ΜΗΧΑΝΙΚΗ Α.Ε.
Results of the 9-month period of 2009
Results of the 9-month period of 2009 - The unexecuted works of the group exceed the amount of euro 1.1 billion
On the occasion of publicizing the financial results of the nine months of 2009, the Administration of the MICHANIKI Group announces the results' main points:
On the parent company level, MICHANIKI SA achieved:
-The net earnings after taxes, BoD fees, and tax-audit differences amounted to euro16.95 million compared to euro6.27 million for the corresponding period of 2008, increased by 170.31%.
-Earnings before taxes amounted to euro19.40 million compared to euro11.00 million of the corresponding period last year, increased by 76.40%.
-Earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euro20.51 million compared to euro22.60 million for the corresponding period of 2008, showing a decrease of 9.27%.
-Turnover during the nine months of 2009 amounting to euro92.09 million compared to euro136.15 million for the corresponding period of 2008, showing a decrease of 32.36%.
On a Group level:
-The consolidated net earnings after taxes, BoD fees, and tax-audit differences and after the deduction of the minority rights amounted to euro10.63 million compared to euro31.93 million for the corresponding period of 2008, decreased by 66.71%
-The consolidated net earnings after taxes, BoD fees, and tax-audit differences amounted to euro10.21 million compared to euro39.17 million for the corresponding period of 2008, decreased by 73.93%
-Earnings before taxes amounted to euro12.48 million compared to euro56.42 million for the corresponding period last year, showing a decrease of 77.89%.
-The consolidated earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euro18.80 million compared to euro73.16 million for the corresponding period of 2008, showing a decrease of 74.30%.
-The consolidated turnover for the nine-month period of 2009 amounted to euro114.51 million compared to euro172.24 million for the corresponding period of 2008, decreased by 33.52%.
The increase in the profitability of the parent company during the nine-month period of 2009 is mainly the result of: a) the increase of the results of the affiliated companies (joint ventures) by euro3.4 million; b) the improvement of the financial results by euro7.1 million; c) the decrease in the administration expenses by euro0.8 million, compared to the corresponding period of the previous year.
The decreased profits of the group are mainly due to the zero revenues during the nine-month period of 2009 from the evaluation of the investment real estate compared to euro42,49 million in the nine-month period of 2008.
The total unexecuted sum of the Group amounts to euro 1,162 million and of the Parent Company to euro428 million from public works and euro92 million from self-financed projects. The unexecuted activities abroad concern the real estate development projects in Russia and Ukraine for which building permits have been acquired.
During the 2009 third quarter, the difficult conditions created at the beginning of the year in the real estate market of Eastern Europe continued. These conditions are the result of the international financial and economic crisis. In this framework, the Group undertook a series of measures, such as the postponement of the construction commencement of the "Rodopolis" complex in German, Sofia, until the conditions in the local market improve. However, the works for the construction of the building complexes "Megas Alexandros", total area of 157,000 sq.m. and "HERA", total area of 14,000 sq.m, both in Moscow, still continue. As 2010 is approaching, the demand in the real estate market of Russia has shown signs of recovery and, thus, the administration expects an improvement of the prospects of the subsidiary, MICHANIKI RUSSIA.
In the construction field of infrastructures, the declining course of the tendering rate of new public works by the competent bodies during the nine-month period continued. However, the conviction prevails that the production of new projects shall recover soon, as it is shown by the actions of the Ministry of Infrastructures as well as the impending strengthening of the Public Investments Program, on the basis of the country's budget for 2010. As it is known, MICHANIKI participates in the tender for the expansion of the METRO Line 3 to Piraeus, and has submitted the envelope with the expression of interest for the expansion of the METRO in Thessaloniki; these are two projects that the new leadership of the Ministry of Infrastructures has set as priorities. The Group anticipates the strengthening of the construction scope of work, mainly, in view of the commencement of the 2007-2013 National Strategic Reference Framework. Apart from the infrastructure works, though, the administration has already taken the decision that the company shall actively participate in the future tenders of the new Public-Private Partnerships, an institution that can provide significant revenues in the near future.
As it is shown from the parent company's results, the expenditure decrease program and the application of rules for the strict management of the working capital continued unhindered during the third quarter of the year, and, in total for the nine-month period of this fiscal year. The Group already has, as of the beginning of this year, significant discounts in the construction works abroad, while the costs for the raw materials and services have decreased. These measures provide the necessary guarantees for a solid development course in the next years. It should be noted that the company anticipates the repayment of debts by the State, amounting to approximately euro35 million.
