Cyprus CSE Main Market profits fall 75% on global doom

The combined results of the 12 companies listed in the Main Market of the Cyprus Stock Exchange showed a 75.35% deterioration in the first quarter of 2009, as total profits fell to EUR 59.31 mln compared to EUR 240.57 mln profits a year ago in the same period, according to data compiled by the Financial Mirror.
The profit decline is significantly higher than the 27% deterioration witnessed last year, when 2008 profits of the 12 Main Market companies fell to EUR 937.62 mln from EUR 1.28 bln a year earlier.
All the sector companies showed a deterioration in results with the exception of A. Zorbas & Sons, which increased profits to EUR 565,000 from EUR 308.000 a year ago.
Bank of Cyprus remains the most profitable company listed on the CSE, with its first quarter profits reported at EUR 63.07 mln, despite being 46% lower compared to EUR 116.05 mln a year ago. Bank of Cyprus is the only company listed on the CSE which has issued a full year forecast, expecting 2009 profits to decline by 40% to EUR 300 mln from EUR 502 mln in 2008.
Marfin Popular Bank saw profits declining to EUR 40 mln from EUR 104 mln a year ago, while Hellenic Bank reported net losses of EUR 12.8 mln compared to a profit of EUR 22.98 mln in 1Q08. Bank results were negatively affected by lower net interest margins, higher provisions and losses from abroad in the case of Hellenic.
The first quarter slowdown in the economy as a result of the plunge in property transactions and a steep decline in tourism arrivals, coupled with lower consumer spending locally, took their toll on the results of Cyprus’ top companies.
Louis Plc, Tsokkos Hotels, Aspis Holdings and Options Cassoulides all reported losses for the period, while the other blue chips such as SFS Group, Muskita, Logicom and Orphanides reported lower profits.
A similar story also unfolded with respect to other companies reporting first quarter results with the exception of Woolworth Cyprus Properties (FWW), which following the disposal of its stake (20%) in the associated CTC-ARI Airports to Ermes Department Stores (ERME), saw 1Q09 profits surge to EUR 14.9 mln from EUR 1.2 mln in 1Q08.
The decline in the property sector was blamed as the main reason why Vassiliko Cement Works saw profits declining to EUR 1.1 mln from EUR 4.9 mln, while the slowdown in local consumption hurt the results of CTC, with first quarter losses rising to EUR 1.3 mln from EUR 646,000 in 1Q08.