Larox Corporation Interim Report 8.8.2008 at 8.30 am
INTERIM FINANCIAL REPORT OF THE LAROX GROUP FOR THE PERIOD 1 JANUARY 2008 TO 30
JUNE 2008
Orders received in the Group grew by 22% from the year of comparison. The amount
of new orders received during the first half of 2008 totaled EUR 105.2 million
(EUR 86.0 million). The amount of new orders during the second quarter totaled
EUR 51.9 million (EUR 43.0 million).
Group order backlog at the end of June 2008 totaled EUR 115.7 million
EUR 53.8 million), which is 115% higher than at the same moment in the previous
year.
During the first half of 2008 net sales totalled EUR 85.1 million (EUR 75.3
million), indicating a growth of 13%. Operating profit totaled EUR 6.2 million
(EUR 6.0 million). The result before tax for the review period totaled EUR 5.4
million (EUR 5.5 million). Earnings per share was EUR 0.41 (EUR 0.35).
BUSINESS OPERATIONS
Demand for the Larox products has remained good. During the review period the
order accumulation improved positively. The order backlog was EUR 115.7 million
(EUR 53.8 million) at the end of the review period. The amount of new orders
received during the review period was EUR 105.2 million (EUR 86.0 million).
About 90 % of Group net sales were generated by exports and foreign operations.
Net sales by geographical division were as follows:
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| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
| North, Central and South | 27.7% | 34.4% |
| America | | |
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| Asia and Australasia | 20.2% | 21.7% |
| | | |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and | 52.1% | 43.9% |
| Africa | | |
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CHANGES IN GROUP STRUCTURE
Larox AB, a 100% Larox-owned subsidiary, was established in Sweden. The company
is a holding company of the subsidiary to be established in China.
The decision, published in March, to establish a subsidiary in China,
Progresses as planned. The aim is that the subsidiary is fully operational
During the first quarter of the year 2009. The new subsidiary will be res-
ponsible for filter sales and after market services to the existing and poten-
tial Larox customers in China. Furthermore, the subsidiary will purchase
components from local suppliers and start local assembly of filters.
Larox Corporation and Turku Ceramics Oy owners have signed a letter of intent,
by which the entire capital stock of Turku Ceramics Oy will be transferred
to the ownership of Larox Corporation. The seller and the buyer have agreed
that the transaction will be realized during the first half of August.
The decision published in April regarding the establishment of a subsidiary
responsible for after sales services in Russia goes ahead as planned. In the
service center, situated south of Moscow, will be customer support engineers and
spare parts stock. The aim is that the service center will be fully operational
at the beginning of 2009.
PROFITS AND PROFITABILITY
Larox Group's result before tax for the six months totaled EUR 5.4 million
(EUR 5.5 million, 1 January 2007 to 30 June 2007). Net sales totaled EUR 85.1
million (EUR 75.3 million). The Group showed an operating profit of EUR 6.2
million (EUR 6.0 million), i.e. 7.3 % (8.0%) of net sales. The increase in after
market personnel burdened relative profitability compared to last year.
NET SALES AND RESULT DEVELOPMENT DURING THE SECOND QUARTER
For the second quarter of the year net sales totaled EUR 47.5 million (EUR 42.7
million) and profit before tax totaled EUR 3.2 million (EUR 3.1 million).
The Group showed an operating profit of EUR 3.5 million (EUR 3.3 million).
The amount of new orders received during the second quarter of the year totaled
EUR 51.9 million (EUR 43.0 million). Earnings per share was EUR 0.27 (EUR 0.18).
BALANCE SHEET AND FINANCING
By the end of June 2008 the Group balance sheet totaled EUR 101.6 million
(EUR 92.8 million). By the turn of the year the balance sheet total was
EUR 102.9 million. The Group's net financing costs totaled EUR 0.7 million
(EUR 0.6 million). Net cash from operating activities of EUR 12.6 million was
good. The equity ratio was 33.6% (30.9%) and at the end of the previous
financial year (31 December 2007) it was 34.2%.
INVESTMENTS
Larox Group's investments totaled EUR 1.3 million (EUR 1.3 million). The
investments were mainly for IT applications and replacement investments.
