by Alfredo Ballarini28   Aprile   2014

The industry of tool and dye makers for ceramics: an analysis

The industry of tool and dye makers for ceramics has been observed through a representative sample of 23 companies. The survey has showed a decrease for the year 2012 of 3.38% in sales, with a turnover going from €96.4 million to €93.2 million. EBITDA has been reduced from 7.14% to 5.11% of the produced value due to a slight reduction of the surplus value and to a higher impact of the cost of labour and of other management costs. Labour as well as rental costs erode most of the generated surplus value, with rentals adding up to 3% of the produced value. Controlled amortization has prevented EBIT from being negative although it has not prevented it from getting below 1%. Net profit is also decreasing also due to a tax burdens increase. It has to be said that debts are decreasing thanks to a higher working capital (less credits) following a reduced turnover. Over the last three years there is a countertrend between the lowering of the impact of the net financial position and the rising of financial management costs. Financial management is influenced by the standard cost of debit and also by possible profits and change management. Clients’credits show a delayed payment schedule towards dealers. This is a problem that together with a decreasing free cash flow points out the need to rethink treasury and debt management.
Forecasts on profitability put EBITDA between a 4.1% and a 6.2%. EBITDA has a 43% chances of staying at – and even overcome – 6.2% of impact on produced value, but higher management efforts should be required. There are only a 3% chances of getting down to 4.1% (or even lower).
Summarizing the field’s economic and financial scenario through a unified rating process we would have (by simplified calculation) a Standard & Poor’s BB- rating.