TECHNICAL OLYMPIC S.A. announces herewith the financial results of its subsidiary company "TECHNICAL OLYMPIC USA INC" (TOUSA), which is quoted on NYSE, for the first half of 2005 (1 January2005-30 June 2005):
The operating results of the company increased substantially in the first half of 2005, as turnover generated from the construction of houses amounted to $1.1 billion compared to $0.9 billion in 2004, up by some 25%, while Net Income (after tax) reached $72.1 million in H1 2005or $1.24 per share against $42.2 million or $0.73 per share in H1 2004, thus increasing by 71%.
Also, in the same period, the number of new homes delivered rose by some 32%, from 3,201 to 4,223 homes. In addition, the average selling price of homes delivered increased by 4% to $282,000 in the first half of 2005 compared to $272,000 in the first half of 2004. Moreover, the gross profit margin of the company rose by 360 base units reaching 22.4% compared to 18.8% in the corresponding period of 2004, while the net profit margin-as a percentage on sales-improved by 100 base units, approaching 6.6% versus 4.8% in the first half of 2004.
As to the fiscal year 2005, TOUSA estimates that the consolidated turnover will reach $2.4 billion, according to the average price of homes delivered to increase to $290,000 and after-tax profits to amount to $185 million or $3.01 per share compared to $170 million or $2.88 per share, i.e. an increase of 55%. Also, for the fiscal year 2006, the consolidated turnover is expected to reach $2.8 billion compared to 2004, while the average price of homes delivered is estimated to increase to $308,000 and after-tax profits to come close to $285 million.