ASPO Plc STOCK EXCHANGE BULLETIN October 26, 2009 at 10:15
ASPO'S 2009 OUTLOOK UPGRADED
January-September, continuing operations
- Net sales for Aspo Group's continuing operations in
January-September amounted to EUR 239.3 million (EUR 258.0 million)
- Operating profit was EUR 11.3 million (EUR 12.9 million)
- Profit before taxes amounted to EUR 7.7 million (EUR 9.9 million)
- Earnings per share for continuing operations stood at EUR 0.23 (EUR
0.26)
- The Group's financial position improved during the quarter and is
at a good level.
- During the second quarter, a 2004 convertible capital loan of EUR
14.2 million was repaid and a new convertible capital loan of EUR
15.0 million was issued.
- The operating profit for the second quarter includes a EUR 2.9
million sales gain from m/s Kontula, a EUR -0.5 million loss from the
divestment of Metex Deutschland, and non-recurring costs of EUR 1.8
million from Telko business operations.
- In the third quarter, a EUR 3.2 million sales gain was recorded
from the divestment of Hamina Terminal Services Oy's operations. The
deal dissolved some of Telko's goodwill.
- Aspo specifies its outlook for 2009. Aspo has the preconditions to
reach the same operating profit level of continuing operations as
last year. Earnings per share is expected to be below last year's
record level.
KEY FIGURES
1-9/09 1-9/08 1-12/08
Continuing operations
Net sales, MEUR 239.3 258.0 358.2
Operating profit, MEUR 11.3 12.9 14.1
Share of net sales, % 4.7 5.0 3.9
Profit before taxes, MEUR 7.7 9.9 9.5
Share of net sales, % 3.2 3.8 2.7
Personnel at the end of period 707 804 821
Earnings per share, EUR,
continuing operations 0.23 0.26 0.27
Earnings per share, EUR,
discontinued operations 0.30 0.33
Earnings per share, EUR, total 0.23 0.56 0.60
EPS adjusted for dilution, EUR,
continuing operations 0.22 0.25 0.26
EPS adjusted for dilution, EUR,
discontinued operations 0.28 0.30
EPS adjusted for dilution, EUR,
total 0.22 0.53 0.56
Comparable earnings per share,
EUR,
continuing operations 0.06* 0.26 0.27
Comparable earnings per share,
EUR,
discontinued operations -0.01 -0.03
The Group as a whole
Equity per share, EUR 2.45 2.55 2.56
Equity ratio, % 32.4 25.9 30.6
Gearing, % 113.2 139.4 124.9
* excluding the sales gains from m/s Kontula and Hamina Terminal
Services' operations.
AKI OJANEN, ASPO'S CEO:
"The market situation for our operations was challenging and
statistics related to industrial production and public economy showed
that the market had weakened. We estimate that the toughest market
situation was seen this summer.
Aspo's operating profit level can be considered good in the current
market situation. Aspo has actively carried out measures focusing on
the strategy of its business units. Telko and Kaukomarkkinat have
carried out divestments. Structural changes aimed at improving
shareholder value are part of Aspo's operating model. Our investments
in the future have been particularly visible as activities on the
Russian market and in other CIS countries. Operations have been
launched in several major cities in Russia and operations have
expanded in Ukraine.
Aspo's strategy is to further increase its operations in Russia and
other CIS countries. We have been successful both in risk management
and in developing profitable operations in growth markets. In Russia,
demand growth in the business areas we represent has remained good
despite the general financial and economic crisis.
The move of Aspo Group's operations to a single premises in Finland
was completed in August. Business operations and their administration
are now housed in one office. In connection with this move, both
Kaukomarkkinat and Leipurin outsourced their inventory operations,
which reduces the cost level and increases flexibility in different
market conditions. Our cost efficiency in administrative costs will
reach a new level from the fourth quarter; the effect of our
cost-cutting program is approximately EUR 2 million per year.
Separate efficiency programs for each business unit will improve the
profitability of the business segments.
Telko has turned its operations back to the black. The result of all
business operations was in line with our expectations."
ASPO AS A COMPANY
Aspo is a conglomerate that owns and develops business operations in
the Baltic Sea region focusing on demanding B-to-B customers. Our
strong company brands - ESL Shipping, Leipurin, Telko and
Kaukomarkkinat - aim to be the market leaders in their sectors. They
are responsible for their own operations, customer relationships, and
the development of these. Together they generate Aspo's goodwill.
Aspo's Group structure and business operations are continually
developed without any predefined schedules.
