Margins improved significantly, as a result of the Company’s strategic decision to strengthen its operations in the sectors of integrated IT projects, services and software, which present a higher profit margin, in contrast to the product distribution, which constituted the main activity of the parent company ALTEC prior to the merger. In addition, the Company benefited from the reduction of its operating expenses, which decreased by 34% compared to last year’s 9m period, due to the achievement of large synergies and economies of scale through the operating consolidation of the absorbed companies Sysware, Unisoft and Stat. Hence, operating (EBIT) margin widened to 11.2% versus 6.9% and pre-tax profit margin increased to 6.9% compared to 5.3% in 9m 2001.

On a consolidated basis, turnover amounted to euro 166.3 million and EBIT reached euro 16.7 million, noting an increase of 14.6%, while operating profit margin increased to 10% versus 7.2% in 9m 2001. Earnings before taxes and after minority rights of the Group increased by 20.8%, reaching euro 11.4 million with the respective margin growing to 6.9% compared to 4.7% of last year’s 9m period.

Third quarter results reveal the precision of the strategic decisions of the Company, stressing the competence of ALTEC’s new dynamic business profile in strengthening the Company’s position in the domestic market, despite the recessionary market conditions, as well as, dynamically expanding its presence in the international front.

Kifissia/Greece - In the first nine months of fiscal year 2002, Rilken S.A. reported sales of 16.734 TEURO, 5,0% below last year's level. This decrease is due to the discontinuation of the distribution agreement for the Coppertone brand, as well as to the reduction of inter-company sales to Schwarzkopf & Rilken Hellas SA. Despite the difficult market conditions within 2002, the sales to third parties show an increase of 5.2%

Operating profit decreased by 460 TEURO (-18.3 %) and amounted to 2,050 TEURO. The main reasons for this reduction were the decrease in sales and in other revenues.

Profits before taxes were reduced by 946 TEURO or 35.6% and amounted to 1,714 TEURO. This decrease is mainly due to higher provisions for bad debt related to export business with customers in Eastern Europe, to lower currency gains, and to one time non-recurring other revenues included in previous year's numbers.

Consolidated net sales of the Rilken Group, which include sales of Rilken S.A. and its retail distribution company Schwarzkopf & Rilken Hellas S.A., amounted to 31,949 TEURO. The decrease of 3.3 % vs. the corresponding period of the previous year, is due to difficult market conditions and the discontinuation of the distribution agreement of the Coppertone brand.

Operating profit of the Group declined by 515 TEURO (-18.7%) to 2,243 TEURO. Lower sales, the drop in other revenues and the increase in operating expenses were the main reasons for this decrease.

Consolidated profits before taxes decreased by 782 TEURO or 28.6% to 1.957 TEURO.

Rilken S.A. is an Athens based manufacturer and marketer of Cosmetics, specialized in Hair Care products. The company is a member of the Henkel Group which is the majority shareholder of Rilken S.A. via its subsidiary Henkel Hellas S.A.

The financial statements of Rilken S.A. for the first nine months of 2002, including the consolidated financial statements, are published today 28th November 2002.

• Consolidated Sales of Euro 226,9 mln versus Euro 188,7 mln in the 3rd quarter of 2001, corresponding to an increase of 20,3 %
• Consolidated Earnings before Interest, Taxes and Depreciation (E.B.I.T.D.A.) of Euro 40,0 mln versus ? 32,8 mln in the nine months of 2001, corresponding to an increase of 22,0 %
• Consolidated Earnings before Tax (E.B.T.) of ? 19,8 mln versus Euro 17,7 mln in the nine months of 2001, leading to an increase of 12,1%

International markets are still under pressure. Especially in Europe the economic environment further deteriorates as we move towards the end of the year.

M.J.MAILLIS GROUP focusing in the rationalization of the Group companies, enriching its product portfolio and investing in Research and Development continues its growth path and profitability improvement.

Keeping in the right track within these economic conditions, clearly suggests that in the process of normalization of the international markets growth rates of M.J.MAILLIS GROUP will be accelerated.

Foreign exchange differences and losses, are included in ?extraordinary results?, and the positive foreign exchange differences resulting from the revaluation of long term loans appears as an increase in ?provisions?. These were not materially different versus the half-year results, as exchange rates remained virtually unchanged. However, ?extraordinary losses? include a ? 5m provision against the potential devaluation of the Egyptian pound.

• · In Greece, sales of cement, concrete and aggregates as in the first six months continued their positive performance versus last year.
• · In the USA, sales were overall flat versus the prior year. This represents an offset against the strength of the housing market and public works activity versus commercial sector softness. Overall, the market improved in the Florida region but, softened in the Mid Atlantic region.
• · In Egypt, the existing excessive supply of cement in combination with a stagnation in demand did not allow an improvement in the results.
• · In South-Eastern Europe sales continued to improve both in Bulgaria and the Former Yugoslavic Republic of Macedonia. Our new acquisition of the Kosjeric plant in Serbia had a positive operating and bottom line result.

Titan America recently acquired the balance of 80% of Separation Technologies Inc. for $ 29m, which it had owned since 1999. STI has developed several unique patented processes for the treatment of fly ash. The ensuing products from the separation of fly ash are, on one hand, a supplementary building material, and on the other hand, fuel. STI currently operates 3 facilities in the Eastern USA.

Capital expenditure for the group for the nine months was ? 84m. A further ? 94m was invested in acquisitions that include Kosjeric in Serbia, Alexandria Portland Cement Company in Egypt, and the remaining capital of STI in the USA. Net debt as of 30th September 2002 was ?356m, an increase of ? 29m versus 2001.

Sales of the parent company, Titan Cement Company SA, were ? 313m for the nine months representing an increase of 10% versus the prior year. Operating EBITDA at ? 112m was up 25%. Net profit, after minority interests and provisions for taxes, increased 5% to ? 70m, including income from participations of ? 14m.

Download the Financial Statements of TITAN in .zip format