The 2006 consolidated sales of S&B Industrial Minerals S.A. were increased by 8.5%, reaching Euro 455.60 million versus Euro 419.84 million in the financial year 2005. Also, the consolidated operating profits (before taxes, financial and investment results) went up by 16%, to Euro 40.24 million from Euro 34.69 million in 2005. Earnings before taxes, standing at Euro 34.20 million show a decrease of 8.5% in comparison to the previous year, but after deducting from the 2005 results the non-recurring capital gain of Euro 6.55 million from the sale of A.B.C. Kalyftaki, pre-tax profits on a recurring basis are effectively increased by 11%. Similarly, the net profits of the Group (after taxes) were Euro 23.54 million, showing a decrease of 6.4%, but on a recurring basis they are effectively up by 13.5%. The net profits after minority rights were Euro 22.10 million and earnings per share were Euro 0.73.
In the Industrial Minerals Activities (which represent 78% of Group sales) consolidated sales increased by 6%, standing at Euro 355.40 million, while operating profits were up by 14.8% to Euro 34.55 million and net profits up by 12.7% reaching Euro 19.96 million. In the various industrial minerals activities increases in sales varied from 5.7% to 16.7%, with the exception of bauxite sales which went down by 13%. The improved profits from these activities despite the increased global competitive pressures and the higher energy costs are due to the organic top-line growth, the pricing policy followed and better product mix.
In the Commercial activities (Motodynamics S.A. and Ergotrak S.A.), revenues increased by 18.1% in comparison to 2005, reaching Euro 100.46 million. Similarly, operating profits from these activities rose by 15.4% to Euro 5.12 million. The Motodynamics subsidiaries in Romania and Bulgaria, in particular, doubled their sales, confirming the positive effects from the strategic expansion plans in these countries.
S&B s Chief Executive Officer Efthimios O. Vidalis commenting on the financial results for 2006 stated: The 2006 results confirm our expectations for steady organic growth and improved profitability, despite the increased global competition. We foresee continued steady organic growth of activities for 2007 as well. We continue our strategy for the dynamic expansion of our activities, which initially involves the integration of the CEBO figures, upon completion of this transaction.
The Board of Directors of S&B Industrial Minerals S.A., based on the 2006 results, decided to propose to the Annual General Assembly of Shareholders, which is scheduled for May 31, 2007, a cash dividend of Euro 0.30 per share, higher by 11.1% from the Euro 0.27 per share in the previous year. Based on the share price of March 14, 2007 (Euro 9.68) the yield of the proposed dividend stands at 3.1%.
Full-year 2006 financial results presentation to analysts will take place after today s end of the Athens Exchange trading. A relevant presentation will become available through the Company s website. The financial statements will be published in the press on Friday, March 16th 2007 and on the Company s website at www.sandb.com.