From January 1, 2009, Aspo's business segments are ESL Shipping,
Leipurin, Telko and Kaukomarkkinat. Other operations include Aspo
Group's administration and other operations not belonging to the
business units. The segment structure corresponds with Aspo Group's
organizational structure and internal earnings reporting. IFRS
regulations are applied to management reporting.
From January 1, 2009, the Group has monitored its net sales on the
basis of the following geographical division: Finland, the Nordic
countries, the Baltic countries, Russia and other CIS countries, and
other countries.
Leipurin and Kaukomarkkinat have been included in Aspo Group's
figures from the beginning of May 2008. Telko's comparison figures
include Kauko-Telko's industrial raw materials purchased in the
spring of 2008 from the beginning of May 2008.
OPERATIONAL PERFORMANCE
The prices of raw materials sold have risen and volumes have grown
slightly. The demand for raw materials in the food industry has
remained stable. The steel industry, an important customer segment
for Aspo, has started up production capacity, which is visible in the
volume of steel industry raw material transported by ESL Shipping.
Of the foreign currencies used by Aspo, the US dollar in particular
has weakened against the euro. Other foreign currencies used by Aspo
have been more stable.
ESL Shipping
ESL Shipping is the leading dry bulk shipping company operating in
the Baltic Sea area. During the review period, the company's fleet
consisted of 17 vessels, of which the company owns 15. As a result of
its operations, ESL Shipping is an integral part of the Finnish
energy and steel industry's security of supply.
7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
Net sales, MEUR 13.8 21.8 -8.0 46.2 63.2 84.1
Operating profit,
MEUR 1.8 4.4 -2.6 11.1 11.4 15.6
Personnel 201 229 -28 201 229 240
On international freight markets, the drop in dry bulk rates has
stopped and prices have made a partial recovery. In general, the
vessels have been laid up, and thus overall market capacity has
fallen. Among important customer segments, the steel industry
increased its production in Scandinavia, which increased the volume
of cargo transported for the steel industry. The cargo volume in the
energy industry fell during the review period compared to the
previous quarter due to high inventory levels in the industry.
The cargo volume carried by ESL Shipping from January to September
amounted to 7.7 million tons (10.4). The share of the steel industry
was 3.8 million tons (6.8), and the energy industry represented 3.7
million tons (2.8).
Fleet operations were successful considering the market situation.
Net sales for January-September was EUR 46.2 million (63.2).
Operating profit amounted to EUR 11.1 million (11.4).
During the third quarter some units of the fleet were still laid up.
At the end of the period, more capacity has been taken into
operation.
In August, the company period chartered a 20,000 dwt vessel for one
year. The super ice class vessel fits well into the company's
operations. The capacity increase ensures that long-term customer
commitments will be carried out also during the winter season.
A 20,000 dwt Eira class vessel is being constructed in India. The
construction schedule has been delayed and the vessel is expected to
be delivered during the spring of 2010. The vessel has been leased to
ESL Shipping under a leasing contract.
Leipurin
Leipurin serves the baking and food industry by supplying
ingredients, production machinery and production lines, as well as
related expertise. Leipurin operates in Finland, Russia, Poland, the
Baltic countries and Ukraine. In Russia, Leipurin has operations in
several large cities in addition to St. Petersburg and Moscow.
Procurement operations are international.
7-9/09 7-9/08 Change 1-9/09 5-9/08 5-12/08
Net sales,
MEUR 23.4 25.2 -1.8 71.8 42.2 69.3
Operating
profit, MEUR 0.6 1.2 -0.6 2.1 2.0 3.1
Personnel 191 161 30 191 161 168
No significant line deliveries were booked in the third quarter as
deliveries will focus on the fourth quarter. The result from projects
under production will materialize in the fourth quarter once
deliveries are made. The drop in raw materials prices for the food
industry has slowed down.
The share of Russia and CIS countries in net sales in the third
quarter was 18%, and the share has increased favorably. Operations
were profitable in the region. In Russia, 80% of the customers are
local bakery entrepreneurs.
Telko
Telko is the leading expert and supplier of industrial chemicals and
plastic raw materials in the Baltic Sea region. It operates in
Finland, the Baltic countries, Scandinavia, Poland, Ukraine, Russia,
and Belarus. Procurement operations are international. Business is
based on the representation by the best international principals and
on the expertise of the personnel. Telko develops the production and
competitiveness of the customers' products in cooperation with them.
