In the 1st quarter of 2008, SIDENOR Group consolidated turnover amounted to 386 mil. euro over 381 mil. euro in the respective period last year, marking a 1.4% increase. Consolidated profit before tax amounted to 33.2 mil. euro decreased by 37% approximately, versus the 1st quarter of 2007, while profit before interest, taxes, depreciation & amortization (EBITDA) amounted to 52.9 mil. euro, marking a decrease of 26%. Finally, consolidated net after-tax and minorities profit reached 24.8 mil. euro (or 0.26 euro per share) versus 35.5 mil. euro (or 0.37 euro per share) the respective period last year. It is important to note the fact that in the 1st quarter of 2007, sales benefited from the mild winter in all of Western Europe and Russia, which led to an unusual rise of construction activity, hence increasing demand and prices for steel products at the time.
Comparing to the 4th quarter of 2007, consolidated turnover of the 1st quarter of 2008 marked a 24% increase (or 386 mil. euro over 312 mil. euro in the 4th quarter of 2007), 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, starting for the 1st quarter of 2008, continue to improve even more in the 2nd quarter of 2008.
It is noted that the production of the new rolling mill in STOMANA INDUSTRY for the SD rebar and special steel products, commenced in the 1st quarter and is expected to have an impact at the Group's results from now on. Furthermore, our subsidiary?s CORINTH PIPEWORKS 1st quarter 2008 results were adversely affected by the Euro/Dollar rate, the rising raw material prices and freight charges. However, CORINTH PIPEWORKS has recently booked orders amounting to 170 mil. euro in several countries, which is expected to improve its financial performance in the second half of the current year.
Recently, SIDENOR Group announced the signing of a Memorandum of Understanding with NUCOR Corporation, the largest producer of steel products in the US. According to the Memorandum, NUCOR will acquire a 34% stake in a new subsidiary company of SIDENOR, in which all steel producing assets of the VIOHALCO Group will be contributed with the exception of CORINTH PIPEWORKS S.A. Through this strategic partnership with NUCOR, SIDENOR will substantially strengthen its competitive position in the global market. The partnership will allow SIDENOR to expand its product range, optimize the use of cutting-edge technology, accelerate and consolidate its expansion into the markets of the Balkans, Cyprus, Turkey and Northern Africa. The agreement is expected to be finalized by this year's end, subject to customary due diligence process, necessary approvals by regulatory authorities and execution of the definitive agreements.
SIDENOR Group continues the execution of its growth strategy in the rapidly developing markets of the SE Europe and expects further improvement of its business performance.