INTERIM REPORT OF NORDIC ALUMINIUM PLC Jan 1 – June 30, 2012
Net sales of Nordic Aluminium were EUR 35.41 million (EUR 38.67 million year 2011). The operating profit for the period was EUR 8.29 million (9.46), the net profit was EUR 6.47 million (6.92) and earnings per share were EUR 1.34 (1.43).
Net sales and profitability
The net sales of Nordic Aluminium accounted for EUR 35.41 million (38.67). The profitability decreased from the previous year's first two quarters so that the operating profit was EUR 8.29 million (9.46). Compared with year 2011 the net sales decreased by 8.4 per cent and the operating profit by 12.4 per cent. The operating profit margin was 23.4 per cent which was lower than previous year's two first quarters (24.5 per cent). Earnings per share were EUR 1.34 (1.43).
International operations and export accounted for EUR 17.40 million (18.49), which is 49.0 per cent of the net sales (48.0 per cent).
The order backlog at the end of the period was 6.72 EUR million (6.29).
Second quarter in a nutshell
Net sales of Nordic Aluminium during April-June 2012 were EUR 19.17 million (20.44). The operating profit for the period was EUR 4.71 million (5.49). Earnings per share were EUR 0.77 (0.84).
Seasonality of sales and profit
Seasonal fluctuations are not significant in general. However, the concentration of summer vacations to July 2012 has an effect on how sales and earnings will spread over the second and third quarter.
Investments
The gross capital expenditures for the period were EUR 1.50 million (1.30).
Personnel
During the first six months of 2012 the average number of personnel in Nordic Aluminium Group was 112 (128). At the end of the period the number of employees was 116 (133).
Risks
Main business risks are related to the increased uncertainty in global economy and its influence on market demand. In addition, the fluctuations of aluminium, copper and plastic market prices are considered as risks.
Shares
The shares of Nordic Aluminium Plc are traded at the Helsinki Exchanges. The trading identifier is NOA1V and the ISIN code is FI0009006415. During the first six months of the year 2012 a number of 496,703 shares were traded with EUR 14.06 million. The share quotation ranged between EUR 25.20 and EUR 33.50. The number of shares was 4,836,882 which remained unchanged during the reporting period. The market capitalisation of the company's shares stood at EUR 137.7 million (142.6) at the end of June.
Dividend from the financial year 2011 was EUR 2.20 per share, amounting to EUR 10,641,140.40.
Ownership
During the period (1-6/2012)Nordic Aluminium Plc (Nordic Aluminium) has gained knowledge of the disclosure
notification of Lival Oy pursuant to Chapter 2, Section 9 of the Finnish Securities
Markets Act. In accordance with the disclosure notification, the ownership of Lival
Oy in Nordic Aluminium exceeded 66.7 per cent. (Stock exchange release NOAE0712/ 24.04.2012)
After the transaction of shares the total number of shares and votes in Nordic
Aluminium Plc owned by Stig Lival-Lindström and Lival Oy is 3 576 305 shares, 73.94 per cent.
There were no other significant changes in the ownership during the period (1-6/2012).
Outlook
The outlook remains unchanged. The uncertainty of the global economy still continues. According to the management, exceeding the previous year’s net sales will be very challenging. The company’s market position remains strong, which makes last year’s operating profit still to be achievable.
The company will continue focusing on highly processed aluminium components and electro-technical products.
The above mentioned predictions are based on the company's management's best view of the company's condition and market outlook.
Disclaimer
This release contains certain forward-looking statements that reflect the current views of the company's management. Due to the nature of these statements, they contain risks and uncertainties and are subject to changes in the general economic situation and in the company's business sector.
Accounting policies
These presented interim financial statements have been prepared in accordance with IAS34 Interim Financial Reporting. Nordic Aluminium Plc applies the same accounting policies as are applied in 2011 annual financial statements.
The financial information is prepared in accordance with international financial reporting standards IFRS. Since the beginning of 2012 the company has introduced new and revised standards as described for the 2011 financial statements.
While the group has only one primary business segment, "Aluminium products", which is equal to the official consolidated income statement and profit and loss account, the interim report do not include separate information over the group's primary business segment.