7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
Net sales, MEUR 35.3 51.9 -16.6 95.1 132.4 172.7
Operating
profit, MEUR 4.9 1.4 3.5 3.2 3.5 1.0
Personnel 202 227 -25 202 227 230
Raw material prices have increased slightly since the summer. The
effects of internal efficiency measures are visible as lower costs,
particularly in Finland and Scandinavia. Operations have been made
profitable in the third quarter as planned. The share of Russia and
CIS countries in net sales was 28%, and the share has increased
favorably. Operations were profitable. The local production industry
is the main client.
Half of Telko's net sales are generated from liquid chemicals and
half from plastics used as industrial raw material.
In August, Telko divested its terminal operations in Hamina. A EUR
3.2 million sales gain was booked from the deal and some of Telko's
goodwill was dissolved.
Telko's management has been renewed. On August 1, 2009, Kalle
Kettunen M.Sc. (Eng.), MBA, started as the new CEO of Telko.
Kaukomarkkinat
Kaukomarkkinat specializes in energy efficiency technology, the
efficiency of the process industry, and security and audio-visual
applications. Operations are based on the products of the best
companies in the industry and the willingness of the company's own
experts to improve the operations or efficiency of its customers.
Kaukomarkkinat operates in Finland, Poland, Russia, China, and
Vietnam.
7-9/09 7-9/08 Change 1-9/09 5-9/08 5-12/08
Net sales,
MEUR 7.4 13.6 -6.2 25.1 20.0 30.8
Operating
profit, MEUR -0.1 1.0 -1.1 0.0 1.1 2.1
Personnel 88 103 -15 88 103 100
In energy efficiency products, sales have been weaker in Finland than
last year due to the general economic situation. In project sales for
improving process industry efficiency, a slight recovery has been
witnessed since the summer, in Poland in particular. Project sales in
China have been weaker than anticipated.
In August, component and mechatronics operations were divested. The
deal has no significant effect on Kaukomarkkinat's earnings. The
business operation divestments completed in the past year have
simplified Kaukomarkkinat's structure and enabled focusing on
strategic focus areas.
Other operations
Other operations include Aspo Group's administration and other
operations not belonging to the business units. The Group's
administration costs have been higher than usual since the summer of
2008 due to the acquisition. The cost-cutting program for fixed costs
will have full effect from the fourth quarter onwards.
7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
Net sales,
MEUR 0.1 0.1 0.0 1.1 0.2 1.3
Operating
profit, MEUR -1.6 -2.0 0.4 -5.1 -5.1 -7.7
Personnel 25 84 -59 25 84 83
NET SALES AND PROFIT, CONTINUING OPERATIONS
Net sales for Aspo Group's continuing operations in January-September
amounted to EUR 239.3 million (258.0). ESL Shipping's net sales
decreased as a result of a drop in cargo volumes and the sale of a
vessel. The net sales of Leipurin and Kaukomarkkinat are included for
the entire review period, but in the comparison figures only for
May-September 2008. Telko's net sales fell compared to the previous
year due to a fall in prices and volumes as well as unfavorable
currency exchange rate development.
Aspo Group's net sales for continuing operations in July-September
amounted to EUR 80.0 million compared with EUR 112.6 million in the
corresponding period last year.
Net sales by segment, MEUR
7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
ESL Shipping 13.8 21.8 -8.0 46.2 63.2 84.1
Leipurin 23.4 25.2 -1.8 71.8 42.2 69.3
Telko 35.3 51.9 -16.6 95.1 132.4 172.7
Kaukomarkkinat 7.4 13.6 -6.2 25.1 20.0 30.8
Other operations 0.1 0.1 0.0 1.1 0.2 1.3
Continuing operations
total 80.0 112.6 -32.6 239.3 258.0 358.2
Discontinued operations 10.8 -10.8 43.3 45.1
Total 80.0 123.4 -43.4 239.3 301.3 403.3
Inter-segment net sales is not considerable.
Net sales by market area, MEUR
7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
Finland 37.7 73.1 -35.4 113.0 140.7 166.0
Nordic countries 7.0 14.1 -7.1 20.4 35.3 47.5
Baltic countries 9.8 9.1 0.7 27.8 20.6 32.8
Russia + other CIS
countries 14.0 12.1 1.9 38.2 37.7 61.1
Other countries 11.5 4.2 7.3 39.9 23.7 50.8
Continuing
operations total 80.0 112.6 -32.6 239.3 258.0 358.2
Discontinued
operations 10.8 -10.8 43.3 45.1
Total 80.0 123.4 -43.4 239.3 301.3 403.3
The importance of Russia and other CIS countries has increased. Due
to the devaluation of currencies outside the eurozone, delivered
volumes have so far this year been relatively higher than last year.
