ΕΛΒΑΛ Α.Ε.
Consolidated nine month period 2008 Financial Results
The ELVAL Group of Companies announced the consolidated financial results for the nine month period of 2008 according to the International Financial Reporting Standards.
The adverse international economic conditions have had an impact on ELVALs third quarter activity and results as well. More specifically, the impact of the crisis in the US and the European Union economies has been critical despite the corrections in the oil prices and the US/EUR exchange ratio.
As a result of the above, consolidated turnover for the nine month period of 2008 stood at euro 671.6 mil. over euro 752.1 mil. in the respective last year period, marking a decrease of 10.7%. This decrease is also due to the fact that the sales of the respective period of 2007 were significantly increased due to the backlog of non-delivered sales balance from the fourth quarter of 2006.
Consolidated gross profit decreased by 27.5% standing at euro 49.2 mil. over euro 67.9 mil. in the nine month period of 2007. At the same time, gross profit margin decreased by 1.7 units standing at 7.3% of the consolidated sales due to, on the one hand the increased energy cost and on the other hand on the significant decrease of aluminum price. It is noted that the expected positive impact of the falling oil prices is not yet evident in the group's cost structure due to the fact that most plants of ELVAL are utilizing natural gas as energy whose price pattern follow those of the oil process but at a time lag.
The above developments affected respectively all other consolidated results. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 30.8% standing at euro 45.1 mil., while earnings before interest and taxes amounted to euro 10.5 mil. over euro 30.8 mil. in the respective last year period.
Consolidated earnings before taxes stood at euro 2.6 mil. versus euro 24.7 mil. in the nine month period of 2007, fact that is partly attributed to the increased financial expenses as a result of the increase of the Groups short term loans. Finally, results after taxes and minority interest stood at losses euro 133 thou. over earnings euro 17.3 mil. in the nine month period of 2007.
In view of the global financial and credit crisis, ELVALs management sustains its efforts in the current quarter as well to improve production with its main priorities to increase productivity, minimize production cost while limiting working capital requirements.
Finally, special attention is given to the development of international joint ventures such as the recent signing of a memorandum of understanding with the largest aluminium rolled products manufacturer in Japan, FURUKAWA-SKY ALUMINUM CORP., in order for its participation in BRIDGNORTH ALUMINIUM Ltd.
Please note: ELVALs financial results for the nine month period of 2008 will be published on Friday, November 21st 2008 and will be posted at the companys website, at www.elval.gr.
The adverse international economic conditions have had an impact on ELVALs third quarter activity and results as well. More specifically, the impact of the crisis in the US and the European Union economies has been critical despite the corrections in the oil prices and the US/EUR exchange ratio.
As a result of the above, consolidated turnover for the nine month period of 2008 stood at euro 671.6 mil. over euro 752.1 mil. in the respective last year period, marking a decrease of 10.7%. This decrease is also due to the fact that the sales of the respective period of 2007 were significantly increased due to the backlog of non-delivered sales balance from the fourth quarter of 2006.
Consolidated gross profit decreased by 27.5% standing at euro 49.2 mil. over euro 67.9 mil. in the nine month period of 2007. At the same time, gross profit margin decreased by 1.7 units standing at 7.3% of the consolidated sales due to, on the one hand the increased energy cost and on the other hand on the significant decrease of aluminum price. It is noted that the expected positive impact of the falling oil prices is not yet evident in the group's cost structure due to the fact that most plants of ELVAL are utilizing natural gas as energy whose price pattern follow those of the oil process but at a time lag.
The above developments affected respectively all other consolidated results. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 30.8% standing at euro 45.1 mil., while earnings before interest and taxes amounted to euro 10.5 mil. over euro 30.8 mil. in the respective last year period.
Consolidated earnings before taxes stood at euro 2.6 mil. versus euro 24.7 mil. in the nine month period of 2007, fact that is partly attributed to the increased financial expenses as a result of the increase of the Groups short term loans. Finally, results after taxes and minority interest stood at losses euro 133 thou. over earnings euro 17.3 mil. in the nine month period of 2007.
In view of the global financial and credit crisis, ELVALs management sustains its efforts in the current quarter as well to improve production with its main priorities to increase productivity, minimize production cost while limiting working capital requirements.
Finally, special attention is given to the development of international joint ventures such as the recent signing of a memorandum of understanding with the largest aluminium rolled products manufacturer in Japan, FURUKAWA-SKY ALUMINUM CORP., in order for its participation in BRIDGNORTH ALUMINIUM Ltd.
Please note: ELVALs financial results for the nine month period of 2008 will be published on Friday, November 21st 2008 and will be posted at the companys website, at www.elval.gr.