NORDIC ALUMINIUM PLC INTERIM REPORT Aug 15, 2007 10 a.m.
INTERIM REPORT OF NORDIC ALUMINIUM PLC Jan 1 - June 30, 2007
Net sales of Nordic Aluminium were EUR 54.33 million (EUR 47.29 million year
2006). The operating profit for the period was EUR 8.95 million (EUR 5.76
million) and the net profit was EUR 6.63 million (EUR 4.13 million).
Net sales and profitability
The net sales of Nordic Aluminium accounted for EUR 54.33 million (EUR 47.29
million) and was 14.9 % higher than the net sales of the equivalent period of
the previous year. The demand during the period was good, as expected. The
order back log grew substantially. The Company's good profit development was
due to a good increase in volume and productivity.
The fire on June 2nd in the Kirkkonummi anodizing plant delayed the supply of
surface treated products and slightly decreased net sales and productivity in
June. The compensating production has fully been outsourced and the delays will
be handled during the summer months when demand is lower. Repair works in the
damaged facility and process have proceeded according to plan. The new plant
will be operative in the first quarter 2008.
International operations and export accounted for EUR 21.9 million (EUR 18.7
million), which is 40 per cent of the net sales.
Profits
The operating profit of Nordic Aluminium amounted to EUR 8.95 million (EUR 5.76
million). Earnings per share for the period were EUR 1.37 (EUR 0.85).
Seasonality of sales and profit
Seasonal fluctuation has little effect on sales and profit. Growth and high
demand has led to high utilization of capasity during the whole year.
Investments
The gross capital expenditures for the period were EUR 3.07 million (EUR 1.18
million). Investments were focused on machinery and equipment as well as
lay-out and material flow improvements.
Personnel
During the first six months of 2007 the average number of personnel in Nordic
Aluminium Group was 303 (324). At the end of the period the number of employees
was 315 (339).
Impact of the fire in the anodizing plant
The damaged facility and process were fully insured. In addition the Company
has a business interruption insurance which covers the additional costs of the
outsourced production.
The book value of the damaged process was EUR 1.3 million and the total cost
for rebuilding an equivalent process is estimated at EUR 6.0 million.
The insurance own risk of EUR 0.1 million was booked in the second quarter.
Risks
Main short-term risks are related to controlling the supply chain of
outsourced production, and it's influence on production lead time and
productivity.
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 2007 a number of 233,384 shares were traded with EUR
5.99 million. The share quotation ranged between EUR 19.50 and EUR 33.20. The
market capitalisation of the company's shares stood at EUR 152.2 million (EUR
86.1 million) at the end of June.
Ownership
There were no significant changes in the ownership during the period (1-6/2007).
Outlook
The order backlog for the Group was EUR 12.77 million (EUR 8.62 million) at the
end of the reporting period. This has caused extended delivery times. The
demand is expected to continue at a good level for the rest of the year, and
there are no signs of demand decrease.
The fire in the anodizing plant is likely to have only a minor effect on profit
development during the autumn. The development of efficient material flows and
operative efficiency continues, and the Company aims at a good profit
development for the whole year.
The above mentioned predictions are based on the Company's managemet'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 2006 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 2006 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 4-6/07 % 1-6/07 % 1-6/06 % 1-12/06 %
Net sales 27.93 54.33 47.29 96.57
Other operating income 0.41 0.41 0.01 0.03
Increase(+) or decrease(-)
finished goods and
work in progress 1.69 2.70 1.16 1.30
Raw materials and
consumables -16.14 -30.63 -26.39 -52.60
Personnel expenses -3.60 -7.12 -7.73 -15.10
Depreciation and
reduction of value -0.87 -1.71 -1.99 -3.86
Other operating expenses -4.92 -9.04 -6.58 -15.26
Operating profit 4.50 16.1 8.95 16.5 5.76 12.2 11.07 11.5
Financial items 0.01 0.03 -0.14 -0.13
Profit before taxes 4.50 16.1 8.98 16.5 5.62 11.9 10.94 11.3
Income taxes -1.20 -2.35 -1.49 -2.88
Net profit for the period 3.31 11.8 6.63 12.2 4.13 8.7 8.06 8.3
Attributable to:
Equity holders of the parent 3.31 6.63 4.13 8.06
CONSOLIDATED BALANCE SHEET
EUR million June 30, June 30, Dec 31,
2007 2006 2006
Non-current assets
Tangible assets 12.72 12.38 11.79
Goodwill 2.25 2.25 2.25
Intangible assets 1.72 1.33 1.30
Tradable financial assets 0.02 0.02 0.02
Other financial assets 0.00 0.04 0.00
Deferred tax liabilities 0.09 0.19 0.10
Total 16.81 16.22 15.46
Current assets
Inventories 13.20 11.20 10,24
Accounts receivable and other
current assets 16.86 16.28 13.46
Cash in hand and at banks 5.29 2.60 6.67
