VAAHTO GROUP PLC OYJ INTERIM REPORT 18.4.2008 at 10.00am
VAAHTO GROUP INTERIM REPORT FOR SEPTEMBER 1, 2007 - FEBRUARY 29,
2008
Vaahto Group's turnover for the period under review was 41.8
million euros (comparative: 37.6 million euros), with an operating
profit of 0.2 million euros (1.0 million euros). The turnover saw
an increase of 11.2% from that of the reference period. In spite
of the increased turnover, the Group's result was lower than the
equivalent figure for the reference period. The main reason for
decreased profits was the poor profitability of the Pulp & Paper
Machinery division's project deliveries completed during the
period under review. Vaahto Group's order backlog decreased during
the period; it was 42.9 million euros at the beginning of the
period and 33.5 million euros at the end.
Pulp & Paper Machinery
The Pulp & Paper Machinery division's turnover for the period
under review was 23.3 million euros (23.3 million euros), with an
operating loss of 1.8 million euros (operating profit of 0.8
million euros). The division's result was significantly lower than
in the reference period and became negative. The result was
undermined by the poor profitability of project deliveries
completed during the period and the low turnover experienced in
the latter half of the period.
The market situation for the Pulp & Paper Machinery division
remained challenging. The forest industry's investment rate in
Finland and the rest of Europe is low, and the competitive
situation in Asia has tightened. In spite of the fairly
significant volume of offers, the division's sales in the period
under review were low, resulting in a decreased order backlog.
Operations of the subsidiary company established in Shanghai in
the previous fiscal year have gotten off to a good start, and the
new company is expected to improve the division's competitive
position in the Chinese market.
Process Machinery
The Process Machinery division's turnover for the period under
review was 18.5 million euros (14.3 million euros), with an
operating profit of 2.0 million euros (0.2 million euros). The
turnover increased in both the tank and agitator fields; the
profitability of both product groups was clearly better than that
of the reference period.
The Process Machinery division's sales were good during the period
under review. The most significant orders for Japrotek Oy Ab, part
of the division, were an absorption tower for Uhde GmbH in Germany
and a leaching autoclave for Norilsk Nickel Harjavalta Oy in
Finland. Stelzer R”rtechnik International GmbH, a German company
in the division, achieved good sales in the period under review,
and the company received significant orders from, e.g., North
America and China, in addition to its strong local market area in
Central Europe.
During the period under review, Vaahto Oy signed an agreement to
sell its spiral heat exchanger business, which belonged to the
Process Machinery division, to the German HES Heat Exchanger
Systems GmbH. The sale includes the spiral heat exchanger
production line and its machinery and equipment, with related
intangible rights. Under the agreement, Vaahto Oy is responsible
for the manufacture and delivery of the existing order backlog.
The production machinery and equipment will be transferred to the
buyer in spring 2008. The annual turnover for spiral heat
exchanger business has fluctuated between two and four million
euros. Vaahto Oy is expected to recognize some profit for the sale
in the latter half of the fiscal year.
The Process Machinery division's market situation has remained
excellent, and the order backlog is good for both tanks and
agitators.
Research and development
The Group's research and development activities concentrate for
the most part on improving the competitiveness of the Pulp & Paper
Machinery division's key components for paper and board machines,
and that of roll servicing. The scope of the Group's R&D
activities remained the same as in the previous fiscal period.
Investments
The Group's gross investment for the review period came to 1.1
million euros (0.8 million euros). The most significant
investments were Vaahto Roll Service Oy's polyurethane and
composite equipment and Japrotek Oy Ab's water treatment
equipment. Other investments consisted mainly of small machinery
and equipment acquisitions.
Financing
The group's liquidity remained at a satisfactory level. Net
financial expenses came to 0.3 million euros (0.3 million euros),
which is 0.6% of the turnover. The equity ratio increased slightly
from that of the reference period, to 35.4% (34.5%).
Personnel
The number of group personnel averaged 427 (408) over the period.
Share issue authorizations
The Board of Directors has no authority to issue new shares,
convertible bonds, or bonds with warrants, nor the authorization
to obtain or surrender shares.
International financial reporting standards
The interim report was drawn up in accordance with International
Financial Reporting Standard (IFRS) IAS 34 ("Interim Financial
Reporting").
Forecast of developments
Vaahto Group's order backlog decreased in the period under review,
and the turnover for the fiscal year is expected to decrease from
the previous year's level. This poses clear challenges for
profitability development in the rest of the fiscal year.
Interim management statement
Vaahto Group Plc Oyj will disclose the interim management
statement during the last half-year of the current fiscal period
1.9.2007 - 31.8.2008 instead of the interim report for the nine
months of the accounting period. The interim management statement
will be published on June 27, 2008.
