INTERIM REPORT OF NORDIC ALUMINIUM PLC Jan 1 - June 30, 2010
Net sales of Nordic Aluminium were EUR 36.72 million (EUR 33.23 million year
2009). Earnings per share were EUR 1.32 (EUR 0.50). The operating profit for the
period was EUR 8.47 million (EUR 3.22 million) and the net profit was EUR 6.40
million (EUR 2.41 million).
Net sales and profitability
The net sales of Nordic Aluminium accounted for EUR 36.72 million (EUR 33.23
million). Profitability improved considerably. The operating profit was EUR 8.47
million (EUR 3.22 million), thereby consistent with the objectives. In
accordance with the new model of activity the Company has increased its core
business turnover during the period. The Company's core business includes
electro technical products, as well as highly refined aluminium component
manufacturing.
International operations and export accounted for EUR 18.07 million (EUR 14.15
million), which is 49 per cent of the net sales (43 per cent).
The order backlog is EUR 4.85 million. Due to the new model of activity, it is
lower than in the previous year (EUR 5.85 million).
Profits
The operating profit of Nordic Aluminium amounted to EUR 8,47 million (EUR 3.22
million). Earnings per share for the period were EUR 1.32 (EUR 0.50).
Second quarter in a nutshell
Net sales of Nordic Aluminium during April-June 2010 were EUR 19.78 million (EUR
16.10 million, April-June 2009). Earnings per share were EUR 0.83 (EUR 0.30).
The operating profit for the period was EUR 5.36 million (EUR 2.00 million).
Seasonality of sales and profit
Seasonal fluctuations are not significant in general. However, the concentration
of holidays to July 2010 has an effect on how sales and earnings will spread
over the second and third quarter.
Investments
The gross capital expenditures for the period were EUR 0.47 million (EUR 4.92
million).
Personnel
During the first six months of 2010 the average number of employees in the
Nordic Aluminium Group was 151 (251). At the end of the period the number of
employees was 162 (239).
Risks
Main business risks are related to the uncertainty in the development of the
world economy and its influence on market demand.
Shares
The shares of Nordic Aluminium Plc are traded at the Helsinki Exchanges. The
trading identifier is NOA1V and the ISIN code is FI0009006415. During the first
six months of the year 2010 a number of 244,241 shares were traded with EUR 4.53
million. The share quotation ranged between EUR 14.94 and EUR 21.89. The number
of shares was 4,836,882 which remained unchanged during the reporting period.
The market value of the company's shares stood at EUR 90.9 million (EUR 62.4
million) at the end of June.
Dividend from the financial year 2009 was EUR 1.30 per share, amounting to EUR
6,287,946.60.
Ownership
There were no significant changes in the ownership during the period (1-6/2010).
Outlook
Demand for the company's products has clearly revived as a result of improved
market views, and as the company sees it the situation is gradually returning to
normal.The company will continue to comply with the new model of activity, thus
concentrate on manufacturing highly refined aluminium components.
The Board will carefully monitor the productivity development in order to ensure
that the company's profitability and competitiveness will remain at a high
level.
We still believe that the current year net sales will grow moderately compared
to 2009, and that the level of operating income will grow substantially from the
previous year. The company's cash flow will also improve significantly, despite
the payment of high dividends.
The above mentioned predictions are based on the company's management's best
view of the company's condition and market outlook.
Disclaimer
This release contains certain forward-looking statements that reflect the
current views of the company's management. Due to the nature of these
statements, they contain risks and uncertainties and are subject to changes in
the general economic situation and in the company's business sector.
Accounting policies
These presented interim financial statements have been prepared in accordance
with IAS34 Interim Financial Reporting. Nordic Aluminium applies the same
accounting policies as are applied in 2009 annual financial statements.
The financial information is prepared in accordance with international financial
reporting standards IFRS.
While the group has only one primary business segment, "Aluminium products",
which is equal to the official consolidated income statement and profit and loss
account, the interim report do not include separate information over the group's
primary business segment.
The key figures in this interim financial report are calculated with same
accounting principles than in year 2009 annual financial statement. The
calculation rules of key figures are presented in the financial statements
bulletin of the previous year.
The figures presented in the tables below have been rounded to two decimals,
which should be taken into account when reading the sum figures.
The interim report has not been subject to audit.