PERSONNEL
The average number of personnel employed by the Group during the review period
was 510 (448). At the end of the review period it was 540 (475) of whom 259
(230) worked for the parent company. In addition to Finland growth can mainly
be seen in after sales business areas in Australia, South Africa, Chile and
Peru.
SHARES AND SHAREHOLDERS
During 1 January 2008 to 30 June 2008 trading in shares totaled 1,306,988,
which is 13.93 % of the total number of shares. The value of shares traded was
EUR 13.5 million. During the review period the lowest share price was EUR 8.00
and the highest was EUR 12.40. The closing price of the share was 10.20 and
the total market value of the shares was EUR 95.7 million. At the end of June
there were 1,800 shareholders.
AUTHORIZATIONS TO THE BOARD OF DIRECTORS DECIDED IN THE ANNUAL GENERAL MEETING
OF SHAREHOLDERS
The authorization to the Board of Directors regarding the repurchase of shares
by using the company's unrestricted shareholders' equity was not used during
the review period. The authorization is for 500.000 Larox Corporation B-series
shares at the maximum and is valid until 30.9.2008.
The authorization to the Board of Directors to decide on shares, stock option
rights or special rights referred to in the Finnish Companies Act chapter 10,
paragraph 1 in one or more lots in such a way that based on the authorization
the total maximum number of Larox Corporation B-series shares is 500 000 was
not used during the review period. The authorization is valid until 30.3.2012.
RISKS AND UNCERTAINTY FACTORS
No significant changes compared to the situation described at 2007 financial
statements have taken place in Larox's risks and uncertainty factors during the
review period. Exchange rate changes in Larox's most used invoicing currencies,
such as USD and ZAR, have been hedged as before.
An evaluation project of risks management was realized during the spring and
its target was to identify different risk areas, their effects,
probabilities as well as current risks management situation. The identified
risk areas have been divided into the following risk categories: business,
operational, damage and financial risks. Risks management and management
procedures related to them will be further developed in future.
OUTLOOK FOR THE REST OF THE YEAR
The orders of approximately EUR 105.2 million, received during the first half
of 2008 are a proof of continued, strong investment activity in filters.
Investment decisions are influenced especially by positive demand for metals,
which is expected to continue strong.
Demand situation is expected to continue favourable and the Group net sales
are expected to grow from last year. The order backlog of EUR 115.7 million
at the end of the review period supports this on its part. It is expected
that approx. EUR 65.3 million of the order backlog will be delivered during
the current year. Availability of materials and certain components
are challenging. It is expected that result and profitability will improve
compared to last year.
Lappeenranta on 8 August 2008
Larox Corporation
Board of Directors
For further information please contact
Mr Toivo Matti Karppanen
President & CEO
Tel +358 (0) 20 7687 210
Fax +358 (0) 20 7687 277
E-mail topi.karppanen@larox.com
Internet www.larox.com
Publication dates of financial information in 2008
The interim report for January-September will be published on Thursday
23 October.
The financial year-end of the Larox Group is on 31 December 2008.
Distribution: OMX Nordic Exchange Helsinki, central media
www.larox.com
NOTES TO THE INTERIM REPORT
The review is prepared in accordance with all the requirements of IAS 34
Interim Financial Reporting -standard and in accordance with IFRS recognition
and measurement principles.
Larox has applied the same accounting principles in this Interim Report as in
Annual Report 2007. The contents of the changes in standards and interpretations
are presented more detailed in Annual Report 2007.
The preparation of the financial statements in accordance with IFRS requires the
use of estimates and assumptions that affect the reported amounts of assets and
liabilities and the reported amounts of income and expenses during the reporting
period. The estimates are based on management's best knowledge of current events
and actions but actual results may differ from these estimates.
All below figures in the financial statements have been adjusted and therefore
the added sum of individual figures may differ from the presented added figure.
The information in Interim Report is unaudited.