CONSOLIDATED INCOME Interim Interim Annual
STATEMENT, IFRS Report Report Report
1000 EUR 1.9.2007- 1.9.2006- 1.9.2006-
29.2.2008 28.2.2007 31.8.2007
6 months 6 months 12 months
Net sales 41 528 37 612 88 161
Change in finished 245 1 438 696
goods
and work in progress
Production for own use 264 251 377
Other operating income 61 30 303
Material and services -23 750 -21 807 -50 629
Employee benefit -11 519 -10 405 -20 241
expenses
Depreciations -887 -905 -1 840
Other operating -6 051 -5 205 -11 015
expenses
Operating profit 190 1 007 5 812
Financing income and -261 -278 -611
expenses
Share of profits of 14 0 24
affiliated companies
Profit or loss -57 729 5 226
before taxes
Tax on income from 86 -184 -1 313
operations
Profit or loss 29 545 3 913
for the period
Net profit or loss
attributable:
To equity holders -19 355 3 639
of the parent
To minority interest 47 190 274
Total 29 545 3 913
Earnings per share
calculated on profit
attributable to equity
holders of the parent:
EPS undiluted, -0,01 0,12 1,27
euros/share
EPS diluted, -0,01 0,12 1,27
euros/share
Average number 2 872 2 872 2 872
of shares (1000 shares)
CONSOLIDATED Interim Interim Annual
BALANCE SHEET, IFRS Report Report Report
1000 EUR 29.2.2008 28.2.2007 31.8.2007
Assets
Intangible assets 651 654 621
Goodwill 1 702 1 702 1 702
Investment properties 0 299 0
Tangible assets 14 847 14 878 14 644
Shares in affiliated 38 0 24
companies
Non-current trade 13 14 13
and other receivables
Other long-term 44 46 44
investments
Deferred tax asset 332 13 120
Non-current assets 17 627 17 608 17 169
Inventories 8 466 9 025 8 188
Trade receivables 17 373 16 689 25 276
and other receivables
Tax receivable, 100 16 23
income tax
Cash equivalents 950 0 960
Cash and bank 1 405 1 302 574
Current assets 28 293 27 031 35 021
Total assets 45 921 44 639 52 190
Equity and liabilities
Share capital 2 872 2 872 2 872
Share premium account 6 6 6
Other reserves 2 173 2 113 2 128
Retained earnings 7 277 5 256 8 436
Equity attributable 12 328 10 247 13 442
to equity holders
of the parent
Minority share 1 302 1 308 1 393
Shareholders' equity 13 630 11 555 14 835
Deferred tax liability 997 880 928
Long-term liabilities, 4 130 3 623 4 923
interest-bearing
Non-current provisions 394 250 684
Non-current liabilities 5 521 4 754 6 536
Short-term liabilities, 7 757 4 848 6 331
interest-bearing
Trade payables and 19 013 23 482 24 489
other liabilities
Current liabilities 26 770 28 330 30 819
Liabilities 32 291 33 084 52 190
Total equity and 45 921 44 639 67 025
liabilities
KEY FIGURES, IFRS Interim Interim Annual
Report Report Report
1.9.2007- 1.9.2006- 1.9.2006-
29.2.2008 28.2.2007 31.8.2007
6 months 6 months 12 months
Earnings per share EUR -0,01 0,12 1,27
Shareholders' 4,25 3,57 4,68
equity per share EUR
Solidity % 35,4 34,5 35,5
Order backlog 1000 EUR 33 464 54 697 42 894
Gross investments 1 120 800 1 502
1000 EUR
Total average number 427 408 414
of personnel
CONSOLIDATED FLOW OF Interim Interim Annual
FUNDS STATEMENT, IFRS Report Report Report
1000 EUR 1.9.2007- 1.9.2006- 1.9.2006-
29.2.2008 28.2.2007 31.8.2007
6 months 6 months 12 months
Profit or loss -57 729 5 226
before taxes
Adjustments 891 1 175 2 698
Change in 2 073 -5 046 -11 797
working capital
Financial income and -318 -398 -1 917
expenses and taxes
Flow of funds from 2 590 -3 539 5 792
operations
Investments in -1 120 -800 -1 502
tangible and intangible
assets
Income from sales of 5 0 405
tangible and intangible
assets
Granted loans 0 -11 -11
Flow of funds from -1 115 -811 -1 109
investments
Increase of the 2 061 1 380 6 544
interest-bearing
liabilities
Decrease of the -1 428 -1 048 -3 429
interest-bearing
liabilities
Dividends -1 287 -671 -671
Flow of funds from -654 -339 2 444
financial items
Change of liquid funds -821 -4 689 -4 457
STATEMENT OF Share Shar Hedg- Other Re- Mino- Total
CHANGES IN capi- e ing res- taine rity
SHAREHOLDERS' tal prem- res- erves d inte-
EQUITY, IFRS ium erve earn- rest
1000 EUR acc- ings
ount
Interim
Report
1.9.2007 -
29.2.2008
Shareholders' 2872 6 22 2106 8438 1393 14835
