INTERIM REPORT OF NORDIC ALUMINIUM PLC Jan 1 - September 30, 2010
Net sales of Nordic Aluminium were EUR 53.12 million (EUR 48.48 million year
2009). Earnings per share were EUR 1.90 (EUR 0.78). The operating profit for the
period was EUR 12.29 million (EUR 5.07 million) and the net profit was EUR 9.17
million (EUR 3.75 million).
Net sales and profitability
The net sales of Nordic Aluminium accounted for EUR 53.12 million (EUR 48.48
million). Profitability improved considerably because the operating profit more
than doubled from EUR 5.07 million to EUR 12.29 million. 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 25.92 million (EUR 21.35
million), which is 49 per cent of the net sales (44 per cent).
The order backlog EUR 3.19 million is lower than in the previous year (EUR 4.29
million) due to the new model of activity and shorter delivery times.
Profits
The operating profit of Nordic Aluminium amounted to EUR 12.29 million (EUR 5.07
million). Earnings per share for the period were EUR 1.90 (EUR 0.78).
Third quarter in a nutshell
Net sales of Nordic Aluminium during July-September 2010 were EUR 16.40 million
(EUR 15.25 million, July-September 2009). Earnings per share were EUR 0.57 (EUR
0.28). The operating profit for the period was EUR 3.82 million (EUR 1.85
million).
Seasonality of sales and profit
Seasonal fluctuations are not significant in general. The concentration of
holidays to July 2010 did not have a notable effect on sales and profits.
Investments
The gross capital expenditures for the period were EUR 0.95 million (EUR 6.00
million).
Personnel
During the first nine months of 2010 the average number of employees in the
Nordic Aluminium Group was 156 (228). At the end of the period the number of
employees was 162 (182).
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
nine months of the year 2010 a number of 312,464 shares were traded with EUR
6.08 million. The share quotation ranged between EUR 14.94 and EUR 27.82. 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 130.6 million (EUR
72.4 million) at the end of September.
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 (1-9/2010).
Outlook
Demand for the company's products has revived as a result of improved market
views, and as the company sees it the demand will stay at the same level to the
end of the year. 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 7-9/10 % 7-9/09 % 1-9/10 % 1-9/09 %
1-12/09
Net sales 16,40 15,25 53,12 48,48 62,24
Other operating income 0,00 0,01 0,07 0,04 0,04
Increase(+) or decrease(-)
finished goods and
work in progress -0,62 +0,53 -0,47 -0,86 -1,38
Raw materials and
consumables -6,83 -7,55 -23,67 -22,95 -30,21
Personnel expenses -1,35 -2,91 -5,13 -9,24 -12,56
Depreciation and
reduction of value -1,16 -1,21 -3,59 -3,46 -4,62
Other operating expenses -2,62 -2,27 -8,04 -6,94 -9,37
Operating profit 3,82 23,3 1,85 12,1 12,29 23,1 5,07 10,5 4,14
6,7
Financial items -0,03 -0,01 0,17 0,01 0,06
Profit before taxes 3,79 23,1 1,84 12,1 12,46 23,5 5,08 10,5 4,20
6,7
Income taxes -1,02 -0,50 -3,29 -1,33 -1,15
Net profit for the period 2,77 16,9 1,34 8,8 9,17 17,3 3,75 7,7 3,05
4,9
Profit attributable to:
Owners of the parent 2,77 16,9 1,34 8,8 9,17 17,3 3,75 7,7 3,05
4,9
Minority interest 0,00 0,00 0,00 0,00 0,00
Other comprehensive income:
Conversion difference -0,06 0,01 0,10 0,00 0,01
Total comprehensive income
attributable to:
Owners of the parent 2,71 16,5 1,35 8,9 9,27 17,5 3,75 7,7 3,06
4,9
Minority interest 0,00 0,00 0,00 0,00 0,00
Basic and diluted
earnings per share, EUR 0,57 0,28 1,90 0,78 0,63
CONSOLIDATED BALANCE SHEET
EUR million Sept 30, Sept 30, Dec 31,
2010 2009 2009
Non-current assets
Tangible assets 25,28 27,80 27,54
Goodwill 2,25 2,25 2,25
Intangible assets 1,07 1,52 1,48
Tradable financial assets 0,02 0,02 0,02
Deferred tax liabilities 0,10 0,10 0,09
Total 28,72 31,68 31,38
Current assets
Inventories 5,97 7,26 6,42
Accounts receivable and other
current assets 14,61 10,86 8,81
Advance payments 0,04 0,14 0,06
Cash in hand and at banks 12,81 7,13 9,51
Total 33,43 25,38 24,79
Total assets 62,14 57,07 56,17
EUR million Sept 30, Sept 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 -0,17 -0,28 -0,27
Retained earnings 40,91 38,73 38,03
Shareholders' equity:
Owners of the parent 50,39 48,10 47,41
Total 50,39 48,10 47,41
Long-term liabilities
Deferred tax liabilities 2,88 1,76 2,86
Provisions 0,07 0,07 0,27
Interest bearing liabilities 0,01 0,10 0,07
Total 2,97 1,93 3,20
Short-term liabilities
Accounts payable 8,71 7,03 5,53
Short-term interest