The importance of the CIS countries is made clear when all of ESL
Shipping's raw material exports from Russia are included in the net
sales for the Russian market area. In the third quarter, the volumes
transported from Russia by ESL Shipping fell as energy industry
deliveries focused on the second quarter. The net sales of Russia and
other CIS countries and of Russian originated transports are as
follows:
MEUR 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
Russia + other CIS
countries 20.4 21.1 -0.7 64.0 60.5 90.6
January-September performance, continuing operations
Aspo Group's operating profit in January-September was EUR 11.3
million (12.9), i.e. 4.7% of net sales. Planned depreciation totaled
EUR 6.8 million (7.8). The Group's net financial costs totaled EUR
3.6 million (3.0). January-September profit before taxes was EUR 7.7
million (9.9), and profit for the period amounted to EUR 6.1 million
(6.5).
July-September performance, continuing operations
Operating profit for Aspo Group's continuing operations in
July-September amounted to EUR 5.6 million (6.0). ESL Shipping's
operating profit was EUR 1.8 million (4.4). Leipurin's operating
profit was EUR 0.6 million (1.2). Telko's operating profit was EUR
4.9 million (1.4), including a EUR 3.2 million sales gain from the
divestment of Hamina Terminal Services Oy's operations.
Kaukomarkkinat's operating profit was EUR -0.1 million (1.0). The
operating profit of Other operations was EUR -1.6 million (-2.0).
Operating profit by segment, MEUR
7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
ESL Shipping 1.8 4.4 -2.6 11.1 11.4 15.6
Leipurin 0.6 1.2 -0.6 2.1 2.0 3.1
Telko 4.9 1.4 3.5 3.2 3.5 1.0
Kaukomarkkinat -0.1 1.0 -1.1 0.0 1.1 2.1
Other operations -1.6 -2.0 0.4 -5.1 -5.1 -7.7
Continuing operations
total 5.6 6.0 -0.4 11.3 12.9 14.1
Discontinued operations 7.6 -7.6 9.1 9.6
Total 5.6 13.6 -8.0 11.3 22.0 23.7
Earnings per share
Earnings per share for continuing operations stood at EUR 0.23 (EUR
0.26). The Group's earnings per share was EUR 0.23 (0.56) and the
diluted earnings per share was EUR 0.22 (0.53). Equity per share was
EUR 2.45 (2.55).
INVESTMENTS
Investments in the Group's continuing operations in January-September
totaled EUR 5.2 million (19.7), of which the majority was generated
from ESL Shipping's vessel docking.
Investments by segment, MEUR
7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08
ESL Shipping 0.6 16.1 -15.5 2.9 18.6 18.8
Leipurin 0.1 0.0 0.1 0.4 0.0 0.1
Telko 0.3 0.2 0.1 0.9 0.3 0.4
Kaukomarkkinat 0.1 0.0 0.1 0.4 0.0 0.1
Other operations 0.2 0.0 0.2 0.6 0.8 1.1
Continuing operations
total 1.3 16.3 -15.0 5.2 19.7 20.5
Discontinued operations 0.2 -0.2 0.6 0.6
Total 1.3 16.5 -15.2 5.2 20.3 21.1
FINANCING
The Group's financing position developed favorably during the review
period. The Group has purposefully reduced its interest-bearing debt
and, as a result of this and a drop in general interest rate levels,
total financing costs are falling, even though financing margins have
increased from 2008. Compared to both the comparison period and the
second quarter in 2009, interest-bearing debt fell and liquidity
remained good. At the end of the period, liquid assets amounted to
EUR 7.2 million (22.0), interest-bearing debt totaled EUR 78.9
million (113.8), and non-interest-bearing debt was EUR 55.4 million
(78.0).
Aspo Group's gearing was 113.2% (139.4) and the equity ratio was
32.4% (25.9). The Group's cash flow from operations remained strong.
In January-September net cash flow from operations was EUR 8.6
million (17.6). Cash flow from investments in the review period was
EUR 9.8 million, mainly due to the positive cash flow from business
operation divestments.
Aspo Plc and its key financing banks have signed binding financial
limits for a total of EUR 80 million. Credit withdrawn within the
framework of these financial limits amounted to EUR 6.0 million at
the end of the review period. The Group has a EUR 50 million
commercial paper program that was not in use at the end of the review
period.
