The impact from the global economic recession and the financial crisis, has significantly affected results for the first quarter of 2009 of the SIDENOR Group. The ongoing decline of construction activity and the sharp drop of finished steel and scrap prices, have inevitably slowed down the growth of both operations and profits of all companies in the global steel industry.
Amidst this adverse environment, the SIDENOR Group's consolidated turnover in the first quarter of 2009, amounted to 284 mil. Euro against 386 mil. Euro in the respective quarter of 2008, posting a 27% decrease, as a result of the declining demand and the sharp drop of sales prices, while, compared with the last quarter of 2008, the decrease is 29%. Consolidated profit before taxes, reached losses of 13.5 mil. Euro against profits of 33.2 mil. Euro in the respective first quarter of 2008. Group EBITDA amounted to 9.1 mil. Euro against 52.8 mil. Euro in the first quarter of 2008. Finally, net consolidated results after taxes and minority rights, reached losses of 11.4 mil. Euro (or losses of 0.12 Euro per share) against profits of 24.8 mil. Euro (or 0.26 Euro per share) in the first quarter of 2008.
In these adverse conditions, influencing the global economy, as well as the markets where the Group is active, the SIDENOR Group's primary objective is to strengthen its capital structure, streamline its inventory along with its working capital and continually improve the Group's cash flow. The decrease of the Group's liabilities and net bank debt, in the first quarter of 2009, are actions towards these goals.