NORDIC ALUMINIUM PLC INTERIM REPORT Oct 24, 2007
INTERIM REPORT OF NORDIC ALUMINIUM PLC Jan 1 - Sep 30, 2007
Net sales of Nordic Aluminium were EUR 80.29 million (EUR 70.73 million year
2006). The operating profit for the period was EUR 12.83 million (EUR 7.76
million) and the net profit was EUR 9.49 million (EUR 5.61 million).
Net sales and profitability
The net sales of Nordic Aluminium accounted for EUR 80.29 million (EUR 70.73
million) and was 13.5 per cent higher than the net sales of the equivalent
period of the previous year. The demand during the period was good as expected.
The order back log is still on a high level.
The Company's profit development has been good in spite of the fire which
destroyed the anodizing plant in the Kirkkonummi factory in June. The fire has
delayed the supply of surface treated products and slightly decreased net sales
and productivity during the third quarter. Repair works in the damaged facility
and process have proceeded according to plan. The new plant will be operative
in January 2008.
International operations and export accounted for EUR 32.4 million (EUR 28.2
million), which is 40 per cent of the net sales.
Profits
The operating profit of Nordic Aluminium amounted to EUR 12.83 million (EUR
7.76 million). Earnings per share for the period were EUR 1.96 (EUR 1.16).
Seasonality of sales and profit
Seasonal fluctuation has little effect on sales and profit. Growth and high
demand has led to high utilization of capacity during the whole year. Factory
vacations during the summer months reduced slightly the Company's total volume
during the third quarter.
Investments
The gross capital expenditures for the period were EUR 7.13 million (EUR 1.75
million), of which EUR 2.94 million were procurements related to the damaged
anodizing plant and have been covered by insurance. The Company's has also
itself invested in increase of productivity and automation in the anodizing
plant. Further a modernizing program of the Company's basic production,
aluminium profile extrusion, has been started. The investments are planned to
be financed out of the Company's cash flow.
Personnel
During the first nine months of 2007 the average number of personnel in Nordic
Aluminium Group was 305 (317). At the end of the period the number of employees
was 305 (294).
Risks
Main short-term risks are related to controlling the supply chain of outsourced
production, and its' influence on production lead time and productivity.
Conciliation in labour dispute between the Union of Salaried Employees TU and
the Federation of Finnish Technology Industries is still unaccomplished.
Eventual strikes may effect the operations in the fourth quarter.
Impact of the fire in the anodizing plant
The damaged facility and process were fully insured. In addition the Company
has a business interruption insurance which covers the additional costs of the
outsourced production.
The book value of the damaged process was EUR 1.3 million and the total cost
for rebuilding an equivalent process is estimated at EUR 6.0 million.
Estimates will be specified by the end of the year. A one time income will be
booked in the consolidated financial statements for the difference of the book
value and the fire insurance compensation.
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
nine months of the year 2007 a number of 273,248 shares were traded with EUR
7.22 million. The share quotation ranged between EUR 19.50 and EUR 35.50. The
number pf shares were 4,836,882 which remained unchanged during the reporting
period. The market capitalisation of the company's shares stood at EUR 142.2
million (EUR 90.0 million) at the end of September.
Ownership
There were no significant changes in the ownership during the period (1-9/2007).
Outlook
The order backlog for the Group was EUR 11.81 million (EUR 8.77 million) at the
end of the reporting period.
Due to increased production volumes the Company's service ability has improved
and the delivery times have shortened. The demand is expected to continue at a
good level for the rest of the year.
The Company aims at a good profit development for the whole year.
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 applies the same
accounting policies as are applied in 2006 annual financial statements.
The financial information is prepared in accordance with international
financial reporting standards IFRS.
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 same
accounting principles than in year 2006 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.