CONSOLIDATED INCOME STATEMENT
EUR million 4-6/10 % 4-6/09 % 1-6/10 % 1-6/09 %
1-12/09
Net sales 19,78 16,10 36,72 33,23 62,24
Other operating income 0,07 0,02 0,07 0,03 0,04
Increase(+) or decrease(-)
finished goods and
work in progress 1,00 -0,28 0,15 -1,38 -1,38
Raw materials and
consumables -9,72 -7,44 -16,84 -15,41 -30,21
Personnel expenses -1,79 -2,99 -3,78 -6,33 -12,56
Depreciation and
reduction of value -1,21 -1,15 -2,43 -2,26 -4,62
Other operating expenses -2,77 -2,26 -5,42 -4,67 -9,37
Operating profit 5,36 14,6 2,00 12,4 8,47 23,1 3,22 9,7 4,14
6,7
Financial items 0,11 -0,04 0,20 0,02 0,06
Profit before taxes 5,47 14,9 1,96 12,2 8,67 23,6 3,24 9,8 4,20
6,7
Income taxes -1,46 -0,52 -2,27 -0,83 -1,15
Net profit for the period 4,01 10,9 1,44 8,9 6,40 17,4 2,41 7,3 3,05
4,9
Profit attributable to:
Owners of the parent 4,01 10,9 1,44 8,9 6,40 17,4 2,41 7,3 3,05
4,9
Minority interest 0,00 0,00 0,00 0,00 0,00
Other comprehensive income:
Conversion difference 0,10 -0,03 0,16 -0,01 0,01
Total comprehensive income
attributable to:
Owners of the parent 4,12 11,2 1,41 8,8 6,56 17,9 2,40 7,2 3,06
4,9
Minority interest 0,00 0,00 0,00 0,00 0,00
Basic and diluted
earnings per share, EUR 0,83 0,30 1,32 0,50 0,63
CONSOLIDATED BALANCE SHEET
EUR million June 30, June 30, Dec 31,
2010 2009 2009
Non-current assets
Tangible assets 25,83 27,80 27,54
Goodwill 2,25 2,25 2,25
Intangible assets 1,19 1,67 1,48
Tradable financial assets 0,02 0,02 0,02
Other financial assets 0,00 0,00 0,00
Deferred tax liabilities 0,12 0,09 0,09
Total 29,41 31,83 31,38
Current assets
Inventories 6,67 6,46 6,42
Accounts receivable and other
current assets 14,55 10,16 8,81
Advance payments 0,04 0,10 0,06
Cash in hand and at banks 7,89 6,96 9,51
Total 29,15 23,69 24,79
Total assets 58,56 55,52 56,17
EUR million June 30, June 30, Dec 31,
2010 2009 2009
Shareholders' equity and liabilities
Equity
Shareholders' equity 6,19 6,19 6,19
Share premium account 3,45 3,45 3,45
Conversion difference -0,11 -0,29 -0,27
Retained earnings 38,14 37,39 38,03
Shareholders' equity:
Owners of the parent 47,68 46,75 47,41
Minority interest 0,00 0,00 0,00
Total 47,68 46,75 47,41
Long-term liabilities
Deferred tax liabilities 2,89 1,76 2,86
Provisions 0,07 0,07 0,27
Interest bearing liabilities 0,04 0,09 0,07
Total 3,00 1,92 3,20
Short-term liabilities
Accounts payable 7,83 6,83 5,53
Provisions 0,00 0,00 0,00
Short-term interest
bearing liabilities 0,05 0,02 0,03
Total 7,88 6,86 5,56
Total liabilities 10,88 8,77 8,76
Total shareholders' equity and
liabilities 58,56 55,52 56,17
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 4-6/10 4-6/09 1-6/10 1-6/09 1-12/09
Cash flow from operations
Net profit (loss) 4,02 1,44 6,40 2,41 3,05
Corrections
Depr, according to plan 1,21 1,15 2,43 2,26 4,62
Financial items -0,11 0,04 -0,20 -0,02 -0,06
Taxes 1,48 0,52 2,30 0,83 1,15
Cash flow before change
in net working capital 6,60 3,14 10,93 5,47 8,77
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -1,69 2,06 -5,73 1,25 3,03
Inventories
increase(-)/decrease(+) -0,99 0,25 -0,25 1,69 1,73
Short-term interest bearing
liabilities
increase(+)/decrease(-) 1,46 -0,96 2,10 -1,10 -2,20
Total -1,23 1,35 -3,88 1,84 2,56
Cash flow from operations before
interests and taxes 5,37 4,48 7,05 7,31 11,33
Paid interests and payments for
other financial expenses 0,00 -0,06 -0,01 -0,11 -0,16
Received interests and payments
from other financial income 0,11 0,02 0,21 0,13 0,22
Paid income taxes -1,47 -0,52 -2,28 -0,83 -0,43
Cash flow from operations(A) 4,01 3,93 4,97 6,50 10,95
Cash flow from investing activities
Investments in tangible and
intangible assets -0,11 -1,42 -0,47 -4,92 -6,84
Income from sales of tangible
