STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 22.10.2008 AT 9:00
- Growth achieved in constant currencies; reported net sales
depressed by adverse currency impact
- Earnings reflected weak performance in Flexibles, Films and
Asia-Oceania-Africa
- Raw material, energy and distribution costs remained high
- Cash flow improved and net debt reduced
Key figures
EUR million Q1-Q3 2008 Q1-Q3 2007 Q3 2008 Q3 2007
Net sales 1,711.2 1,753.2 572.1 582.4
EBIT* 73.2 106.6 26.2 33.2
EBIT margin % 4.3 6.1 4.6 5.7
EPS 0.31 0.61 0.10 0.18
ROI % (12m roll.)** -0.2 7.8
* Q1-Q3 2008 includes restructuring charges EUR 6.9 million.
** 2007 includes restructuring, goodwill impairment and tangible
asset impairment charges, total amount EUR 108 million.
Overview
The demand for consumer packaging remained stable in the reporting
period despite general economic uncertainty experienced in the
majority of the markets. The decline in the Group's reported net
sales was due to adverse currency translation impact while growth was
achieved in constant currencies.
Earnings for the reporting period were below previous year. This
development reflects weak performance in Flexibles and Films Global
businesses as well as in Rigid and Molded Fiber Asia-Oceania-Africa.
On a comparable basis, profitability improved in Rigid Europe and
Molded Fiber Europe and was on a good level in Rigid and Molded Fiber
Americas.
The raw material costs remained on a high level throughout the
reporting period with a significant escalation experienced in the
third quarter.
Business review by segment
The sales distribution in the reporting period was the following:
Flexibles and Films Global 31% (31% in the same period in 2007),
Rigid Europe 28% (27%), Molded Fiber Europe 6% (6%), Rigid and Molded
Fiber Americas 26% (26%) as well as Rigid and Molded Fiber
Asia-Oceania-Africa 9 % (10%).
Flexibles and Films Global
Flexibles and Films are organized as a global segment. Flexibles are
used for food and pet food packaging as well as non-food consumer
packaging. Films are mainly used for technical applications in the
label, adhesive tape, hygiene and health care industries as well as
building and construction, automotive, packaging and graphic arts
industries.
EUR million Q1-Q3 2008 Q1-Q3 2007 Q3 2008 Q3 2007
Net sales 533.5 540.5 176.3 177.4
EBIT 23.3 39.0 7.6 11.8
EBIT margin % 4.3 7.2 4.3 6.6
RONA % (12m roll.) 4.3 10.2
Sales within the segment declined during the reporting period. In
Flexibles, robust growth in Asia was not enough to compensate for
continued weak sales development in the other regions. Especially
Europe and North America suffered from a soft pet food market. In
Films, sales were at last year's level.
Profitability in the period reflects margin pressure due to higher
raw material costs and volume shortfall. The underutilized flexible
packaging capacity at the recently expanded site in Malvern, USA, had
a negative earnings impact. In Films, the recovering profitability
trend continued in the third quarter after the weak start to the
year.
Production at the new flexible packaging facility in Bangkok,
Thailand, commenced in July 2008. The reconstructed flexible
packaging facility in Thane, India, is scheduled to be operational by
year-end 2008.
Rigid Europe
Rigid paper and plastic packaging serves foodservice and consumer
goods markets in Europe with fresh food, dairy, ice cream, beverage
and personal care packaging as well as disposable tableware. Rigid
packaging is supplied to foodservice operators, fast food restaurants
and food manufacturers.
EUR million Q1-Q3 2008 Q1-Q3 2007 Q3 2008 Q3 2007
Net sales 486.1 483.7 160.1 163.3
EBIT* 5.2 7.1 3.0 3.5
EBIT margin % 1.1 1.5 1.9 2.1
RONA % (12m roll.) -17.6 -1.3
* Q1-Q3 2008 includes restructuring charges EUR 6.9 million.
Sales within the segment showed modest growth during the reporting
period. However, the pace of growth has slowed down from the
beginning of the year with sales turning into a small decline in the
third quarter. The development in sales reflects mainly Consumer
Goods where market softness continued in Germany and the discontinued
operations in the UK had a negative impact. Foodservice experienced
growth, driven by strong performance in Eastern Europe.
