 the gain on disposal of assets related to the sale of surplus land in Cartagena (Colombia).
In March 2014, the Group sold the carpet and flooring business operated by the company Etersol for a proceed of € 2,808 thousand
generating a loss of € 490 thousand.
On 8 April 2014 the Group sold its subsidiary Batiroc, producing metal profiled sheet, to another player in the French metal profiling
market; the proceeds amount to € 5,173 thousand and this operation generated a gain of € 1,199 thousand.
A loss on disposal of businesses consists of € 241 thousand recognised on the step up acquisition of the non controlling interest in
Pulverizar, a Colombian company that was previously equity accounted. Other items relating to the disposal of businesses are price
adjustments: one on the disposal of Fademac (Brazil) that took place in 2009 (negative price adjustment of € 950 thousand), and
another one relating to the 2013 disposal of La Chape Liquide and Gyvlon subsidiaries (negative price adjustment of € 354 thousand,
the loss recognised in 2013 was € 4,862 thousand). As a result of fire damage on its Malsh site, Creaton (Germany) obtained in 2013 an
insurance compensation for property damage which amounted to € 3,800 thousand, net of the relevant costs and impairment of assets.
Three significant restructuring plans were implemented by the Group in 2014, in three businesses and locations:
• In Germany, closure of the plain tile plant located in Guttau (Saxony), communicated in May 2014 and where
production stopped in quarter 3, in response to the declining market demand in plain clay tiles for years.
• In the United Kingdom, closure of the fire protection & insulation Glasgow factory (Scotland), announced in
September 2014 and that will take effect by the end of 2015, to further consolidate manufacturing facilities in Europe.
• In France, the Siniat business has initiated a restructuring plan in order to face slow down in the building activity.
This plan started in October 2014. It is subject to negotiation with the employee representatives and approval from the authorities.
The entire organisation is being re-shaped: three plants are in the process of being shut down, a re-designed
organisation is being implemented. Overall, the workforce at Siniat France could be reduced up to 15%.
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