ELVAL group has announced its consolidated financial results for the first half of 2009, based on the International Financial Reporting Standards.
Within the first half of 2009 the global economic recession continued. Demand was weak across all sectors of economic activity and resulted to lower sales volumes and lower prices. Especially the crisis in the construction sector was critical for the Group's extrusion segment and affected significantly its consolidated financial results, which reached negative levels. The price of primary aluminum, contrary to the first half of 2008, ranged without significant fluctuations in the low levels of December 2008. Under these circumstances, consolidated turnover decreased in the first half of 2009 by 29.9% and amounted to 328 mil. Euros over 468.2 mil. Euros in the first half of 2008, Group's gross profits stood at 24.3 mil. Euros over 34.9 mil. Euros, posting a drop of 30.4%, and consolidated EBITDA stood at 19 mil. Euros over 31.6 mil. Euros in the respective period last year. Finally, consolidated results before taxes amounted in the first half of 2009 to losses of 6.9 mil. Euros over profits of 3 mil. Euros, while results after taxes and minority rights amounted to losses of 5.1 mil. Euros over profits of 1.2 mil. Euros in the respective period last year (losses of 0,0413 Euros per share over profits of 0,0095 Euros per share in the first quarter of 2008).
As regards the parent company, ELVAL's sales volume decreased by 10%, and its turnover stood at 196.6 mil. Euros, down by 28.3% over the first half of 2008 (mainly due to the decline in aluminium prices); EBITDA amounted to 10.9 mil. Euros over 11.6 mil. Euros and its results after taxes stood at losses of 1 mil. Euros over profits of 1 mil. Euros.
At the beginning of the crisis the goal that was set was to constrain working capital and respectively net debt. This goal has been achieved at a significant level and as a result consolidated Cash Flows from Operations stood at 75.9 mil. Euros and net debt at 205.8 mil. Euros over 278.8 mil. Euros on December 31, 2008 and 306 mil. Euros on September 30, 2008, down by 26.1% and 32.7% respectively.
The materialization of the Group's investment program continued within the first half of 2009 and 19.6 mil. Euros were paid, over 30.5 εκ. in the first half of 2008. At the same time, a partial restructuring of the Group was conducted, in order efficiency to be improved.
The ETALBOND segment spin off from ETEM S.A. and was contributed to the 100% subsidiary company ETALBOND COMPANY OF COMPOSITE ALUMINIUM PANELS; a percentage of ANOXAL S.A. was sold by ETEM S.A. to ELVAL S.A. and KANAL S.A. became inactive and returned back part of its share capital. Moreover, within the context of the Group's international presence its partnership with FURUKAWA-SKY ALUMINUM strengthened, through the participation of the latter in the Group's subsidiary BRIDGNORTH ALUMINIUM Ltd.
Finally, the Group continues to focus on the control of its cost base, the further improvement of liquidity and the preservation of its market shares in all activity sectors, while at the same time efforts are made to penetrate new markets / customers. The investment program is implemented properly, within the scheduled timeframe, aiming at the increase of production capacity which will be used upon the economy's exit from the crisis.
Note: The financial results of ELVAL S.A. for the first half of 2009 will be published on Thursday, August 27, 2009, and will be available on its webpage, www.elval.gr.