Value adjustment of Dansk Eternit Holding - Group Board motions to the company in general meeting regarding dividend and change of name from FLS Industries to FLSmidth & Co.
In the FLS Industries Interim Report for 1 January to 30 September 2004 (Announcement to the Copenhagen Stock Exchange No. 28-2004 of 26 November 2004) the Board of Directors stated that the process of making Dansk Eternit Holding ready for sale entails an assessment of the book value of the Company's assets and liabilities. This assessment is being made because it is estimated that the company's book value is now not commensurate with an attainable sales price in the short term.
Accordingly, a number of analyses and assessments have been made of the overall market value of Dansk Eternit Holding. As a result of these impairment tests of buildings, machinery, land, stocks, other intangible assets, etc. plus provisions made, the Board of Directors has decided to make a DKK 400m downward adjustment of the Company's value.
To strengthen Dansk Eternit Holding's capital base, the shareholders' equity will be increased by DKK 300m through conversion of debt.
With reference to the Danish Financial Statements Act and IFRS the value adjustment thus decided will affect the earnings before interest and tax (EBIT) for 2004.
The projections for the FLS Group operating earnings in 2004 are otherwise unchanged, hence after the value adjustment of Dansk Eternit Holding:
- earnings before interest, tax and amortisation (EBITA) are expected to be around the level of DKK 0-100m
- earnings before interest and tax (EBIT) are expected to be around the level of DKK -100-0m
- earnings before tax (EBT) are expected to be around the level of DKK 350-450m.
The Board of Directors has also agreed on a motion to the company in general meeting regarding payment of dividend in 2005. The Board will propose an ordinary dividend of DKK 3 per share and an extraordinary dividend of DKK 4 per share - the total amount of dividend thus amounting to approximately DKK 372m. Based on the assumption that the Group continues its positive development, the coming years are expected to see payment of ordinary dividend in line with stronger operating performance and adjustment of the Group's capital structure.
Finally, the Board of Directors has decided that as a consequence of the administrative integration of FLS Industries and FLSmidth during the past year, FLS Industries A/S will at the beginning of 2005 hold an extraordinary general meeting at which the Board will propose that FLS Industries A/S changes its name to FLSmidth & Co. A/S. Accordingly, the Group intends to use the present logo of FLSmidth A/S in its future marketing effort.
Jørgen Worning
Chairman of the Board of Directors
Jørgen Huno Rasmussen
Group Chief Executive Officer
Accordingly, a number of analyses and assessments have been made of the overall market value of Dansk Eternit Holding. As a result of these impairment tests of buildings, machinery, land, stocks, other intangible assets, etc. plus provisions made, the Board of Directors has decided to make a DKK 400m downward adjustment of the Company's value.
To strengthen Dansk Eternit Holding's capital base, the shareholders' equity will be increased by DKK 300m through conversion of debt.
With reference to the Danish Financial Statements Act and IFRS the value adjustment thus decided will affect the earnings before interest and tax (EBIT) for 2004.
The projections for the FLS Group operating earnings in 2004 are otherwise unchanged, hence after the value adjustment of Dansk Eternit Holding:
- earnings before interest, tax and amortisation (EBITA) are expected to be around the level of DKK 0-100m
- earnings before interest and tax (EBIT) are expected to be around the level of DKK -100-0m
- earnings before tax (EBT) are expected to be around the level of DKK 350-450m.
The Board of Directors has also agreed on a motion to the company in general meeting regarding payment of dividend in 2005. The Board will propose an ordinary dividend of DKK 3 per share and an extraordinary dividend of DKK 4 per share - the total amount of dividend thus amounting to approximately DKK 372m. Based on the assumption that the Group continues its positive development, the coming years are expected to see payment of ordinary dividend in line with stronger operating performance and adjustment of the Group's capital structure.
Finally, the Board of Directors has decided that as a consequence of the administrative integration of FLS Industries and FLSmidth during the past year, FLS Industries A/S will at the beginning of 2005 hold an extraordinary general meeting at which the Board will propose that FLS Industries A/S changes its name to FLSmidth & Co. A/S. Accordingly, the Group intends to use the present logo of FLSmidth A/S in its future marketing effort.
Jørgen Worning
Chairman of the Board of Directors
Jørgen Huno Rasmussen
Group Chief Executive Officer