Loss in the first nine months € 0.3 million
First nine months and Q3 financial highlights
* Sales € 1,056.6 million in the first nine months and € 327.4 million in Q3
* Decrease in income was 5.1% in the nine months, 11.0% in Q3.
* Earnings before interest, taxes and depreciation (EBITDA) amounted to € 27.0
million in the first nine months and € 8.5 million in Q3
* Operating profit (EBIT) € 12.7 million in the first nine months and € 3.7
million in Q3
* Net loss amounted to € 0.3 million in the first nine months and € 2.5 million
in Q3
* Cash provided by operating activities before taxes and interest amounted to €
49.0 million
* Total assets amounted to € 860.2 million - equity ratio 19.5%
* Return on equity negative by 1.1%
Björgólfur Jóhannsson, CEO of Icelandic Group:
“Our plans assumed that the streamlining measures that have been in progress
since July 2006 would result in an improved financial statement this year. This
has not materialised, and there are various reasons that we are still at work
on the process. It is now clear that the full effect of our efficiency measures
will not be felt until early next year. Most of the companies undergoing the
transformation process are showing improved results, but we clearly
underestimated the time factor. Icelandic's operations are proceeding at a
good pace in many areas, and numerous units are showing good margins. We are
now completing the sale of units which have been showing insufficient margins,
as part of the streamlining process has consisted in offloading units that have
not been performing up to expectations and strengthening units that have. The
operation of Pickenpack Gelmer was a great disappointment and had a negative
impact on the Group's operation and profits over the period. The weather in
the UK impacted sales during the period, and demand also slowed at the end of
the period in the USA.
The decisive factor in this financial report is Pickenpack Gelmer's performance
in France, where results were poor and far short of budget projections. The
company is a part of Icelandic Holding Germany which we are in the process of
selling.
I am absolutely convinced that the streamlining process that we started in July
and August last year will reward shareholders with greater value and an even
better Company. It is clear, however, that the Company will not achieve the
EBITDA targets set for 2007, which assumed earlier completion of the
streamlining process.”
