LAROX CORPORATION INTERIM REPORT 23.4.2010 AT 8.00 AM
INTERIM FINANCIAL REPORT OF THE LAROX GROUP FOR THE PERIOD 1 JANUARY 2010 TO 31
MARCH 2010
Highlights of the review period (Q1/2010):
- New orders received during the first quarter 2010 increased with 43.3 % in
comparison to previous year. New orders received totaled EUR 40.1 million (EUR
28.0 million).
- Net sales were EUR 31.2 million (EUR 43.3 million), the decrease was 27.9%.
- Operating profit was EUR 1.9 million (EUR 3.1 million), i.e. 6.2% (7.2%) of
net sales. Operating profit includes a non-recurring gain of EUR 2.0 million
from the sales of associated company Larox Flowsys Oy. Operating profit without
non-recurring income was EUR -0.03 million (EUR 3.1 million), i.e. -0.1% (7.2%)
of net sales.
- Profit before taxes was EUR 1.7 million (EUR 2.7 million), i.e. 5.5% (6.3%) of
net sales, without non-recurring income the profit before taxes was EUR -0.3
million (EUR 2.7 million), i.e. -0.8% (6.3%) of net sales.
- Earnings per share were EUR 0.19 (EUR 0.20)
- The shares offered in the mandatory public tender offer by Outotec Oyj,
started on 28 December 2009 and expired on 22 January 2010, together with all
the shares already owned by Outotec Oyj, represent approx. 98.5% of all Larox
shares and approx. 99.7% of all the votes given by Larox shares. Outotec has,
pursuant to its ownership exceeding nine tenths (9/10), gained a right to
redeem all the series B shares held by other remaining shareholders of Larox at
fair value in accordance with Chapter 18, Section 1 of the Finnish Companies
Act. On 3 February 2010 Outotec notified Larox of its decision to exercise its
redemption right and presented its redemption claim for the remaining shares of
Larox in accordance with the Finnish Companies Act.
BUSINESS OPERATIONS
Order backlog was EUR 42.9 million (EUR 57.0 million) at the end of the review
period and the order accumulation was EUR 40.1 million (EUR 28.0 million). More
than 98% of Group net sales were generated by exports and foreign operations.
As part of the Group's re-organization arrangements, the aftermarket service
business in Larox's subsidiary in Germany, Larox GmbH, was transferred under the
name of Larox Oyj at the beginning of 2010.
PROFITS AND PROFITABILITY
The net sales for the first quarter were EUR 31.2 million (EUR 43.3 million).
The Group showed an operating profit of EUR 1.9 million (EUR 3.1 million),
i.e. 6.2% (7.2%) of net sales. Operating profit includes a non-recurring gain of
EUR 2.0 million from the sales of associated company Larox Flowsys Oy. Operating
profit without the non-recurring income was EUR -0.03 million (EUR 3.1 million),
i.e. -0.1% (7.2%) of net sales. Larox Group's result before tax for the three
months totaled EUR 1.7 million (EUR 2.7 million, 1 January 2009 to 31 March
2009), without the non-recurring income profit before taxes was EUR -0.3 million
(EUR 2.7 million), i.e. -0.8% (6.3%) of net sales. Group profitability compared
to the first quarter of last year remained in the same level.
On 18 February 2010 Larox concluded the personnel negotiations, started in
December 2009 in its European subsidiaries. The negotiations were run in order
to adjust the organization and cost structure to the weakened demand. As a
result of the negotiations the personnel of Larox is reduced by 16 persons in
its subsidiary in the Netherlands and 29 persons in its subsidiary in Germany.
These adjustment measures are part of a wider cost saving program started by
Larox in 2009, the aim of which is to reduce Larox's annual costs by
approximately 6.5 million euros. It is estimated that these annual cost
reductions will be fully realized starting from 2011. The extraordinary
non-recurrent costs generated by above mentioned measures were booked for 2009.
BALANCE SHEET AND FINANCING
By the end of March 2010 the Group balance sheet totaled EUR 97.8 million (EUR
119.7 million). By the turn of the year the balance sheet total was EUR 97.0
million. The majority of Larox's external loan portfolio has been re-organized
by Outotec's internal financing. The external quarantees of the loans have been
released. The Group's net financing costs totaled EUR 0.2 million (EUR 0.4
million), i.e. 0.7% (0.8%) of the net sales. Net cash flow from operating
activities was negative being EUR -2.1 million (EUR -1.5 million). The equity
ratio was 33.2 % (30.1 %) and at the end of the previous financial year (31
December 2009) it was 30.4 %.
