"ALUMIL - ALUMINIUM INDUSTRY S.A." administration announces reduction in sales and gross profitability for the first half of 2009, while net earnings declined due to overall unfavorable conditions. In particular, Group presented decrease in sales by 32.2%, reaching euro 95.7 m., compared to euro 141 m. in 1H 2008. This significant reduction is due to decease in selling prices for the Group's products, which was an outcome of the significant decline in aluminium prices internationally, to the considerable decline in construction activity in Greece and abroad during the first half of 2009, the effort by customers in Greece and abroad to reduce their inventories, as well as to the almost zero orders from automotive industries of Western Europe.
Gross profits declined by approximately 53.4%, reaching euro 17.5 m., compared to euro 37.6 m. in 1H 2008, while EBITDA, declined by 84.9%, reaching euro 3.3 m., compared to euro 21.9 m. for 1H 2008. Losses before taxes reached euro 9.2 m., compared to 1H 2008 (earnings euro 9.1 m.). Consequently, losses per share reached euro 0.4233 (earnings euro 0.2135 for 1H 2008).
The significant decrease in gross profit is due to the reduction in aluminium prices internationally, with a simultaneous increase in production cost, due to reduced quantities produced, and to expensive raw materials used, since buying contracts of 2008 were executed in considerably higher prices. Furthermore, it should be noted that Group results include the considerable devaluations of currencies in countries of Eastern Europe, where the Group is significantly exposed.
The temporary nature of this problem is demonstrated from the significant increase in gross profit margin during 2Q of 2009, which reached 20% (on sales) compared to 16.1% in 1Q 2009, for the Group, and 10.1% compared to 4.3% in 1Q 2009, for the Parent Company. The gross profit improvement is mainly due to the decrease in the cost of inventories, while its further improvement will lead to significantly better results for the Group and Company during 2H 2009.
Regarding parent company financials, 1H2009 turnover decreased by almost 36.7%, to euro 67.1 m., compared to euro 106 m. in 1H 2008. EBITDA reached minus euro 2.6 m., compared to 1H 2008 (earnings euro 8.5 m. approximately). Losses before taxes reached euro 9 m., compared to 1H 2008 (earnings euro 2.7 m.) and net results after taxes reached minus euro 7 m., compared to 1H 2008 (earnings euro 1.8 m.). Data and Information of the Financial Statements are published on Friday, August 28th, 2009, in the Hellenic financial newspaper 'IMERISIA'.
Aforementioned data are also available in the Alumil web site, www.alumil.com, along with the complete Financial Statements' report and the corresponding announcements.
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ALUMIL is ranked among the largest aluminium extrusion and profiles production private European groups (No 1 in Greece since 2000) establishing production sites, large sales networks and warehouses for products targeting architectural & industrial use, shipbuilding, transportation, etc. With 28 subsidiaries, 22 of which are spread throughout Europe, Africa and the Middle East, ALUMIL provides production sites in four Hellenic industrial areas, Romania, Bulgaria, Serbia, Bosnia and Albania. ALUMIL has successfully infiltrated into 45 markets in Europe, the Balkans, the M. East and in the U.S.A. A significant competitive advantage remains its widespread sales network in Greece and in every client-country. Parent company was founded in 1988 and since 1998 is listed in the Athens Stock Exchange. Included eight times in GrowthPlus' Europe's 500 for its contribution to the European economy, ALUMIL Group sales surpassed euro 285 m. in 2008, EBITDA reached euro 37 m. Alumil is an associated member of the European Aluminium Association as a recognition of the Company's significant contribution to the field of design and production of architectural aluminium systems, and industrial profiles.
(Symbols: Athens Stock Exchange: ΑΛΜΥ, Reuters: ALMr.AT, Bloomberg: ALMY GA, Telerate (Bloomberg): GR;ALMY).
Filoktimon Vakalis | Group Investor Relations & Research
Tel: +30 2341079300 | Fax: +30 2341071988 | Investors@Alumil.com
Kilkis Industrial Area | 61100 Kilkis | Greece | www.alumil.com