ELASTRON nine-month of 2009 results mark a substantial 62.5% decline of net debt, euro 73.9 mil. to euro 27.7 mil. and soaring cash flows amounting euro 47 mil. for the period
ELASTRON SA announced its 2009 nine-month financial results according to the International Financial Reporting Standards (IFRS).
The adverse impact of the recession sustained in the third quarter as well, even though at slower pace, with the implications affecting most industries of the economy and especially the steel industry. Overall steel products consumption remained at low levels, while the first signs of recovery in demand are apparent in specific products types only. Moreover, steel prices are stabilized at low levels, resulting to the decline in demand and suppressing profit margins for the nine-month period of the current fiscal year.
Group ELASTRON consolidated turnover formed at euro 69.6 mil. versus euro 155.3 mil. in the respective nine-month period of 2008. Group gross profit amounted to euro 1.7 mil. versus euro 25.1 mil., while group results before financial and investment results, taxes and depreciation (EBITDA) formed at losses of euro 2.3 mil. versus profit of euro 15.7 mil. Finally, consolidated net after taxes and minorities results (EATAM) eased to losses of euro 4.0 mil. versus profit of euro 8.5 mil. in the respective nine-month period of 2008. The Group's nine-month results were boosted by the sale in the third quarter of part of a non core property owned by the company at the area of Piraeus for a total of euro 6.4 million while net profit from the sale amounted to euro 2.4 million. The substantial decline of the group's results is mainly attributed to the fact that the steel soaring stream reaching historic high levels during the nine-month period ended September 30, 2008 was followed by a plummeting 2009 absorbing the impact of the recession.
On a positive note, the 3rd quarter of the current year is an improvement over the previous 2nd quarter as consolidated turnover amounted to euro 23.2 million versus euro 22.1 million, marking a 5% increase approximately. Accordingly, gross profit amounted to profits of euro 1.1 million versus losses of euro 0.6 million in the 2nd quarter of 2009.
All management's actions towards safeguarding the Group from the adverse consequences of the recent global crisis, sustained in the 3rd quarter as well. Specifically, via optimizing liquidity, operating cost and credit risk, the group achieved substantial cash flow enhancement by euro 47 million, of which operating cash flows amounted euro 44.0 million versus outflows of euro 12.0 million in the respective period the year before. Total liabilities reduced by 40% and formed at euro 62.6 million versus euro 104.7 million as at 31/12/2008, while net bank debt (bank debt - cash) marked a substantial 62.5% reduction and amounted to euro 27.7 mil. as at 30/9/2009 versus euro 73.9 mil. as at 31/12/2008. Finally, the Debt/Equity ratio also improved and formed at 0.76 versus 1.19 as at 31/12/2008.
The group's major pillar of growth remains its expansion to the broader SE European area. TATA ELASTRON (a 50-50 joint venture) in Thessalonica is already in full operation as of the 2nd half of 2008 while at the same time the investment in the Romanian market via B.I.G. SRL (a 1/3 joint venture) is underway.
Note: ELASTRON SA nine-month of 2009 "Financial Data and Information" will be published on Friday November 27, 2009 in the newspaper "EXPRESS" and will be available together with the "Nine-month period ended September 30, 2009 Interim Financial Report under I.F.R.S." on the company's website, www.elastron.gr and the ATHEX website www.athex.gr on Thursday, November 26, 2009.