INVESTMENTS
Larox Group's investments totaled EUR 0.7 million (EUR 0.6 million) including
mainly investments in machinery and equipment in Finland.
PERSONNEL
The average number of personnel employed by the Group during the review period
was 557 (606). At the end of the review period it was 557 (606) of whom 256
(283) worked for the parent company. The influence of the employee negotiations
and operational adjustments is not seen on the entire personnel number yet. At
the turn of the fiscal year the number of Group personnel totaled 562 and 261 in
the parent company.
CHANGES IN GROUP STRUCTURE
Following the transaction made on 19 March 2010 Larox Corporation sold to
Capillary Oy all the Flowsys Oy shares it owned, which correspond to 49% of the
entire share capital of the capital stock. The transaction totaled EUR 3.5
million and as a result of the transaction a non-recurring gain of
EUR 2.0 million sales profit is booked in other operating income of the first
quarter in Larox's income statement.
SHARES AND SHAREHOLDERS
During 1 January 2009 to 31 March 2010 trading in shares totaled 405,342,
which is 4.3 % of the total number of shares. The value of shares traded was EUR
4.1 million. During the review period the lowest share price was EUR 9.40
and the highest was EUR 10.75. The closing price of the share was EUR 9.56 and
the total market value of the shares was EUR 90.1 million. At the end of
March there were 206 shareholders.
LAROX CORPORATION ANNUAL GENERAL MEETING OF SHAREHOLDERS
The Annual General Meeting of the shareholders of Larox Corporation on 16 March
2010 confirmed the annual financial statements of the company and the Group. In
accordance with the proposal of the Board of Directors, it was decided that the
company will not pay a dividend based on the past fiscal year, ended on 31
December 2009. The annual general meeting of shareholders re-elected to the
Board of Directors the following current members: Mr. Teppo Taberman, Mr. Thomas
Franck and Mr. Matti Ruotsala and the following new members: Ms. Outi Lampela,
Mr.Vesa-Pekka Takala and Mr. Jari Rosendal. Mr. Jari Rosendal was elected
Chairman
of the Board in the organizational meeting of the Board of Directors held
immediately after the Annual General Meeting of shareholders. The annual general
meeting of shareholders elected the auditing society KPMG Oy Ab as auditors, and
Ms. Virpi Halonen with the main responsibility for the auditing. The annual
general meeting of shareholders decided to amend the paragraph 10 in the
Articles of Association as proposed by the Board of Directors.
AUTHORIZATIONS TO THE BOARD OF DIRECTORS
The authorization to the Board of Directors to decide on the purchase of own
B-series shares was not used during the review period. The authorization by the
annual general meeting of shareholders on 26 March 2009 is for
the Board of Directors to decide on the purchase of own B-series shares in the
following way: The number of own B-series shares to be purchased is 500.000
shares at the maximum. The Board of Directors can purchase these shares only by
using the company's unrestricted shareholders' equity in public trading arranged
by Nasdaq OMX Helsinki Ltd. at fair value at the date of acquisition in a
proportion not pro rata to the shares owned by the shareholders. The
authorization is valid for 18 months from the date of the decision by the annual
meeting of shareholders.
RISKS AND UNCERTAINTY FACTORS
Risk management is part of Larox Group's management and control system. It aims
at preventing negative phenomena, support the Group strategy and ensure
continuity of its operations and the wellbeing of its personnel. According to
Larox risks management system risks are divided into the following four risk
categories: business, operational, financial risks and risk of damage.
Larox operates on a global market where global economic trends affect its
business development. However, the company is not at the mercy of changes in any
particular geographically limited market area. The recent political unrest in
sub-equatorial Africa has caused the most uncertainty in Larox's business.
The global economic recession has affected also Larox's business operations due
to the fact that the recession has decreased Larox's customers' investments and
other operational volumes when at the same time it has pushed some of Larox's
customers to start cost saving measures. Due to these reasons, competition has
further increased.
There are certain branches of industry in Larox's clientele where less effect
of the economic crisis has been noticed, such as the food and pharmaceutical
industries. Similarly there is less effect in China and India.
Larox manages risks related to purchasing and manufacturing already at contract
level by tying raw material costs to materials cost index. Furthermore Larox
inspects and controls its subcontractors even more than before in accordance
with quality systems and by developing logistics. In addition, Larox aims at
expanding its cooperation networks in order to avoid excessive dependencies on
key-suppliers. Larox improves also possibilities for product technology
transfers by creating and documenting the processes for more secured world-wide
technology transfers.
