The Board of Directors of Sanistål A/S has today approved the company's
accounts for the period 1 January to 30 June 2007.
Sanistål achieved a profit before tax of DKK 81.6 million, compared to DKK 95.4
million in the same period in 2006.
The reduction in profit is due entirely to the additional costs involved in the
comprehensive restructuring of logistics in Denmark. All other developments are
very satisfactory.
The interim accounts are characterised by features including:
- The Sanistål Group's revenue was DKK 790.1 million, an increase of 35.2%
compared to the same period in 2006, 23.5% of which is organic growth.
- Subsidiaries generated a profit of DKK 22.5 million, compared to DKK 7.0
million in the same period in 2006.
- Restructuring of the logistical structure is proceeding as planned. However,
compared to the first half-year of 2006, the parent company's logistical
expenses have been adversely affected by extra, unforeseen operating expenses
and start-up costs for the main warehouse in Billund of DKK 38 million.
- A positive "Steel price development 1)", compared to the same period in 2006,
totalled DKK 11.3 million.
1) "Steel price development" is defined as the difference between earnings on
steel in the current year and earnings on steel in the preceding year (the base
year), with the calculation for both years being based on the quantity for the
base year.
- Earnings per share (EPS) after tax totalled DKK 66.8, compared to DKK 72.4
per share in the same period in 2006.
The lessons learned in Q1 2007 have prompted a reassessment of the logistical
expenses in Denmark and additional, unforeseen logistical expenses for the
entire year of around DKK 60 million as compared to 2006 are now expected.
As a result of this, the Group's profit before tax is now expected to be DKK
160-190 million, equivalent to earnings per share (EPS) of DKK 64-76, in
contrast to the previous forecast of DKK 220-240 million.
Restructuring of the logistical structure will continue in 2008 and 2009. In
2009, a reduction in logistical expenses of DKK 50-80 million as compared to
2007 is now estimated. The full positive impact of this restructuring will be
achieved in 2010, currently estimated at DKK 150-180 million as compared to
2007.
