() Alío.xís Press Release 26 September 2009
Financial results for the first half of 2009
Revenue of € 959 million, an overall decrease of 17.3o/o, and a like-for-like" decrease of 17.8To.
Operating income (EBIT) oI € 52 million, an overall decrease of 50.5%, and a like-forlike* decrease of 46.1%.
Difficult conditions as a result of a sharp decline in sales in most European markets, with Spain, ltaly and the UK being the most severely affected. More resilience in France and Germany.
Weak activity levels in North America and Australasia.
Margin pressure in Latin America despite
drop in activity level that was less
pronounced than in other regions.
Continuing focus on implementing measures to address the decline in volumes and to take full benefit of eventual market improvements.
The unaudited condensed consolidated accounts for the first half of the year 2009 were presented to the Board of Directors at its meeting held on 24 September.
COMMENTS Revenue in the first half of 2009 was € 959 million (2008: € 1 ,159 million), an overall decrease of 17.3o/o. Changes in the scope of consolidation accounted for an increase of 2.0%. Adverse exchange rate movements reduced revenue by 1.5o/o, mainly as a result of the weakening of sterling during the period. The underlying decrease in revenue was 17.8%.
Ooeratino income was € 52 million (2008: € 105 million), an overall decrease of 50.5%. At constant exchange rates, and excluding the impact of the change in scope of the consolidation, the decrease in operating income was 46.1%. The first half has seen the continuation of a Group-wide proactive policy related to tight cash
to address the depressed state of the market. This policy encompasses
combination of strict working capital management, the límitation of capital expenditure and the reduction of costs. As a result, the Group was able to limit the seasonal increase of Net Financial Debt which, aI€ 514 million at 30 June 2009, is € 36 million lower than at 30 June 2008. Whilst strictly controlling capital expenditure, the Group remains committed to a number of key projects which are fundamental to its future strategic position.
When compared to the first quarter of the year, the second quarter benefited from the combination of a stabilisation of demand, the end of destocking by customers, increased activity as a result of seasonality and the positive effect of the measures taken to combat the economic crisis. As a consequence, some improvement in financial performance was observed, despite sales remaining at a substantially lower level than in the previous year. Almost without exception, the trading environment in all regions of Europe remained difficult. The decrease in turnover was varied with the Spanish, ltalian and UK markets being the most severely affected. France and Germany showed more resilience. During the first half of the year, the level of activity in all divisions was lower than the same period in 2008. ln comparison with activity in the Group's other markets, the industry segment was negatively impacted later in the cycle. As a consequence, this market has stabilised later than those of the Group's building, sanitary and utility segments.
Significant volume declines also hit the businesses in North America and Australasia. Swift implementation of restructuring measures has only partly compensated for the reduction in activity. The drop in activity in Latin America was below that of other regions. Results by country were mixed but pressures on margins were partially offset by the implementation of restructuring plans. Margin improvement will be the Group's continued focus for the region.
SUBSEQUENT EVENT On 2 July 2009, and as announced in the 2008 Annual Report, the Group acquired
balance of the 49% membership interest in Aliaxis Latinoamerica CoĂśperatief U.A. from the minority member. The minority member has used the consideration to acquire Aliaxis S.A. treasury shares representing 2.560/o of the issued share capital.
OUTLOOK FOR THE SECOND HALF OF
The Group does not expect any major recovery in activity in the short term and during the second half of the year will continue its proactive policy of costs reduction and tight cash management. Necessary measures will continue to be taken by the Group to mitigate the impact of the fall in market activity and to ensure that it will be in a position to benefit from the economic recovery when it occurs.
SUMMARY FINANCIAL INFORMATION First half
Conden sed Conso I i d ated I nco m e
Profit before income taxes
Operating income (EBIT) %"
. Minority rnferesfs .Group equity holders
Earnings per share
Basic earnings per share (€)
Diluted earnings per share (€)
densed Sheet Co n
Co n sol i
dated Bal a nce
Property, Plant and Equipment
Non Current lnvestments
Other Non Current Assets
Total Non Gurrent Assets
Non Cash Working Gapital
Equity (attributable to Group)
TotalEquity Non Gurrent Liabilities Deferred Tax Liability (net)
Net Financial Debt
*Like-for-like being at constant exchange rates and excluding the impact of changes in scope of consolidation
*" Current EBITDA being EBITDA before non-recurrinq items
Contact: Manuel Monard (Group Corporate Development Finance Manager)
TeL32-2-775 5050 - Fax. 32-2-775 5051 E-mai I : al i axÍ s@aliaxi s.com