Due to the economic recession, skilled personnel are now more readily available.
Larox attempts to tackle other personnel-related challenges by training the
personnel and by creating various types of incentive bonus and motivation
schemes.
As a global company, Larox also faces risks associated with the reliability of
IT systems and data security. Larox fights off these risks by using reliable
contract partners and by training employees.
The uncertainty about the financial situation of customer companies increases
Larox's credit loss risk, too. Larox attempts to control these risks
by applying more suitable payment terms, by monitoring operations actively and
by reacting to payment delays more efficiently.
The euro, U.S. dollar, Australian dollar and South African rand are Larox's
main invoicing currencies. Larox's principal buying currency is the euro. Larox
fights off currency risks by means of various protective measures.
Larox manages its liquidity risk by means of efficient cash management. Larox's
liquidity and funding risks have considerably decreased during the first quarter
of 2010 as the majority of the external loan portfolio has been replaced by
internal financing within Outotec Group. Larox has also other financing reserves
in use to secure liquidity.
Larox has also strengthened collection of receivables and internal reporting.
All these measures have improved the company's liquidity during the first
quarter of 2010.
Margins of the loans of Larox decreased during the first quarter of 2010. Also
the average interest rate of the loans decreased mainly thanks to the fact that
the majority of the loans have been replaced by internal loans within Outotec
Group.
Larox fights off the risk of damage by following various occupational health
and safety schemes and by preparing other strategies and plans for business
premises. At Larox, traffic and other accidents and illnesses during
business trips pose the greatest risk of damage.
Further information about risks and risk management is presented in the Group's
Internet pages (www.larox.com)in the section of Corporate Governance.
OUTLOOK FOR THE REST OF THE YEAR
The situation in world economy causes still uncertainty in Larox's business
operations despite the fact that during the last few months the markets have
indicated some signs of recovery in new equipment and after market service
business orders.
It is expected that relative profitability will improve from previous year.
Larox estimates that Larox-Outotec integration will start during the third
quarter after the finalization of Outotec's redemption process.
Being a part of Outotec will open Larox new possibilities to develop products
and increase the sales of filter solutions and after market services.
Lappeenranta on 23 April 2010
Larox Corporation
Board of Directors
For further information please contact
Mr. Juhana Ylikojola
President & CEO
Tel +358 (0) 207 687 266
Fax +358 (0) 207 687 439
E-mail juhana.ylikojola@larox.com
Internet www.larox.com
Distribution: NASDAQ OMX Helsinki Ltd, central media
www.larox.com
NOTES TO THE INTERIM REPORT
This interim report has been prepared in accordance with IFRS recognition and
measurement principles. The review is prepared in accordance with IAS 34 Interim
Financial Reporting -standard. Larox has applied the same accounting principles
in this Annual Report as in Annual Report 2009. Reversed or new standards or
interpretations, effective from the beginning of 2010, have no material impact
on the financial statement of the Group.
The preparation of the financial statements in accordance with IFRS requires the
use of estimates and assumptions that affect the reported amounts of assets and
liabilities and the reported amounts of income and expenses during the reporting
period. The estimates are based on management's best knowledge of current events
and actions but actual results may differ from these estimates.
All below figures in the financial statements have been adjusted and therefore
the added sum of individual figures may differ from the presented added figure.
Annual reporting information included in this release is unaudited.