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| INCOME STATEMENTS, | | | | | |
| IFRS | | | | | |
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| 1000 EUR | 4-6/2008 |4-6/2007| 1-6/2008 | 1-6/2007 | 1-12/2007 |
| | | | | | |
--------------------------------------------------------------------------------
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| Sales | 47 548 | 42 651 | 85 111 | 75 310 | 158 270 |
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| Other operating | 627 | 281 | 1 486 | 509 | 2 240 |
| income | | | | | |
--------------------------------------------------------------------------------
| Materials | -23 456 | -21 674 | -41 544 | -36 713 | -76 672 |
--------------------------------------------------------------------------------
| External services | -2 231 | -2 021 | -4 052 | -3 297 | -10 186 |
--------------------------------------------------------------------------------
| Employee benefits | -8 026 | -8 084 | -15 518 | -14 888 | -29 906 |
| expense | | | | | |
--------------------------------------------------------------------------------
| Depreciation, | | | | | |
| amortization | | | | | |
--------------------------------------------------------------------------------
| & impairment losses | -981 | -825 | -1 864 | -1 684 | -3 504 |
--------------------------------------------------------------------------------
| Other operating | -10 023 | -7 051 | -17 434 | -13 216 | -27 171 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 3 460 | 3 276 | 6 186 | 6 020 | 13 070 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 50 | 141 | 568 | 277 | 946 |
--------------------------------------------------------------------------------
| Financial expenses | -437 | -391 | -1 573 | -934 | -2 622 |
--------------------------------------------------------------------------------
| Share of | 154 | 125 | 258 | 106 | 361 |
| profit/loss in | | | | | |
| associates | | | | | |
--------------------------------------------------------------------------------
| PROFIT/LOSS BEFORE | 3 227 | 3 151 | 5 439 | 5 468 | 11 755 |
| TAX | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax expense | -678 | -1 434 | -1 562 | -2 202 | -2 259 |
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE | 2 548 | 1 716 | 3 877 | 3 267 | 9 496 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS basic (EUR) | 0,27 | 0,18 | 0,41 | 0,35 | 1,01 |
--------------------------------------------------------------------------------
| EPS diluted (EUR) | 0,27 | 0,18 | 0,41 | 0,35 | 1,01 |
--------------------------------------------------------------------------------
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| BALANCE SHEETS, IFRS | | | |
--------------------------------------------------------------------------------
| 1000 EUR | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | 18 476 | 18 769 | 18 795 |
--------------------------------------------------------------------------------
| Goodwill | 2 825 | 2 968 | 2 926 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 9 177 | 9 336 | 9 257 |
--------------------------------------------------------------------------------
| Investments in associates | 1 511 | 1 143 | 1 393 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 34 | 208 | 23 |
--------------------------------------------------------------------------------
| Deferred tax asset | 5 400 | 3 086 | 5 238 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | 37 423 | 35 511 | 37 633 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 28 273 | 22 527 | 26 592 |
--------------------------------------------------------------------------------
| Trade receivables and other | 32 288 | 30 504 | 36 651 |
| receivables | | | |
--------------------------------------------------------------------------------
| Current tax assets | 1 160 | 216 | 165 |
--------------------------------------------------------------------------------
| Cash and bank | 2 501 | 4 009 | 1 812 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | 64 221 | 57 257 | 65 220 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 101 645 | 92 768 | 102 853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Share capital | 5 629 | 5 629 | 5 629 |
--------------------------------------------------------------------------------
| Share premium account | 5 777 | 5 777 | 5 777 |
--------------------------------------------------------------------------------
| Other reserves | 222 | 27 | 0 |
--------------------------------------------------------------------------------
| Translation differences | -152 | -133 | -127 |
--------------------------------------------------------------------------------
| Retained earnings | 18 893 | 15 535 | 21 566 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 30 370 | 26 835 | 32 845 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 2 281 | 2 125 | 1 804 |
