Corporate results
After declining for two years, the aggregate earnings of
listed companies grew by 19% to the third quarter of
2013 (latest available figures), supported by lower provi-
sions, increased exports and extraordinary income. This
figure combines lower industrial and service earnings
(-1.00%) and an 80% increase for the financial sector.
Exports are continuing to provide significant support for
companies. The importance of listed companies main-
taining their employment levels should not be underes-
timated in the current crisis, as they employ 1.74 million
people. However, these companies are also reducing
their leverage and shoring up their capital. In general,
in 2013 Spanish companies focused on three areas:
obtaining affordable funding, conquering new markets
and cleaning up their balance sheets by reducing debt.
Spanish listed companies have, in all cases, achieved
better results than the national average. There are three
reasons for this. First, with the credit tap turned off and
faced with the need to reduce their debt, they have
found the appropriate market strategies to attract new
funding. Second, their stock market presence gives them
scale and international exposure, making it easier to sell
abroa And, third, because replacing debt and strength-
ening capital is easier in an open market where such
transactions can be arrange
In 2013, share prices overcame the spectacular collapse
in domestic demand, with export activity and sales
continuing to expan At the same time, companies have
benefited from extraordinary gains and lower funding
costs. This is the case for all companies in the Eurostoxx
50.
Illustrative panel on the trading floor of the Madrid stock exchange.
Total earnings of listed companies up 19.12%.
Turnover down 3.47%.
Following two years of decline, the total earnings of
listed companies have returned to growth, up 19.12% at
the end of the third quarter of 2013. However, this was
not based on higher turnover, which was actually down
3.47%, but did include extraordinary results.
The combined after tax earnings of companies listed
on the main Spanish stock market increased by €21.856
billion in the first nine months of 2013, up over 19.12%
year-on-year. Industrial and service-sector (including real
estate) companies contributed €13.381 billion, down
1% year-on-year. However, banks contributed €7.422
billion, up 80.17%, with the remaining €1.054 million
being generated by insurance, investment and holding
companies.
Over half of the 109 companies (62) in the sample
improved their results over the last year. 72 companies
(66% of the sample) were in profit, with only the last
quarter remaining. 37 companies were loss making (46
at year-end 2012). Proportionally, the largest number of
companies with losses was in the real estate sector. The
situation looks better if EBITDA is considered, with 90 of
the companies in positive territory.
1 The total figures do not include Bankia or Liberbank as a result of their
particular circumstances over the last year. CVNE, Pescanova and Fergo
Aisa are also exclude
27
The Market Environment
Annual
Report 2013
BME
1...,17,18,19,20,21,22,23,24,25,26 28,29,30,31,32,33,34,35,36,37,...236