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Key performance indicators2008 2007 Change year-on-year %Revenue (US$ million) 3,989.5 3,756.5 6.2Gross profit (US$ million) 617.0 562.1 9.8Profit from operations (US$ million) 268.3 216.4 24.0Operating margin (%) 6.7 5.8 n/aEBITDA (US$ million) 429.8 416.0 3.3EBITDA per tonne (US$/tonne) 130 108 20.4EBITDA margin (%) 10.8 11.1 n/aAverage steel product price (US$/tonne) 1,195 939 27.3Pig iron and hot metal (US$/tonne) 507 374 35.6Semifinished products (US$/tonne) 854 699 22.2Long products (US$/tonne) 1,342 1,036 29.5Rails (US$/tonne) 936 1,029 (9.0)Metalware products (US$/tonne) 1,268 - n/aIncreased steel prices confirmed the general positive trend for finished goods, and helped deliver Lucchini US$3,989.5 million inrevenue in 2008, 6.2% more than in 2007. EBITDA in 2008 was US$429.8 million, a 3.3% increase on the previous year.Production resultsSales and marketingAfter a strong rise in demand for steel in the firstpart of the year (2.3% higher than the same period inthe previous year), actual steel consumption in theEuropean Community over the year as a whole droppedsuddenly and significantly.This was due to a decrease in automotive demand (- 6.3%in Q4 2008) and the construction industry crisis (withdemand already down in the 1st quarter of the year).In Q4 2008, a significant reduction in steelconsumption, a direct result of the global financialcrisis, caused all steel companies to reduce production.Steel prices have been volatile, with prices rising upuntil the summer, as a result of higher scrap iron andother raw material costs. This was followed by a sharpdrop in demand and prices in the latter part of the year.Wire rod sales in 2008 showed a similar trend, withstrong demand and rising prices in the first part ofthe year, followed by drastically reduced demand inthe second part of the year, with prices falling as aconsequence.Bars showed a more stable trend, although the fourthquarter also showed a strong decline in demand.Demand for rails remained strong, thanks to thecontinued demand for new infrastructure in theemerging economies and Mediterranean countries.The price of, and demand for, billets showed the samecyclical pattern as described above.Pig iron sales rose sharply until July, and then droppedlater in the year, mainly due to a strong flow of importsfrom Russia and the Ukraine.In 2008, Lucchini produced:• 3,021 thousand tonnes of crude steel• 2,189 thousand tonnes of hot metal• 2,151 thousand tones of finished rolled steel, including long products and rails• 982 thousand tones of semifinished products, including hot metal and pig iron• 40 thousand tonnes of metalware products.Production resultsProduction volumes, thousand tonnes 2008 2007 Change year-on-year %Total outputHot metal 2,189 2,534 (13.6)Crude steel 3,021 3,585 (15.7)Production for saleSemifinished products 982 1,223 (19.7)Long products 1,832 2,016 (9.1)Rails 319 313 1.9Metalware products 40 73 (45.2)Total production for sale 3,173 3,625 (12.5)Sales by products2008 2007 Change year-on-year %Thousand tonnes US$ million Thousand tonnes US$ million Thousand tonnes US$ millionPig iron and hot metal(PI&HM) 475 241 417 156 13.9 54.5Steel productsSemifinished products(excl. PI&HM) 597 510 983 687 (39.3) (25.8)Long products 1,884 2,529 2,130 2,207 (11.5) 14.6Rails 298 279 290 241 2.8 15.8Downstream products 41 52 23 81 78.3 (35.8)Total steel products 2,820 3,370 3,426 3,216 (17.7) 4.8Total sales by products 3,295 3,611 3,843 3,372 (14.3) 7.1Other and shipping - 378 - 385 n/a (1.8)Total sales 3,295 3,989 3,843 3,757 (14.3) 6.272 73