--------------------------------------------------------------------------------
| Long-term financial liabilities | 10 616 | 14 820 | 12 751 |
--------------------------------------------------------------------------------
| Employee benefit obligations | 479 | 416 | 555 |
--------------------------------------------------------------------------------
| Non-current provisions | 1 193 | 1 124 | 826 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | 14 569 | 18 485 | 15 936 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Short-term financial liabilities | 21 404 | 20 238 | 24 133 |
--------------------------------------------------------------------------------
| Trade payables and other payables | 32 368 | 25 338 | 26 683 |
--------------------------------------------------------------------------------
| Current tax liabilities | 723 | 984 | 1 935 |
--------------------------------------------------------------------------------
| Current provisions | 2 211 | 888 | 1 321 |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | 56 706 | 47 448 | 54 072 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 101 645 | 92 768 | 102 853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW STATEMENTS, IFRS | | | |
--------------------------------------------------------------------------------
| 1000 EUR | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit/loss | 3 877 | 3 267 | 9 496 |
--------------------------------------------------------------------------------
| Adjustments to the net | 4 173 | 4 420 | 6 986 |
| profit/loss of the period | | | |
--------------------------------------------------------------------------------
| Change in working capital | 7 576 | -5 357 | -13 817 |
--------------------------------------------------------------------------------
| Interest paid | -991 | -854 | -1 819 |
--------------------------------------------------------------------------------
| Interest income received | 27 | 32 | 53 |
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| Other financing items | -8 | 73 | -50 |
--------------------------------------------------------------------------------
| Income taxes paid | -2 048 | -1 498 | -3 217 |
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| Net cash from operating | 12 206 | 82 | -2 368 |
| activities | | | |
--------------------------------------------------------------------------------
| Net cash used in investment | -1 361 | -1 216 | -3 038 |
| activities | | | |
--------------------------------------------------------------------------------
| Increase in loans | 12 370 | 13 521 | 23 197 |
--------------------------------------------------------------------------------
| Decrease in loans | -17 257 | -7 506 | -15 024 |
--------------------------------------------------------------------------------
| Repayment of finance lease | -41 | -21 | -93 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | -5 629 | -2 814 | -2 814 |
--------------------------------------------------------------------------------
| Net cash used in financing | -10 557 | 3 179 | 5 265 |
| activities | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | 688 | 2 045 | -141 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Operating balance of cash and | 1 812 | 1 952 | 1 952 |
| cash equivalents | | | |
--------------------------------------------------------------------------------
| Effect of the foreign exchange | 0 | 12 | 1 |
| rates | | | |
--------------------------------------------------------------------------------
| Closing balance of cash and cash | 2 501 | 4 009 | 1 812 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN | | | | | | | | |
| SHAREHOLDER | | | | | | | | |
| S' EQUITY | | | | | | | | |
| 1-6/2007 | | | | | | | | |
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| | Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 EUR | Share | Share | Fai | Hed | Othe | Trans- | Retaine | Total |
| | capital | issue | r | - | r | lation | d | |
| | | premi | va- | gin | rese | diff. | earning | |
| | | um | lue | g | rves | | s | |
| | | | res | res | | | | |
| | | | . | . | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDER | 5 629 | 5 777 | 105 | -44 | | -69 | 15 271 | 26 668 |
| S' EQUITY | | | | | | | | |
| 1 JANUARY | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | -39 | 0 | | | -39 |
| hedging | | | | | | | | |
| Recogninize | | | | | | | | |
| d in | | | | | | | | |
| equity, net | | | | | | | | |
| of tax | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | -1 | -64 | -206 | -271 |
| translation | | | | | | | | |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Net profits | | | | -39 | -1 | -64 | -206 | -310 |
| and losses | | | | | | | | |
| recognized | | | | | | | | |
| directly in | | | | | | | | |
| shareholder | | | | | | | | |