CONVERTIBLE CAPITAL LOAN
In June, Aspo Plc repaid its convertible capital loan from 2004 and
issued a new convertible capital loan for EUR 15 million. The Board
of Directors decided to offer a convertible capital loan for
subscription by a limited group of selected investors (Private
Placement) based on an authorization given by the Extraordinary
Shareholders' Meeting on June 8, 2009. Members of the Aspo Plc Board
of Directors and the company's key personnel have about 7.3% of the
approved loan units, and Aspo Plc shareholders have about 40.0% of
the approved loan units. The loan period is June 30, 2009 - June 30,
2014. The loan will be repaid in one installment on June 30, 2014, if
the repayment conditions outlined in the loan terms are met. A fixed
annual interest rate of 7 percent is paid on the loan. A special
right to convert the loan units into a maximum of 2,307,000 Company's
new shares is incorporated to the 2009 convertible capital loan and
each EUR 50,000 loan unit can be converted to 7,690 new shares. The
conversion price for the share is EUR 6.50.
PERSONNEL
The number of personnel in Aspo Group's continuing operations during
January-September was 707 (804).
Personnel by segment
1-9/09 1-9/08 Change 1-12/08
ESL Shipping 201 229 -28 240
Leipurin 191 161 30 168
Telko 202 227 -25 230
Kaukomarkkinat 88 103 -15 100
Other operations 25 84 -59 83
Continuing operations total 707 804 -97 821
Discontinued operations 39 -39 6
Total 707 843 -136 827
SHARES AND SHAREHOLDERS
During January-September 2009, a total of 1,532,791 Aspo Plc shares
were traded on NASDAQ OMX Helsinki at EUR 7.91 million, or 5.80% of
the shares changed owners. The share reached a high of EUR 6.20 and a
low of EUR 3.94 during the period.
The average price was EUR 5.13 and the closing price was EUR 5.98.
The market value of the share capital at the end of the period, less
treasury shares, was EUR 154.2 million.
Aspo Plc's registered share capital on September 30, 2009, was EUR
17,691,729.57 and the total number of shares was 26,406,063. The
company's own shareholding was 620,000 shares, accounting for 2.35%
of Aspo Plc's share capital and votes. The accounting par value of
the shares was EUR 0.67.
At the end of the period, the number of Aspo Plc shareholders was
5,071. A total of 834 660 shares or 3.2% of the total share capital
were nominee registered or held by non-domestic shareholders.
Henrik B. Nyberg announced on January 19, 2009 that his share of Aspo
Plc's share capital and votes fell below 10%.
BOARD AUTHORIZATIONS
The Extraordinary Shareholders' Meeting held on June 8, 2009
authorized the Board of Directors to decide on an issue of shares and
special rights entitling to shares. A maximum of 2,600,000 shares may
be issued on the basis of the authorization. The authorization will
be used for a convertible capital loan to be issued by Aspo Plc,
directed to a limited group of investors. The authorization will not
supersede the authorization to decide on a share issue given to the
Board of Directors by the Annual Shareholders' meeting on 31 March
2009. If the Board of Directors decides on a directed convertible
capital loan, the members of the Board of Directors and the company
key personnel will be reserved the right to subscribe for the
convertible capital loan up to a maximum total of 10% of the amount
of the convertible capital loan.
The Board of Directors exercised the authorization on June 8, 2009,
and decided to offer a convertible capital loan for subscription by a
limited group of selected investors. The maximum loan amount is EUR
15,000,000 and the loan period is five years.
DIVIDEND DISTRIBUTION
At the Aspo Plc Annual Shareholders' Meeting on March 31, 2009, the
shareholders adopted the Board of Directors' proposal for a dividend
of EUR 0.42 per share. The dividend distribution day was April 14,
2009, as decided by the General Meeting.
MARKET MAKING
Aspo has an agreement with Nordea Bank Finland Plc on market-making
for its share. According to the agreement, Nordea Bank Finland Plc
gives Aspo Plc's shares a buy and sell bid so that the highest
possible difference between a buy and sell bid is 3%, calculated from
the buy bid. The agreement is valid until further notice, and the
period of notice for the agreement is one month.
EVENTS AFTER THE REVIEW PERIOD
On October 15, 2009, Aspo Plc published a stock exchange release
stating that ESL Shipping has decided to terminate one of the two
ship construction contracts it has signed with an India-based
shipyard. The first ship has been delayed and is estimated to be
completed in spring 2010. The vessel has been leased to ESL Shipping
under a leasing agreement. The second vessel has been substantially
delayed and, as a result of this delay, ESL Shipping has decided to
enforce its right of termination pursuant to the construction
contract.
Cancelling the ship will have an impact on the dissolution of
currency protections of future intended payment installments, and
capital asset items entered on the balance sheet. As a result of
these measures, exchange rate losses will be recorded. For the return
of advance payments, ESL Shipping will receive a positive cash flow
of about EUR 9 million and interest income.
