Consolidated sales for the total S&B Industrial Minerals S.A. Group of companies, including Continuing and Discontinuing Operations, reached ?116 million in the first quarter of 2008 versus euro 115.5 million in the first quarter of 2007, while net profits (after taxes) went up to euro 8.4 million from euro 6.3 million in 2007, showing an increase of 32.3%. It should be noted, however, that first quarter 2008 figures for Discontinuing Operations include only ERGOTRAK results, S&B's commercial subsidiary under sale, while first quarter 2007 respective figures include in addition the results of MOTODYNAMICS S.A., the commercial subsidiary which has now been carved out. Thus, the like-for-like comparison must be based on the Continuing Operations which comprise the Industrial Minerals activities, on which the S&B Group has strategically chosen to focus on.
Financial Highlights of S&B Group - first quarter of 2008:
Sales: euro 116.0 million (compared to euro 115.5 million in the first quarter of 2007)
Gross profit: euro 27.8 million (compared to euro 29.8 million in the first quarter of 2007)
Earnings before tax, financial and investing income: euro 9.9 million (compared to euro 11.1 million in the first quarter of 2007)
EBITDA: euro 16.4 million (compared to euro 17.0 million in the first quarter of 2007)
Profit before tax: euro 12.1 million (compared to euro 9.3 million in the first quarter of 2007)
Net profit: euro 8.4 million (compared to euro 6.3 million in the first quarter of 2007)
Profit after tax and minority interests: euro 8.3 million (compared to euro 6.3 million in the first quarter of 2007)
Thus, as regards the Continuing Operations, consolidated sales and net profits for the reported period showed increases of 17.3% and 39.9% respectively compared to the corresponding period of 2007. More specifically, the consolidated sales revenue of the Continuing Operations went up to euro 111.1 million from euro 94.7 million and net profits reached euro 8.3 million versus euro 5.9 million in the same period of 2007.
First quarter operating profits for the Continuing Operations amounted to euro 9.7 million, down by 7.3% as compared to the corresponding period of 2007, due to the very sharp increase in oil prices, the increased freights and non-recurring extraordinary administrative costs resulting from the recent realignment in the Group's organizational structures, aiming at an even more effective focus on natural resources.
On the other hand, an important non recurring pre-tax capital gain of euro 5.4 million was realized in the first quarter from the Motodynamic's carve-out, which will enhance the Group's total-year profitability and cash-flow.
Commenting on the results of the first quarter of 2008, S&B's CEO Efthimios O. Vidalis stated: "The first quarter financial results cannot be considered as representative for the entire year since they reflect a quarter of adaptation to the new Group focus on natural resources. Regarding the total-year results, we believe that, despite the pressures on our margins due to the increasing inflation, growth in our businesses and the non-recurring profits from focusing on natural resources and from the sale of real estate property allow us to expect another year of development".
The relevant financial statements will be published in the press on Tuesday, May 20th, 2008, and on the Company's website at www.sandb.com.