SIDENOR HOLDINGS S.A.
FY 2007 Financial Results.
2007 has been another year of growth for SIDENOR Group both in Greece and in the Balkans. Consolidated turnover amounted to 1,390 mil. euro marking a 13% increase over the last fiscal year. Gross margin remained unchanged at 290 mil. euro, while profit before interest, taxes, depreciation & amortization (EBITDA) amounted to 213 mil. Euro, marking a decrease of 3%. Accordingly, consolidated profit before tax amounted to 139 mil. euro decreased by 4% versus previous year. Finally, consolidated net after-tax and minorities profit reached 92 mil. euro (or 0.95 euro per share) versus 108 mil. euro last year (or 1.13 euro per share). The drop in net after tax profit is mainly attributed to the fact that in FY 2006 an amount of 22.9 mil. euro was accounted for as non-recurring deferred tax credit, which affected the net after tax profit of FY 2006.
The increase in the Group's turnover in FY 2007 resulted from:
- the increasing demand for steel products especially during the first half of 2007
- the further growth of SIDENOR sales in the Balkan markets, specifically in the branded SD steel products,
- the prevailing strong market conditions in the plates' market that led to further growth of the sales of STOMANA INDUSTRY's heavy plates products, as well as growth in the sales of its special steel products in the EU countries,
- the increased prices of steel pipe products achieved by subsidiary CORINTH PIPEWORKS, as a result of its strategic decision to enter new high value added market segments, the execution of projects that demand more stringent technical specifications, as well as the positive outlook of the international energy markets.
SIDENOR Group profit margins were influenced by the reduced global demand for steel products during the second half of 2007. However, the Group has increased its market share in all product segments. During 2007, the Group also further strengthened its international operations and developed its sales network in countries such as Albania, Romania and Cyprus. Furthermore, the Group has completed major investments which will be the basis for its future growth in the Balkans, such as the investment in the STOMANA INDUSTRY rolling mill in Bulgaria which is expected to boost significantly the Group's position in the Balkan market during the current fiscal year.
SIDENOR Group remains focused at investments which aim at broadening the product mix by including high value added products and at improving productivity. These investments, combined with recent positive developments in the international steel prices since the beginning of 2008, are expected to have a positive impact in the Group's activity and the financial performance in the first half of 2008 versus the second half of 2007.
The increase in the Group's turnover in FY 2007 resulted from:
- the increasing demand for steel products especially during the first half of 2007
- the further growth of SIDENOR sales in the Balkan markets, specifically in the branded SD steel products,
- the prevailing strong market conditions in the plates' market that led to further growth of the sales of STOMANA INDUSTRY's heavy plates products, as well as growth in the sales of its special steel products in the EU countries,
- the increased prices of steel pipe products achieved by subsidiary CORINTH PIPEWORKS, as a result of its strategic decision to enter new high value added market segments, the execution of projects that demand more stringent technical specifications, as well as the positive outlook of the international energy markets.
SIDENOR Group profit margins were influenced by the reduced global demand for steel products during the second half of 2007. However, the Group has increased its market share in all product segments. During 2007, the Group also further strengthened its international operations and developed its sales network in countries such as Albania, Romania and Cyprus. Furthermore, the Group has completed major investments which will be the basis for its future growth in the Balkans, such as the investment in the STOMANA INDUSTRY rolling mill in Bulgaria which is expected to boost significantly the Group's position in the Balkan market during the current fiscal year.
SIDENOR Group remains focused at investments which aim at broadening the product mix by including high value added products and at improving productivity. These investments, combined with recent positive developments in the international steel prices since the beginning of 2008, are expected to have a positive impact in the Group's activity and the financial performance in the first half of 2008 versus the second half of 2007.