Excluding restructuring charges in the UK and in Sweden,
profitability improved in the reporting period reflecting benefits
from earlier pricing efforts. During the third quarter escalating raw
material costs put pressure on margins again.
In the UK, a consultation process in relation to the closure of the
Consumer Goods rigid plastic production in Portadown and in Gosport
ended in July 2008. Of the approximately 140 people impacted, 120
employment contracts were terminated by the end of the reporting
period. Both projects in the UK are expected to be completed around
year-end 2008. In Finland, the operational efficiency measures at the
rigid packaging site in Hämeenlinna will lead to a reduction of
approximately 50 people by year-end 2008.
Molded Fiber Europe
Molded fiber is used to make fresh product packaging, such as egg and
fruit packaging.
EUR million Q1-Q3 2008 Q1-Q3 2007 Q3 2008 Q3 2007
Net sales 104.6 102.7 34.2 33.5
EBIT 8.0 7.2 2.6 2.5
EBIT margin % 7.6 7.0 7.6 7.3
RONA % (12m roll.) 9.5 8.9
Sales and earnings within the segment remained stable in the
reporting period. The development in Eastern Europe continued
favorable and in the UK improving sales materialized during the third
quarter.
Rigid and Molded Fiber Americas
Rigid paper and plastic packaging, which serves ice-cream and other
consumer goods as well as foodservice markets, is complemented with
Molded Fiber Chinet® disposable tableware products. Similar market
channels are a common denominator.
EUR million Q1-Q3 2008 Q1-Q3 2007 Q3 2008 Q3 2007
Net sales 441.5 464.5 152.2 154.4
EBIT 36.9 49.7 12.0 13.1
EBIT margin % 8.4 10.7 7.9 8.5
RONA % (12m roll.) 7.4 13.3
Sales growth in constant currencies was solid throughout the
reporting period. In Retail, the positive volume development was
accelerated in the third quarter through promotional activity. The
good sales momentum remained in South America. During the third
quarter sales recovered in Consumer Goods, while market softness
continued in Foodservice.
Profitability in the reporting period declined reflecting higher raw
material, energy and distribution costs especially during the third
quarter as well as adverse currency translation impact. Also, the
previous year's comparable figure included a EUR 6 million one time
gain recorded in the first quarter of 2007.
Rigid and Molded Fiber Asia-Oceania-Africa
Rigid paper and plastic packaging serves foodservice and consumer
goods markets. The segment also includes the Molded Fiber business
which makes fresh product packaging.
EUR million Q1-Q3 2008 Q1-Q3 2007 Q3 2008 Q3 2007
Net sales 156.7 172.4 53.1 57.6
EBIT -0.1 7.8 1.1 1.8
EBIT margin % -0.1 4.5 2.1 3.1
RONA % (12m roll.) -0.7 5.8
Sales development within the segment was unfavorable during the
reporting period. The sales decline in Oceania and in South Africa
reflects continued general market softness. In Asia, sales
performance was disappointing as a result of slower than planned
generation of new business at the rigid packaging facility in
Guangzhou, China.
Profitability in the reporting period reflects low sales, the
start-up issues in Asia as well as adverse currency translation
impact. Third quarter earnings included a net gain of EUR 1 million
with proceeds from the sale of the site in Hong Kong net of
restructuring and tangible asset impairment charges in China.
Financial review
The Group EBIT in the reporting period was EUR 73 million (EUR 107
million), corresponding to an EBIT margin of 4.3% (6.1%). In the
third quarter, the Group EBIT was EUR 26 million (EUR 33 million),
corresponding to an EBIT margin of 4.6% (5.7%).
The net financial items in the period were EUR 34 million (EUR 31
million), with the third quarter amounting to EUR 14 million (EUR 11
million). The income tax expense was EUR 7 million (EUR 14 million)
with the third quarter accounting for EUR 2 million (EUR 4 million).
The result for the period was EUR 33 million (EUR 63 million) and the
earnings per share (EPS) were EUR 0.31 (EUR 0.61). Correspondingly,
in the third quarter the result was EUR 10 million (EUR 19 million)
and EPS were EUR 0.10 (EUR 0.18). The average number of outstanding
shares used in the EPS calculations was 100,426,461 (unchanged)
excluding 5,061,089 (unchanged) Company's own shares.