--------------------------------------------------------------------------------
| INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
| 1 000 EUR | 1-3/2010 | 1-3/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 31 213 | 43 292 | 150 170 |
--------------------------------------------------------------------------------
| Other operating income | 2 065 | 478 | 1 042 |
--------------------------------------------------------------------------------
| Materials | -12 124 | -21 063 | -70 357 |
--------------------------------------------------------------------------------
| External services | -2 093 | -2 194 | -8 127 |
--------------------------------------------------------------------------------
| Employee benefits expense | -8 899 | -9 674 | -41 501 |
--------------------------------------------------------------------------------
| Depreciation, amortization & | -1 207 | -1 001 | -4 217 |
| impairment losses | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -7 015 | -6 736 | -28 831 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 1 940 | 3 103 | -1 820 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 494 | 325 | 1 346 |
--------------------------------------------------------------------------------
| Financial expenses | -712 | -655 | -2 180 |
--------------------------------------------------------------------------------
| Share of profit/loss in | 0 | -30 | -58 |
| associates | | | |
--------------------------------------------------------------------------------
| PROFIT/LOSS BEFORE TAX | 1 722 | 2 743 | -2 713 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax expense | 70 | -823 | -3 779 |
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE PERIOD | 1 792 | 1 919 | -6 492 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | 1 792 | 1 919 | -6 492 |
| attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share attributable | | | |
| to equity holders of the parent | | | |
| company | | | |
--------------------------------------------------------------------------------
| EPS basic (EUR) | 0.19 | 0.20 | -0.69 |
--------------------------------------------------------------------------------
| EPS diluted (EUR) | 0.19 | 0.20 | -0.69 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF COMPREHENSIVE | 1-3/2010 | 1-3/2009 | 1-12/2009 |
| INCOME | | | |
--------------------------------------------------------------------------------
| 1 000 EUR | | | |
--------------------------------------------------------------------------------
| Profit for the period | 1 792 | 1 919 | -6 492 |
--------------------------------------------------------------------------------
| OTHER COMPREHENSIVE INCOME | | | |
--------------------------------------------------------------------------------
| Gains/ losses recognized | | | |
| directly in equity | | | |
--------------------------------------------------------------------------------
| Cash flow hedges excluding | -101 | 10 | 248 |
| taxes,(taxes 1-3/2010 -35, | | | |
| 1-3/2009 4, 1-12/2009 87) | | | |
--------------------------------------------------------------------------------
| Currency translation | 815 | 575 | 1 569 |
| differences | | | |
--------------------------------------------------------------------------------
| Total other comprehensive | 714 | 585 | 1 817 |
| income | | | |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR | 2 506 | 2 505 | -4 675 |
| THE PERIOD | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | 2 506 | 2 505 | -4 675 |
| attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF FINANCIAL POSITION, | | | |
| IFRS | | | |
--------------------------------------------------------------------------------
| 1 000 EUR | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible asssets | 16 922 | 18 776 | 17 433 |
--------------------------------------------------------------------------------
| Goodwill | 3 335 | 2 946 | 3 206 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 13 173 | 11 585 | 12 933 |
--------------------------------------------------------------------------------
| Investments in associates | 0 | 1 762 | 0 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 23 | 23 | 23 |
--------------------------------------------------------------------------------
| Deferred tax asset | 2 194 | 5 113 | 1 796 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 35 646 | 40 204 | 35 391 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSET | | | |
--------------------------------------------------------------------------------
| Inventories | 23 493 | 27 998 | 22 814 |
--------------------------------------------------------------------------------
| Trade receivables and other | 34 899 | 47 678 | 35 049 |
| receivables | | | |
--------------------------------------------------------------------------------
| Current tax assets | 835 | 1 019 | 641 |
--------------------------------------------------------------------------------
| Cash and bank | 2 949 | 2 830 | 1 535 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSET | 62 176 | 79 526 | 60 039 |
--------------------------------------------------------------------------------
| Non-current Assets Held for Sale | 0 | 0 | 1 528 |
--------------------------------------------------------------------------------
| TOTAL ASSET | 97 822 | 119 730 | 96 958 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Share capital | 5 629 | 5 629 | 5 629 |
--------------------------------------------------------------------------------
| Share premium account | 5 777 | 5 777 | 5 777 |
--------------------------------------------------------------------------------
| Other reserves | -62 | -198 | 39 |
--------------------------------------------------------------------------------
| Translation differences | -191 | -107 | -381 |
--------------------------------------------------------------------------------
| Retained earnings | 20 030 | 24 489 | 17 612 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 31 183 | 35 590 | 28 676 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 559 | 4 692 | 1 674 |
--------------------------------------------------------------------------------
| Long term financial liabilities | 5 254 | 11 176 | 10 552 |
--------------------------------------------------------------------------------
| Employee benefit obligations | 606 | 631 | 596 |
--------------------------------------------------------------------------------
| Non-current provisions | 1 287 | 2 069 | 1 353 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES | 7 705 | 18 568 | 14 175 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Short term financial liabilities | 29 954 | 30 428 | 24 025 |