ESL Shipping estimates that the compensation for the delay of the
first ship and the termination of the second ship order will not have
a significant total impact on the company's result. The impacts are
expected to be felt at the end of 2009 and at the beginning of 2010.
OUTLOOK FOR REST OF 2009
The general economic uncertainty in the Baltic Sea region is likely
to continue despite a slight glimmer of hope regarding general
improvement in the economy. Industrial demand has decreased from
2008, and it is difficult to foresee at what speed demand will
recover. Food demand will remain normal. Among important industrial
segments, the steel industry in Scandinavia in particular has
increased production, which has had a positive effect on Aspo's
result. The reduction in the Group's cost level has had a positive
effect on its earnings development. Financial costs are expected to
fall considerably as a result of lower general interest rate levels
and a fall in the amount of interest-bearing debt, even though
financial margins have increased from 2008.
Aspo Group's structure creates a good foundation for growth in
continuing operations, in both the eastern and western markets, as
the general economic situation recovers.
Aspo specifies its outlook for 2009. Aspo has the preconditions to
reach the same operating profit level of continuing operations as
last year. Earnings per share is expected to be below last year's
record level.
Previous outlook
In accordance with the previously published outlook, it is
challenging for Aspo to reach the same operating profit level from
continuing operations as last year. Earnings per share are expected
to be below last year's record level.
ESL Shipping
The aim of the shipping company is to maintain its position as the
leading dry bulk shipping company and transporter on the Baltic Sea
by renewing its fleet. In August, ESL Shipping time-chartered a
20,000 dtw super ice class vessel for one year. The chartered vessel
ensures that the company is able to serve its customers in all
conditions.
Dry cargo freight markets relevant for ESL Shipping are estimated to
strengthen in the fourth quarter. A considerable share of the cargo
capacity for the rest of 2009 has been covered with long-term
contracts.
The Finnish Government is preparing changes to the tonnage tax
legislation. The company would be able to choose between tonnage
taxation and taxation in accordance with the present business tax
act. Aspo expects ESL Shipping to join up to the possible revised
tonnage-based taxation scheme and also expects the change to have a
positive effect on the result.
ESL Shipping aims to reach the 2008 operating profit level.
Leipurin
Organic growth is expected to continue in the Leipurin division.
Leipurin will continue establishing itself in Russia's new major
cities. The new offices create a good foundation for several years of
growth.
The bakery raw material unit expects modest organic growth to
continue on the western markets. Other food industry operations aim
to expand operations outside Finland; the aim in Russia is to expand
operations in the meat industry in particular. The order book for the
machine unit is at last year's level and line deliveries will be
focused on the fourth quarter. The first machine deliveries have
already been made to Poland, and delivery of the first bakery line to
Sweden will be completed in December.
Leipurin expects to improve its net sales in the CIS countries. New
offices in Siberia and the Volga region are already profitable.
A good operating profit level is expected from Leipurin.
Telko
Telko will focus on ensuring that its earnings development is
positive. Operationally, Telko aims to strengthen its relative market
position in Northern Europe and the CIS countries. Due to a drop in
volumes and prices caused by the economic recession, the organization
has been adjusted to meet demand in Finland and Sweden. Operational
development in Russia and other CIS countries has continued strongly.
Operations in the CIS countries are more profitable than on average.
The aim is to increase the number of offices in Russia's major
cities. The company is investigating the possibility of establishing
itself in new CIS countries.
Telko will focus on improving profitability and on producing
excellent key customer service. Net sales growth will be sought once
the general price level and the economic trend improves.
Kaukomarkkinat
The main target of the operation is to grow at least as much as the
general market growth in the Finnish energy efficiency equipment
markets. Project sales are expected to recover from the third quarter
level. Audio-visual and giant screen operations are being developed
as a new growth area, but they will not have a significant earnings
effect in 2009. General market growth for energy efficiency equipment
is expected to create possibilities for Kaukomarkkinat as its current
strong principals expand their product selection to new application
areas. The current main product is from air to air heat pumps.
Kaukomarkkinat aims to match last year's operating profit adjusted by
the sales loss from the German subsidiary divestment.
Other operations
Other operations include Aspo Group's administration and other
operations not belonging to the business units. The Group's other
costs are expected to fall in line with what has been previously
announced.
Operational risks
The general economic situation is affecting industrial demand in the
Baltic Sea region. Among Aspo's customer segments, the economic
recession will affect basic industries, particularly the steel and
construction industries. It is more difficult to foresee the changes
in demand in emerging markets. The overall markets in Russia in
particular are expected to develop positively in Aspo's business
areas despite the recession. The uncertainty in the financial markets
and the economic recession can further weaken the value of currencies
in our neighboring areas (Russia, Ukraine, the Baltic region, Poland,
and Sweden) and can possibly weaken customers' solvency.
