On the occasion of announcement of the financial results for the 1st quarter of 2009, MICHANIKI Group states the results'main points:
At a Parent company level:
- The net earnings after taxes, BoD fees, and tax-audit differences amounted to euros 7.67 million compared to euros2.89 million for the corresponding period of 2008, increased by 165.7%.
- Net Income before taxes amounted to euros7.72 million compared to euros4.99 million for the corresponding period of 2008, increased by 54.7%.
- Earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euros5.48 million compared to euros10.15 million over the respective period of 2008, a decreased of 46.0%;
- The turnover amounted to euros26.46 million compared to euros44.87 million, a decrease of 41% on a yearly basis.
On a Group level:
- The consolidated net earnings, after taxes, BoD fees and tax audit differences, and after subtracting minority rights, decreased by 89.5% and amounted to euros1.46 million compared to euros13.88 million for the corresponding period of 2008.
- The consolidated net earnings after taxes, BoD fees, and tax-audit differences decreased by 92.7% and amounted to euros1.13 million, compared to euros15.32 million for the corresponding period of 2008.
- Net Income before taxes amounted to euros1.64 million compared to euros21.23 million for the corresponding period of 2008, decreased by 92.3%.
- The consolidated earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euros2.71 million compared to euros26.89 million for the corresponding period of 2008, decreased by 89.9%.
- The consolidated turnover for the first 3 months of 2009 reached euros33.74 million compared to euros54.76 million for the corresponding period of 2008, decreased by 38.4%.
During the first quarter of 2009, the company faced the serious challenges of the financial crisis which is affecting all economies and all companies. The harsh time and its consequences have had an effect on in the real economy of Greece; the results can be seen on the financial statements and results especially in the construction, iron & steel, and real estate market companies.
On the company?s domestic construction sector during the first quarter of 2009, there were little to none tenderings for new projects that affected the company?s outstanding backlog. Based on the governmental announcements for the remaining fiscal year, new projects will be put on the bidding process, projects like the Aktio Amvrakia Highway, the Metro extensions for the city of Athens and Thessaloniki, and supplemental road projects in the country of Attica. In addition to the above, this year it is expected the beginning of the National Strategic Reference Framework (ESPA) 2007-2013; all the above will contribute to the increment of the company?s backlog.
The management of Michaniki S.A. continued the cutback of expenses in all areas of activities during the first quarter of 2009. Through the internal credit team the allocation of financial resources is focusing on supporting the front row of projects, especially in Moscow. In combination with the renegotiation of all construction contracts, the company has achieved low prices for its raw materials, taking advantage of the offered discounts, thus lowering expenses, seeking a stable course during this time of global uncertainly.