BUENOS AIRES, Argentina, Feb. 11 /PRNewswire-FirstCall/ -- Cresud S.A.C.I.F. y A. (BCBA: CRES), a leading Argentine producer of agricultural products, today announced results for First Half Fiscal Year 2008 ended December 31, 2007.
HIGHLIGHTS -- The business' general market environment continues to be very favorable. The demand for agricultural commodities continues to rise, despite the risk of economic slowdown of the world's main economies. As a result, soybean and corn prices have increased more than 25% in the last three months and the land set aside for rising crops keeps growing. -- The rise in operating income to Ps. 22.4 million in the first six months of fiscal year 2008, when compared to the same period a year earlier, was boosted by the grain business, in which we increased our production and sales volume within a context of rising prices. -- The increase in milk production values and results obtained from the sale of farms also played an important role. Net income rose to 14.5 million pesos. -- The sale of 2 farms in the last quarter netted profits of more than 20 million pesos. The sales values of these fields were 8 and 22 times higher than their respective book values. -- During the period, Cresud converted and exercised the balance of its IRSA convertible bonds and warrants, fixing its share of IRSA at 34.6%. -- As of November 14, 2007, holders of options and convertible bonds had exercised and converted a large share of both, elevating the company's total outstanding shares to 320,774,772. Only 89,126 negotiable convertible bonds remained unconverted and were canceled by the company. -- IRSA's lower income results during the first six months of the current fiscal year compared to the same period a year earlier is attributed to the impact of Banco Hipotecario's extraordinary losses in the first quarter of the current fiscal year, which were partially reversed in the last quarter. -- The notorious increase in commodity values supports our theory of revaluation of marginal lands and their strong, positive impact on Cresud's portfolio and therefore, a potential appreciation of our stock and the possible success of our planned capital increase. Financial Highlights (In Argentine Pesos) 12/31/2007 12/31/2006 Production Results 9,255,542 3,386,709 Sales Results 8,300,493 4,017,660 Gross (Loss) Profit 17,556,035 7,404,369 Operating Profit (Loss) 22,411,787 (381,418) Net Income 14,472,656 17,038,555 Earnings per ADR 0.46 0.77 Earnings per ADR diluted 0.46 0.57 12/31/2007 12/31/2006 Current Assets 173,138,760 99,226,113 Non Current Assets 1,006,479,096 816,387,107 Total Assets 1,179,617,856 915,613,220 Current Liabilities 265,924,385 187,681,350 Non Current Liabilities 59,852,308 66,504,994 Total Liabilities 325,776,693 254,186,344 Minority Interest 934,075 576,428 Shareholders' Equity 852,907,088 660,850,448
Cresud is a leading Argentine producer of basic agricultural products and the only such company with shares listed on the Buenos Aires Stock Exchange and the Nasdaq. The Company is currently involved in various operations and activities, including crop production, cattle raising and fattening, milk production and certain forestry activities. The company conducts its agricultural activities with a focus on maximizing the value of its real estate assets. Cresud seeks to maximize return on assets and overall profitability by (i) identifying, acquiring and exploiting agricultural properties having attractive prospects for agricultural production and/or long-term value appreciation and selectively disposing of properties as appreciation is realized, (ii) optimizing the yields and productivity of its agricultural properties through the implementation of state-of-the-art technologies and agricultural techniques and (iii) preserving the value of its significant long-term investment in the urban real estate sector held through its affiliate IRSA
A longer version of this press release with detailed information is available on the web site: http://www.cresud.com.ar/.
Cresud cordially invites you to participate in its Second Quarter Fiscal Year 2008 Results Conference Call
Wednesday, February 13, 2008 at 10:00 Eastern Time
To participate, please call:
888-335-3539 if you are in the U.S. or
973-582-2857 for international calls
http://www.videonewswire.com/event.asp?id=45932
For further information, please contact:
Gabriel Blasi -- CFO
+011-54-11-4323-7449
