ELASTRON S.A.
FISCAL YEAR 2008 FINANCIAL RESLTS
Boost of activity combined with diminishing profitability amid the global financial crisis
ELASTRON SA (ex A.KALPINIS - N.SIMOS SA) announced its fiscal year 2008 financial results according to the International Financial Reporting Standards (IFRS).
Even though the growth of the activity and the results for Group ELASTRON marked positive course during the first half of 2008, it was overshadowed by the subsequent slowdown of demand and the sharp drop of steel prices especially in the fourth quarter of the fiscal year. Despite the adverse conditions, consolidated turnover marked substantial increase by 17.9% and amounted to euro 198.5 mil. over euro 168.4 mil. in 2007.
Group gross profit amounted to euro 25.6 mil. over euro 26.5 mil. in 2007 that is marginally lower by 3.4%. This decline is mainly attributed to the sharp drop of international steel prices during the fourth quarter, which was directly transferred to the group's products sales prices, a fact which in conjunction with the current inventory levels have had a negative impact on the group results.
The Group profit before interest taxes and depreciation (EBITDA) formed at euro 8.1 mil. in FY 2008 versus euro 17.5 mil. in 2007. The significant slide of operating profitability is attributed, in addition to the above, to the provision for inventory impairment by euro 5.6 mil. due to the aforementioned sharp drop of steel prices. As a result EBITDA margin eased to 4.1% versus 10.4% in 2007.
The remaining profitability figures for the Group also marked similar pattern. Consolidated profit before interest and taxes (EBIT) amounted to euro 6.3 mil. versus euro 16.0 mil. in 2007. The Group's consolidated pretax profit (EBT) formed at euro 2.5 mil. versus euro 12.9 mil. in 2007. Finally, consolidated net after taxes and minorities profit (EATAM) eased to euro 2.4 mil. in FY 2008 versus euro 9.6 mil. in 2007.
The streamlining of the group's inventory as well as the management's efforts for further reduction of receivables is already evident. The group reported positive net cash flows for the fourth quarter of 2008 while short term bank debt was further reduced from euro 51.5 mil. as at 30/09/2008 to euro 40.3 mil. as at 31/12/2008, marking a euro 11.2 mil. relief for the group. Significant improvement also marked the Group's total liabilities which amounted euro 104.7 mil. as at 31/12/2008 versus euro 122.4 mil. as at 30/09/2008, lower that is by euro 17.7 mil. Last, during the same period the Group's receivables formed from euro 103.6 mil. to euro 88.6 mill. marking a euro 15 mil. decrease.
These extraordinary conditions that the global markets are currently facing, under no circumstances does it retracts the group's planning for further growth and expansion of activity in and out of the country as well. It is within this framework and in conjunction with the current turbulent economic environment that the Group moves forward by carefully implementing its planned investments in the Balkan area. Moreover, as regards the domestic market the efforts continue for further growth and strengthening. In specific, the current five year investment plan of the group amounting euro 14.7 mil. aiming at expanding the facilities and modernizing equipment and machinery. In the Attica region, the group recently completed a euro 2.43 mil. investment in subsidiary CORUS - KALPINIS - SIMOS SA, in a joint venture with multinational giant CORUS - TATA, by adding a new polyurethane panel production unit. Last, in North Greece, during the third quarter, TATA ELASTRON commenced operations, which is the 2nd joint venture with CORUS - TATA. The company is nearing the completion of a euro 13.7 mil. investment plan.
Amid such adverse and volatile market conditions with the impact of the global financial crisis affecting the real economy, any attempt to provide guidance for 2009 is a rather unfeasible task. In any case, should the declining course of steel prices and demand sustain, it is expected to have an impact on the Group's first semester of 2009 results. The group's priorities for the current year focus on generating substantial positive cash flows which will be used to reduce debt as well as to finance the Group's planned investments. In addition, group efforts focus on further reducing operating cost resulting to profitability improvement.
Pursuant to ELASTRON FY 2008 results, the Company's Board of Directors decided to propose to the Annual General Ordinary Meeting of its shareholders, to distribute euro 0.025 per share in dividend from the FY 2008 distributed earnings, versus euro 0.100 dividend per share in FY 2007.
Note: ELASTRON SA (ex A.KALPINIS - N.SIMOS SA) Fiscal Year 2008 "Financial Data and Information" will be published on Tuesday March 31, 2009 in the newspapers "KATHIMERINI" and "EXPRESS" and they will be available together with the "Annual 2008 Financial Report under I.F.R.S." on the company's website, www.elastron.gr and the ATHEX website www.athex.gr on Monday, March 30, 2009.
