Martifer registers a net profit of 112.6 million Euros in the first half of 2009

Martifer SGPS, SA registered, during the first half of 2009, a consolidated net profit of 112.6 million Euros, which compares to 9.7 million Euros recorded during the same period in 2008.

The net results attributable to the Group, during this period, increased to 116.1million Euros versus 8.0 million Euros obtained during the first half of 2008.

The first half results were significantly influenced by the 160.9 million Euros gain brought about by the sale of Martifer’s financial position in Repower Systems, AG, and by provisions and impairment losses of 38 million Euros. Excluding nonrecurring factors and the operational unit held for sale, the net profit reached 1.3 million Euros.

In June, 2009, the net debt was of 418.2 million Euros, representing a decrease of 67.2 million Euros when compared with December 2008.

The Martifer Group’s revenues, during the first half of 2009, reached 278.2 million Euros, representing a 2.2% year on year growth.

The revenues in Metallic Construction reached 125.4 million Euros, representing 45% of the consolidated revenues. The revenues in Energy Systems ascended to 147.4 million Euros, 53% of the consolidated revenues. The Electricity Generation business area presented revenues of 8.6 million Euros, the majority of which resultant from the sale of electricity.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of 26.7 million Euros was recorded, an increase of 5.4%, resulting primarily from a better contribution from the Metallic Construction business area.

The EBITDA margin for the period was 9.6%.

These positive results were achieved in the face of domestic and international uncertainty, influenced by a global financial crisis that caused an economic contraction in the majority of the countries where Martifer conducts its commercial and industrial activities.

Martifer will reduce its economic interest in Prio

Martifer decided to reduce its economic interest in the Agriculture & Biofuels business area (currently 60%). This decision results from the belief that there is a value creation potential in Prio’s business which cannot be fully explored by the company’s current corporate structure; that the synergies’ exploration potential within the Martifer Group is limited; and also that Prio’s future development points to a growing concentration of its activity in the food chain, which is far removed from the other activities of Martifer Group.

The Group considers that it must focus its human and financial resources on the other areas where the Group’s strategic competencies lie¸ Metallic Construction and Renewable Energy. As a consequence of this decision, the financial statements reflect Prio’s classification as an "Operational unit held for sale”.

Therefore, the main indicators of the profit and loss statement and of the balance sheet reflect the contributions of the Metallic Construction, Energy Systems and Electricity Generation business units, while Prio’s contribution is separated.


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