Symbol go
GD         Turnover  mln.

SIDENOR 9month Net Profit Grows 10.2%

SIDENOR reported a 10,2% increase in 9month net after-tax and minorities profit formed at 96.3 mil. euro (or 1.00 euro per share) versus 87.4 mil. euro (or 0.91 euro per share) in the respective nine-month period of 2007.

Consolidated turnover grew 21.8% at 1,313 mil. euro over 1,078 mil. euro in the respective period of 2007.

Consolidated profit before tax increased by 10.9% and amounted to 142.5 mil. euro over 128.5 mil. euro in the nine month period of 2007.

Group EBITDA marked a respective increase by 12%, standing at 207.7 mil. euro over 185.4 mil. euro in 2007.

Regarding SIDENOR Groups steel products division (excl. CORINTH PIPEWORKS), the corresponding turnover marked a 36.6% increase versus the respective nine-month period of 2007, while EBITDA marked accordingly a 30% increase.

The increase of the Groups activity in the nine-month period of 2008 is attributed to the increased volumes of sales of the steel products division, mainly due to the enhancement of SIDENOR Groups sales in the Balkan market and especially to the significant contribution of the new long products rolling mill in STOMANA INDUSTRY in Bulgaria, since the beginning of the year, along with the enhancement of the Groups sales in high value added products in Western Europe.

The global economic crisis has suppressed growth rates and investments in the construction sector, resulting to a drop of international steel prices. Consequently, the Group has accounted for a provision from the devaluation of its inventory amounting to 41.3 mil. euro, which have burdened the nine-month of 2008 by an equal amount.

In view of the adverse economic conditions and the uncertainty in the global markets, SIDENOR Group constantly and reliably applies its policy for cost reduction, productivity improvement and streamlining of its inventory management as well for its working capital requirements, while remaining focused in its long-term growth strategy in the broader SE European area. Finally, it is important to note that the drop of the international metal prices will have a positive impact on the Group?s cash flows.  
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