--------------------------------------------------------------------------------
| Trade payables and other payables | 19 899 | 33 279 | 21 722 |
--------------------------------------------------------------------------------
| Current tax liabilities | 2 773 | 511 | 2 082 |
--------------------------------------------------------------------------------
| Current provisions | 6 308 | 1 354 | 6 278 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 58 934 | 65 572 | 54 107 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 97 822 | 119 730 | 96 958 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOW, IFRS | | | |
--------------------------------------------------------------------------------
| 1 000 EUR | 1-3/2010 | 1-3/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit/loss | 1 792 | 1 919 | -6 492 |
--------------------------------------------------------------------------------
| Adjustments to the net | -617 | 2 184 | 8 889 |
| profit/loss of the period | | | |
--------------------------------------------------------------------------------
| Change in working capital | -2 662 | -5 803 | 10 039 |
--------------------------------------------------------------------------------
| Interest paid | -299 | -407 | -1 293 |
--------------------------------------------------------------------------------
| Interest income received | 10 | 179 | 302 |
--------------------------------------------------------------------------------
| Other financing items | 12 | -25 | -273 |
--------------------------------------------------------------------------------
| Income taxes paid | -302 | 450 | -1 118 |
--------------------------------------------------------------------------------
| Net cash from operating | -2 065 | -1 503 | 10 054 |
| activities | | | |
--------------------------------------------------------------------------------
| Net cash used in investment | -744 | -633 | -3 930 |
| activities | | | |
--------------------------------------------------------------------------------
| Sales of the associated company | 3 500 | 0 | 0 |
--------------------------------------------------------------------------------
| Increase in loans | 33 400 | 5 850 | 22 877 |
--------------------------------------------------------------------------------
| Decrease in loans | -32 729 | -2 585 | -26 446 |
--------------------------------------------------------------------------------
| Repayment of finance lease | -9 | -13 | -73 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | 0 | -2 814 |
--------------------------------------------------------------------------------
| Net cash used in financing | 662 | 3 252 | -6 457 |
| activities | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | 1 352 | 1 116 | -333 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Operating balance of cash and | 1 535 | 1 661 | 1 661 |
| cash equivalents | | | |
--------------------------------------------------------------------------------
| Effect of the foreign exchange | 62 | 53 | 207 |
| rates | | | |
--------------------------------------------------------------------------------
| Closing balance of cash and cash | 2 949 | 2 830 | 1 535 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
| 1-3/2009 | | |
--------------------------------------------------------------------------------
| 1 000 EUR | Share | Share | Hedging | Trans | Retain | Total |
| | cap | issue | res. | ation | e | |
| | ital | premiu | | diff. | d | |
| | | m | | | ear | |
| | | | | | ning | |
| | | | | | s | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY |
--------------------------------------------------------------------------------
| 1.JAN 2009 |
--------------------------------------------------------------------------------
| | 5 629 | 5 777 | -208 | -205 | 24 777 | 35 770 |
--------------------------------------------------------------------------------
| Dividend | | | | | -2 814 | -2 814 |
| distribution | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | 130 | 130 |
| payments | | | | | | |
--------------------------------------------------------------------------------
| Total other | | | 10 | 98 | 2 397 | 2 505 |
| Comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY |
--------------------------------------------------------------------------------
| 31 MAR 2009 |
--------------------------------------------------------------------------------
| | 5 629 | 5 777 | -198 | -107 | 24 490 | 35 590 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
| 1-3/2010 | | |
--------------------------------------------------------------------------------
| 1 000 EUR | Share | Share | Hedging | Trans | Retain | Total |
| | cap | issue | res. | ation | e | |
| | ital | premiu | | diff. | d | |
| | | m | | | ear | |
| | | | | | ning | |
| | | | | | s | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY |
--------------------------------------------------------------------------------
| 1.JAN 2009 |
--------------------------------------------------------------------------------
| | 5 629 | 5 777 | 39 | -381 | 17 612 | 28 676 |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | 0 |
| distribution | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | 0 | 0 |
| payments | | | | | | |
--------------------------------------------------------------------------------
| Total other | | | -101 | 190 | 2 417 | 2 506 |
| Comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY |
--------------------------------------------------------------------------------
| 31 MAR 2010 |
--------------------------------------------------------------------------------
| | 5 629 | 5 777 | -62 | -191 | 20 029 | 31 183 |
--------------------------------------------------------------------------------
KEY RATIOS OF LAROX GROUP
--------------------------------------------------------------------------------
| 1 000 EUR | 1-3/2010 | 1-3/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New orders | 40 109 | 27 982 | 109 072 |
--------------------------------------------------------------------------------
| Group order backlog, end of the | 42 885 | 57 029 | 33 418 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 31 213 | 43 292 | 150 170 |
--------------------------------------------------------------------------------
| Operating profit | 1 940 | 3 103 | -1 820 |
--------------------------------------------------------------------------------
| % of net sales | 6.2 | 7.2 | -1.2 |
--------------------------------------------------------------------------------
| Net financing costs | 218 | 360 | 893 |
