CIR CEO sees no Q2 pick-up at Sogefi unit
MILAN, May 27 (Reuters) - Italian conglomerate CIR SpA (CIRX.MI) sees no improvement in second-quarter results at its auto components unit Sogefi (SGFI.MI) after a weak first quarter, CIR Chief Executive Rodolfo De Benedetti said on Wednesday.
In the first quarter, Sogefi's net result swung to a loss of 8.8 million euros from a profit of 9 million euros a year earlier. It said full-year sales would be significantly lower than the prior year and it was cutting costs.
"In the quarter which is under way there are no particular signs of change or improvement ... (The business climate) is very demanding," De Benedetti told reporters on the sidelines of a conference.
Asked about Fiat SpA's (FIA.MI) proposed tie-up with General Motors Corp's GM.N unit Opel, he said it could have "more advantages than disadvantages" for Sogefi because it could get more business from a combined company.
Fiat's partnership with Chrysler LLC [CBS.UL] could also drum up more business for Sogefi, he added.
Sogefi's supplies to GM Europe are "marginal", he said.
In 2008, Sogefi got 8.6 percent of its sales from Fiat.
As for L'Espresso (ESPI.MI), CIR's media unit, De Benedetti said its sharply lower advertising revenues were following the economic cycle in common with other media companies.
"I don't know when this recession will end. There are no particular encouraging signs," he said.
(Writing by Nigel Tutt; editing by John Stonestreet)