| s equity | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | 6 | | | 6 |
| changes | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | 0 | 0 | 3 267 | 3 267 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | -39 | 5 | -64 | 3 060 | 2 963 |
| profits and | | | | | | | | |
| losses | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | 0 | -2 814 | -2 814 |
| distributio | | | | | | | | |
| n | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | | 19 | 19 |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDER | 5 629 | 5 777 | 105 | -84 | 5 | -133 | 15 535 | 26 835 |
| S' EQUITY | | | | | | | | |
| 30 JUNE | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN | | | | | | | | |
| SHAREHOLDER | | | | | | | | |
| S' EQUITY | | | | | | | | |
| 1-6/2008 | | | | | | | | |
--------------------------------------------------------------------------------
| | Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 EUR | Share | Share | Fai | Hed | Othe | Trans- | Retaine | Total |
| | capital | issue | r | - | r | lation | d | |
| | | premi | va- | gin | rese | diff. | earning | |
| | | um | lue | g | rves | | s | |
| | | | res | res | | | | |
| | | | . | . | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDER | 5 629 | 5 777 | | | | -127 | 21 566 | 32 845 |
| S' EQUITY | | | | | | | | |
| 1 JANUARY | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | 222 | | | | 222 |
| hedging | | | | | | | | |
| Recogninize | | | | | | | | |
| d in | | | | | | | | |
| equity, net | | | | | | | | |
| of tax | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | -25 | -993 | -1 018 |
| translation | | | | | | | | |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Net profits | | | | 222 | | -25 | -993 | -796 |
| and losses | | | | | | | | |
| recognized | | | | | | | | |
| directly in | | | | | | | | |
| shareholder | | | | | | | | |
| s equity | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | | 3 877 | 3 877 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | | -25 | 2 884 | 3 081 |
| profits and | | | | | | | | |
| losses | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | | -5 629 | -5 629 |
| distributio | | | | | | | | |
| n | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | | 72 | 72 |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDER | 5 629 | 5 777 | | 222 | | -152 | 18 894 | 30 370 |
| S' EQUITY | | | | | | | | |
| 30 JUNE | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
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| KEY RATIOS OF LAROX GROUP | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1000 | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New orders | 105 223 | 86 038 | 208 421 |
--------------------------------------------------------------------------------
| Group order backlog at end of period | 115 675 | 53 845 | 97 330 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 85 111 | 75 310 | 158 270 |
--------------------------------------------------------------------------------
| Operating profit | 6 186 | 6 020 | 13 070 |
--------------------------------------------------------------------------------
| % of net sales | 7.3 | 8.0 | 8.3 |
--------------------------------------------------------------------------------
| Net financing costs | 747 | 552 | 1 315 |
--------------------------------------------------------------------------------
| % of net sales | 0.9 | 0.7 | 0.8 |
--------------------------------------------------------------------------------
| Result before taxes | 5 439 | 5 468 | 11 755 |
--------------------------------------------------------------------------------
| Result for the period | 3 877 | 3 267 | 9 496 |
--------------------------------------------------------------------------------
| EPS basic and diluted (EUR) | 0.41 | 0.35 | 1.01 |
--------------------------------------------------------------------------------
| Investments | 1 486 | 1 334 | 3 284 |
--------------------------------------------------------------------------------
| Shareholders' equity per share at end | 3.24 | 2.86 | 3.50 |
| of period, EUR | | | |
--------------------------------------------------------------------------------
| Equity Ratio % | 33.6 | 30.9 | 34.2 |
--------------------------------------------------------------------------------
| Contingent liabilities | 28.1 | 27.8 | 27.7 |
--------------------------------------------------------------------------------
| Trading price at end of period, EUR | 10.20 | 14.25 | 12.00 |
--------------------------------------------------------------------------------
| Market capitalization at end of period, | | |
--------------------------------------------------------------------------------
| EUR million *) | 95.7 | 133.70 | 112.6 |
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*) The price of the A share is based on the B share's last trading rate of the
reporting period (weighted average).
