FIRST HALF 2005: ACERINOX GROUP ACHIEVES ONE OF THE BEST HALF-YEARLY RESULTS OF ITS HISTORY

RESULT AFTER TAXES AMOUNTS TO 158.3 MILLION EUROS
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The lower world economic growth and the high prices of raw materials, have entailed an increase of inventories and a price weakening of stainless steels in Europe and Asia, which have been lower in the United States.

Acerinox Group has increased its Melting production by 17.2%, totalling 1,270,913 Mt, while its Cold Rolled Production amounted to 757,887 Mt, which means a 20% increase.

Acerinox, S.A. has increased its Melting production by 20% in its Campo de Gibraltar factory. With Net Sales totalling 924 million euros, Result After Taxes amounts to 48.3 million euros, which is 0.5% higher than the output obtained in the same period of the previous year.

North American Stainless (NAS) has also increased its production in its Kentucky factory by 26%. With Net Sales totalling 1,090 million USD, its Result After Taxes has come to 98.9 million USD, which means a 37.5% increase with regard to the same period of the year before.

Columbus Stainless has stepped up its Melting production of its Middelburg factory by 5%. Net Sales during the first half of the year amount to 561 million euros, which is 13% higher than the invoiced figure in the first half of 2004. Result After Taxes totalled 29.6 million euros, which means a 3.3% increase.

Roldan S.A., our long products subsidiary company, has increased its production at Ponferrada factory by 6.4%. With Net Sales totalling 190 million euros, 27.5% higher than the year before, its Net Result amounts to 7.8 million euros, which is 23.9% higher than the figure achieved in the first half of the preceding year.

(*)Armonizez with IAS
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Net Sales of the Consolidated Group, 2,327 million euros, mean a 23.8% increase if compared with the invoiced figure of the first half of 2004. Result after taxes, which totals 158.3 million euros, is 2.3% higher and Net Cash Flow amounting to 213.3 million euros, means a 6.6% increase.

The above mentioned financial data for the first half of the year have been calculated under the International Accounting Standards (I.A.S). Should the traditional Spanish Accounting Standards have been applied, Net result, if compared with the figure of the first half of 2004, would be 9.5% higher.

The contribution of the joint companies to the Result After Taxes is the following.

The achievement of these results in this weak market situation gives proof of the success of the production diversification strategy and Acerinox commercial presence worldwide.