CONSOLIDATED INCOME STATEMENT
EUR million 7-9/07 % 1-9/07 % 1-9/06 % 1-12/06 %
Net sales 25.95 80.29 70.73 96.57
Other operating income 1.70 2.11 0.02 0.03
Increase(+) or decrease(-)
finished goods and
work in progress -0.67 2.04 1.01 1.30
Raw materials and
consumables -13.26 -43.89 -38.60 -52.60
Personnel expenses -3.28 -10.41 -11.74 -15.10
Depreciation and
reduction of value -0.86 -2.57 -2.93 -3.86
Other operating expenses -5.70 -14.74 -10.73 -15.26
Operating profit 3.88 15.0 12.83 16.0 7.76 11.0 11.07 11.5
Financial items 0.00 0.03 -0.12 -0.13
Profit before taxes 3.88 14.9 12.86 16.0 7.64 10.8 10.94 11.3
Income taxes -1.02 -3.37 -2.03 -2.88
Net profit for the period 2.86 11.0 9.49 11.8 5.61 7.9 8.06 8.3
Attributable to:
Equity holders of
the parent 2.86 9.49 5.61 8.06
CONSOLIDATED BALANCE SHEET
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Non-current assets
Tangible assets 15.94 12.05 11.79
Goodwill 2.25 2.25 2.25
Intangible assets 1.71 1.29 1.30
Tradable financial assets 0.02 0.02 0.02
Other financial assets 0.00 0.04 0.00
Deferred tax liabilities 0.08 0.20 0.10
Total 20.00 15.86 15.46
Current assets
Inventories 12.67 10.66 10,24
Accounts receivable and other
current assets 17.52 15.80 13.46
Cash in hand and at banks 6.34 4.41 6.67
Total 36.54 30.87 30.38
Total assets 56.54 46.73 45.83
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 6.19 6.19
Share premium account 3.45 3.45 3.45
Conversion difference -0.20 -0.16 -0.16
Retained earnings 28.88 21.06 23.50
Total 38.33 30.54 32.99
Long-term liabilities
Deferred tax liabilities 0.62 0.75 0.62
Provisions 0.14 0.14
Interest bearing liabilities 0.03 1.48 0.75
Total 0.79 2.22 1.51
Short-term liabilities
Accounts payable 15.86 11.86 9.77
Provisions 0.09 0.09
Short-term interest
bearing liabilities 1.47 2.11 1.48
Total 17.42 13.96 11.33
Total liabilities 18.21 16.19 12.84
Total shareholders' equity and
liabilities 56.54 46.73 45.83
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 7-9/07 1-9/07 1-9/06 1-12/06
Cash flow from operations
Net profit (loss) 2.86 9.49 5.61 8.06
Corrections
Depr. according to plan 0.86 2.57 2.93 3.86
Financial items 0.00 -0.03 0.12 0.13
Taxes 1.02 3.37 2.03 2.88
Cash flow before change
in net working capital 4.74 15.40 10.69 14.93
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -0.66 -4.06 -4.39 -2.05
Inventories
increase(-)/decrease(+) 0.53 -2.43 -2.24 -1.75
Short-term interest bearing
liabilities
increase(+)/decrease(-) 1.23 4.73 -0.13 -1.84
Total 1.09 -1.76 -6.77 -5.64
Cash flow from operations before
interests and taxes 5.84 13.64 3.92 9.29
Paid interests and payments for
other financial expenses -0.06 -0.16 -0.27 -0.33
Received interests and payments
from other financial income 0.06 0.19 0.14 0.20
Paid income taxes -0.69 -1.99 -1.48 -2.66
Cash flow from operations(A) 5.14 11.68 2.31 6.49
Cash flow from investing activities
Investments in tangible and
intangible assets -4.06 -7.13 -1.75 -2.42
Income from sales of tangible
and intangible assets 0.00 0.00 0.00 0.00
Repayment of loan receivables 0.00 0.00 0.01 0.05
Cash flow from investments(B)-4.06 -7.13 -1.74 -2.37