The key figures in this interim financial report are calculated with the same accounting principles as in year 2011 annual financial statement. The calculation rules of key figures are presented in the financial statements bulletin of the previous year.
The figures presented in the tables below have been rounded to two decimals, which should be taken into account when reading the sum figures.
The interim report has not been subject to audit.
| CONSOLITATED INCOME STATEMENT | ||||||||||||||
| EUR MILLION | 4-6/12 | % | 4-6/11 | % | 1-6/12 | % | 1-6/11 | % | 1-12/11 | % | ||||
| Net sales | 19.17 | 20.44 | 35.41 | 38.67 | 69.66 | |||||||||
| Other operating income | 0.00 | 0.27 | 0.00 | 0.31 | 0.46 | |||||||||
| Increase(+) or decrease(-) | finished goods | |||||||||||||
| and work in progress | 1.27 | 0.20 | 0.02 | -0.30 | 0.41 | |||||||||
| Raw materials and consumbles | -10.90 | -10.17 | -17.77 | -18.53 | -35.72 | |||||||||
| Personnel expenses | -1.26 | -1.61 | -2.51 | -3.64 | -6.39 | |||||||||
| Depreciation and reduction | ||||||||||||||
| of value | -0.89 | -1 | -1.77 | -2.03 | -3.99 | |||||||||
| Other operating expenses | -2.69 | -2.64 | -5.10 | -5.01 | -9.80 | |||||||||
| Operating profit | 4.71 | 24.6 % | 5.49 | 26.9 % | 8.29 | 23.4 % | 9.46 | 24.5 % | 14.63 | 21.0 % | ||||
| Financial items | 0.16 | 0.03 | 0.20 | -0.10 | 0.22 | |||||||||
| Profit before taxes | 4.87 | 25.4 % | 5.52 | 27.0 % | 8.49 | 24.0 % | 9.37 | 24.2 % | 14.85 | 21.3 % | ||||
| Income taxes | -1.18 | -1.45 | -2.02 | -2.47 | -4.08 | |||||||||
| 0.02 | 0.02 | 0.01 | 0.02 | 0.30 | ||||||||||
| Net profit for the period | 3.71 | 19.4 % | 4.09 | 20.2 % | 6.47 | 18.3 % | 6.92 | 17.9 % | 10.77 | 15.9 % | ||||
| Profit attributable to: | ||||||||||||||
| Owners of the parent | 3.71 | 19.4 % | 4.09 | 20.2 % | 6.47 | 18.3 % | 6.92 | 17.9 % | 11.07 | 15.9 % | ||||
| Minority interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||
| Other comprehensive income: | ||||||||||||||
| Conversion difference | -0.03 | 0.03 | -0.08 | -0.08 | 0.04 | |||||||||
| Total comprehensive income attributable to: | ||||||||||||||
| Owners of the parent | 3.68 | 19.2 % | 4.06 | 19.9 % | 6.39 | 18.0 % | 6.84 | 17.7 % | 11.11 | 15.9 % | ||||
| Minority interest | 0.00 | 0.00 | 0.00 | 0.00 | 0 | |||||||||
| Basic and diluted earnings | ||||||||||||||
| per share, EUR | 0.77 | 0.84 | 1.34 | 1.43 | 2.29 | |||||||||
CONSOLIDATED BALANCE SHEET
| EUR Million | June 30,2012 | June 30,2011 | Dec 31, 2011 | ||||
| Non-current assets | |||||||
| Tangible assets | 25.58 | 24.80 | 25.80 | ||||
| Goodwill | 2.25 | 2.25 | 2.25 | ||||
| Intangible assets | 0.67 | 0.75 | 0.71 | ||||
| Tradable financial assets | 0.02 | 0.02 | 0.02 | ||||
| Other financial assets | 0.01 | 0.00 | 0.01 | ||||
| Deferred tax liabilities | 0.08 | 0.09 | 0.09 | ||||
| Total | 28.60 | 27.91 | 28.86 | ||||
| Current assets | |||||||
| Inventories | 7.16 | 6.33 | 7.09 | ||||
| Accounts receivable and other current assets | 13.86 | 15.69 | 9.70 | ||||
