ORLANDO, Fla., April 21, 2010 (GLOBE NEWSWIRE) -- UNR Holdings, Inc. (OTCBB:UNRH) announced that total revenue for the year ended December 31, 2009 was $64.9 million, a decrease of 27.3% as compared to $89.3 million during the comparable period of 2008. The decrease was a result of a significant decrease in road base product revenues, from $16.4 million to $5.5 million, as well as a decrease in home building revenues, from $72.9 million to $59.4 million, in both cases principally as a result of the adverse effect of the economic downturn on the construction and infrastructure industries in Russia.
Income from operations increased by approximately $8.7 million, from $17.6 million for the year ended December 31, 2008 compared to approximately $26.3 million for the year ended December 31, 2009, primarily due to the decrease in our cost of sales due to a decrease in our cost of materials and the realization of revenues in 2009 from increasingly profitable projects located mainly in the city of Moscow. The Company also attributes the decrease to the anti-crisis measures the Company implemented during the fiscal year 2009, such as a reduction in work force and more efficient utilization of the remaining personnel, as well as the savings the Company realized on the costs of transportation, communications, security and lease of an additional office space.
Net earnings increased by $6.7 million, to $21.4 million for the year ended December 31, 2009, from $14.7 million for the comparable period in 2008. Net Income attributable to UNR Holdings and subsidiary increased to $14.4 million from $9.8 million. Net earnings per share increased to $0.59 as compared to $0.42 for the comparable period in 2008.
About UNR Holdings:
UNR Holdings is a holding company that has a 66.83% ownership in its subsidiary 494 UNR. 494 UNR is a diverse construction company with more than 40 years of success serving the Russian construction market specializing in general and infrastructure construction services such as designing/building multi-story apartment buildings for middle and upper middle class families, office buildings, highways, bridges, and production of a road base infrastructure construction product. While UNRH is involved in complex construction projects, the Company also assists the Russian government with infrastructure projects for oil and gas corporations, such as GAZPROM and TRANSNEFT. 494 UNR is one of the oldest and most established construction companies located and operating in Moscow and the Moscow area of the Russian Federation.
More detailed information on the housing projects can be found on the UNR Holdings corporate website: www.unrhs.com/">http://www.unrhs.com.
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to, information related to: the Company and its business, financial condition, results of operations and prospects Forward-looking statements are not statements of historical fact and reflect the current views, beliefs and assumptions made by our management based on the information available, as of the date of this report, regarding future events, operating performance, financial condition, business strategy and our plans and objectives for future operations. These forward-looking statements relate to us and the industry in which we operate. All forward-looking statements included in this report address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include but are not limited to those described under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and our other reports filed with the U.S. Securities and Exchange Commission, including the following:
- Changes in political, social, legal or economic conditions in Russia;
- Our ability to obtain necessary regulatory approvals and licenses for our business;
- Our ability to fund future operations and capital needs through borrowings or otherwise;
- Our ability to successfully implement any of our business strategies;
- Our expectations about growth in demand for products and services we sell;
- Competition in the marketplace;
- Changes in general economic conditions, including inflation, interest rates, foreign currency exchange rates and other factors;
- Our ability to respond to legal and regulatory developments and restrictions in relation to the construction industry;
- Our success in identifying other risks to our business and managing the risks of the aforementioned factors.
Any or all of the forward-looking statements included herein and in any Company reports or public statements are not guarantees of future performance and may turn out to be inaccurate. Forward-looking statements speak only as of the date they are made. Readers are urged not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, in order to reflect such information or events that may arise after the date of this press release.