ΕΛΒΑΛ Α.Ε.
FY 2008 CONSOLIDATED FINANCIAL RESULTS
ELVAL Group of companies announced its consolidated financial results for the fiscal year 2008, in accordance with the International Financial Reporting Standards.
Group activities have been critically affected within 2008 by the adverse global conjuncture; the first half of the year was marked by high oil and raw material prices, while the second half and mainly the fourth quarter were characterized by the global recession which constrained the demand for aluminium products, causing diminishing profit margins, and precipitated raw material prices to low levels. More specifically, the rapid decrease of the aluminium prices at the end of the year, forced the Group to proceed to a one-off impairment of its inventory by the amount of 20.3 mil. euro., which burdened the financial results.
Within this adverse environment, consolidated turnover stood at 902.5 mil. euro over 979.6 mil. in 2007, down by 7.9%; Group gross profit decreased by 52.9% and amounted to 42.4 mil. euro over 90.2 mil. euro in 2007, while gross profit margin stood in 2008 at 4.7% of consolidated turnover versus 9.2% in 2007. Group financial expenses were significantly increased during the first three quarters of the fiscal year, due to the increased short term bank debt for covering the Group's working capital needs within the year resulting from the raw materials price increase. In the last quarter of the fiscal year, the circumstances reversed, however the burden was already significant.
The abovementioned events affected accordingly all other income statement figures. Group earnings before interest, tax, depreciation and amortization stood in 2008 at 32.6 mil. euro over 85.6 mil. euro in 2007, while results before tax stood at losses of 29.2 mil. over profits of 30.9 mil. euro in 2007. Finally, net results after tax and minority rights amounted in 2008 to losses of 8.9 mil. euro over profits of 21.7 mil. euro (losses of 0.0713 euro per share over profits of 0.1747 euro per share 2007).
ELVAL Management deems that 2008 has been characterized by the particularly adverse macro environment, which affected the Group's financial figures, but did not stop the implementation of its strategic planning and the materialization of its investment program, pursuant to which a total of 73.8 mil. euro has been already used, completing this way a substantial part of the overall plan.
The Group's management priorities on a commercial level include strengthening of its presence in market segments that are not affected by the crisis, as well as the upholding of its standing in segments with low demand, aiming at strengthening its presence once current conditions are reversed. At the same time, the Group makes its global position even stronger, through the development of closer ties with FURUKAWA SKY ALUMINIUM, which has acquired 25% of the subsidiary company BRIDGNORTH ALUMINIUM Ltd, while it increases its competitiveness through the restructuring of its cost base and the more strict management of inventory.
Note: The financial results of ELVAL SA for the fiscal year 2008 will be published on Tuesday, March 31, 2009 and will be posted on its website www.elval.gr.
Group activities have been critically affected within 2008 by the adverse global conjuncture; the first half of the year was marked by high oil and raw material prices, while the second half and mainly the fourth quarter were characterized by the global recession which constrained the demand for aluminium products, causing diminishing profit margins, and precipitated raw material prices to low levels. More specifically, the rapid decrease of the aluminium prices at the end of the year, forced the Group to proceed to a one-off impairment of its inventory by the amount of 20.3 mil. euro., which burdened the financial results.
Within this adverse environment, consolidated turnover stood at 902.5 mil. euro over 979.6 mil. in 2007, down by 7.9%; Group gross profit decreased by 52.9% and amounted to 42.4 mil. euro over 90.2 mil. euro in 2007, while gross profit margin stood in 2008 at 4.7% of consolidated turnover versus 9.2% in 2007. Group financial expenses were significantly increased during the first three quarters of the fiscal year, due to the increased short term bank debt for covering the Group's working capital needs within the year resulting from the raw materials price increase. In the last quarter of the fiscal year, the circumstances reversed, however the burden was already significant.
The abovementioned events affected accordingly all other income statement figures. Group earnings before interest, tax, depreciation and amortization stood in 2008 at 32.6 mil. euro over 85.6 mil. euro in 2007, while results before tax stood at losses of 29.2 mil. over profits of 30.9 mil. euro in 2007. Finally, net results after tax and minority rights amounted in 2008 to losses of 8.9 mil. euro over profits of 21.7 mil. euro (losses of 0.0713 euro per share over profits of 0.1747 euro per share 2007).
ELVAL Management deems that 2008 has been characterized by the particularly adverse macro environment, which affected the Group's financial figures, but did not stop the implementation of its strategic planning and the materialization of its investment program, pursuant to which a total of 73.8 mil. euro has been already used, completing this way a substantial part of the overall plan.
The Group's management priorities on a commercial level include strengthening of its presence in market segments that are not affected by the crisis, as well as the upholding of its standing in segments with low demand, aiming at strengthening its presence once current conditions are reversed. At the same time, the Group makes its global position even stronger, through the development of closer ties with FURUKAWA SKY ALUMINIUM, which has acquired 25% of the subsidiary company BRIDGNORTH ALUMINIUM Ltd, while it increases its competitiveness through the restructuring of its cost base and the more strict management of inventory.
Note: The financial results of ELVAL SA for the fiscal year 2008 will be published on Tuesday, March 31, 2009 and will be posted on its website www.elval.gr.