Operational risks are discussed in more detail in the 2008 Report of
the Board of Directors.
Helsinki, October 26, 2009
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
7-9/09 7-9/08
MEUR % MEUR %
Net sales 80.0 100 112.6 100
Other operating income 3.4 4.3 1.2 1.1
Depreciation and write-downs -2.3 -2.9 -2.9 0.0
Operating profit 5.6 7.0 6,0 5.3
Financial income and expenses -1.3 -1.6 -1.4 -1.2
Profit before taxes 4.3 5.4 4.6 4.1
Profit for the period
continuing operations 3.5 4.4 2.8 2.5
Profit for the period
discontinued operations 7.6 6.7
Profit for the period 3.5 4.4 10.4 9.2
Other comprehensive income
Translation differences 0.1 0.0
Cash flow hedges -0.5 1.1
Net result recognized directly
to equity 0.0
Income taxes on other
comprehensive income 0.2 -0.5
Other comprehensive income for
the year, net of taxes -0.2 0.6
Total comprehensive income 3.3 11,0
Profit attributable to
shareholders 3.4 10.3
Minority interest 0.1 0.1
Total comprehensive income
attributable to shareholders 3.2 10.9
Minority interest 0.1 0.1
1-9/09 1-9/08 1-12/08
MEUR % MEUR % MEUR %
Net sales 239.3 100.0 258.0 100.0 358.2 100.0
Other operating income 7.3 3.1 1.2 0.5 1.6 0.4
Depreciation and write-downs -6.8 -2.8 -7.8 -3.0 -10.8 -3.0
Operating profit 11.3 4.7 12.9 5.0 14.1 3.9
Financial income and expenses -3.6 -1.5 -3.0 -1.2 -4.6 -1.3
Profit before taxes 7.7 3.2 9.9 3.8 9.5 2.7
Profit for the period
continuing operations 6.1 2.5 6.5 2.5 7.0 2.0
Profit for the period
discontinued operations 8.1 3.1 8.5 2.4
Profit for the period 6.1 2.5 14.6 5.7 15.5 4.3
Other comprehensive income
Translation differences -0.5 -0.2 -1.5
Cash flow hedges -0.5 0.6 0.9
Net result recognized
directly to equity -0.5
Income taxes on other
comprehensive income 0.2 -0.2 -0.2
Other comprehensive income
for the year, net of taxes -0.8 -0.3 -0.8
Total comprehensive income 5.3 14.3 14.7
Profit attributable to
shareholders 6.0 14.5 15.5
Minority interest 0.1 0.1 0.0
Total comprehensive income
attributable to shareholders 5.2 14.2 14.7
Minority interest 0.1 0.1 0.0
ASPO GROUP BALANCE SHEET
09/09 09/08 Change 12/08
MEUR MEUR % MEUR
Assets
Non-current assets
Intangible assets 15.9 17.0 -6.5 17.0
Goodwill 39.9 41.3 -3.4 40.4
Tangible assets 61.2 71.4 -14.3 69.1
Available-for-sale assets 0.2 0.2 0.0 0.2
Long-term receivables 1.4 0.9 55.6 1.1
Shares in associated
companies 0.9 1.1 -18.2 0.9
Total non-current assets 119.5 131.9 -9.4 128.7
Current assets
Inventories 27.1 41.5 -34.7 33.4
Sales and other receivables 43.7 59.1 -26.1 43.3
Cash and bank deposits 7.2 22.0 -67.3 12.6
Total current assets 78.0 122.6 -36.4 89.3
Assets classified as held
for sale 3.1 -100.0 0.7
Total assets 197.5 257.6 -23.3 218.7
Shareholders' equity and
liabilities
Shareholders' equity
Share capital 17.7 17.7 0.0 17.7
Other shareholders' equity 45.5 48.0 -5.2 48.3
Shareholders' equity
attributable
to equity holders of the
parent 63.2 65.7 -3.8 66.0
Minority interest 0.1 0.1 0.0 0.0
Long-term liabilities 80.2 47.3 69.6 50.2
Short-term liabilities 54.0 142.8 -62.2 102.0
Liabilities classified as
held for sale 1.7 -100.0 0.5
Total shareholders' equity
and liabilities 197.5 257.6 -23.3 218.7
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A = Share capital
B = Premium fund
C = Fair value fund
D = Other funds
E = Repurchased shares
F = Translation difference
G = Retained earnings
H = Total
I = Minority interest
J = Total shareholders' equity
MEUR A B C D E F G H I J
Balance at
12/31/2008 17.7 4.3 -0.3 0.5 -3.7 -1.5 49.0 66.0 0.0 66.0
