Muskita lifts profits, declares dividend

Muskita Aluminium Industries (MAI) released its preliminary 2006 results posting a strong 18.8% YoY increase in turnover to CYP 34.7 mln or EUR 59.85 mln mainly attributed to higher European export sales as well as higher local sales on the back of the strong local construction sector.  Operating profitability was burdened by the higher average cost of primary aluminium per ton in 2006 (+36% YoY), as well as the higher energy costs and labour production

costs. On the other hand, the increased capacity helped mitigate the per unit production cost thus improving MAI’s operating performance.

Pretax profits were up 20.4% YoY to EUR 10.65 mln while net profit jumped 19.2% YoY to CYP 5.5 mln or EUR 9.48 mln. EPS was reported at CYP 0.0667 (EUR 0.1150) vs. CYP 0.0559 in 2005.

The bottom line was positively affected by a reversal in net finance charge 2005 to a net income in 2006 due to lower interest paid on loan facilities, higher interest received on cash balances, and a positive impact from a reversal in FX adjustments.

The Company’s Board approved a CYP 0.02 or EUR 0.0345 per share interim dividend payment to the Company’s shareholders. The ex-dividend date is set on 7 March 2007, while payment will be made on March 28. Based on current prices, the dividend yield amounts to 2.8%.