Balance sheet and cash flow
Free cash flow in the reporting period amounted to EUR 67 million
(EUR -45 million). At EUR -6 million (EUR -2 million), the third
quarter reflected phasing of working capital after a strong second
quarter. Capital expenditure for the period was EUR 48 million (EUR
93 million), with the third quarter spending at EUR 16 million (EUR
35 million). Net debt was EUR 723 million (EUR 783 million) at the
end of September 2008. This corresponds to a gearing ratio of 0.93
(0.90).
Personnel
The Group had 14,794 (14,963) employees at the end of September 2008.
Strategic direction
As announced in September 2008, the Group intends to focus on
packaging operations where it has a competitive advantage, good
market positions and which create value for the Group and its
customers. The smooth and rough molded fiber products, release
films, flexible packaging, foodservice paper cups and other products
based on paper forming technology have been identified as stronghold
areas.
Rigid plastic consumer goods operations, for the most part, do not
meet the criteria for financial performance and its profitability has
been below the Group average. Therefore, different strategic
alternatives will be reviewed for this operation which has annual
sales of approximately EUR 400 million.
Furthermore, the reporting segments will be revised to reflect the
new stronghold areas. The current five segments will be replaced by
six new reporting segments as of January 1, 2009.
Short-term risks and uncertainties
Volatile raw material and energy prices as well as movements in
currency translations are considered to be relevant short-term
business risks and uncertainties in the Group's operations. Material
changes in general economic conditions or in the financial markets
could have an adverse effect on the implementation of the Group's
strategy and on its business performance and earnings.
Outlook for 2008
In 2008, the Group EBIT is expected to be below the 2007 underlying
Group EBIT of EUR 136 million*. Capital expenditure in 2008 is
expected to be clearly below EUR 100 million.
In the short-term, cash generation and net debt reduction continue as
key focus areas within the Group.
*2007 underlying Group EBIT excludes restructuring, goodwill
impairment and tangible asset impairment charges, total amount EUR
108 million.
Financial reporting
Huhtamaki will publish the 2008 Results on February 10, 2009.
Espoo, October 21, 2008
Huhtamäki Oyj
Board of Directors
For further information, please contact:
Mr. Jukka Moisio, CEO, tel. +358-10-686 7801
Mr. Timo Salonen, CFO, tel. +358-10-686 7880
Ms. Kia Aejmelaeus, Head of Investor Relations, tel. +358-10-686 7819
or mobile +358-40-765 4616
Ms. Minna Staffans, Head of Group Communications, tel. +358-10-686
7863
A news conference for analysts, investors and media will be held at
11:00 Finnish time at the head office, address Keilaranta 10, Espoo.
CEO Jukka Moisio and CFO Timo Salonen will present the results. A
conference call for analysts and investors will start at 14:00
Finnish / 12:00 UK / 07:00 New York time with a management
presentation, followed by a question and answer session. To
participate, please dial one of the following numbers 5-10 minutes
prior to the call start:
- Number for participants from Finland: 0923 114 173
- Number for participants outside of Finland: +44 (0) 1452 555 566
- Conference ID: 68123113
All results materials will be available on www.huhtamaki.com. The
results presentation slides will be online approximately at 11:00
Finnish time. A replay of the conference call in the form of an audio
webcast will be available during the same evening.
