Stable Growth of Activity and Financial Results
SIDENOR Group turnover amounted to 1,078 in the nine month period of 2007, marking a 19% increase over the nine month period of 2006. Profit before interest, taxes, depreciation & amortization (EBITDA) reached 185 mil. euro, increased by 16% over the same period last year. Finally increased by 37% were the consolidated net after-tax and minorities profit and was formed at 87 mil. euro over 64 mil. euro last year, or 0.91 euro per share (over 0.667 euro per share the nine month period of 2006).
The increase in the turnover and the profitability in the nine month period of 2007 resulted from:
- the high demand for steel products, especially during the first half of 2007
- the further enhancement of SIDENOR sales in the Balkan markets, specifically in the branded SD steel products,
- the ongoing improvement of productivity and production capacity of all SIDENOR Group's plants, resulting from the investments already carried out,
- the further enhancement of the sales of the heavy plates products, as well as the special steel products of STOMANA INDUSTRY in the EU countries
- the increase in the profitability of subsidiary CORINTH PIPEWORKS, resulting from the increased price levels of the projects in process, as well as the increased demand in the international energy markets for high quality steel pipes and the constant pursuit for increased productivity and more efficient use of the company' s production units.
Regarding the fourth quarter of 2007, given the current conditions in the domestic and international steel markets, we do not anticipate substantial changes in the business environment.
Finally, the start up of the new rolling mill investment in our subsidiary STOMANA INDUSTRY in Bulgaria, is expected to have a positive impact in our results starting from 2008.