3rd quarter and 9 month 2009 results
Continuing improvement of EBITA margin to 4.4% in Q3 despite a difficult economic environment
Strong deleveraging through solid cash flow generation
- Sales of €2.8 billion in Q3, in line with previous quarters, reflecting an economic environment that remains tough and volatile
- EBITA1 of €122 million in Q3; further sequential improvement in margin to 4.4% in the quarter (after 3.0% in Q1 and 3.6% in Q2) as a result of accelerated cost reduction
- Net debt reduced by €124 million in Q3 and €348 million year-to-date, to €2.6 billion at September 30, through strong cash flow generation
- Proactive cost-reduction program will generate a net reduction of €280 million in distribution and administrative expenses in the full-year, exceeding objective
Jean-Charles Pauze, Chairman of the Management Board and CEO, said:
“Since the beginning of the year, in a very challenging environment, Rexel has delivered on its priorities: we improved profitability quarter after quarter to 4.4% in the third quarter and strongly deleveraged our balance sheet.
Accelerated implementation of our cost-cutting program will allow us to reduce distribution and administrative expenses by €280 million in the full year, exceeding our earlier target.
While we don’t expect an economic upturn in the near-term, we are confident that Rexel, thanks to the enhanced resilience of its business model and its teams’ ability to execute its strategy, is well positioned to continue to gain market share, seize market opportunities and consolidate its leadership position.”