SIDENOR's Annual General Assembly was held today, Tuesday June, 12th 2007, at the ATHENS IMPERIAL HOTEL in Athens. The Management of the company presented to its Shareholders the 2006 financial results, along with the company's strategy and goals.
The Annual General Assembly approved amongst others the 2006 annual financial statements as well as the payment of Euro 0.25 dividend per share. Entitled to this dividend will be company shareholders by the close of the Athens Exchange trading session on 27.6.2007. From 28.6.2007 the Company's shares will trade at the Athens Exchange ex-dividend. The dividend will be paid through the ALPHA BANK branches from 5.7.2007 and until the end of the year.
At the group presentation to the shareholders, it was emphasized that 2006 is thought to be an exceptionally significant year, since all targets set, regarding the development and expansion of activities in Greece and abroad as well as regarding financial results, were accomplished.
More specifically, the consolidated turnover of SIDENOR Group in 2006 reached Euro 1,228 mil., an increase of 28% over 2005 while, at volume level, total sales exceeded 2.2 million tons of steel products. Profits before taxes amounted to Euro 144 mil., up by 366% over 2005, while profits before interest, taxes and depreciation (EBITDA) stood at Euro 220 mil., increased by 118% compared with 2005 figures. The EBITDA margin increased to 17.9% in 2006 compared to 10.6% in 2005. Finally, net consolidated profits after taxes and minority rights reached Euro 108 mil. (i.e. Euro 1.13 per share) versus Euro 16 mil. in 2005, an increase of 564%.
The main reasons leading to these results are the strong position of the Group in Greece and Southeast Europe, the improved presence of plate products of subsidiary company STOMANA INDUSTRY in Bulgaria, the increased contribution arising from the drastic recovery of subsidiary CORINTH PIPEWORKS upon completion of its restructuring plan, as well as the overall reduction of the Group's operating cost.
The good results of 2006 have also continued in the first quarter of 2007. More specifically in Q1 of 2007, SIDENOR Group turnover increased by 37% amounting to 381 mil. euro. Profit before tax (PBT) was formed at 52.6 mil. euro increased by 150% over the respective period of 2006, while profit before interest, taxes, depreciation & amortization (EBITDA) reached 71.5 mil. euro, marking an increase of 80%. Finally, consolidated net after-tax and minorities profit was formed at 35.5 mil. euro over 12 mil. euro (increase of 196%), or 0.370 euro per share.
Finally, the group management mentioned that in 2007 it remains focused on the materialization of its investment goals, the main being the strenghtening of the Group's production and commercial presence in the rapidly developing markets of the Balkans and of Southeastern Europe.