Total 35.35 30.07 30.38
Total assets 52.16 46.29 45.83
EUR million June 30, June 30, Dec 31,
2007 2006 2006
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 6.19 6.19
Share premium account 3.45 3.45 3.45
Conversion difference -0.18 -0.16 -0.16
Retained earnings 26.02 19.58 23.50
Total 35.49 29.06 32.99
Long-term liabilities
Deferred tax liabilities 0.62 0.75 0.62
Provisions 0.14 0.14
Interest bearing liabilities 0.03 1.47 0.75
Total 0.79 2.22 1.51
Short-term liabilities
Accounts payable 14.32 11.27 9.77
Provisions 0.09 0.09
Short-term interest
bearing liabilities 1.47 3.74 1.48
Total 15.88 15.01 11.33
Total liabilities 16.67 17.23 12.84
Total shareholders' equity and
liabilities 52.16 46.29 45.83
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 4-6/07 1-6/07 1-6/06 1-12/06
Cash flow from operations
Net profit (loss) 3.31 6.63 4.13 8.06
Corrections
Depr. according to plan 0.87 1.71 1.99 3.86
Financial items -0.01 -0.03 0.14 0.13
Taxes 1.20 2.35 1.49 2.88
Cash flow before change
in net working capital 5.37 10.66 7.75 14.93
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -0.03 -3.40 -4.88 -2.05
Inventories
increase(-)/decrease(+) -1.99 -2.96 -2.78 -1.75
Short-term interest bearing
liabilities
increase(+)/decrease(-) -1.78 3.50 -0.86 -1.84
Total -3.79 -2.86 -8.51 -5.64
Cash flow from operations before
interests and taxes 1.57 7.80 -0.76 9.29
Paid interests and payments for
other financial expenses -0.04 -0.10 -0.22 -0.33
Received interests and payments
from other financial income 0.05 0.13 0.09 0.20
Paid income taxes -0.65 -1.30 -0.82 -2.66
Cash flow from operations(A) 0.93 6.54 -1.72 6.49
Cash flow from investing activities
Investments in tangible and
intangible assets -1.74 -3.07 -1.18 -2.42
Income from sales of tangible
and intangible assets 0.00 0.00 0.00 0.00
Repayment of loan receivables 0.00 0.00 0.01 0.05
Cash flow from investments(B)-1.74 -3.07 -1.17 -2.37
Cash flow from financial items
Rights issue 0.00 0.00 1.62 1.62
Withdrawals of
short-term loans 0.00 0.00 4.30 4.30
Amortization of
short-term loans 0.00 0.00 -2.10 -4.37
Amortization of
long-term loans -0.72 -0.71 -0.74 -1.33
Dividends paid 0.00 -4.11 -3.00 -3.01
Cash flow from
financial items(C) -0.72 -4.83 0.08 -2.78
Change in cash flow (A+B+C) -1.53 -1.36 -2.81 1.34
Conversion difference 0.00 -0.02 0.07 0.00
Total -1.53 -1.39 -2.74 1.34
Cash in hand and at banks
in the beginning of period 6.82 6.67 5.34 5.34
Cash in hand and at banks
in the end of period 5.29 5.29 2.60 6.67
Change -1.53 -1.39 -2.74 1.34
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Sh.pr. Convers. Retained. Total
Equity account diff. earnings equity
Equity
01.01.2006 5.92 2.11 -0.15 18.45 26.33
Conversion diff. 0.00 0.00
Net profit 8.06 8.06
Earning and costs tot. 8.05
Dividends -3.00 -3.00
Warrants used 0.27 1.35 1.62
-1.38
Equity
31.12.2006 6.19 3.45 -0.16 23.50 32.99
Equity
01.01.2007 6.19 3.45 -0.16 23.50 32.99
Conversion diff. -0.02 -0.02
Net profit 6.63 6.63
Earning and costs tot. 6.61
Dividends -4.11 -4.11
Warrants used 0.00 0.00 0.00
-4.11
Equity
31.03.2007 6.19 3.45 -0.18 26.02 35.49
KEY FIGURES:
EUR million June 30, June 30, Dec 31,
2007 2006 2006
Diluted earnings per share, EUR 1.37 0.85 1.70
Equity ratio, % 68.0 62.8 72.0
Gearing, % -10.7 9.0 -13.5
Balance sheet total, EUR million 52.16 46.29 45.83
NOTES:
June 30, June 30, Dec 31,
Equity/share, EUR 7.34 6.01 6.96
Investments, EUR mill. 3.07 1.18 2.42
Average number of personnel 303 324 311
Geographical segments:
Net sales
EUR million 1-6/07 1-6/06 1-12/06
Finland 32.44 18.58 58.80
Other countries 21.89 18.71 37.76
Total 54.33 47.29 96.57
Taxes:
EUR million 1-6/07 1-6/06 1-12/06
Current income tax 2.35 1.54 2.95
Change in deferred income tax 0.00 -0.05 -0.07
Total 2.35 1.49 2.88
Inventories:
EUR million June 30, June 30, Dec 31,
Raw materials and consumables 1.37 1.80 1.10
Work in progress 5.31 3.52 3.37
Finished goods 6.52 5.88 5.77
Total 13.20 11.20 10.24
Interest bearing loans and borrowings:
EUR million June 30, June 30, Dec 31,
Bank loan 1.45 5.15 2.17
Obligations under finance leases 0.05 0.06 0.05
Total 1.50 5.21 2.22
Contingent liabilities:
EUR million June 30, June 30, Dec 31,
2007 2006 2006
Consignation liability 2.26 3.77 2.25
Rental and leasing liabilities 10.74 11.96 11.57
Corporate mortgages given 8.41 8.41 8.41
Related party disclosures:
EUR million 1-6/07 1-6/06 1-12/06
Sales 4.98 3.74 9.03
Purchases 0.06 0.02 0.08
Receivables 1.57 0.55 1.05
Order bakclog:
EUR million June 30, June 30, Dec 31,
12.77 8.62 7.95
Nordic Aluminium Plc publishes its nine-month Interim Report for
January-September 2007 on October 24, 2007. The company bulletins will be
published also on web-pages www.nordicaluminium.fi.
Kirkkonummi August 15, 2007
NORDIC ALUMINIUM PLC
The Board of Directors
Robert Paajanen
Managing Director
For further information please contact:
Managing Director Robert Paajanen, tel. +358 9 6825 2500
Distribution:
Helsinki Exchanges, The Main Media NOAE0907