equity
1.9.2007
Cash flow 49 49
hedging:
amount
transferred
to the hedged
purchasing
price
Change in 5 5
translation
difference
Reclassificati -3 3 0
ons between
items
Net 49 -3 8 53
profits/losses
recognized
directly to
shareholders'
equity
Profit/loss -19 47 29
for the period
Total profits 49 -3 -11 47 82
and losses
Dividend -1149 -138 -1287
distribution
Shareholders' 2872 6 70 2103 7277 1302 13630
equity
29.2.2008
STATEMENT OF Share Shar Hedg- Other Re- Mino- Total
CHANGES IN capi- e ing res- taine rity
SHAREHOLDERS' tal prem- res- erves d inte-
EQUITY, IFRS ium erve earn- rest
1000 EUR acc- ings
ount
Interim
Report
1.9.2006 -
28.2.2007
Shareholders' 2872 6 6 2112 5479 1215 11689
equity
1.9.2006
Cash flow -1 -1
hedging:
amount
transferred
to the hedged
purchasing
price
Change in -7 -7
translation
difference
Reclassificati -3 3 0
ons between
items
Net -1 -3 -4 -8
profits/losses
recognized
directly to
shareholders'
equity
Profit/loss 355 190 545
for the period
Total profits -1 -3 352 190 537
and losses
Dividend -574 -97 -671
distribution
Shareholders' 2872 6 4 2109 5256 1308 11555
equity
28.2.2007
STATEMENT OF Share Shar Hedg- Other Re- Mino- Total
CHANGES IN capi- e ing res- taine rity
SHAREHOLDERS' tal prem- res- erves d inte-
EQUITY, IFRS ium erve earn- rest
1000 EUR acc- ings
ount
Annual Report
1.9.2006 -
31.8.2007
Shareholders' 2872 6 6 2112 5479 1215 11689
equity
1.9.2006
Cash flow 16 16
hedging:
amount
transferred
to the hedged
purchasing
price
Decrease -106 -106
of the
revaluation
Change in -7 -7
translation
difference
Reclassificati -6 6 0
ons between
items
Net 16 -6 -106 97
profits/losses
recognized
directly to
shareholders'
equity
Profit/loss 3639 274 3913
for the period
Total profits 16 -6 3532 274 3816
and losses
Dividend -574 -97 -671
distribution
Shareholder' 2872 6 22 2106 8437 1393 14835
equity
31.8.2007
SEGMENT INFORMATION,
IFRS
The business of Vaahto Group is reported as two
business segments: Pulp & Paper Machinery and Process
Machinery.
NET SALES BY BUSINESS Interim Interim Annual
SEGMENTS, IFRS Report Report Report
1000 EUR 1.9.2007- 1.9.2006- 1.9.2006-
29.2.2008 28.2.2007 31.8.2007
6 months 6 months 12 months
Pulp & Paper Machinery 23 336 23 295 54 156
Process Machinery 18 493 14 323 34 050
Net sales -1 -7 -45
between segments
Group total 41 828 37 612 88 161
OPERATING PROFIT OR Interim Interim Annual
LOSS BY BUSINESS Report Report Report
SEGMENTS, IFRS 1.9.2007- 1.9.2006- 1.9.2006-
1000 EUR 29.2.2008 28.2.2007 31.8.2007
6 months 6 months 12 months
Pulp & Paper Machinery -1 778 816 3 721
Process Machinery 1 976 220 1 992
Other -2 -22 113
Operating profit or -6 -7 -14
loss between segments
Group total 190 1 007 5 812
AVERAGE NUMBER OF Interim Interim Annual
PERSONNEL BY BUSINESS Report Report Report
SEGMENTS 1.9.2007- 1.9.2006- 1.9.2006-
29.2.2008 28.2.2007 31.8.2007
6 months 6 months 12 months
Pulp & Paper Machinery 252 238 243
Process Machinery 175 170 171
Group total 427 408 414
NET SALES BY MARKET Interim Interim Annual
AREAS, IFRS Report Report Report
1000 EUR 1.9.2007- 1.9.2006- 1.9.2006-
29.2.2008 28.2.2007 31.8.2007
6 months 6 months 12 months
Finland 14 234 10 656 26 361
Other Europe 19 964 16 772 40 525
North America 2 919 135 3 718
Asia 4 589 8 779 14 125
Africa 120 0 197
Other 1 1 270 3 235
Group total 41 828 37 612 88 161
Figures are in thousand euros unless stated otherwise. Figures are
unaudited.
NOTES REQUIRED BY IAS 34
Accounting principles
The interim report was drawn up according to the same accounting
principles and calculation methods as the previous financial
statement, for the fiscal period that ended on August 31, 2007.
Dividends paid
In the period under review, Vaahto Group Plc Oyj paid a dividend
of 0.40 euros per share (for both A and K shares) - i.e., a total
of 1,148,920.80 euros.
Lahti, April 18, 2008
VAAHTO GROUP PLC OYJ
Antti Vaahto
CEO
Information:
Antti Vaahto
CEO, Vaahto Group Plc Oyj
tel. +358 40 8232835
VAAHTO GROUP INTERIM REPORT FOR SEPTEMBER 1, 2007 - FEBRUARY 29, 2008
| Source: Plc Uutechnic Group Oyj