| Advance payments | 0.00 | 0.04 | 0.00 | ||||
| Cash in hand and at banks | 10.80 | 12.20 | 17.05 | ||||
| Total | 31.80 | 34.25 | 33.84 | ||||
| Total assets | 60.40 | 62.16 | 62.70 | ||||
| Shareholders`equity and liabilities | |||||||
| Equity | |||||||
| Shareholders` equity | 6.19 | 6.19 | 6.19 | ||||
| Share premium account | 3.45 | 3.45 | 3.45 | ||||
| Conversion difference | -0.18 | -0.22 | -0.10 | ||||
| Retained earnings | 40.41 | 40.42 | 44.58 | ||||
| Shareholders` equity | |||||||
| Owners of the parent | 49.88 | 49.85 | 54.13 | ||||
| Minority interest | 0.00 | 0.00 | 0.00 | ||||
| Total | 49.88 | 49.85 | 54.13 | ||||
| Long-term liabilities | |||||||
| Deferred tax liabilities | 2.91 | 3.20 | 2.89 | ||||
| Provisions | 0.20 | 0.20 | 0.20 | ||||
| Interest bearing liabilities | 0.01 | 0.01 | 0.00 | ||||
| Total | 3.11 | 3.41 | 3.10 | ||||
| Short-term liabilities | |||||||
| Accounts payable | 7.41 | 8.89 | 5.48 | ||||
| Provision | 0.00 | 0.00 | 0.00 | ||||
| Short-term interest | |||||||
| bearing liabilities | 0.00 | 0.01 | 0.00 | ||||
| Total | 7.41 | 8.91 | 5.48 | ||||
| Total liabilities | 10.52 | 12.31 | 8.58 | ||||
| Total shareholders`s equity and liabilities | 60.40 | 62.16 | 62.70 | ||||
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
Cash flow from operations
Net profit (loss) 3,71 4,09 6,47 6,92 11,07
Corrections
Depr, according to plan 0,89 1,00 1,77 2,03 3,99
Financial items -0,15 -0,03 -0,20 0,10 -0,22
Taxes 1,18 1,45 2,02 2,47 3,78
Cash flow before change
in net working capital 5,62 6,51 10,06 11,52 18,62
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -1,95 -2,49 -4,41 -6,09 -0,30
Inventories
increase(-)/decrease(+) -1,35 -0,21 -0,06 0,45 -0,31
Short-term interest bearing
liabilities
increase(+)/decrease(-) 0,48 1,08 2,12 3,65 0,09
Total -2,82 -1,95 -2,35 -1,99 -0,52
Cash flow from operations before
interests and taxes 2,80 4,89 7,71 9,52 18,10
Paid interests and payments for
other financial expenses 0,00 -0,05 -0,04 -0,24 -0,29
Received interests and payments
from other financial income 0,00 0,08 0,08 0,14 0,51
Paid income taxes -0,88 -1,71 -1,76 -2,17 -3,67
Cash flow from operations(A) 1,93 3,21 5,99 7,25 14,65
Cash flow from investing activities
Investments in tangible and
intangible assets -0,27 -0,58 -1,50 -1,30 -4,16
Income from sales of tangible
and intangible assets 0,00 0,00 0,00 0,00 0,18
Repayment of loan receivables 0,00 0,00 0,00 0,00 0,00
Cash flow from investments(B) -0,27 -0,58 -1,50 -1,30 -3,98
Cash flow from financial items
Rights issue 0,00 0,00 0,00 0,00 0,00
Withdrawals of
short-term loans 0,00 0,00 0,00 0,00 0,00
Amortization of
short-term loans 0,00 0,00 0,00 -0,01 -0,02
Withdrawals of
long-term loans 0,00 0,00 0,00 -0,01 0,00
Amortization of
long-term loans 0,00 0,00 0,00 0,00 0,00
Dividends paid -10,64 -10,16 -10,64 -10,16 -10,16
Cash flow from
financial items(C) -10,64 -10,17 -10,65 -10,18 -10,18
Change in cash flow (A+B+C) -8,99 -7,54 -6,16 -4,23 0,50
Conversion difference -0,03 -0,03 -0,08 -0,08 0,04
