Financial News - Quarterly

1998 financial results

SOLIDERE released on March 25, 1999 its audited financial statements for 1998. The Company's results show a net income for the year of US$54.2 million.
The 30.3% decrease compared to 1997 reflects the impactof the cancellation or delayed closing of property sales amounting in gross value to US$66 million. The non-recognition of these sales by year end resulted in sales revenues of US$ 117.9 million, compared to US$144 million in 1997.

In addition to a US$67.5 million net income from sales and rentals, net revenue generated by cash investments amounted to US$20.5 million, with net financial revenues of US$8.4 million after interest and other financial charges.

The Company's balance sheet as at 31.12.98 shoes a cash position of US$188.9 million and US$272.5 million in receivables. With a long-term debt of US$292.5 million, the Company's debt-to-equity ratio is 15.6%.

Performance of the shares during the 1st quarter

SOLIDERE shares started the year on the defensive. The Company issued a revision of its 1998 earnings forecast on February 11, 1999, to reflect the fact that certain land sale agreements, which it had expected to recognize as income in the second half of 1998, had not been finalized. The market's negative reaction to the news, combined with a general apathy towards the local market, led SOLIDERE shares to drift downward throughout the quarter on low turnover. Share A closed the quarter at US$75/8, and share B at US$8, respectively 29% and 27% below the previous quarter's closing prices.