--------------------------------------------------------------------------------
| % of net sales | 0.7 | 0.8 | 0.6 |
--------------------------------------------------------------------------------
| Result before taxes | 1 722 | 2 743 | 2 713 |
--------------------------------------------------------------------------------
| Result for the period | 1 792 | 1 919 | -6 492 |
--------------------------------------------------------------------------------
| EPS basic and diluted (EUR) | 0.19 | 0.20 | -0.69 |
--------------------------------------------------------------------------------
| Investments | 744 | 633 | 4 307 |
--------------------------------------------------------------------------------
| Shareholders' equity per share at the | 3.31 | 3.79 | 3.04 |
| end of the period (EUR) | | | |
--------------------------------------------------------------------------------
| Equity ration % | 33.2 | 30.1 | 30.4 |
--------------------------------------------------------------------------------
| Contingent liabilities (EUR million) | 10.2 | 44.4 | 43.8 |
--------------------------------------------------------------------------------
| Trading price at the end of period, | 9.56 | 6.01 | 9.70 |
| (EUR) | | | |
--------------------------------------------------------------------------------
| Market capitalization at the end of | | | |
| period, | | | |
--------------------------------------------------------------------------------
| EUR million *) | 90.1 | 56.4 | 91.4 |
--------------------------------------------------------------------------------
| Personnel, average | 557 | 606 | 584 |
--------------------------------------------------------------------------------
| Personnel at the end of the period | 557 | 606 | 562 |
--------------------------------------------------------------------------------
| Net sales/employer | 56 | 71 | 257 |
--------------------------------------------------------------------------------
*) The price of the A share is based on the B share's last trading rate of the
reporting period (weighted average).
KEY FIGURES BY QUARTERS
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| 1 000 EUR | 1-3 | 10-12 | 7-9 | 4-6 | 1-3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New orders | 40 109 | 30 349 | 27 049 | 23 694 | 27 982 |
--------------------------------------------------------------------------------
| Group order backlog | 42 885 | 33 418 | 36 582 | 40 535 | 57 029 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 31 213 | 34 164 | 31 945 | 40 768 | 43 292 |
--------------------------------------------------------------------------------
| Operating profit | 1 940 | -1 158 | -4 256 | 490 | 3 103 |
--------------------------------------------------------------------------------
| % of net sales | 6.2 | -3.4 | -13.3 | 1.2 | 7.2 |
--------------------------------------------------------------------------------
| Net financing costs | 218 | 238 | 120 | 174 | 360 |
--------------------------------------------------------------------------------
| % of net sales | 0.7 | 0.7 | 0.4 | 0.4 | 0.8 |
--------------------------------------------------------------------------------
| Result before taxes | 1 722 | -1 396 | -4.375 | 315 | 2 743 |
--------------------------------------------------------------------------------
| Result for the | 1 792 | -5 262 | -3.285 | 135 | 1 919 |
| quarter | | | | | |
--------------------------------------------------------------------------------
| EPS basic and diluted | -0.56 | -0.35 | 0.01 | 0.20 |
| 0.19 | | | | |
--------------------------------------------------------------------------------
DIVIDEND FROM THE YEAR 2009
Based on the resolution of the annual general meeting of shareholders held
on 26 March 2010 no dividend is paid from 2009 result.
INVESTMENTS
--------------------------------------------------------------------------------
| Property, plant and equipment | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Aquisition cost | 35 986 | 32 762 | 32 762 |
--------------------------------------------------------------------------------
| Translation differences | 479 | -43 | 165 |
--------------------------------------------------------------------------------
| Additions | 542 | 829 | 3 283 |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | -224 |
--------------------------------------------------------------------------------
| Acquisition cost | 37 007 | 33 548 | 35 986 |
--------------------------------------------------------------------------------
| Cumulative depreciations | -23 053 | -21 380 | -21 380 |
--------------------------------------------------------------------------------
| Translation differences | -288 | -207 | -25 |
--------------------------------------------------------------------------------
| Depreciation for the period | -493 | -376 | -1 648 |
--------------------------------------------------------------------------------
| Cumul depr, end of period | -23 834 | -21 963 | -23 053 |
--------------------------------------------------------------------------------
| Carrying value, end of period | 13 173 | 11 585 | 12 933 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Intangible assets (excluding | | | |
| goodwill) | | | |
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost | 33 507 | 32 488 | 32 488 |
--------------------------------------------------------------------------------
| Translation differences | 0 | 17 | 15 |
--------------------------------------------------------------------------------
| Additions | 202 | 408 | 1 004 |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Acquisit. cost, end of period | 33 709 | 32 913 | 33 507 |
--------------------------------------------------------------------------------
| Cumulative depreciations | -16 074 | -13 490 | -13 490 |
--------------------------------------------------------------------------------
| Translation differences | 0 | -23 | -15 |
--------------------------------------------------------------------------------
| Depreciation for the period | -714 | -625 | -2 569 |
--------------------------------------------------------------------------------
| Cumul depr, end of period | -16 788 | -14 138 | -16 074 |
--------------------------------------------------------------------------------
| Carrying value, end of period | 16 922 | 18 775 | 17 433 |
--------------------------------------------------------------------------------
Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker who is responsible for
allocating resources and assessing performance of the segment. The chief
operating decision maker of Larox Group has been identified as the CEO of Larox
Group.
