2005

29/11/2005 -  9months 2005 - FINANCIAL RESULTS (in accordance with IFRS)

·         ÅÂÉÔDA 17.78 ml Euros vs 13.57 ml in the 9 months of 2004, an increase of 31%.

·         EBIT at 9.97mil Euros vs 5.59 ml in the 9 months of 2004, an increase of 78.4%

·         Earnings before taxes at 3.1 ml Euros, doubling from 1.4ml for the 9 months of 2004.

·         9 month Group Turnover at 158 mil Euros vs 160 ml, a marginal decline of 1%.

·         3^rd Quarter recorded a 5% sales increase vs the 3^rd Quarter of 2004 (50 ml Euros vs 47.7 in the 3^rd Quarter of 2004)

·         Strong turnaround in the operating performance of the Greek parent company (EBITDA at 7.2 ml Euros vs 2.6 ml and ÅÂÉÔDA margin at 14.7% vs 4.8% in the 9 months of 2004) 

·         Turnover in S. Africa was essentially flat, reflecting upward price adjustments, offset by a decrease in volume attributable to a delay in the commencement date of various projects.   

Petzetakis Group Turnover for the 9 months of 2005 reached 157.95 ml Euros representing a marginal decrease of 1% versus the 9 months of 2004. Against this, ÅÂÉÔDA reached 17.78 ml Euros compared to 13.57ml Euros in the same period of 2004 – an increase of approximately 31%. EBIT reached 9.97mil Euros vs 5.59 ml in the 9MO of 2004, presenting an increase of 78.4%.  

 The marked improvement in operating margins is due primarily to the strong turnaround of operations in the Greek market in spite of the drop in production and sales in the post-Olympic market. This improvement in the company’s operational efficiency is due primarily to internal operating improvements as well as the recovery of margins after the prices increases that were effected to counter balance increases in raw materials that had eroded 2004 profit margins. Furthermore, the parent company’s successful promotion of new state-of-the-art pipe systems with superior value-added features and unique in the market attributes (sound-leak proof), also contributed to this improvement. For the 9 months of 2005, the parent company recorded EBITDA of 7.23 ml Euros vs 2.6 ml in 2004 and EBITDA margin at 14,7% vs 4,8%.

The group’s subsidiary in Spain further penetrated the Spanish construction market sector promoting new types of hoses and utilizing the parent company’s know-how, contributing to a strong increase in sales turnover. Sales in South Africa decreased in comparison to the 9months of 2004; even though the company’s pipeline of projects is significant, the delay in the date of commencement on few projects was the principal reason for the decrease in turnover.

For the remainder of 2005, group objectives can be summarized as further improving operational results and concluding the group’s refinancing in a way that best fits the group’s financial and tax structure.

Petzetakis Group is one of the largest pipe systems manufacturers worldwide and is the market leader in Greece and South Africa. It operates eleven manufacturing units in Greece, S.Africa, Spain, Portugal, Italy and Germany with installed production capacity of 171,000 tons.

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