ELASTRON SA (ex A.KALPINIS - N.SIMOS SA) announced its fiscal year 2008 financial results according to the International Financial Reporting Standards (IFRS).
Even though the growth of the activity and the results for Group ELASTRON marked positive course during the first half of 2008, it was overshadowed by the subsequent slowdown of demand and the sharp drop of steel prices especially in the fourth quarter of the fiscal year. Despite the adverse conditions, consolidated turnover marked substantial increase by 17.9% and amounted to euro 198.5 mil. over euro 168.4 mil. in 2007.
Group gross profit amounted to euro 25.6 mil. over euro 26.5 mil. in 2007 that is marginally lower by 3.4%. This decline is mainly attributed to the sharp drop of international steel prices during the fourth quarter, which was directly transferred to the group's products sales prices, a fact which in conjunction with the current inventory levels have had a negative impact on the group results.
The Group profit before interest taxes and depreciation (EBITDA) formed at euro 8.1 mil. in FY 2008 versus euro 17.5 mil. in 2007. The significant slide of operating profitability is attributed, in addition to the above, to the provision for inventory impairment by euro 5.6 mil. due to the aforementioned sharp drop of steel prices. As a result EBITDA margin eased to 4.1% versus 10.4% in 2007.
The remaining profitability figures for the Group also marked similar pattern. Consolidated profit before interest and taxes (EBIT) amounted to euro 6.3 mil. versus euro 16.0 mil. in 2007. The Group's consolidated pretax profit (EBT) formed at euro 2.5 mil. versus euro 12.9 mil. in 2007. Finally, consolidated net after taxes and minorities profit (EATAM) eased to euro 2.4 mil. in FY 2008 versus euro 9.6 mil. in 2007.
The streamlining of the group's inventory as well as the management's efforts for further reduction of receivables is already evident. The group reported positive net cash flows for the fourth quarter of 2008 while short term bank debt was further reduced from euro 51.5 mil. as at 30/09/2008 to euro 40.3 mil. as at 31/12/2008, marking a euro 11.2 mil. relief for the group. Significant improvement also marked the Group's total liabilities which amounted euro 104.7 mil. as at 31/12/2008 versus euro 122.4 mil. as at 30/09/2008, lower that is by euro 17.7 mil. Last, during the same period the Group's receivables formed from euro 103.6 mil. to euro 88.6 mill. marking a euro 15 mil. decrease.
These extraordinary conditions that the global markets are currently facing, under no circumstances does it retracts the group's planning for further growth and expansion of activity in and out of the country as well. It is within this framework and in conjunction with the current turbulent economic environment that the Group moves forward by carefully implementing its planned investments in the Balkan area. Moreover, as regards the domestic market the efforts continue for further growth and strengthening. In specific, the current five year investment plan of the group amounting euro 14.7 mil. aiming at expanding the facilities and modernizing equipment and machinery. In the Attica region, the group recently completed a euro 2.43 mil. investment in subsidiary CORUS - KALPINIS - SIMOS SA, in a joint venture with multinational giant CORUS - TATA, by adding a new polyurethane panel production unit. Last, in North Greece, during the third quarter, TATA ELASTRON commenced operations, which is the 2nd joint venture with CORUS - TATA. The company is nearing the completion of a euro 13.7 mil. investment plan.
Amid such adverse and volatile market conditions with the impact of the global financial crisis affecting the real economy, any attempt to provide guidance for 2009 is a rather unfeasible task. In any case, should the declining course of steel prices and demand sustain, it is expected to have an impact on the Group's first semester of 2009 results. The group's priorities for the current year focus on generating substantial positive cash flows which will be used to reduce debt as well as to finance the Group's planned investments. In addition, group efforts focus on further reducing operating cost resulting to profitability improvement.
Pursuant to ELASTRON FY 2008 results, the Company's Board of Directors decided to propose to the Annual General Ordinary Meeting of its shareholders, to distribute euro 0.025 per share in dividend from the FY 2008 distributed earnings, versus euro 0.100 dividend per share in FY 2007.
Note: ELASTRON SA (ex A.KALPINIS - N.SIMOS SA) Fiscal Year 2008 "Financial Data and Information" will be published on Tuesday March 31, 2009 in the newspapers "KATHIMERINI" and "EXPRESS" and they will be available together with the "Annual 2008 Financial Report under I.F.R.S." on the company's website, www.elastron.gr and the ATHEX website www.athex.gr on Monday, March 30, 2009.