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Halcor - Press Release Regarding H1 2013 Financial Results

Halcor Group of companies announced its H1 2013 consolidated financial results according to the International Financial Reporting Standards (IFRS).

The consolidated turnover reached in the first half of 2013 to Euro 596.4 million from Euro 650.9 million in the first half of 2012 decreased by 8.4% mainly due to comparatively lower average metal prices, but also due to product mix.

Consolidated gross profit decreased by 79.3 % to Euro 5.3 million against Euro 25.5 million in the first half of 2012. The decrease was primarily due to the provision of Group inventories impairment of Euro 9.7 million due to lower prices of copper and zinc in LME. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) came in the first half of 2013 to losses of Euro 1.4 million against Euro 18.8 million for the same period last year, while earnings before interest and taxes (EBIT) amounted to losses of Euro 12.2 million from Euro 5.6 million in the corresponding period last year also influenced by the provision of inventories impairment. The consolidated results reached in the first half of 2013 losses of Euro 35.6 million compared to losses of Euro 14.7 million in the first half of 2012. Finally, the results after tax and minority interests amounted to losses of Euro 33.1 million or Euro 0.3270 per share, compared to losses of Euro 12.2 million or € 0.1201 per share in the first half of 2012.

The volatility and challenges in the macroeconomic environment remained in the first half of 2013, where the Eurozone economies showed further deceleration (except Germany) and Greece remained in a deep recession. In particular, the demand for installation products moved into negative territory as the construction industry continues to be tested hard. In contrast, despite the fact that the demand for industrial products were declining in key European markets, the Group increased sales volume and gain bigger market shares. Regarding cables, reduced demand in key markets and the intensifying competition were offset by improved margins. In addition, adverse weather conditions in Central and Northern Europe in the first quarter negatively impacted the financial results of the Group.

As regards costs, particular attention was paid to the optimization of production processes in order to further reduce industrial costs in order to remain competitive in the demanding markets we serve. However, high energy prices, especially due to tax burden, as well as the high financial cost continued to affect the cost and competitiveness of Group products.

For the second half of 2013, it is estimated that, given the difficult conditions still prevailing in the domestic market and the apparent instability that continues to be displayed in most countries of the Eurozone, the Group will continue to have the primary strategic objective of increasing market share in industrial products and strengthen its business in new markets that have not been affected by the economic downturn.
The data and information for the period 1.1.2013 - 30.6.2013 together with the Financial Report for the same period will be posted on the Company’s website at the address and the website of the ASE