Business operations of Larox Group are managed as one operational entity, solid
liquid separation. The segment is based on customer life-cycle model.
--------------------------------------------------------------------------------
| Solid and liquid separation | | | |
--------------------------------------------------------------------------------
| 1 000 EUR | 1.1.-31.3.20 | 1.1.-31.3.20 | 1.1.-31.12.200 |
| | 10 | 09 | 9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 30 791 | 43 767 | 150 169 |
--------------------------------------------------------------------------------
| Net sales of Aftermarket | 19 618 | 17 952 | 79 187 |
| Sales | | | |
--------------------------------------------------------------------------------
| Share of Net Sales of | 64 % | 41 % | 53 % |
| Aftermarket Sales | | | |
| % from | | | |
| Total Net Sales | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 1 975 | 3 131 | -1 976 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit % | 6.4 % | 7.2 % | -1.3 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit / loss before taxes | 1 744 | 2 787 | -2 809 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reconciliations between segment information and IFRS figures are presented |
| below |
--------------------------------------------------------------------------------
| 1 000 EUR | | | |
--------------------------------------------------------------------------------
| 1.1.-31.3.2010 | Segment | Non | IFRS |
| | info | allocated | |
| | rmation | am | |
| | | ounts *) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 30 791 | 422 | 31 213 |
--------------------------------------------------------------------------------
| Operating profit | 1 975 | -35 | 1 940 |
--------------------------------------------------------------------------------
| Profit / loss before taxes | 1 744 | -22 | 1 722 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1.1.-31.3.2009 | Segment | Non | IFRS |
| | info | allocated | |
| | rmation | am | |
| | | ounts *) | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Net sales | 43 767 | -475 | 43 292 |
--------------------------------------------------------------------------------
| Operating profit | 3 131 | -28 | 3 103 |
--------------------------------------------------------------------------------
| Profit / loss before taxes | 2 787 | -44 | 2 743 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1.1.-31.12.2009 | Segment | Non | IFRS |
| | info | allocated | |
| | rmation | am | |
| | | ounts *) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 150 169 | 1 | 150 170 |
--------------------------------------------------------------------------------
| Operating profit | -1 976 | 155 | -1 820 |
--------------------------------------------------------------------------------
| Profit / loss before taxes | -2 809 | 95 | -2 713 |
--------------------------------------------------------------------------------
*) Unallocated amounts consist mainly on financial lease, hedging accounting and
foreign exchange rate differences. Internal reporting is not calculated
according to IAS 17, IAS 32 or IAS 39 standards in above reported amounts.
Commitments and contingencies
--------------------------------------------------------------------------------
| Loans secured by real estate and corporate | | |
| mortgages | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 000 EUR | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Pension loans | | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 0 | 41 422 | 34 431 |
--------------------------------------------------------------------------------
| Other loans | | | |
--------------------------------------------------------------------------------
| Total | 0 | 41 422 | 34 431 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Real estate mortgages | 0 | 6 560 | 6 560 |
| | | | |
--------------------------------------------------------------------------------
| Corporate mortgages, general | 0 | 3 936 | 3 936 |
| pledging | | | |
--------------------------------------------------------------------------------
| Corporate mortgages, specific | 0 | 9 062 | 9 062 |
| pledging | | | |
--------------------------------------------------------------------------------
| Total | 0 | 19 558 | 19 558 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Guarantees for others | | | |
--------------------------------------------------------------------------------
| Pledged securities *) | 0 | 13 511 | 13 511 |
--------------------------------------------------------------------------------
| Others | 166 | 161 | 155 |
--------------------------------------------------------------------------------
| Total | 166 | 13 672 | 13 666 |
--------------------------------------------------------------------------------
| *) Book value of secured shares | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other liabilities | | | |
--------------------------------------------------------------------------------
| Operating lease liabilities 1 000 | 849 | 993 | 1 094 |
| EUR | | | |
--------------------------------------------------------------------------------
| Lease liabilities 1 000 EUR | 9 224 | 9 784 | 9 551 |
--------------------------------------------------------------------------------
The majority of Larox's external loan portfolio has been re-organized by
Outotec's internal financing. The external quarantees of the loans have been
released.