bearing liabilities 0,07 0,01 0,03
Total 8,78 7,04 5,56
Total liabilities 11,75 8,97 8,76
Total shareholders' equity and
liabilities 62,14 57,07 56,17
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 7-9/10 7-9/09 1-9/10 1-9/09 1-12/09
Cash flow from operations
Net profit (loss) 2,77 1,35 9,17 3,75 3,05
Corrections
Depr, according to plan 1,16 1,21 3,59 3,46 4,62
Financial items 0,03 0,03 -0,17 0,01 -0,06
Taxes 1,00 0,51 3,30 1,34 1,15
Cash flow before change
in net working capital 4,96 3,09 15,89 8,56 8,77
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -0,05 -0,74 -5,78 0,51 3,03
Inventories
increase(-)/decrease(+) 0,70 -0,81 0,45 0,88 1,73
Short-term interest bearing
liabilities
increase(+)/decrease(-) 0,88 0,20 2,98 -0,90 -2,20
Total 1,53 -1,35 -2,35 0,49 2,56
Cash flow from operations before
interests and taxes 6,49 1,74 13,54 9,05 11,33
Paid interests and payments for
other financial expenses -0,10 -0,03 -0,11 -0,14 -0,16
Received interests and payments
from other financial income 0,07 0,02 0,28 0,15 0,22
Paid income taxes -1,00 -0,50 -3,28 -1,33 -0,43
Cash flow from operations(A) 5,46 1,23 10,43 7,73 10,95
Cash flow from investing activities
Investments in tangible and
intangible assets -0,48 -1,08 -0,95 -6,00 -6,84
Income from sales of tangible
and intangible assets 0,00 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) -0,48 -1,08 -0,92 -6,00 -6,84
Cash flow from financial items
Rights issue 0,00 0,00 0,00 0,00 0,00
Withdrawals of
short-term loans 0,02 0,00 0,07 0,00 0,00
Amortization of
short-term loans 0,00 0,00 0,00 -0,03 -0,05
Withdrawals of
long-term loans 0,00 0,00 0,00 0,01 0,01
Amortization of
long-term loans -0,03 0,00 -0,09 0,00 0,00
Dividends paid 0,00 0,00 -6,29 -1,94 -1,94
Cash flow from
financial items(C) 0,00 0,00 -6,30 -1,96 -1,97
Change in cash flow (A+B+C) 4,98 0,14 3,20 -0,23 2,14
Conversion difference -0,06 0,01 0,10 0,00 0,01
Total 4,92 0,16 3,30 -0,23 2,15
Cash in hand and at banks
in the beginning of period 7,89 6,96 9,51 7,35 7,35
Cash in hand and at banks
in the end of period 12,81 7,12 12,81 7,12 9,50
Change 4,92 0,16 3,30 -0,23 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 3,75 3,76
Earning and costs tot, 3,76
Dividends -1,93 -1,93
Equity
30.09.2009 6,19 3,45 -0,27 38,74 48,10
Equity
01.01.2010 6,19 3,45 -0,27 38,03 47,41
Comprehensive income 0,10 9,17 9,27
Earning and costs tot, 9,27
Dividends -6,29 -6,29
Equity
30.09.2010 6,19 3,45 -0,17 40,91 50,39
KEY FIGURES:
7-9/10 7-9/09 1-9/10 1-9/09 1-12/09
Basic and diluted
earnings per share, EUR 0,57 0,28 1,90 0,78 0,63
Sept 30, Sept 30, Dec 31,
2010 2009 2009
Equity ratio, % 81,1 84,3 84,4
Gearing, % -25,4 -14,6 -19,8
Balance sheet total, EUR million 62,14 57,07 56,17
NOTES:
Sept 30, Sept 30, Dec 31,
2010 2009 2009
Equity/share, EUR 10,42 9,94 9,80
Number of employees
at the end of the period 162 182 125
7-9/10 7-9/09 1-9/10 1-9/09 1-12/09
Average number of employees 166 182 156 228 207
Investments, EUR mill, 0,48 1,08 0,95 6,00 6,84
Geographical segments:
Net sales
EUR million 7-9/10 7-9/09 1-9/10 1-9/09 1-12/09
Finland 8,55 8,05 27,20 27,13 34,13
Other countries 7,85 7,20 25,92 21,35 28,11
Total 16,40 15,25 53,12 48,48 62,24
Taxes:
EUR million 7-9/10 7-9/09 1-9/10 1-9/09 1-12/09
Current income tax 1,02 0,50 3,28 1,33 0,04
Change in deferred income tax 0,00 0,00 0,01 0,00 1,11
Total 1,02 0,50 3,29 1,33 1,15
Inventories:
EUR million Sept 30, Sept 30, Dec 31,
2010 2009 2009
Raw materials and consumables 1,00 1,30 0,97
Work in progress 2,59 2,87 2,96
Finished goods 2,38 3,09 2,49
Total 5,97 7,26 6,42
Interest bearing loans and borrowings:
EUR million Sept 30, Sept 30, Dec 31,
2010 2009 2009
Bank loan 0,00 0,00 0,00
Obligations under finance leases 0,04 0,05 0,10
Total 0,04 0,05 0,10
Contingent liabilities:
EUR million Sept 30, Sept 30, Dec 31,
2010 2009 2009
Consignation liability 0,24 0,23 0,33
Rental and leasing liabilities 6,15 8,01 7,44
Corporate mortgages given 0,00 0,00 0,00
Related party disclosures:
EUR million 7-9/10 7-9/09 1-9/10 1-9/09 1-12/09
Sales 2,59 1,59 7,93 5,39 7,50
Purchases 0,00 0,00 0,02 0,00 0,05
EUR million Sept 30, Sept 30, Dec 31,
2010 2009 2009
Receivables 1,06 0,52 0,02
Accounts payable 0,01 0,04 0,04
Order backlog:
EUR million Sept 30, Sept 30, Dec 31,
2010 2009 2009
3,19 4,29 4,02
Nordic Aluminium Plc publishes its twelve-month Interim Report for
January-December 2010 on week 9, 2011. The company bulletins will be published
also on web-pages www.nordicaluminium.fi.
Kirkkonummi October 20, 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
NOAE0910