Cash flow from financial items
Rights issue 0.00 0.00 1.62 1.62
Withdrawals of
short-term loans 0.00 0.00 4.30 4.30
Amortization of
short-term loans 0.00 0.00 -3.74 -4.37
Amortization of
long-term loans 0.00 -0.72 -0.74 -1.33
Dividends paid 0.00 -4.11 -3.00 -3.01
Cash flow from
financial items(C) 0.00 -4.83 -1.56 -2.78
Change in cash flow (A+B+C) 1.07 -0.29 -0.99 1.34
Conversion difference -0.02 -0.04 0.06 0.00
Total 1.06 -0.33 -0.92 1.34
Cash in hand and at banks
in the beginning of period 5.29 6.67 5.34 5.34
Cash in hand and at banks
in the end of period 6.34 6.34 4.41 6.67
Change 1.06 -0.33 -0.92 1.34
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Sh.pr. Convers. Retained. Total
Equity account diff. earnings equity
Equity
01.01.2006 5.92 2.11 -0.15 18.45 26.33
Conversion diff. 0.00 0.00
Net profit 8.06 8.06
Earning and costs tot. 8.05
Dividends -3.00 -3.00
Warrants used 0.27 1.35 1.62
-1.38
Equity
31.12.2006 6.19 3.45 -0.16 23.50 32.99
Equity
01.01.2007 6.19 3.45 -0.16 23.50 32.99
Conversion diff. -0.04 -0.04
Net profit 9.49 9.49
Earning and costs tot. 9.45
Dividends -4.11 -4.11
Warrants used 0.00 0.00 0.00
-4.11
Equity
30.09.2007 6.19 3.45 -0.20 28.88 38.33
KEY FIGURES:
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Diluted earnings per share, EUR 1.96 1.16 1.70
Equity ratio, % 67.8 65.4 72.0
Gearing, % -12.6 -2.7 -13.5
Balance sheet total, EUR million 56.54 46.73 45.83
NOTES:
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Equity/share, EUR 7.92 6.31 6.96
Investments, EUR mill. 7.13 1.75 2.42
Average number of personnel 305 317 311
Geographical segments:
Net sales
EUR million 1-9/07 1-9/06 1-12/06
Finland 47.90 42.52 58.80
Other countries 32.39 28.21 37.76
Total 80.29 70.73 96.57
Taxes:
EUR million 1-9/07 1-9/06 1-12/06
Current income tax 3.36 2.08 2.95
Change in deferred income tax 0.01 -0.05 -0.07
Total 3.37 2.03 2.88
Inventories:
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Raw materials and consumables 1.56 1.39 1.10
Work in progress 4.71 3.85 3.37
Finished goods 6.41 5.42 5.77
Total 12.67 10.66 10.24
Interest bearing loans and borrowings:
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Bank loan 1.45 3.53 2.17
Obligations under finance leases 0.05 0.06 0.05
Total 1.50 3.59 2.22
Contingent liabilities:
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Consignation liability 1.93 4.38 2.25
Rental and leasing liabilities 10.30 11.52 11.57
Corporate mortgages given 8.41 8.41 8.41
Related party disclosures:
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
Sales 7.02 5.72 9.03
Purchases 0.11 0.06 0.08
Receivables 0.65 0.61 1.05
Order bakclog:
EUR million Sept 30, Sept 30, Dec 31,
2007 2006 2006
11.81 8.77 7.95
Nordic Aluminium Plc publishes its Financial Bulletin for the fiscal year 2007
on February 28, 2008. The company bulletins will be published also on web-pages
www.nordicaluminium.fi.
Kirkkonummi October 24, 2007
NORDIC ALUMINIUM PLC
The Board of Directors
Robert Paajanen
Managing Director
For further information please contact:
Managing Director Robert Paajanen, tel. +358 20 7660 220
Distribution:
Helsinki Exchanges, The Main Media
NOAE1107