ELVAL HOLDINGS S.A.
PRESS RELEASE - FINANCIAL RESULTS - 1ST QUARTER 2008
The consolidated turnover of ELVAL in the first quarter of 2008 was formed at EUR 226 million, declined by 16% compared to the corresponding period of 2007. The gross profit of the Group also decreased to EUR 15 million, as well as earnings before taxes, financial expense and depreciation, which dropped by 45% to EUR 13.8 million, and as a result, the Group reported pre-tax loss of EUR 380 thousand (EUR 0.01 loss per share against profit of EUR 0.072 per share).
At corporate level, turnover was down by 27% to EUR 131 million, gross profit to EUR 550 thousand versus EUR 11.6 million in the corresponding quarter of 2007, earnings before taxes, financial expense and depreciation declined by 71% to EUR 4.2 million, and pre-tax loss reached EUR 745 thousand against profit of EUR 9.8 million in the corresponding quarter of 2007.
Results were affected, mainly, by the low volume of sales, the increased cost of product shipping, and the significant increase in energy cost. Another major factor was the EURO-Dollar exchange rate, which has been continuously falling to historical low levels. Furthermore, at consolidated level, there has been an increase in financial expense.
The volume of sales of ELVAL and SYMETAL plants in Inofyta reached 43 thousand tons versus 56 thousand tons in the 1st quarter of 2007. It is noted that last year's quarter included the additional loads of 2006 that had been delayed due to problems in ports, whereas in the first quarter of 2008 new problems in ports resulted in delayed exports, thus adversely affecting sales, profit and loss, and inventories, and increasing the cost of export due to the use of alternative ports.
In regard to associated subsidiaries, ETEM reported loss as a result of the decrease in gross profit margin due to the change in the sales mix, the increase in financial expense, and the change in economic conditions at both national and international level. On the contrary, for the subsidiary company BRIDGNORTH ALUMINIUM Ltd, the volume of sales saw an increase of 16% and earnings before taxes surged by 108% at EUR 1.5 million. Finally, the 1st quarter of 2008 saw the completion of the FOIL sector spin-off of ELVAL and its contribution by 99.99% to the subsidiary SYMETAL, which has been operating it since February 2008.
In the first quarter of this year, investment expenses reached EUR 13 million at Group level and EUR 5 million at corporate level, concerning the implementation of the scheduled investment plans in Inofyta plants, and the construction by ETEM of an extrusion plant in Libya.
Continuous efforts are made to deal with the adverse conditions by increasing productivity and making a shift to high added value products, while normalization of the situation in ports will restore our export rates to normal levels.
At corporate level, turnover was down by 27% to EUR 131 million, gross profit to EUR 550 thousand versus EUR 11.6 million in the corresponding quarter of 2007, earnings before taxes, financial expense and depreciation declined by 71% to EUR 4.2 million, and pre-tax loss reached EUR 745 thousand against profit of EUR 9.8 million in the corresponding quarter of 2007.
Results were affected, mainly, by the low volume of sales, the increased cost of product shipping, and the significant increase in energy cost. Another major factor was the EURO-Dollar exchange rate, which has been continuously falling to historical low levels. Furthermore, at consolidated level, there has been an increase in financial expense.
The volume of sales of ELVAL and SYMETAL plants in Inofyta reached 43 thousand tons versus 56 thousand tons in the 1st quarter of 2007. It is noted that last year's quarter included the additional loads of 2006 that had been delayed due to problems in ports, whereas in the first quarter of 2008 new problems in ports resulted in delayed exports, thus adversely affecting sales, profit and loss, and inventories, and increasing the cost of export due to the use of alternative ports.
In regard to associated subsidiaries, ETEM reported loss as a result of the decrease in gross profit margin due to the change in the sales mix, the increase in financial expense, and the change in economic conditions at both national and international level. On the contrary, for the subsidiary company BRIDGNORTH ALUMINIUM Ltd, the volume of sales saw an increase of 16% and earnings before taxes surged by 108% at EUR 1.5 million. Finally, the 1st quarter of 2008 saw the completion of the FOIL sector spin-off of ELVAL and its contribution by 99.99% to the subsidiary SYMETAL, which has been operating it since February 2008.
In the first quarter of this year, investment expenses reached EUR 13 million at Group level and EUR 5 million at corporate level, concerning the implementation of the scheduled investment plans in Inofyta plants, and the construction by ETEM of an extrusion plant in Libya.
Continuous efforts are made to deal with the adverse conditions by increasing productivity and making a shift to high added value products, while normalization of the situation in ports will restore our export rates to normal levels.