Galery

1

There is an almost 12% increase in the production of metallurgical industry in Greece after the dramatic fall two years ago, reports Katimerini. This sector like many others from the global and local economy suffered serious damage in 2009 due to the financial collapse in the USA in 2008. Then, the Greek industry lost about 400 million Euros and seriously threatened the survival of small and large enterprises. During the first five months of 2011, the industrial production and processing of metals increased by 11.3% and now there are trends for continuous growth.

According to the data provided by the Greek Statistical Service (ELSTAT), the total sales of metals in the country for the first six months of this year reached a turnover of 3.28 billion Euros. The analysis of the Service is based on 116 of the largest companies in the manufacturing and processing of base metals, which have announced their financial results until July 10, 2011. The percentage of firms that have reported a drop in the net profit for 2010 fell compared to the previous accounting period. Last year, their share was 56% of the total and 61.7% in 2009. One in every three companies in the metallurgical industry has reported a loss two years ago.

The 2010 data show that 57 companies from the statistical analysis have positive results. Their total net profit is 114.5 million Euros. Other 59 reported losses in the total amount of 353.2 billion Euros. The analyses of the Statistical Institute show that the total net losses for the year reached 238.7 million Euros, which is significantly better than the results in 2009. Then, the negative result totaled 431 million Euros. Based on figures presented, ELSTAT concluded that the business climate has improved for 116 of the largest companies, as there is a decrease in losses by 192.3 million Euros or 45% reduction in the loss for 2009.

In particular, five Greek metallurgical companies have reported lower levels of total losses of 84 million Euros last year compared to 2009 when they reached 148.1 million Euros. The previous year may not have been profitable for Sidenor, Sovel, Steel-Greece, Steel SA and Hellenic Steel but it has proven 43% more successful than 2009. The reduced damage is due mainly to increased exports at a time when domestic demand has seen a significant decline. The recession in the country and the lack of liquidity on the domestic market made the businessmen seek new alternative markets to sell their raw materials.

Profitable companies registered an 11% increase in the revenue. Gross profit jumped by 69% compared to 2009 and reached137.3 million Euros before taxes and depreciation (EBITDA). The sales of the 57 most successful companies in 2010 totaled 1.59 billion Euros, representing 48.5% of the total turnover of all the 116 companies in the analysis. The sales of the 59 companies recorded losses that reached 1.69 billion Euros and represent 51.5% of all sales in the sample.

Market analysts reported as good news the fact that nine of the losing metallurgical companies in the Greek market in 2009 recorded profit in 2010. In 2009, these companies reported a total loss of 124.9 million Euros, but next year they improved their result by 10 million Euros. Among them is the state company LARKO. It is included in the privatization package of the government of George Papandreou, through which the socialists have to raise 50 billion Euros by 2015 to help reduce debt. Two years ago, the global economic crisis hit LARKO and the company recorded losses of 105.5 million Euros. In 2010, however, the metallurgical company overcame the difficulties and ended the period with 6.4 million Euros net profit.

Unfortunately, greater is the number of companies that were profitable two years ago, but lost the momentum in 2010. The wheel has turned for 25 companies in the metallurgical sector, which had a total of 23.6 million Euros profit in the successful 2009 and collapsed in 2010 registering a loss of 32.9 million Euros. The stable companies in metallurgy are 48 and the only change in them is the level of end profit. In 2009, they had a net profit of 56.5 million Euros, and doubled it in 2010.