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| KEY FIGURES BY | | | | | |
| QUARTERS | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2008 | 2008 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
| EUR 1000 | 4-6 | 1-3 | 10-12 | 7-9 | 4-6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New orders | 51 906 | 53 317 | 64 912 | 57 471 | 42 979 |
--------------------------------------------------------------------------------
| Group order backlog | 115 675 | 109 183 | 97 330 | 79 606 | 53 845 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 47 548 | 37 563 | 49 298 | 33 662 | 42 651 |
--------------------------------------------------------------------------------
| Operating profit | 3 460 | 2 726 | 5 164 | 1 886 | 3 276 |
--------------------------------------------------------------------------------
| % of net sales | 7.3 | 7.3 | 10.5 | 5.6 | 7.7 |
--------------------------------------------------------------------------------
| Net financing costs | 233 | 514 | 256 | 507 | 126 |
--------------------------------------------------------------------------------
| % of net sales | 0.5 | 1.4 | 0.5 | 1.5 | 0.3 |
--------------------------------------------------------------------------------
| Result before taxes | 3 227 | 2 212 | 4 908 | 1 379 | 3 150 |
--------------------------------------------------------------------------------
| Result for the | 2 548 | 1 329 | 5 250 | 979 | *) 1 716 |
| quarter | | | | | |
--------------------------------------------------------------------------------
| EPS basic and | 0.27 | 0.14 | 0.56 | 0.10 | 0.18 |
| diluted (EUR) | | | | | |
--------------------------------------------------------------------------------
*) includes one-time cost of EUR 0.8 million for terminating filter assembly
functions in The Netherlands
DIVIDENDS PAID
Based on the resolution of the annual general meeting of shareholders held
on 26 March 2008 a dividend of EUR 0.60 per share was paid; a total of EUR
5.628.960. The dividends were paid on 7 April 2008.
Investments
--------------------------------------------------------------------------------
| Property, plant and equipment | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost 1 Jan | | 29 520 | 28 589 | 28 589 |
--------------------------------------------------------------------------------
| Translation differences | | -361 | 6 | -120 |
--------------------------------------------------------------------------------
| Additions | | 608 | 459 | 1 144 |
--------------------------------------------------------------------------------
| Disposals | | 0 | 0 | -93 |
--------------------------------------------------------------------------------
| Acquisition cost 30 Jun | | 29 767 | 29 054 | 29 520 |
--------------------------------------------------------------------------------
| Cumulative depreciations 1 Jan | -20 263 | -19 023 | -19 023 |
--------------------------------------------------------------------------------
| Translation differences | | 341 | 16 | 163 |
--------------------------------------------------------------------------------
| Depreciation for the period | -668 | -711 | -1 403 |
--------------------------------------------------------------------------------
| Cumulative depreciations 30 | | -20 590 | -19 718 | -20 263 |
| Jun | | | | |
--------------------------------------------------------------------------------
| Carrying value 30 Jun, 2008 | 9 177 | 9 336 | 9 257 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Intangible assets (exluding goodwill) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost 1 Jan | | 29 858 | 27 772 | 27 772 |
--------------------------------------------------------------------------------
| Translation differences | | -30 | -11 | -55 |
--------------------------------------------------------------------------------
| Additions | | 878 | 874 | 2 141 |
--------------------------------------------------------------------------------
| Disposals | | 0 | 0 | |
--------------------------------------------------------------------------------
| Acquisition cost 30 Jun | | 30 706 | 28 635 | 29 858 |
--------------------------------------------------------------------------------
| Cumulative depreciations 1 Jan | -11 063 | -8 900 | -8 901 |
--------------------------------------------------------------------------------
| Translation differences | | 25 | 7 | -61 |
--------------------------------------------------------------------------------
| Depreciation for the period | -1192 | -973 | -2 101 |
--------------------------------------------------------------------------------
| Cumulative depreciations 30 | | -12 230 | -9 866 | -11 063 |
| Jun | | | | |
--------------------------------------------------------------------------------
| Carrying value 30 Jun, 2008 | 18 476 | 18 769 | 18 795 |
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Geographical segments
--------------------------------------------------------------------------------
| Net sales 1000 EUR | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| North, Central and South America | 23 600 | 25 929 | 45 881 |
--------------------------------------------------------------------------------
| Asia and Australasia | 17 235 | 16 324 | 40 479 |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and Africa | 44 276 | 33 056 | 71 910 |
--------------------------------------------------------------------------------
| Total net sales | 85 111 | 75 310 | 158 270 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets 1000 EUR | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| North, Central and South America | 13 551 | 9 082 | 11 647 |
--------------------------------------------------------------------------------
| Asia and Australasia | 7 985 | 10 022 | 8 133 |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and Africa | 98 303 | 84 811 | 114 904 |
--------------------------------------------------------------------------------
| Internal items | -18 194 | -11 147 | -31 831 |
