Μ. Ι. ΜΑΪΛΛΗΣ Α.Ε.Β.Ε.
Group's performance in 2009 and 2010 outlook
The M.J. Maillis Group, a global leader in secondary packaging listed on the Athens Exchange (ATHEX: MAIK) updates the investment community on the Group?s performance in 2009 and the outlook for 2010.
2009 a transitional year with re-vitalizing platform for the future As already announced, during 2009 the Group experienced a significant decline in sales as the result of the unprecedented crisis in the global economy which had a direct adverse impact on the secondary packaging sector. Also, the Group had to cope with increased financial and procurement costs due to the lack of liquidity following the breaching of financial covenants. At the same time, the Group successfully implemented a far reaching reorganization and restructuring program aiming to improve its productivity and reduce its costs. Therefore, the 2009 annual results will reflect these extraordinary conditions and in addition the Group will also take all necessary accounting provisions, enabling it to commence a new course in 2010 unencumbered by the deficiencies of past years.
The Group expects to announce its full year 2009 results around mid- March 2010. The exact date will be communicated publicly in due course.
A new beginning in 2010
In 2010, the Group expects to benefit from the gradual resumption of economic activity around the world, its improved operational and cost structure, as well as the reaching of an agreement with its lenders.
As announced, the Group has been in constructive discussions with its lenders aiming at a permanent solution that will ensure Maillis Group long-term viability, The Group expects to announce the closure of these discussions in the near future.
Stronger Global Demand
The Group realizes about 90% of its annual sales outside Greece. 2010 started with global market conditions showing clear signs of improvement across all industrial sectors, including the steel, aluminium, construction, timber and bailing industry, as well as the food and beverage industry.
In the high-margin machines business, this improvement is substantial and it is reflected in the Group?s robust order books in Europe and North America which stand at its highest levels since October 2008, with the strong order intake in the first quarter of 2010. It is also evidenced that our customers across all sectors are proceeding again with their capital investments.
In the consumables the Group is also exhibiting constant revenue benefiting from increased ?real? demand, the restocking effect and the price hikes of raw materials.
The Group's strategy of focusing on complete end-of-line packaging solutions, which forms part of the overall restructuring program currently in progress across the Group, was reconfirmed not only by the addition and renewal of several contracts with multinationals and others, but also by the expansion of business to new sites of these companies.
Benefiting from an improved operational structure
The restructuring plan has enabled the Group to reduce its production and cost base by €18 mio on an annual basis and is expected to generate additional saving of €5 mio in 2010/2011. The leaner and more efficient structure of the Group enhances its productivity and competitiveness enabling to leverage the positive effects of the gradual global economic recovery.
About the M.J. Maillis Group
The M.J. Maillis Group is a leader in secondary packaging providing its clients globally with complete, high technology and cost effective packaging solutions (one-stop-shopping) that combine packaging equipment, packaging materials, service and support. The Group employs 1,650 people and maintains physical presence in 18 countries in Europe, North America and Asia, while its products are sold in more than 80 countries worldwide. The Group's customer base extends to the food and beverage, aluminium, steel, construction, timber and bailing industries and it is the exclusive or preferred global supplier to an increasing number of major industrial and consumer products multinationals such as US Steel, Nestle, Coca Cola, P&G, Henkel, Pepsi, Mars, ArcelorMittal, Corus, Walmart, etc. The shares of the M.J. Maillis Group are listed on the Athens Exchange under the ticker symbol "MAIK".
2009 a transitional year with re-vitalizing platform for the future As already announced, during 2009 the Group experienced a significant decline in sales as the result of the unprecedented crisis in the global economy which had a direct adverse impact on the secondary packaging sector. Also, the Group had to cope with increased financial and procurement costs due to the lack of liquidity following the breaching of financial covenants. At the same time, the Group successfully implemented a far reaching reorganization and restructuring program aiming to improve its productivity and reduce its costs. Therefore, the 2009 annual results will reflect these extraordinary conditions and in addition the Group will also take all necessary accounting provisions, enabling it to commence a new course in 2010 unencumbered by the deficiencies of past years.
The Group expects to announce its full year 2009 results around mid- March 2010. The exact date will be communicated publicly in due course.
A new beginning in 2010
In 2010, the Group expects to benefit from the gradual resumption of economic activity around the world, its improved operational and cost structure, as well as the reaching of an agreement with its lenders.
As announced, the Group has been in constructive discussions with its lenders aiming at a permanent solution that will ensure Maillis Group long-term viability, The Group expects to announce the closure of these discussions in the near future.
Stronger Global Demand
The Group realizes about 90% of its annual sales outside Greece. 2010 started with global market conditions showing clear signs of improvement across all industrial sectors, including the steel, aluminium, construction, timber and bailing industry, as well as the food and beverage industry.
In the high-margin machines business, this improvement is substantial and it is reflected in the Group?s robust order books in Europe and North America which stand at its highest levels since October 2008, with the strong order intake in the first quarter of 2010. It is also evidenced that our customers across all sectors are proceeding again with their capital investments.
In the consumables the Group is also exhibiting constant revenue benefiting from increased ?real? demand, the restocking effect and the price hikes of raw materials.
The Group's strategy of focusing on complete end-of-line packaging solutions, which forms part of the overall restructuring program currently in progress across the Group, was reconfirmed not only by the addition and renewal of several contracts with multinationals and others, but also by the expansion of business to new sites of these companies.
Benefiting from an improved operational structure
The restructuring plan has enabled the Group to reduce its production and cost base by €18 mio on an annual basis and is expected to generate additional saving of €5 mio in 2010/2011. The leaner and more efficient structure of the Group enhances its productivity and competitiveness enabling to leverage the positive effects of the gradual global economic recovery.
About the M.J. Maillis Group
The M.J. Maillis Group is a leader in secondary packaging providing its clients globally with complete, high technology and cost effective packaging solutions (one-stop-shopping) that combine packaging equipment, packaging materials, service and support. The Group employs 1,650 people and maintains physical presence in 18 countries in Europe, North America and Asia, while its products are sold in more than 80 countries worldwide. The Group's customer base extends to the food and beverage, aluminium, steel, construction, timber and bailing industries and it is the exclusive or preferred global supplier to an increasing number of major industrial and consumer products multinationals such as US Steel, Nestle, Coca Cola, P&G, Henkel, Pepsi, Mars, ArcelorMittal, Corus, Walmart, etc. The shares of the M.J. Maillis Group are listed on the Athens Exchange under the ticker symbol "MAIK".