Total
comprehensive
income -0.3 -0.5 6.0 0.1 5.3
Dividend
payment -10.8 -10.8
Share based
payment 0.4 0.4
Equity share of
convertible bond 3.3 3.3
Share of
deferred
taxes -0.9 -0.9
Balance at
9/30/2009 17.7 4.3 -0.6 2.9 -3.7 -2.0 44.6 63.2 0.1 63.3
Balance at
12/31/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0
Total
comprehensive
income 0.4 -0.2 14.0 0.1 14.3
Dividend
payment -10.8 -10.8
Share
repurchase -0.6 -0.6
Change in
minority
interest -0.2
Balance at
9/30/2008 17.7 4.3 -0.6 0.5 -3.6 -0.2 47.6 65.7 0.1 65.8
ASPO GROUP CASH FLOW STATEMENT
1-9/09 1-9/08 1-12/08
MEUR MEUR MEUR
Operational cash flow
Operating profit 11.3 22.1 23.7
Adjustments to operating profit 0.6 -0.6 1.3
Change in working capital 6.3 3.3 14.9
Interest paid -4.5 -4.0 -6.0
Interest received 0.4 0.9 1.0
Taxes paid -5.5 -4.1 -4.0
Net operational cash flow 8.6 17.6 30.9
Investments
Investments in tangible and
intangible assets -5.3 -20.6 -22.0
Gains on the sale of tangible
and intangible assets 3.0 0.7 0.7
Gains on the sale of business
operations
11.1
Purchases of subsidiary shares -77.6 -78.2
Sale of the subsidiary shares 1.0 25.6 28.8
Total cash flow from investments 9.8 -71.9 -70.7
Financing
Share acquisition -0.7 -0.8
Share disposal 0.1 0.1
Change in short-term borrowings -46.5 59.7 16.9
Change in long-term borrowings 33.5 14.9 34.0
Profit distribution to minorities -0.1
Dividends paid -10.8 -10.8 -10.8
Total financing -23.8 63.2 39.3
Increase / decrease in liquid funds -5.4 8.9 -0.5
Liquid funds in beginning of year 12.6 13.1 13.1
Liquid funds at period end 7.2 22.0 12.6
KEY FIGURES AND RATIOS
1-9/09 1-9/08 1-12/08
Earnings per share, EUR, continuing
operations 0.23 0.26 0.27
Earnings per share, EUR, discontinued
operations 0.30 0.33
Earnings per share total 0.23 0.56 0.60
EPS adjusted for dilution, EUR,
continuing operations 0.22 0.25 0.26
EPS adjusted for dilution, EUR,
discontinued operations 0.28 0.30
EPS adjusted for dilution, EUR, total 0.22 0.53 0.56
Comparable earnings per share, EUR,
continuing operations 0.06 0.26 0.27
Comparable earnings per share, EUR,
discontinued operations -0.01 -0.03
The whole group
Equity per share, EUR 2.45 2.55 2.56
Equity ratio, % 32.4 25.9 30.6
Gearing, % 113.2 139.4 124.9
ACCOUNTING PRINCIPLES
Aspo Plc's interim report has been compiled in accordance with the
principles of IAS 34 Interim Financial Reporting. As of January 1,
2009, the Group has applied the following new and revised standards:
IFRS 8 Operating Segments and IAS 1 Presentation of Financial
Statements. IFRS 8 has an effect on the segment information and IAS 1
has an effect on the presentation of the income statement. The
comparison figures have been restated according to the new standards.
The changes have no effect on the Group's result or financial
position.
In other regards, the same accounting principles that were applied to
the Financial Statement for December 31, 2008, have been applied. The
calculation formulas for key figures are explained in the 2008
Financial Statements on page 83. The report is unaudited.
INFORMATION MEETING
Aspo will arrange a press conference for the media and analysts
today, Monday 26 October, 2009, starting at 12:30 at Hotel Kämp,
conference room Paavo Nurmi, Pohjoisesplanadi 29, 00100 Helsinki,
Finland.
ASPO Plc
Aki Ojanen Arto Meitsalo
CEO CFO
For more information, please contact
Aki Ojanen, tel. +358 9 521 4010, +358 400 106 592
aki.ojanen@aspo.com
www.aspo.com
Distribution:
NASDAQ OMX Helsinki
Key media
www.aspo.com