Group Income statement (IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2008 2007 2008 2007 2007
Net sales 1,711.2 1,753.2 572.1 582.4 2,311.0
Cost of goods sold -1,479.2 -1,484.2 -496.0 -494.5 -2,028.0
Gross profit 232.0 269.0 76.1 88.0 283.0
Other operating
income 14.2 16.5 6.9 3.1 31.9
Sales and marketing -63.5 -63.1 -21.4 -21.6 -83.6
Research and
development -12.0 -14.1 -3.5 -4.5 -17.8
Administration costs -87.1 -90.8 -28.3 -29.2 -122.6
Other operating
expenses -10.4 -10.9 -3.6 -2.6 -62.8
-158.8 -162.4 -49.9 -54.8 -254.9
Earnings before
interest and taxes 73.2 106.6 26.2 33.2 28.1
Financial income 7.5 6.4 0.4 1.5 9.2
Financial expenses -41.6 -37.3 -14.5 -12.2 -51.7
Income of associated
companies 0.4 0.3 0.1 0.1 0.4
Result before taxes 39.5 76.0 12.2 22.6 -14.0
Income tax expense -6.9 -13.5 -2.1 -3.9 -6.2
Result for the period 32.6 62.5 10.1 18.7 -20.2
Attributable to:
Equity holders of the
parent company 31.0 61.3 9.6 18.5 -22.5
Minority interest 1.6 1.2 0.5 0.2 2.3
Basic earnings per
share (EUR) for the
shareholders 0.31 0.61 0.10 0.18 -0.22
of parent company
Diluted earnings per
share (EUR) for the
shareholders of parent 0.31 0.61 0.10 0.19 -0.22
company
Group balance sheet (IFRS)
Unaudited
Sep 30 Dec 31 Sep 30
EUR million 2008 2007 2007
ASSETS
Non-current assets
Goodwill 473.2 471.9 517.4
Other intangible assets 39.2 41.4 36.3
Tangible assets 768.6 799.3 842.5
Investments in
associated companies 1.7 1.5 1.7
Available for sale
investments 1.9 1.9 1.7
Interest bearing
receivables 0.4 0.9 1.0
Deferred tax assets 13.6 13.7 19.4
Employee benefit assets 60.7 59.2 60.9
Other non-current
assets 3.7 4.8 4.9
1,363.0 1,394.6 1,485.8
Current assets
Inventory 363.8 348.5 367.5
Interest bearing
receivables 3.1 4.6 0.0
Current tax assets 12.7 17.9 8.6
Trade and other current
receivables 409.9 394.8 426.1
Cash and cash
equivalents 44.4 30.8 22.1
833.9 796.6 824.3
Total assets 2,196.9 2,191.2 2,310.1
EQUITY AND LIABILITIES
Share capital 358.7 358.7 358.7
Premium fund 104.7 104.7 104.7
Treasury shares -46.5 -46.5 -46.5
Translation differencies -121.8 -121.1 -120.6
Fair value and other
reserves -0.6 1.4 2.1
Retained earnings 467.5 475.7 552.5
Total equity attributable
to
equity holders of the
parent company 762.0 772.9 850.9
Minority interest 18.6 20.5 20.0
Total equity 780.6 793.4 870.9
Non-current liabilities
Interest bearing
liabilities 432.8 401.1 367.7
Deferred tax liabilities 45.3 38.8 59.5
Employee benefit
liabilities 106.4 108.8 110.6
Provisions 60.8 60.3 54.4
Other non-current
liabilities 3.7 4.3 3.8
649.0 613.3 596.0
Current liabilities
Interest bearing
liabilities
- Current portion of long term loans 17.6 17.9 40.8
- Short term loans 320.0 365.7 398.1
Provisions 9.0 8.0 6.0
Current tax liabilities 9.9 21.1 21.7
Trade and other current liabilities 410.8 371.8 376.6
767.3 784.5 843.2
Total liabilities 1,416.3 1,397.8 1,439.2
Total equity and
liabilities 2,196.9 2,191.2 2,310.1
Sep 30 Dec 31 Sep 30
2008 2007 2007
Net debt 722.5 748.5 783.4
Net debt to equity
(gearing) 0.93 0.94 0.90
Changes in shareholders' equity
Unaudited
Attributable to equity holders of the parent company
Sha Sha Trea Trans Fair Retai Total Mino Total
re re sury lation value ned equity rity
capi is sha diff. and earn interest
tal sue res other ings
EUR million premium reserves
Balance at
Dec 31, 358.7 104.7 -46.5 -106.7 2.1 528.8 841.1 19.3 860.4
2006
Cash flow
hedges
Hedge
result
deferred
to
equity 0.8 0.8 0.8
Hedge
result
recognized
in
income
statement -1.9 -1.9 -1.9
Hedge
result
transferred
to
carrying
amount of
hedged 0.5 0.5 0.5