Fair and nominal values of derivative instruments
--------------------------------------------------------------------------------
| 1 000 EUR | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency derivatives: | 13 035 | 868 | 13 797 |
--------------------------------------------------------------------------------
| Currency options | 8 603 | 7 390 | 3 481 |
--------------------------------------------------------------------------------
| Forward contracts | | | |
--------------------------------------------------------------------------------
| Fair value | -209 | -209 | -42 |
--------------------------------------------------------------------------------
| Nominal value | 21 638 | 8 258 | 17 278 |
--------------------------------------------------------------------------------
Related party transactions
--------------------------------------------------------------------------------
| 1 000 EUR | 1.1.-31.3.2010 | 1.1.-31.3.200 | 1.1.-31.12.200 |
| | | 9 | 9 |
--------------------------------------------------------------------------------
| Transactions with Outotec | | | |
| Group | | | |
--------------------------------------------------------------------------------
| Sales of goods and | 644 | 0 | 0 |
| services | | | |
--------------------------------------------------------------------------------
| Purchases of goods and | 95 | 0 | 0 |
| services | | | |
--------------------------------------------------------------------------------
| Financing expenses | 69 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Advances paid | 0 | 0 | 75 |
--------------------------------------------------------------------------------
| Trade receivables | 314 | 0 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Short-term financing | 25 500 | 0 | 0 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Advances received | 76 | 0 | 386 |
--------------------------------------------------------------------------------
| Trade payables and other | 121 | 0 | 303 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Accrued expenses | 69 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 000 EUR | 1.1.-31.3.2010 | 1.1.-31.3.200 | 1.1.-31.12.200 |
| | | 9 | 9 |
--------------------------------------------------------------------------------
| Transactions with | | | |
| associated | | | |
--------------------------------------------------------------------------------
| Companies | | | |
--------------------------------------------------------------------------------
| Sales of goods and | 3 | 5 | 15 |
| services | | | |
--------------------------------------------------------------------------------
| Purchases of goods and | 719 | 492 | 2 736 |
| services | | | |
--------------------------------------------------------------------------------
| Other transactions with | | | |
| related | | | |
--------------------------------------------------------------------------------
| Parties | | | |
--------------------------------------------------------------------------------
| Purchases of services | 10 | 10 | 20 |
--------------------------------------------------------------------------------
| Balances with associated | | | |
| companies | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trade receivables | 0 | 9 | 16 |
--------------------------------------------------------------------------------
| Other receivables | 0 | 124 | |
--------------------------------------------------------------------------------
| Trade payables | 0 | 716 | 236 |
--------------------------------------------------------------------------------
*) Includes transactions with Larox Flowsys Group until 19.3.2010.
CALCULATION OF KEY FIGURES
Equity ratio, % =
Shareholders' equity
--------------------------------- x 100
Total assets - advances received
Earnings per share =
Net profit
---------------------------------
Adjusted average number of shares
during the period
Market capitalization at the end of the period =
Number of shares at the end of the period x trading price at the end of the
period weighted by the number of shares traded
Larox develops, designs and manufactures industrial filters and is a
leading technology company in its field. Larox is a full service solution
provider in filtration for separating solids from liquids. It supplies
comprehensive aftermarket services throughout the lifespan of the Larox
solution. Companies world-wide in mining and metallurgy, chemical processing
and related industries benefit from the Larox technologies. Larox operates
in over 40 countries and has over 600 employees. Larox has assembly shops
in Finland and in China, and the Group is headquartered in
Lappeenranta, Finland. Net sales in 2009 totaled 150.2 million euros, of which
more than 93 % were generated by exports and the company's foreign operations.
Larox is a subsidiary of Outotec.
www.larox.com/investors
Distribution NASDAQ OMX Helsinki Ltd., central media
