Sales and Revenues
During the period Q2 Y2008 consolidated net sales of AS Norma totalled 392.4
MEEK (25.1 MEUR).This constitutes a 25.9% (80.8 MEEK; 5.2 MEUR) increase to Q2
Y2007. Sales to Russian and Ukraine customers rose by 71.7% (63.5% from this
growth came from sales of safety systems), sales to other customers decreased
by 2.9% in Q2 Y2008. Sales to parent company Autoliv amounted to 167.4 MEEK
(10.7 MEUR), a decrease 4.1% compared to the same period in 2007.
In Q2 Y2008, AS Norma exported 98.9% of its products (Q2 Y2007: 99.1%) - 39% to
Sweden, 53% to Russian and 3% to German customers (Q2 Y2007: respectively 53%,
38% and 5%).
For whole first half of 2008 consolidated sales of AS Norma totalled 723.2 MEEK
(46.2 MEUR), an increase 21.6% (128.5 MEEK; 8.2 MEUR) compared to H1 Y2007.
Sales to Russian and Ukraine customers increased by 70.7% and sales to other
customers declined by 5.0%. Sales to parent company Autoliv reached 335.6 MEEK
(21.4 MEUR), which was 5.7% less compared to the same period in 2007.
The main field of activity of Group were production and sale of car safety
seatbelts and their components. The Group also manufactured car components, as
well as dies and molds for stamping machines, and rendered engineering services
related to the design and adaptation of car safety systems and seatbelts.
The number of employees at the end of the period was 998, which is 12 employees
more than a year ago and 26 more compared to the beginning of 2008. The Group
employed a monthly average of 972 people.
Assets and liabilities
Accounts receivable at the end H1 Y2008 totalled 181.6 MEEK (11.6 MEUR), of
which 64.6% related to the Russian and Ukrainian customers. Receivables from
Autoliv were 54.6 MEEK (3.5 MEUR). AS Norma's payables to Autoliv amounted to
74.3 MEEK (4.7 MEUR).
The share of accounts in arrears of total receivables was 1.1%. In management's
opinion there were no bad debts to be provisioned.
At the end of the Q1 Y2008, the consolidated total assets totalled 1158.5 MEEK
(74.0 MEUR), a growth 101.3 MEEK (6.5 MEUR), including of 108.4 MEEK (6.9 MEUR)
increase in current assets. The growth was, above all, due to the changes in
deposits, short-term financial investments and receivables.
As of 30.06.2008 the Group deposited euros at Autoliv AB in the amount of 18.1
MEUR (283.2 MEEK) and kroons in the amount of 23.0 MEEK (1.5 MEUR) for the term
of maturity less than 3-month and 3-12-month. The transactions with Autoliv AB
were made only when the interest rates offered by commercial banks were lower
than that of Autoliv's. Thus, 11.3 MEUR was placed at Autoliv in Q2 Y2008 with
average yield of 5.51%, which was 0.36% higher than the banks' top offer. When
depositing 23 MEEK, the offered Autoliv's interest rate turned out to be 0.77%
higher than rates obtainable by banks.
Total liabilities amounted to 261.1 MEEK (16.7 MEUR) at the end of Q2 Y2008.
The Group has no long-term liabilities, all investments and operating
activities are financed from equity.
The owners' equity of the Group decreased by 10.1 MEEK (0.6 MEUR) during the
period, amounting to 897.4 MEEK (57.4 MEUR), which made up 77.5% of total
assets. Owners' equity was reduced due to the shareholders' decision to pay out
66 MEEK (4.2 MEUR) as dividends.
Investments
During 6 month of 2008, AS Norma invested a total of 20.7 MEEK (1.3 MEUR), to
support existing production capacities and assure the future profits.
Net Profit and Earnings per Share
The Group's consolidated unaudited net profit was 25.4 MEEK (1.6 MEUR) in Q2
Y2008, which was 12.7 MEEK (0.8 MEUR) more than a year before. Net profit made
up 6.5% of sales (4.1% in Q2 Y2007).
For H1 Y2008 net profit amounted to 55.9 MEEK (3.6 MEUR), which is 16.6 MEEK
(1.1 MEUR) higher than at the same period a year ago. The net profit margin was
7.7% (H1 Y2007: 6.6%).
Both, diluted and basic earnings per share were 4.24 EEK (0.27 EUR) in H1
Y2008, a year earlier EPS was 2.97 EEK (0.19 EUR).
Major events
AS Norma's suppliers of stainless steel have raised their prices up to 30% as
from July 1, 2008.
The Q3 Y2008 results of AS Norma will be released on October 20, 2008.
Peep Siimon
Chairman of the Management Board
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