items
Translation
differences -13.9 -13.9 -0.5 -14.4
Deferred
tax
in equity 0.6 0.6 0.6
Other 3.4 3.4 3.4
changes
Income and
expense
recognized
directly
in equity -13.9 0.0 3.4 -10.5 -0.5 -11.0
Result for
the period 61.3 61.3 1.2 62.5
Total
recognized
income
and expense
for the -13.9 0.0 64.7 50.7 0.7 51.5
period
Dividend -42.2 -42.2 -42.2
Share-based
payments 1.2 1.2 1.2
Balance at
Sep 30, 358.7 104.7 -46.5 -120.6 2.1 552.5 850.9 20.0 870.9
2007
Balance at
Dec 31, 358.7 104.7 -46.5 -121.1 1.4 475.7 772.9 20.5 793.4
2007
Cash flow
hedges
Hedge
result
deferred
to equity -0.4 -0.4 -0.4
Hedge
result
recognized
in
income
statement -3.0 -3.0 -3.0
Hedge
result
transferred
to
carrying
amount of
hedged 0.9 0.9 0.9
items
Translation
differences -0.7 -0.7 -3.5 -4.2
Deferred
tax
in equity 0.5 0.5 0.5
Other 2.0 2.0 2.0
changes
Income and
expense
recognized
directly
in equity -0.7 -2.0 2.0 -0.7 -3.5 -4.2
Result for
the period 31.0 31.0 1.6 32.6
Total
recognized
income
and expense
for the period -0.7 -2.0 33.0 30.3 -1.9 28.4
Dividend -42.2 -42.2 -42.2
Share-based
payments 1.0 1.0 1.0
Balance at
Sep 30, 358.7 104.7 -46.5 -121.8 -0.6 467.5 762.0 18.6 780.6
2008
Group cash flow statement (IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2008 2007 2008 2007 2007
Result for the period* 32.6 62.5 10.1 18.7 -20.2
Adjustments* 109.8 116.7 37.4 42.5 243.2
- Depreciation,
amortization and 72.5 74.2 26.3 25.1 203.3
impairment*
- Gain on equity of -0.4 -0.3 -0.1 -0.1 -0.4
minorities*
- Gain/loss from disposal
of assets* -3.9 0.5 -3.4 0.2 -8.1
- Financial 34.1 30.9 14.1 10.6 42.5
expense/-income*
- Income tax expense* 6.9 13.5 2.1 3.9 6.2
- Other adjustments,
operational* 0.6 -2.0 -1.6 2.9 -0.3
Change in inventory* -18.4 -29.8 -3.7 1.2 -14.8
Change in non-interest
bearing receivables* -9.2 -30.9 12.3 17.6 -3.7
Change in non-interest
bearing payables* 32.8 -33.2 -30.0 -34.3 -38.5
Dividends received* 0.2 0.4 0.0 0.1 0.9
Interest received* 1.4 1.3 0.5 0.6 1.3
Interest paid* -33.7 -32.1 -13.2 -11.5 -42.7
Other financial expense
and income* -0.3 0.4 -3.0 0.0 -1.1
Taxes paid* -6.5 -9.8 -3.5 -2.2 -18.6
Net cash flows from
operating activities 108.7 45.5 6.9 32.7 105.8
Capital expenditure* -47.7 -92.5 -16.4 -35.4 -147.9
Proceeds from selling
fixed assets* 5.9 2.3 3.9 0.7 14.3
Proceeds from long-term
deposits 3.0 7.1 1.8 6.6 7.2
Payment of long-term -2.5 -1.6 -0.3 -0.1 -6.1
deposits
Proceeds from short-term
deposits 29.6 4.4 24.6 3.9 11.5
Payment of short-term -28.3 -3.9 -2.6 0.0 -11.0
deposits
Net cash flows from -40.0 -84.2 11.0 -24.3 -132.0
investing
Proceeds from long-term
borrowings 317.6 331.6 161.6 91.4 520.2
Repayment of long-term -284.0 -280.5 -126.0 -93.2 -434.4
borrowings
Proceeds from short-term 2,117.7 2,167.0 667.1 598.4 2,987.4
borrowings
Repayment of short-term -2,163.9 -2,137.1 -720.1 -608.4 -2,995.0
borrowings
Dividends paid -42.2 -42.2 0.0 0.0 -42.2
Net cash flows from -54.8 38.9 -17.4 -11.7 36.0
financing
Change in liquid assets 13.6 -0.2 1.6 -3.8 8.5
Cash flow based 13.9 0.2 0.5 -3.2 9.8
Translation difference -0.3 -0.3 1.1 -0.7 -1.3
Liquid assets period start 30.8 22.3 42.8 25.9 22.3
Liquid assets period end 44.4 22.1 44.4 22.1 30.8
Free cash flow (including 66.9 -44.7 -5.6 -2.0 -27.8
figures marked with *)
NOTES FOR THE INTERIM REPORT
This interim report has been prepared in accordance with IAS 34
Interim Financial Reporting. Except for accounting policy changes
listed below, the same accounting policies have been applied in the
interim financial statements as in annual financial statements for
2007.
