ELVAL group has announced its consolidated financial results for the first quarter of 2009, based on International Financial Reporting Standards. The adverse conditions in the markets where the Group has a presence continued to have a substantial influence over the operations and the financial figures of the Group in 2009. An important reference point was the decline in demand and the substantial decrease in the prices of aluminum, compared to the corresponding levels of the first quarter of 2008.
The consolidated turnover reached 168.5 million euros, compared to 225.9 million euros in the first quarter of 2008, falling by 25.4%. This decline is attributed mainly to the decrease in aluminum prices, which led to a subsequent decrease in the value of finished products. In terms of volume, the sales of the Group showed a decline which was definitely less sharp than the fall in turnover.
The Group's gross profit for the first quarter of 2009 reached 11.7 million euros, compared to 14.9 million euros for the same period of the previous year, showing a fall of 21.9%, with a gross margin of 6.9%, compared to 6.6%. These developments also affected correspondingly the rest of the financial result figures, with the consolidated EBITDA for the first quarter of 2009 reaching 11.6 million euros, compared to 13.8 million for the same period of the previous year. It is noted that the Group has gone ahead with an operating expense reduction plan, which is gradually starting to show results.
The Group's profit/loss before taxes for the first quarter of 2009 amounted to a loss of 2.4 million euros, compared to a loss of 375 thousand euros for the same period of the previous year, while the profit/loss after tax and minority interests amounted to a loss of 1.8 million euros, compared to a loss of 1.1 million euros for the corresponding period of the previous year (loss per share of 0.0142 euros compared to 0.0091 euros for the first quarter of 2008) The Management of the ELVAL Group monitors the developments in the international metal markets and remains committed, in 2009, to its medium and long-term development plan. Its main strategic guidelines for the current period include the unobstructed realization of its planned investments, the further improvement of the Group's liquidity and the strengthening of its commercial presence in markets that are less affected by the crisis.
In the first quarter of 2009, total investment by the Group reached 10.9 million euros, 4.8 million of which were related to improvements and upgrades of the production plants of the parent ELVAL company, while the rest of the investments concerned its subsidiaries.
Referring to liquidity, the Management efforts for the improvement of the Group's cash flows were successful, with total inflows from operating activities reaching 32.3 million euros, as a result of the restriction of the required working capital. Net borrowing by the Group reached 238.5 million euros, compared to 279 million euros at the end of 2008.
Regarding the international partnerships of the Group, FURUKAWA - SKY ALUMINIUM acquired 25% of the subsidiary BRIDGNORTH ALUMINIUM Ltd, by means of an increase in the capital of the latter, and a technical support agreement was signed for the improvement of the quality of the produced lithographic tapes. Finally, regarding the internal restructuring, in April 2009 ETEM sold to ELVAL 55% of its subsidiary ANOXAL, which owns the foundry of the Group, at Agios Thomas, Viotia. In addition, the secession of the ETALBOND branch of ETEM is in its final stage, with the former hereinafter operating as a separate legal entity under the name of ETALBOND COMPANY OF COMPOSITE ALUMINUM PANELS, for reasons of improved operating management.
Note: The financial results of ELVAL S.A. for the first quarter of 2009 will be published on Thursday, May 28, 2009, and will be available on its webpage, www.elval.gr.