CIE Automotive increases its profit and income by 21% during the first quarterAutomotive News
The company, specialist in the provision of multi-technical services and engineering solutions, achieved double-digit growth in all the results lines in the first three months of 2018.
CIE Automotive obtained a net profit of 66.1 million euros in the first quarter of the year, which represents an increase of 21% over the same period of the previous year, according to data published by the company.
The turnover of the company between January and March stood at 1.046 million, 21% more than in the first three months of 2017, when it entered 863.4 million.
The gross operating profit (EBITDA) was 151.4 million so far this year, 16% more than in the first quarter of the previous year, while the company’s net assets rose by 3%, to 1,379, 7 million euros.
Specifically, the automotive division of the company recorded a turnover of 771.7 million in the accumulated of the year, 10% more compared to the 703.1 million obtained in the first quarter of the previous year, and an ebitda of 137 million, 15% more.
Departure from Dominion
On the other hand, the ordinary general meeting of shareholders of CIE Automotive has approved the extraordinary and in-kind distribution of securities of its subsidiary Global Dominion Access, representing approximately 50% of the company, as part of its objective to exit the capital of the engineering solutions firm.
Thus, the distribution of unrestricted reserves was authorized through the delivery to the shareholders of CIE Automotive of 84.76 million Dominion securities, for an amount of 392.46 million euros.
This distribution represents the delivery of 0,657 shares of Dominion for each of CIE Automotive, up to a total of 84,764 million ordinary and nominative securities that are admitted to the Bilbao, Madrid, Barcelona and Valencia Stock Exchanges.
The forecast of the Spanish manufacturer of components for automobiles is that the distribution of these freely available reserves amounting to more than 392 million euros will be carried out on July 3.
The exit by CIE Automotive of the capital of Global Dominion is in line with the progress made at the time of the IPO of the latter, at which time CIE announced that this operation represented a first step towards an independence of the two companies.
Long-term incentive of the CEO
The board also approved a long-term incentive for the company’s CEO, Jesús María Herrera, which is based on the value of the entity’s shares, which consists of multiplying the difference between the market value by 1.45 million. of the share and an initial value previously fixed (21.3 euros).
Thus, the quoted price is fixed on the average price of the shares of the company in a period of 90 calendar days, while the reference period is applied, at the discretion of the CEO, on 90 days included on any date between the January 1 and December 31, 2020, as well as the years 2022, 2025 and 2027.
However, a maximum amount has been set to be received in the partial exercise of said incentive in the years 2020, 2022, 2025 and 2027. The maximum figure will be 8 million euros, although the bonus calculations are higher and when the value should be less than the initial one, the CEO would not receive any incentive.
The CIE securities closed the price on Monday at 30.54 euros, with a drop of 0.59%. The company presented its quarterly results on Tuesday, which showed a net profit of 66.1 million euros, 21% more, and a turnover of 1,046 million euros, 21% more.
EP 24 Apr 2018 – 12:14 (Translation Soft)