--------------------------------------------------------------------------------
| Total assets | 101 645 | 92 768 | 102 853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments 1000 EUR | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| North, Central and South America | 86 | 43 | 148 |
--------------------------------------------------------------------------------
| Asia and Australasia | 63 | 171 | 332 |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and Africa | 1 337 | 1 119 | 2 804 |
--------------------------------------------------------------------------------
| Total investments | 1 486 | 1 334 | 3 284 |
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Commitments and contingencies
--------------------------------------------------------------------------------
| Loans secured by real estate and corporate mortgages | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 EUR | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Pension loans | | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 29 502 | 30 161 | 36 577 |
--------------------------------------------------------------------------------
| Other loans | | 1 420 | |
--------------------------------------------------------------------------------
| Total | 29 502 | 31 581 | 36 577 |
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| Real estate mortgages | 6 560 | 6 560 | 6 560 |
| | | | |
--------------------------------------------------------------------------------
| Corporate mortgages, general | 3 936 | 3 936 | 3 936 |
| pledging | | | |
--------------------------------------------------------------------------------
| Corporate mortgages, specific | 9 062 | 9 062 | 9 062 |
| pledging | | | |
--------------------------------------------------------------------------------
| Total | 19 558 | 19 558 | 19 558 |
--------------------------------------------------------------------------------
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| Guarantees for others | | | |
--------------------------------------------------------------------------------
| Pledged securities *) | 6 476 | 6 476 | 6 476 |
--------------------------------------------------------------------------------
| Others | 140 | 166 | 124 |
--------------------------------------------------------------------------------
| Total | 6 616 | 6 642 | 6 600 |
--------------------------------------------------------------------------------
| *) Book value of secured shares | | | |
--------------------------------------------------------------------------------
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| Other liabilities | | | |
--------------------------------------------------------------------------------
| Operating lease liabilities 1000 EUR | 1 052 | 920 | 857 |
--------------------------------------------------------------------------------
| Lease liabilities 1000 EUR | 859 | 634 | 639 |
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Fair and nominal values of derivative instruments
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| 1000 EUR | 30.6.2008 | 30.6.2007 | 31.12.2007 |
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| Currency derivatives: | | | |
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| Currency options | | | 3 155 |
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| Forward contracts | 17 198 | 16 060 | 18 313 |
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| Fair value | 261 | -103 | |
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| Nominal value | 17 198 | 16 060 | 21 468 |
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Related party transactions
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| 1000 EUR | 1-6/2008 | 1-6/2007 | 1-12/2007 |
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| Transactions with associated | | | |
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| Companies | | | |
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| Sales of goods and services | 0 | 1 | 3 |
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| Purchases of goods and services | 2 056 | 1 046 | 2 829 |
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| Other transactions with related | | |
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| Parties | | | |
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| Purchases of services | 10 | 11 | 22 |
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| Balances with associated companies | | |
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| Trade receivables | 0 | 1 | 1 |
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| Trade payables | 503 | 355 | 783 |
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CALCULATION OF KEY FIGURES
Equity ratio, % =
Shareholders' equity
--------------------------------- x 100
Total assets - advances received
Earnings per share =
Net profit
---------------------------------
Adjusted average number of shares
during the period
Market capitalization at the end of the period =
Number of shares at the end of the period x trading price at the end of
period weighted by the number of shares traded
Larox develops, designs and manufactures industrial filters and is a
leading technology company in its field. Larox is a full service solution
provider in filtration for separating solids from liquids. It supplies
comprehensive aftermarket services throughout the lifespan of the Larox
solution. Companies world-wide in mining and metallurgy, chemical processing
and related industries benefit from the Larox technologies. Larox operates
in over 40 countries and has over 460 employees. Larox Group is headquartered
in Lappeenranta, Finland where the Group also has production facilities. Net
sales in 2007 totaled 158.3 million euros, of which more than 95 % were
generated by exports and the company's foreign operations.
INTERIM FINANCIAL REPORT OF THE LAROX GROUP FOR THE PERIOD 1 JANUARY TO 30 JUNE 2008
| Source: Larox Oyj
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