Interim report is unaudited.
Changes in accounting principles
The Group has adopted the following IFRS standards and
interpretations considered applicable to Huhtamaki, with effect from
January 1, 2008:
- IFRS 8 Operating segments. IFRS 8 assumes that segment reporting
reflects the Group's management and internal reporting structure. The
five new segments are in line with Huhtamaki's internal management
structure and will replace the former geographical segments.
- IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum
Funding requirements and their Interaction. The interpretation
provides guidance on assessing the amount of the surplus that can be
recognized as defined benefit asset. It also explains how the pension
asset or liability may be affected by a statutory or contractual
minimum funding requirement.
These newly adopted standards have not had a material impact on the
reported results.
Segments
Segment information is presented according to the IFRS standards.
Items below EBIT - financial items and taxes - are not allocated to
the segments.
Net sales
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles
and Films 174.6 176.2 178.4 529.2 167.9 176.3 175.1 185.7 705.0
Global
-
Intersegment 1.7 1.7 0.9 4.3 0.8 1.2 1.0 1.2 4.2
net sales
Rigid Europe 159.1 173.5 149.9 482.5 148.7 161.7 172.1 146.0 628.5
-
Intersegment 1.0 1.5 1.1 3.6 1.5 1.6 1.2 1.1 5.4
net sales
Molded Fiber
Europe 34.0 34.9 35.4 104.3 36.5 33.5 34.2 34.3 138.5
-
Intersegment 0.2 0.1 0.0 0.3 0.2 0.0 0.4 0.3 0.9
net sales
Rigid and
Molded Fiber
Americas 151.3 154.7 132.5 438.5 143.6 153.5 166.5 142.2 605.8
-
Intersegment 0.9 1.3 0.8 3.0 0.9 0.9 0.7 0.7 3.2
net sales
Rigid and
Molded Fiber 53.0 51.1 52.5 156.6 61.1 57.4 58.2 56.5 233.2
AOA
-
Intersegment 0.1 0.0 0.0 0.1 -0.2 0.1 0.1 0.1 0.1
net sales
Elimination
of
intersegment
net sales -3.8 -4.5 -2.9 -11.2 -3.2 -3.8 -3.4 -3.4 -13.8
Total 572.1 590.5 548.6 1,711.2 557.8 582.4 606.1 564.7 2,311.0
EBIT
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and Films
Global (1 7.6 9.1 6.6 23.3 -0.5 11.8 12.5 14.7 38.5
Rigid Europe (2 3.0 0.7 1.5 5.2 -74.3 3.5 3.3 0.2 -67.3
Molded Fiber Europe
2.6 2.5 2.9 8.0 3.5 2.5 2.3 2.4 10.7
Rigid and Molded
Fiber
Americas (3 12.0 15.7 9.2 36.9 -6.2 13.1 19.4 17.2 43.5
Rigid and Molded
Fiber
AOA (4 1.1 -1.0 -0.2 -0.1 -1.3 1.8 2.7 3.3 6.5
Other activities -0.1 0.0 0.0 -0.1 0.3 0.5 -4.5 -0.1 -3.8
Total (5 26.2 27.0 20.0 73.2 -78.5 33.2 35.7 37.7 28.1
1) Q4 2007 includes goodwill impairment charges MEUR 8.3.
2) Q3 2008 includes restructuring charges MEUR 0.1, Q2 2008 includes
restructuring charges MEUR 6.8, Q4 2007 includes restructuring
charges MEUR 1.4, goodwill impairment charges MEUR 31.6 and tangible
asset impairment charges MEUR 46.0.
3) Q4 2007 includes goodwill impairment charges MEUR 5.1 and tangible
asset impairment charges MEUR 11.8.
