Halcor Group of companies announced its consolidated financial results for the first half of 2007 according to the IFRS.
Consolidated turnover during the first half of 2007 reached euro 714.2 mil., versus euro 581.3 mil. for the first half of 2006, an increase of 22.9%. The rise in turnover is attributed to the increased sales volumewise of about 10%, the increase of the fabrication prices, as well as to improvement of the product mix towards higher added value products. On the contrary, during the first half of 2007, average copper price in Euro terms increased only slightly by about 3% with respect to the corresponding period of last year.
During the first half of 2007, the breakdown of sales with respect to volume was as follows: cable products 35% of the total, tubes 30%, rolled products 19%, brass rods 9% and copper bus bars 7%.
Consolidated Gross profit for the first half of 2007 was euro 55.1 mil. versus euro 61.2 mil. in the first half of 2006, decreased by 10%. It should be noted that H1 2006 profits were significantly enhanced by the appreciation of stocks caused by the extraordinary increase of the average copper price during this period, while corresponding 2007 profits are primarily attributed to operating activities. Specifically, during the first half of 2007 average copper price in Euro terms decreased approximately by 5% compared to the average price of 2006, whereas during the respective period of the previous year the average price had increased by about 65% compared to the average price of 2005.
Consolidated selling and administrative expenses for the period were euro 20.2 mil. versus euro 22.6 mil. in 2006, decreased approximately by 11% as a result of the merger of Halcor and Fitco and the synergies among the companies of the Group.
Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) at euro 47.2 mil. decreased by 5.7% versus the corresponding euro 50.1 mil. of 2006, while earnings before interest and tax (EBIT) at euro 35.3 mil. decreased by 8.9%.
Consolidated earnings before tax (EBT) amounted to euro 24 mil. versus euro 29.8 mil. in the first half of 2006 decreased by 19.6%. This decrease is mainly attributed to the lower gross profit as well as to higher financial expenses, compared to the first half of 2006. Earnings after tax and minorities reached in the first half of 2007 euro 16 mil. (euro 0.158 per share) versus euro 22.1 mil. in 2006 (euro 0.227 per share) decreased by 27.7%.
To sum up, during the first half of 2007, the Group succeeded in increasing sales of higher added value industrial products, products that have primarily attributed to the overall volume increase. The combination of higher sales combined with better fabrication prices, resulted to operation results that to a big extend counterbalanced the extraordinary metal profits of the corresponding 2006 period. On the contrary, the retention of copper prices at today's elevated levels combined with very high price volatility, is affecting the demand of installation products related to construction, a trend that has already started from the previous year.
The H1 2007 Data and Information and the Interim Financial Statements have been published on Tuesday, August 21, 2007 in the daily press and have been posted on the company's website, in the address www.halcor.gr
See the IR RELEASE