Sidenor Group (Sidenor), the largest Greek steel producer, has announced that in 2010 it is looking to take advantage of the apparent recovery of the Western European markets, via its investments which have already been completed in the Balkan area, including the acquisition of port facilities strategically located on the river Danube.
In addition, in 2010 Sidenor's key objectives also continue to be the constant optimization of cost base and productivity, and the sustainability of working capital at low levels.
Affected by the financial crisis in Greece and abroad, in 2009 Sidenor's turnover decreased by 45.3 percent year on year to €938 million, its consolidated results before taxes amounted to losses of €58.8 million, compared to profits of €47.4 million in 2008, while its consolidated EBITDA went down to €22.3 million from €140 million in 2008. Meanwhile, the company's 2009 net consolidated results after taxes and minority rights amounted to losses of €71.3 million compare to profits of €29.3 million in 2008.
"The decrease of construction activity and the delay in the completion of large scale infrastructure projects led to reduced volumes of sales, which, in combination with the low steel product sales prices, led to the decrease of the group's turnover and to lower profit margins," reads the company's statement, adding that, due to the constrained Greek economy, over 62 percent of its turnover in 2009 was allocated to countries abroad.
As of December 31, 2009, Sidenor's net debt amounted to €419.7 million - down 16 percent year on year.