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Tuesday,
9 November 2004
+++ INTRACOM organizational restructuring successfully
under way € 288 million new contracts signed so far in 2004
+++
"The year 2004 has been a landmark for our Group,
as it is within this year that the first general restructuring of INTRACOM
since its founding, has taken place", said Mr. George Deligiannis,
Managing Director of INTRACOM, during today's Extraordinary General Assembly
of the Company's shareholders. Mr. Deligiannis stressed that the goal
of the restructuring is the successful transition of the Group to the
realities of the new millennium and reinforce competitiveness along the
following:
- Corporate strategy,
- Corporate and management culture,
- Product strategy and R & D priorities
"We are introducing a policy of strict financial
management to all levels of the Group including balance sheet cleaning,
cost cutting, outsourcing, and redefinition of business practices",
said Mr. Deligiannis and he emphasized that there has already been a deceleration
in the rate of decrease of sales and earnings, in relation to the image
presented by the first two quarters, reflecting upon the positive results
of the third quarter.
About INTRACOM parent company's headline financial
figures, it is announced that:
1. Parent company turnover for the period Jan-Sep 2004
reached € 350 m, lower by 3.2% compared to the 2003 respective period.
2. INTRACOM parent company EBT are expected to reach
€ 27 million in 9M04, from € 34.2 million in 9M03. It is mentioned
that in 9M03 EBT figures a € 5.6 million dividend received by Vodafone-Panafon
was included. Therefore, EBT figures for 9M04 seem comparable with those
of the respective period in 2003.
3. Total debt was reduced to € 271.6 million in
9M04, from € 602.2 million in the respective period in 2003. Net
debt reached € 111 million in 9M04, down from € 473.5 million
in 9M03.
4. The parent company, operating in a strongly competitive
environment, has managed to sign € 288 million worth of new contracts
in 2004. These new contracts were telecom 67.6%, defense 21.2%, government
IT 7.8% and banking IT 3.4%.
About INTRACOM group's headline financial figures,
it is announced that:
1. Group turnover for the period Jan-Sep 2004 reached
€ 445 m, lower by 2.8% compared to the 2003 respective period.
2. INTRACOM group EBT are expected to reach €
29 million in 9M04, from € 34.3 million in 9M03.
3. INTRACOM Group has managed to sign € 459 million
worth of new contracts in 2004. These new contracts were telecom 54%,
defense 12.6%, government IT 15.6%. banking IT 4.7%, and constructions
13.1%.
The CEO reiterated the FY04 guidance:
- Despite the current international downfall, group
sales are expected to reach € 625 million, whereas EBT are expected to reach € 44 million.
- Parent company's sales are expected to reach €
470 million, whereas EBT are expected to reach € 35 million, as was the guidance given during last June's AGM.
- During 2004, the company's client base was enhanced,
thus bringing OTE's share in the group's turnover down to 32% from 50%
in 2003.
- It is estimated that EBIT will increase in 2004, as
a result of the company's organization restructuring. The operational
result is anticipated to reach 10% of sales, vs 8.5% in 2003.
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