Kaolin Ad

For 2008 Kaolin reports incomes from sales to the amount of BGN 122 mln which represents an over 15 % growth compared to the incomes from the previous year. The increased amount of sales for the year under review has been generated mainly by clients from the glass industry, construction and the ecological sector.

The net financial result of the company for the past year is BGN 8 127 000 compared to BGN 12 691 000 (excluding the effect of the extraordinary by character incomes for the year 2007).

Since the beginning of the fourth quarter Kaolin AD has reported certain decrease in the consumption of some economic sectors – mainly in the construction and the ceramics. This trend has remained valid also during the current quarter of this year.

Besides, the product range diversification of Kaolin AD during the last several years now gives a real possibility for the company to be much more flexible under the worsened economic situation worldwide. The innovations in the products and their applications as well as the provision of complex solutions for the clients allow the company to keep its strategic positions on the Balkans. During the last year in the field of innovations, the company came out on the market with new products with applications in the food industry (fodder raw material), in the road construction (supplements to asphalt composites), as well as specialized fillers.

In the beginning of 2009 Kaolin AD put into operation one of its main investment projects from the previous year – workshop for production of ground microproducts (calcined ground kaolin and ground metakaolin) in the factory in Vetovo. The products are intended for the rubber, paper and construction industries. Among the final products, produced from calcined ground kaolin there are the seals for electric household appliances, different rubber details, construction elements and paints. In the workshop will also be produced ground metakaolin which is applied in the production of highly strong concretes.

Due to the strong dynamics in the progress of the economic crisis by the present moment the company is not able to announce prognoses on the expected incomes and financial results for 2009. The return to normal of the petrol products’ prices by the end of the year and the decrease of the prices on the freight market are expected to affect favorably the expenses structure.

The investors and all stakeholders may receive more information from the Interim Report on the Company’s Activities by 31.12.2008.