Amtel-Vredestein reports sales, debts both jumped in 2007
ERJ staff report (DS)
Enschede, The Netherlands - Amtel-Vredestein N.V. said its sales rose by 22 percent to $997.4 million (on a continuing operations basis)Â in the 12 months to December 2007. The company did not reveal profit figures, but said it was operationally profitable in the year. However, it also reported that debts continued to increase, rising a further 15 percent in the year, to $779 million, from $679 million a year ago. The company blamed this increase on currency effects.
The company expects to experience cashflow problems in May, similar to the problems it experienced in late January - early February, when it was unable to pay for raw materials to keep its Kirov factory operational. That issue was resolved when a major shareholder put in a further $45 million to help the company buy materials. Amtel said, "Further interim financing may be needed in May to maintain continuity of raw material supply. At present, raw materials are continuing to be supplied."
The company said it was operationally profitable for the full financial year, subject to any potential asset impairments charges and provisions that may be required by accounting rulles; however, it, "expects to continue to show losses on a consolidated basis for the full year due to negative contributions by its AV-TO business and high interest expenses."
The company said the debt burden, "puts a strain on the Company's liquidity," and added that much of its debt matures in the coming 12-24 months."
The Company also said it is in active discussions with its financing banks and, as previously disclosed, has presented a debt restructuring proposal to the majority of the banks with a view to addressing the debt burden in the longer term. Rothschild bank is also assisting the Company in assessing its broader strategic options, which include a possible business combination with SIBUR-Russian Tyres, among other options.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Press release from Amtel-Vredestein
This article is only available to subscribers - subscribe today
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
- Every issue of European Rubber Journal (6 issues) including Special Reports & Maps.
- Unlimited access to ERJ articles online
- Daily email newsletter – the latest news direct to your inbox
- Access to the ERJ online archive