Spanish insulation and building materials manufacturer Uralita made a net profit in the 1Q 2008 of EUR 21 million, up 11.1% on the same period 2007, the company announced on 7 May 2008. It will pay a dividend of EUR 0.43, 79% higher than in 2007. Sales in the 1Q 2008 rose to EUR 268.5 million, similar to the figure for the same period in 2007, in spite of two factors that affected the 1Q 2008: fewer working days (Easter was in March 2008) and a milder winter than in 2007 in some parts in Europe. Uralita achieved an EBITDA of EUR 48.0 million (down 6.9%), with an EBITDA margin of 17.9% (1.1% less than the 1Q 2007). Lower sales combined with loss of profitability in some businesses explained the reduction in EBITDA. Net income reached EUR 26.5 million (up 4.2%), resulting in a net income margin of 9.9%. The attributable net income rose to EUR 21.0 million, 11.1% higher than the 1Q 2007. This increase was driven by both lower tax rates in Spain (down from 32.5% to 30%) and Germany (38% to 29.8%) and better results achieved by Uralita in those businesses without minority interests (Insulation and Pipes). Debt was kept at a low level (approximately 0.6 times the last 12 months EBITDA). The Insulation business performed well with sales of EUR 128.7 million, down 3% on the 1Q 2007 (which saw the highest 1Q sales in Ursa's history). The lower number of working days in the 1Q 2008 as well as the exceptionally mild winter in 2007 that allowed for a higher level of activity both need to be taken into account. By markets, Russia, Poland, Austria and France performed positively while the construction sector in Germany and certain other countries (Kazakhstan, the Balkans and Baltic states among others) showed weaker performance. EBITDA increased by 5% with regard to the 1Q 2007 thanks to the higher weight of glass wool sales compared to XPS, to price increases implemented during the quarter, and to efficiency improvements. The differential is expected to come down as the year progresses due to higher sales of XPS and higher raw material and energy costs.