and intangible assets 0,03 0,00 0,03 0,00 0,00
Repayment of loan receivables 0,00 0,00 0,00 0,00 0,00
Cash flow from investments(B) -0,09 -1,42 -0,45 -4,92 -6,84
Cash flow from financial items
Rights issue 0,00 0,00 0,00 0,00 0,00
Withdrawals of
short-term loans 0,03 0,00 0,05 0,00 0,00
Amortization of
short-term loans 0,00 -0,03 0,00 -0,03 -0,05
Withdrawals of
long-term loans 0,02 0,01 -0,06 0,01 0,01
Amortization of
long-term loans 0,00 0,00 0,00 0,00 0,00
Dividends paid -6,29 -1,93 -6,29 -1,93 -1,94
Cash flow from
financial items(C) -6,24 -1,95 -6,30 -1,95 -1,97
Change in cash flow (A+B+C) -2,32 0,57 -1,78 -0,37 2,14
Conversion difference 0,09 -0,03 0,16 -0,01 0,01
Total -2,23 0,54 -1,62 -0,38 2,15
Cash in hand and at banks
in the beginning of period 10,12 6,43 9,51 7,35 7,35
Cash in hand and at banks
in the end of period 7,89 6,96 7,89 6,96 9,50
Change -2,23 0,54 -1,62 -0,38 2,15
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Sh.pr. Convers. Retained, Total
Equity account diff. earnings equity
Equity
01.01.2009 6,19 3,45 -0,28 36,92 46,28
Comprehensive income -0,01 2,41 2,40
Earning and costs tot, 2,40
Dividends -1,93 -1,93
Equity
30.06.2009 6,19 3,45 -0,29 37,39 46,75
Equity
01.01.2010 6,19 3,45 -0,27 38,03 47,41
Comprehensive income 0,16 6,40 6,56
Earning and costs tot, 6,56
Dividends -6,29 -6,29
Warrants used 0,00
Equity
30.06.2010 6,19 3,45 -0,11 38,14 47,68
KEY FIGURES:
4-6/10 4-6/09 1-6/10 1-6/09 1-12/09
Basic and diluted
earnings per share, EUR 0,83 0,30 1,32 0,50 0,63
June 30, June 30, Dec 31,
2010 2009 2009
Equity ratio, % 81,4 84,2 84,4
Gearing, % -16,5 -14,9 -19,8
Balance sheet total, EUR million 58,56 55,52 56,17
NOTES:
June 30, June 30, Dec 31,
2010 2009 2009
Equity/share, EUR 9,86 9,67 9,80
Number of employees
at the end of the period 162 239 125
4-6/10 4-6/09 1-6/10 1-6/09 1-12/09
Average number of employees 156 217 151 251 207
Investments, EUR mill, 0,11 1,42 0,47 4,92 6,84
Geographical segments:
Net sales
EUR million 4-6/10 4-6/09 1-6/10 1-6/09 1-12/09
Finland 10,16 9,28 18,65 19,08 34,13
Other countries 9,62 6,82 18,07 14,15 28,11
Total 19,78 16,10 36,72 33,23 62,24
Taxes:
EUR million 4-6/10 4-6/09 1-6/10 1-6/09 1-12/09
Current income tax 1,47 0,51 2,28 0,83 0,04
Change in deferred income tax -0,01 0,00 -0,01 0,00 1,11
Total 1,46 0,51 2,27 0,83 1,15
Inventories:
EUR million June 30, June 30, Dec 31,
2010 2009 2009
Raw materials and consumables 1,09 1,02 0,97
Work in progress 2,99 2,37 2,96
Finished goods 2,59 3,07 2,49
Total 6,67 6,46 6,42
Interest bearing loans and borrowings:
EUR million June 30, June 30, Dec 31,
2010 2009 2009
Bank loan 0,00 0,00 0,00
Obligations under finance leases 0,05 0,11 0,10
Total 0,05 0,11 0,10
Contingent liabilities:
EUR million June 30, June 30, Dec 31,
2010 2009 2009
Consignation liability 0,28 0,22 0,33
Rental and leasing liabilities 6,33 8,60 7,44
Corporate mortgages given 0,00 0,00 0,00
Related party disclosures:
EUR million 4-6/10 4-6/09 1-6/10 1-6/09 1-12/09
Sales 2,73 1,84 5,34 3,80 7,50
Purchases 0,00 0,00 0,02 0,00 0,05
EUR million June 30, June 30, Dec 31,
2010 2009 2009
Receivables 0,67 0,03 0,02
Accounts payable 0,01 0,00 0,04
Order backlog:
EUR million June 30, June 30, Dec 31,
2010 2009 2009
4,85 5,85 4,02
Nordic Aluminium Plc publishes its nine-month Interim Report for
January-September 2010 on October 20, 2010. The company bulletins will be
published also on web-pages www.nordicaluminium.fi.
Kirkkonummi August 18, 2010
NORDIC ALUMINIUM PLC
The Board of Directors
Peter Högel
Managing Director
For further information please contact:
Managing Director Peter Högel, tel, +358 20 7660 206
Distribution:
OMX NASDAQ Helsinki
The Main Media
www,nordicaluminium,fi
NOAE0810