The parent company CIR S.p.A. closed financial year 2008 with net income of € 33.3 million (down from € 79.9 million in 2007). Shareholders' equity stood at € 974.5 million at December 31 2008 compared with € 983.8 million at December 31 2007.
The key income statement figures of CIR S.p.A. for 2008, with a comparison with those of 2007, are as follows:
| (in millions of euro) | 2008 | 2007 |
| Net operating costs (1) | (9.1) | (10.8) |
| Other operating costs and amortization (2) | (38.8) | (2.8) |
| Financial management result (3) | 73.3 | 68.9 |
| Income before taxes | 25.4 | 55.3 |
| Income taxes | 7.9 | 24.6 |
| Net income | 33.3 | 79.9 |
(1) This item is the algebraic sum of "sundry income and expense", "costs for services" and "personnel costs" in the income statement of the Parent Company CIR S.p.A.
(2) This item is the sum of "other operating costs" and "amortization, depreciation and write-downs" in the income statement of the Parent Company CIR S.p.A.
(3) This item is the algebraic sum of "financial income", "financial expense", "dividends", "gains from trading securities", "losses from trading securities" and "adjustments to the value of financial assets" in the income statement of the Parent Company CIR S.p.A.
Net operating costs for 2008, which amounted to € 9.1 million (compared to € 10.8 million in 2007), include charges resulting from the IAS/IFRS treatment of stock option and phantom stock option plans for € 0.4 million which compares with € 3.6 million in 2007.
The financial management result includes the dividends of subsidiaries, which totalled € 138.7 million in 2008 compared to € 126.5 million in 2007, net financial expense of € 8.6 million (€ 8.9 million in 2007) and losses from trading and valuing securities of € 56.8 million (€ 48.7 million in 2007). Lastly 2008 benefited from a positive net tax position of € 7.9 million, down from € 24.6 million in 2007.
The key balance sheet figures of CIR S.p.A. at December 31 2008, compared with the position at December 31 2007, are as follows:
| (in millions of euro) | 31.12.2008 | 31.12.2007 |
| Fixed assets (1) | 1,040.0 | 1,052.6 |
| Other net non-current assets and liabilities (2) | (1.5) | (1.8) |
| Net working capital (3) | (6.9) | 48.8 |
| Net invested capital | 1,031.6 | 1,099.6 |
| Net financial position (4) | (57.1) | (115.8) |
| Shareholders’ equity | 974.5 | 983.8 |
1) This item is the sum of "intangible assets", "tangible assets", "investment property" and "equity investments" in the balance sheet of the Parent Company CIR S.p.A..
2) This item is the algebraic sum of "sundry receivables" and "deferred taxes" in the non-current assets and "personnel provisions" in the non-current liabilities of the balance sheet of the Parent Company CIR S.p.A..
3) This item is the algebraic sum of "sundry receivables" in current assets and "other payables" and "provisions for risks and losses" in the current liabilities of the balance sheet of the Parent Company CIR S.p.A.
4) This item is the algebraic sum of "securities", "available for sale financial assets" and "cash and cash equivalents" in the current assets and "bonds and notes" in the non-current liabilities of the Parent Company CIR S.p.A..
The net financial position at December 31 2008 was one of net debt for € 57.1 million which compares with a net debt position of € 115.8 million at December 31 2007. The improvement of € 58.7 million was due mainly to the positive balance of € 101.3 million between dividends received and those paid out and to the disbursement of approximately € 28 million made for equity investments and own shares.
The reduction in shareholders' equity from € 983.8 million at December 31 2007 to € 974.5 million at December 31 2008 was mainly caused by the result for the period offset by the distribution of dividends for € 37.4 million and the effects of the accounting treatment under IAS/IFRS of own shares. At December 31 2008 there were 42,974,000 own shares in the portfolio, equal to 5.4% of capital, for a total value of € 98.6 million, compared with 39,644,000 at December 31 2007.