Operation on budget - Cost reduction 17%
Strengthening of the Euro results in a currency exchange loss of €7.5 million.
First Quarter Financial Highlights 2008
Sales € 321.1 million
11% reduction in revenues considering effects from changes in currency
Earnings before interest, taxes and depreciation, (EBITDA) amounted to € 11.8
million
Operating profit (EBIT) € 7.3 million
Net earnings amounted to a loss of € 7.3 million
Interest bearing liabilities decrease by € 37 million
Cash provided by operation before taxes and interest amounted to € 32.9
million
Total assets amounted to € 723 million - equity ratio 16.1%
Inventories decrease by € 43.7 million in the quarter
The Group's total debts reduce by € 57.1 million in the quarter
Icelandic Group CEO Finnbogi A. Baldvinsson, commented:
Icelandic Group‘s operation was in line with management‘s expectations in the
first quarter of 2008. This is certainly a positive sign, however the variance
is due to financial items. Icelandic Group currently operates in many
different markets and currency exchange development has a substantial effect on
its financial results. Currency loss in the quarter amounted to € 7.5 million
compared to € 55,000 in the first quarter of 2007, however interest bearing
liabilities decrease by € 37 million, which is partly due to the strengthening
of the Euro.
We have achieved to decrease the operational cost of the group substantially or
by 17% in the quarter compared to first quarter last year.
The convertible loan, which has been granted to the company, makes us ready for
the large projects which awaits us. I´m assure that the operation will deliver
better results later in the year.
