Financial Perfomance
REPORT
of the activities of “Kloeckner Metalsnab” AD during year 2008
The Kloeckner Group acquired successfully 77.3% in January 2008 of the local distribution company Metalsnab (registration date 25. January 2008) and increased its participation in September to 99%.
The previous year has been successful for the company in regards to the improvement of its structure. A new sophisticated ERP system with the name of SAP has been implemented in September within a period of just 6 months, comprising the area of Sales, Purchases, Warehousing, Accounting and Controlling. A cost center structure was developed for each department allowing Kloeckner Metalsnab to avoid the bottlenecks of the past, when all decision making was concentrated in the hands of the management. Substantial progress was made in integrating Kloeckner Metalsnab into the world-wide Kloeckner Group. This resulted in a fundamental change of the management and nearly all operative procedures.
However, the international financial crises has not spared our company. Like all distributors of metals, the sudden fall in demand has resulted in a drop of the market prices resulting in the need to make provisions.
Despite the difficult markets in the 2nd half the sold tonnage remained at 60,452 t (in 2007: 64,495).
The investments and improvements of the infrastructure in 2008 have increased considerably to an amount of 350 T Euro resulting in a higher efficiency in the coming years. Kloecker will continue to increase the output per staff with substantial investments in 2009.
The liquidity position remained strong in 2008. The liabilities to banks was reduced to a net position of about 2 Mil Euro with further decreases in January 2009 to about 1 Mil Euro in comparison to 7.6 Mil Euro in Dec. 2007. Kloeckner Metalsnab is well equipped to finance its business in 2009.
The Supervisory Board is represented by
Dr. Thomas Ludwig (Chairman)
Mr. Gisbert Ruehl
Mr. Ulrich Becker
The Management Board is represented by
Mr. Ralf Oberhuber (Chairman)
Mr. Metody Ignatov (CEO)
Mr. Paul Spranger (CFO).
The company is represented by at least 2 members of the Management Board
On behalf of the Management board:
Metody Ignatov, CEO Paul Spranger, CFO
Date: 31.01.2009 Place: Sofia