Consolidated Financial Statements >
Directors’ Report
44
| 2012 annual report prysmian group
The Prysmian stock increased its value by 56% in 2012, significantly outperforming
its competitors and benchmark indices.
Prysmian S.p.A. has been listed on the Italian Stock Exchange
since 3 May 2007 and has been included since September
2007 in the FTSE MIB index, comprising the top 40 Italian
companies by capitalisation and stock liquidity. The Prysmian
stock has since joined the principal world and sector indices,
including the Morgan Stanley Capital International index
and the Dow Jones Stoxx 600, made up of the world’s largest
companies by capitalisation.
During 2012, following growing concerns about Eurozone and
US debt sustainability, the world economy continued the
decelerating trend in progress since the second half of 2011.
This led to a gradual deterioration in consumer and business
confidence, with a consequent reduction in industrial output
and investments worldwide. Overall, global demand in 2012
nonetheless reported a slight increase due to the significant
growth achieved by emerging markets, particularly in Asia.
In the United States government stimulus packages helped
support the recovery in demand and led to a gradual decline
in the unemployment rate. In Europe, the downturn was
further exacerbated by the introduction of deficit-cutting
measures in several Eurozone countries, with a consequent
increase in the tax burden. This led to a sharp slowdown in
economic activity, initially in the more indebted countries
like Greece, Spain, Italy and Portugal and later spreading to
countries in Central and Northern Europe (France, United
Kingdom, Netherlands, Germany). Europe’s better performers
in terms of growth included Norway, Poland and the Baltic
nations.
Despite the gradual deterioration in the economic situation
over the year, the major world equity markets were generally
positive mainly due to measures by central banks to support
the banking system, ensuring ample liquidity at very low
rates; this also made it possible to severely limit speculation
over the sustainability of debt in some Eurozone countries.
The US indices managed to close the year in positive territory,
with rises of between 7% and 16%; even the European
stock markets recorded an overall positive performance: in
particular, the German stock market rose by 29%, the French
one by 15%, the Italian one by 8% and the British one by 6%,
while the Spanish index fell by 5%. Lastly, even the emerging
and Asian markets recorded an upward trend, with rises
ranging from 7% (Brazil) to 31% (India).
In this context, the Prysmian stock increased its value by
approximately 56% over the course of 2012, returning to its
initial listing price (Euro 15 on 3 May 2007), and significantly
FINANCIAL MARKET PERFORMANCE
