Halcor Group of companies announced its consolidated financial results for the Full Year of 2006 according to IFRS.
Consolidated turnover amounted to Euro 1,246.7 mil. as opposed to Euro 711.7 for FY 2005 marking an increase of 75.2%. The increase is mainly attributed to the significant rise of the average metal price during 2006 (Copper 79%, Zinc 132%). The increase of consolidated turnover in volume was remarkable also standing at 15.6% as opposed to year 2005, despite of the negative effect that the high metal prices had on the demand of construction applications products. Specifically, with respect to volume sales of cable products constitute 35% of total, tubes 30%, rolling products 21%, rods 9% and bus bars 5%. Export sales activity of Halcor, which is anticipated to be the main growth driver for the further development of the Group, marked the strongest growth during 2006. Export sales constitute in 2006 77.6% of the value of total sales as opposed to 67.8% for the year 2005.
Group gross profit stood at Euro 118.8 mil. for 2006 marking an increase of 94% as opposed to 2005. Gross profit margin improved by 0.9 percentage units at 7.6% of total sales. Gross profit increase is attributed both to the increase of metal prices and to the more efficient operation of Group production plants. We must point out the performance of the new production facility in Bulgaria, of the affiliated Sofia Med, posting significant growth focused mainly in the production of high added-value industrial products.
All other profit categories changed in accordance with gross profit development. Consolidated profits before interest tax depreciation and amortization (EBITDA) marked an increase of 100.2% standing at Euro 95.3 mil. as opposed to Euro 47.6 mil. for the year 2005, while earnings before interest and tax (EBIT) increased by 178.2% in comparison with 2005 standing at Euro 72.7 mil.
Consolidated earnings before tax (EBT) stood at Euro 51.9 mil. as opposed to Euro 12.5 mil. for the year 2005 marking an increase of 314.9% while earnings after tax and minorities stood at Euro 36 mil. as opposed to Euro 3.5 mil. in 2005 marking an increase of 930.1%. Group profitability structure contributed significantly in the above mentioned increase as all group affiliate companies posted positive results during year 2006.
Current trend of declining metal prices, in contrast to the all time high values reaches during 2006, is anticipated to continue during the year 2007. This fact will positively affect both Group net debt and group cash flow. For the year 2006 Net Debt stood at Euro 473.5 mil. significantly decreased in comparison with H1 2006 figure of Euro 564.3 mil. a decrease that is expected to continue within the year 2007. Cash flow from operations shows a remarkable improvement as well in the year 2006 standing at negative Euro 88.6 mil. substantially improved in comparison with H1 2006 figure of negative Euro 200 mil.
The FY 2006 Data and Information and Interim Financial Statements have been posted on the company''s website www.halcor.gr