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Sidenor Consolidated Net Profit 13% Higher

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SIDENOR Group reports significant growth of its activity in the 1st half of 2008 over the respective period in 2007, with the consolidated turnover amounting 858 mil. euro over 733 mil. euro, an increase of 17,1% versus the respective period last year. Consolidated profit before tax amounted to 124 mil. euro marking a 21% increase, as compared to the 1st half of 2007, while profit before interest, taxes, depreciation & amortization (EBITDA) amounted to 164.8 mil. euro, marking a 17% increase. Consolidated net after-tax and minorities profit marked a 13% increase approximately and formed at 77.8 mil. euro (or 0.81 euro per share) versus 69 mil. euro (or 0.72 euro per share) in the respective 1st half of 2007. Finally, especially regarding the groups steel products division (excl. CORINTH PIPEWORKS), the corresponding turnover marked a 32% increase versus 1st half of 2007, while EBITDA increased by 40% approximately. 

More specifically regarding the 2nd quarter of 2008, consolidated turnover amounted to 471.5 mil. euro, increased by 22% over 1st quarter of 2008 and 34% increased over the 2nd quarter of 2007, consolidated profits before tax amounted to 90.8 mil. euro over 33 mil. euro in the 1st quarter of 2008 (increase of 173%) and over 49.8 mil. euro in the 2nd quarter of 2007 (increase of 82%), while profit before interest, taxes, depreciation & amortization (EBITDA) reached 112 mil. euro, increased by 112% over 1st quarter of 2008 and 61% over the respective 2nd quarter of 2007. Finally, the consolidated net after-tax and minorities profit formed at 53 mil. euro (or 0.55 euro per share), reporting an increase of 113% over 1st quarter of 2008 (or 0.26 euro per share) and 58% increase over the respective 2nd quarter of 2007 (or 0.35 euro per share). 

The significant increase of the group?s activity is attributed on one hand to the increasing sales prices and volumes of sales, n the other hand, to the rise of SIDENOR sales in the Balkan markets, mainly due to the significant contribution of the new long products rolling mill in STOMANA INDUSTRY in Bulgaria, since the beginning of the year and the enhancement of the group?s sales in high value added products in Western Europe.
Regarding the subsidiary CORINTH PIPEWORKS, the financial results of the 1st half of 2008 were mainly affected by the weak dollar in relation to the euro and the sustained rising raw material prices and freight rates. However, CPW expects improvement of the results at the 2nd half of 2008, as utilization rate of the ERW/HFI plant is expected to rise and freight agreements have been made covering a substantial part of the orders.
SIDENOR Group remains focused on the execution of its growth strategy, aiming at the strategic expansion in SE Europe, at the enhancement of its product mix with new high value added steel products, at the improvement of the plants productivity and the expansion of its distribution network and expects further improvement of its business performance.

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