On the occasion of publicizing the financial results of the nine months of 2009, the Administration of the MICHANIKI Group announces the results' main points:
On the parent company level, MICHANIKI SA achieved:
-The net earnings after taxes, BoD fees, and tax-audit differences amounted to euro16.95 million compared to euro6.27 million for the corresponding period of 2008, increased by 170.31%.
-Earnings before taxes amounted to euro19.40 million compared to euro11.00 million of the corresponding period last year, increased by 76.40%.
-Earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euro20.51 million compared to euro22.60 million for the corresponding period of 2008, showing a decrease of 9.27%.
-Turnover during the nine months of 2009 amounting to euro92.09 million compared to euro136.15 million for the corresponding period of 2008, showing a decrease of 32.36%.
On a Group level:
-The consolidated net earnings after taxes, BoD fees, and tax-audit differences and after the deduction of the minority rights amounted to euro10.63 million compared to euro31.93 million for the corresponding period of 2008, decreased by 66.71%
-The consolidated net earnings after taxes, BoD fees, and tax-audit differences amounted to euro10.21 million compared to euro39.17 million for the corresponding period of 2008, decreased by 73.93%
-Earnings before taxes amounted to euro12.48 million compared to euro56.42 million for the corresponding period last year, showing a decrease of 77.89%.
-The consolidated earnings before interest, taxes, depreciation and amortization (EBITDΑ) amounted to euro18.80 million compared to euro73.16 million for the corresponding period of 2008, showing a decrease of 74.30%.
-The consolidated turnover for the nine-month period of 2009 amounted to euro114.51 million compared to euro172.24 million for the corresponding period of 2008, decreased by 33.52%.
The increase in the profitability of the parent company during the nine-month period of 2009 is mainly the result of: a) the increase of the results of the affiliated companies (joint ventures) by euro3.4 million; b) the improvement of the financial results by euro7.1 million; c) the decrease in the administration expenses by euro0.8 million, compared to the corresponding period of the previous year.
The decreased profits of the group are mainly due to the zero revenues during the nine-month period of 2009 from the evaluation of the investment real estate compared to euro42,49 million in the nine-month period of 2008.
The total unexecuted sum of the Group amounts to euro 1,162 million and of the Parent Company to euro428 million from public works and euro92 million from self-financed projects. The unexecuted activities abroad concern the real estate development projects in Russia and Ukraine for which building permits have been acquired.
During the 2009 third quarter, the difficult conditions created at the beginning of the year in the real estate market of Eastern Europe continued. These conditions are the result of the international financial and economic crisis. In this framework, the Group undertook a series of measures, such as the postponement of the construction commencement of the "Rodopolis" complex in German, Sofia, until the conditions in the local market improve. However, the works for the construction of the building complexes "Megas Alexandros", total area of 157,000 sq.m. and "HERA", total area of 14,000 sq.m, both in Moscow, still continue. As 2010 is approaching, the demand in the real estate market of Russia has shown signs of recovery and, thus, the administration expects an improvement of the prospects of the subsidiary, MICHANIKI RUSSIA.
In the construction field of infrastructures, the declining course of the tendering rate of new public works by the competent bodies during the nine-month period continued. However, the conviction prevails that the production of new projects shall recover soon, as it is shown by the actions of the Ministry of Infrastructures as well as the impending strengthening of the Public Investments Program, on the basis of the country's budget for 2010. As it is known, MICHANIKI participates in the tender for the expansion of the METRO Line 3 to Piraeus, and has submitted the envelope with the expression of interest for the expansion of the METRO in Thessaloniki; these are two projects that the new leadership of the Ministry of Infrastructures has set as priorities. The Group anticipates the strengthening of the construction scope of work, mainly, in view of the commencement of the 2007-2013 National Strategic Reference Framework. Apart from the infrastructure works, though, the administration has already taken the decision that the company shall actively participate in the future tenders of the new Public-Private Partnerships, an institution that can provide significant revenues in the near future.
As it is shown from the parent company's results, the expenditure decrease program and the application of rules for the strict management of the working capital continued unhindered during the third quarter of the year, and, in total for the nine-month period of this fiscal year. The Group already has, as of the beginning of this year, significant discounts in the construction works abroad, while the costs for the raw materials and services have decreased. These measures provide the necessary guarantees for a solid development course in the next years. It should be noted that the company anticipates the repayment of debts by the State, amounting to approximately euro35 million.