On Wednesday May 4, 2011 SIDENOR's annual corporate presentation took place at the Association of Greek Institutional Investors, during which the Group's annual 2010 results, as well as the most important developments along with the production activity, the Group's structure and its prospects were presented.
During 2010, despite the ongoing recession of the domestic economy and the subdued construction activity, SIDENOR Group increased the sales volumes, mainly due to its strategy of differentiation in value added products (i.e. special steels, flat products), which are directed to the West European markets and especially the German market, as well as its penetration in new geographic markets.
SIDENOR GROUP turnover in FY 2010 amounted to 993 mil. euro versus 938 mil. euro in FY 2009, posting a 6.0% increase. FY 2010 consolidated results before taxes marked substantial improvement and formed to losses of 29.9 mil. euro versus losses of 58.8 mil. euro in FY 2009. Accordingly, consolidated EBITDA significantly increased and amounted to profits of 50.0 mil. euro versus profits of 22.3 mil. euro in FY 2009, posting a 124.7% increase. Finally, net consolidated results after taxes and minority rights also marked substantial improvement, which formed at losses of 23.0 mil. euro (or losses of 0.239 euro per share) versus losses of 71.3 mil. euro (or 0.742 euro per share) in FY 2009.
The competitive cost base of the Group's plants, the ongoing improvement of the operating cost, as is evident from the reduction of operating expenses, the sustainable low working capital requirements, as well as the capitalization of the investments in the Balkans and the wide distribution network, have offset the adverse impact of the financial crisis and the subsequent recession of the Greek market and have contributed to the improvement of the Group's financial results versus FY 2009. It is important to note the Group's significant international activity, as over 70% of the Group's turnover is allocated in countries other than Greece, Furthermore, the Group?s substantial investments, which have almost reached €700 million during the period 1998-2010, guarantee its competitiveness.
Regarding 2011, SIDENOR Group's key objectives focus on maintaining and increasing market shares, seeking new geographic markets and expanding into new products, while maintaining high productivity rates in the production plants. Moreover, CORINTH PIPEWORKS contribution in 2011 is expected to be significant, since an increase in the investment projects of the energy companies is evident, following the increased demand for energy and the recovery of oil prices.