TECHNICAL OLYMPIC Group of Companies announced its financial results for the nine month of 2007, in accordance with the International Financial Reporting Standards (IFRS).
Consolidated turnover amounted to EUR 1,343.5 million in the nine months of 2007 compared to 1,544.9 million for the same period last year, lower by 13.0%. The reduction in the group's turnover is mainly attributed to the longer than expected slowdown in the activity of the homebuilding/real estate market in the USA, with subsequent turmoil and chain reaction to subsidiary TOUSA?s operations, whose turnover formed at EUR 1,228.0 million versus EUR 1,472.0 million in the nine months of 2006. On the other hand, the other group activities marked substantial growth with the turnover form the construction sector, the tourism sector and the other sectors of the group amounting to EUR 115.4 million, increased by 60.3% over EUR 72.1 million in the nine-month period of 2006.
Group Gross profit, in the nine months of 2007, amounted to losses of EUR 230.4 million versus profits of EUR 339.9. The ongoing adverse conditions of the US homebuilding sector has affected materially by suppressing profit margins. In addition, during the current year there has been reported an unusually-high cancellation rate due to the dramatic tightening of the credit markets, buyers inability to sell their existing home, diminished consumer confidence, the oversupply of new and existing homes available for sale, increased foreclosures and downward pressure on home prices.
Consequently, group EBITDA in the nine months of 2007 amounted to losses of EUR 493.1 million versus profit of EUR 120.3 million in the nine months of 2006 while pre tax results amounted to losses of EUR 549.1 million versus profit of EUR 58.7 million in the respective period of 2006. Finally net after tax and minorities results reported losses of EUR 400.8 million versus profit EUR 16.7 mil in the nine months of 2006. TECHNICAL OLYMPIC's consolidated Owners Equity amounted to EUR 210.7 million versus EUR 732.5 million as at 31/12/2006.l It is noteworthy that the parent's company results for the nine months of 2007, include losses from "TECHNICAL OLYMPIC SA" participation in the subsidiary TOUSA, which amounts to EUR 125.8 million.
Regarding the latest events in relation to the group?s subsidiary TOUSA Inc., both the parent company "TECHNICAL OLYMPIC SA" as well as the subsidiary TOUSA Inc., have already informed the investment community with previous releases, which are available at their websites www.techol.gr and www.tousa.com respectively.
During the same period, group subsidiary MOCHLOS SA, which activates in the construction sector, reported consolidated turnover from both state and private projects in Greece and abroad totaling EUR 283.7 million over EUR 260.6 million, marking a 9% increase. Consolidated EBITDA amounted to EUR 12 million over EUR 4.8 million in the respective period of 2006, marking an impressive 150% increase. Group net after taxes and minorities earnings marked turnaround and amounted to EUR 6.7 million from losses of EUR 4.8 million in the nine months of 2006. Consolidated owners equity of MOCHLOS amounted to EUR 68.9 million over EUR 64.9 million as at 31/12/2006.
As well, PORTO CARRAS complex also reported substantial growth of its financial results in the nine months of 2007, mainly attributed to the implementation of extensive investment development programs and to the ongoing improvement of the Complex's operating procedures. It is worth noting that the TIME-SHARING system of the Hotel "SITHONIA BEACH PORTO CARRAS" is in its last phase of implementation, and the time shares will be available for sale immediately after the required licenses are issued by the Authorities.
TECHNICAL OLYMPIC strategic goal has been and still remains to be active in a diverse number of independent growth sectors (in the construction sector through ATHEX listed subsidiary MOCHLOS SA, as well as in the sectors of tourism-PORTO CARRAS, organic agriculture, wind energy, solar energy, construction and operation of marinas etc.) as well as in different geographic regions in order to diversify away the operating risk in time horizon. It is consequently evident that beyond the effect that TOUSA has in the consolidated financial statements of TECHNICAL OLYMPIC and regardless of the subsequent course of events in the activities of the subsidiary TOUSA, the group will continue to operate unimpeded.