Further growth prospects
euro 0.25 Dividend per share
SIDENOR?s Annual General Assembly was held today, Tuesday June, 10th 2008 at the ATHENS IMPERIAL HOTEL in Athens. The Company's management presented before the shareholders the FY 2007 financial results, the company's strategy, as well as the goals and the prospects.
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 the growth in the sales of its special steel products in the EU countries, and by 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. However, the reduced global demand for steel products during the second half of 2007 has slowed down the industry?s profitability growth versus the first half of 2007, with SIDENOR Group?s profit margins being affected accordingly. Regarding the 1st quarter of the current year, it was characterized by the evident improvement as compared to the 3rd and even more to the 4th quarter of 2007. In specific, the consolidated turnover of the 1st quarter of 2008 marked a 24% increase versus the 4th quarter of 2007 (or 386 mil. euro over 312 mil. euro), consolidated profit before tax amounted to 33.2 mil. euro over 10 mil. euro, while profit before interest, taxes, depreciation & amortization (EBITDA) marked a 92% increase (or 52.9 mil. euro over 27.5 mil. euro in the 4th quarter of 2007), which is attributed to the rise in sales prices due to the increase in demand and the rise of international scrap prices. Finally, consolidated net after-tax and minorities profit showed significant growth and amounted to 24.8 mil. euro (or 0.26 euro per share) versus 4.2 mil. euro (or 0.04 euro per share) in the 4th quarter of 2007.
The positive conditions in the domestic and international steel markets, which started in the 1st quarter of 2008, the recently booked orders amounting to 170 mil. euro of CORINTH PIPEWORKS in several countries, as well as the commencement of the production of the new rolling mill in STOMANA INDUSTRY for the SD rebar and special steel products, which started in the 1st quarter of 2008, are expected to contribute to SIDENOR Group?s growth strategy and enhance both its activity, as well as its results.
The General Assembly approved amongst others the Fiscal Year 2007 financial statements, as well as the payment of Euro 0.25 dividend per share. Entitled to this dividend will be the company's shareholders at the closing of the Athens Exchange trading session on 25.6.2008. As of 26.6.2008, the Company's shares will trade at the Athens Exchange ex-dividend. The dividend will be paid through the ALPHA BANK branches starting 3.7.2008 and until the end of the year. Following, the General Meeting approved the conversion of the Company?s total outstanding shares to registered in order to allow for best monitoring of the Company?s shareholders rights via the shareholders list, as well as the subsequent amendment of Article 7 of the Company's Articles of Association. Due to lack of the required by law quorum, the issue of a common Bond loan was decided to be readdressed at the upcoming Repeat General Shareholders Assembly, which is scheduled to convene at June 26, 2008.