Total -9,02 -7,57 -6,25 -4,31 0,54
Cash in hand and at banks
in the beginning of period 19,82 19,77 17,05 16,51 16,51
Cash in hand and at banks
in the end of period 10,80 12,20 10,80 12,20 17,05
Change -9,02 -7,57 -6,25 -4,31 0,54
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Sh.pr. Convers. Retained. Total
Equity account diff. earnings equity
Equity
01.01.2011 6.19 3.45 -0.14 43.66 53.17
Comprehensive income -0.08 6.92 6.84
Earning and costs tot. 6.84
Dividends -10.16 -10.16
Equity
30.06.2011 6.19 3.45 -0.22 40.42 49.85
Equity
01.01.2012 6.19 3.45 -0.10 44.58 54.13
Comprehensive income -0.08 6.47 6.39
Earning and costs tot. 6.39
Dividends -10.64 -10.64
Equity
30.06.2012 6.19 3.45 -0.18 40.41 49.88
KEY FIGURES:
4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
Basic and diluted
earnings per share, EUR 0,77 0,84 1,34 1.43 2.29
June 30, June 30, Dec 31,
2012 2011 2011
Equity ratio, % 82.6 80.2 86.3
Gearing, % -21.7 -24.4 -31.5
Balance sheet total, EUR million 60.40 62.16 62.70
NOTES:
June 30, June 30, Dec 31,
2012 2011 2011
Equity/share, EUR 10.31 10.31 11.19
Average number of personnel
at the end of the period 116 133 105
4-6/12 4-6/11 1-6/12 1-6/11 1-12/12
Average number of personnel 112 128 112 128 128
Investments, EUR mill. 0.27 0.58 1.50 1.30 4.16
Geographical segments:
Net sales
EUR million 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
Finland 9.78 10.34 18.01 20.18 36.22
Other countries 9.39 10.10 17.40 18.49 33.44
Total 19.17 20.44 35.41 38.67 69.66
Taxes:
EUR million 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
Current income tax -1.18 -1.45 -2.02 -2.47 -4.08
Change in deferred income tax 0.02 0.02 0.01 0.02 0.30
Total -1.16 -1.43 -2.01 -2.45 -3.78
Inventories:
EUR million June 30, June 30, Dec 31,
2012 2011 2011
Raw materials and consumables 0.94 0.90 0.92
Work in progress 3.57 2.82 3.80
Finished goods 2.65 2.60 2.37
Total 7.16 6.32 7.09
Interest bearing loans and borrowings:
EUR million June 30, June 30, Dec 31,
2012 2011 2011
Obligations under finance leases 0.00 0.02 0.01
Total 0.00 0.02 0.01
Contingent liabilities:
EUR million June 30, June 30, Dec 31,
2012 2011 2011
Consignation liability 0.63 0.31 0.15
Rental and leasing liabilities 3.07 4.68 4.03
Related party disclosures:
EUR million 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
Sales 4.26 3.23 6.80 6.35 10.53
Purchases 0.00 0.01 0.00 0.01 0.02
EUR million June 30, June 30, Dec 31,
2012 2011 2011
Receivables 1.93 1.17 0.09
Accounts payable 0.00 0.10 0.00
Order bakclog:
EUR million June 30, June 30, Dec 31,
2012 2011 2011
6.72 6.29 3.67
Nordic Aluminium Plc publishes its nine-month Interim Report for January-September 2012 on October 19, 2012. The company bulletins will be published also on web-pages www.nordicaluminium.fi.
Kirkkonummi August 10, 2012
NORDIC ALUMINIUM PLC
The Board of Directors
Joakim Berndtsson
CEO
For further information please contact:
CEO Joakim Berndtsson, tel. +358 20 7660 206
Distribution:
OMX NASDAQ Helsinki
The Main Media
www.nordicaluminium.fi
NOAE0812