4) Q3 2008 includes sale of the site in Hong Kong MEUR 3.7,
restructuring and tangible asset impairment charges MEUR 2.7, Q4 2007
includes restructuring charges MEUR 2.3
and goodwill impairment charges MEUR 1.6.
5) Q4 2007 includes restructuring charges MEUR 3.7, goodwill
impairment charges MEUR 46.6 and tangible asset impairment charges
MEUR 57.7, total amount
MEUR 108.0.
Depreciation and amortization
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and Films
Global 6.8 6.1 5.9 18.8 6.3 5.7 5.8 5.2 23.0
Rigid Europe 6.9 6.9 7.0 20.8 7.7 8.5 7.8 8.2 32.2
Molded Fiber Europe
1.9 1.9 1.9 5.7 1.8 1.9 1.9 1.9 7.5
Rigid and Molded Fiber
Americas 5.0 5.0 5.0 15.0 5.6 5.8 5.9 6.0 23.3
Rigid and Molded Fiber
AOA 5.3 3.0 3.1 11.4 3.1 3.0 3.0 2.9 12.0
Other activities 0.3 0.2 0.2 0.7 0.2 0.2 0.2 0.3 0.9
Total 26.2 23.1 23.1 72.4 24.7 25.1 24.6 24.5 98.9
Net assets allocated to the segments (6
Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2008 2008 2008 2007 2007 2007 2007
Flexibles and Films Global 535.3 513.9 526.7 542.9 547.7 528.0 513.9
Rigid Europe 381.1 378.2 399.9 407.6 494.0 502.9 494.4
Molded Fiber Europe
120.4 121.8 121.5 119.1 118.7 116.4 116.1
Rigid and Molded Fiber
Americas 431.5 403.3 413.1 417.1 456.9 478.6 474.2
Rigid and Molded Fiber AOA
180.9 189.5 188.0 201.3 204.5 209.3 197.1
6) Net assets include the following balance sheet items: intangible
and tangible assets, other non-current assets, inventories, trade and
other current receivables (excluding accrued interest income), other
non-current liabilities and trade and other current liabilities
(excluding accrued interest expense).
Capital expenditure
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and Films 3.8 9.6 6.8 20.2 15.3 15.1 12.6 8.6 51.6
Global
Rigid Europe 4.8 3.2 2.2 10.2 9.8 8.6 7.9 9.5 35.8
Molded Fiber Europe 1.9 0.4 0.6 2.9 7.3 0.8 0.8 0.8 9.7
Rigid and Molded Fiber
Americas 4.2 2.9 1.3 8.4 15.7 6.0 3.3 1.9 26.9
Rigid and Molded Fiber
AOA 1.7 1.8 1.8 5.3 6.4 4.8 6.6 4.5 22.3
Other activities 0.0 0.0 0.7 0.7 0.9 0.1 0.3 0.3 1.6
Total 16.4 17.8 13.5 47.7 55.4 35.4 31.5 25.6 147.9
RONA, % (12m roll.)
Q3 Q2 Q1 Q4 Q3 Q2 Q1
2008 2008 2008 2007 2007 2007 2007
Flexibles and Films 4.3% 5.1% 5.7% 7.2% 10.2% 11.1% 11.5%
Global
Rigid Europe -17.6% -16.3% -14.6% -14.2% -1.3% -3.5% -2.8%
Molded Fiber Europe 9.5% 9.4% 9.3% 9.0% 8.9% 9.6% 10.2%
Rigid and Molded
Fiber
Americas 7.4% 7.5% 8.0% 9.5% 13.3% 13.5% 13.6%
Rigid and Molded
Fiber
AOA -0.7% -0.3% 1.5% 3.2% 5.8% 6.6% 6.6%
Operating Cash
Flow
Q3 Q2 Q1 Q1-Q3 Q4 * Q3 * Q2 * Q1 * Q1-Q4
*
EUR million 2008 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and
Films
Global -2.9 14.3 7.2 18.6 7.2 -18.9 9.6 -4.0 -6.1
Rigid Europe 1.6 30.2 1.1 32.9 17.2 16.2 -7.7 -7.7 18.0
Molded Fiber 1.8 3.9 1.6 7.3 5.1 1.5 4.0 1.2 11.8
Europe
Rigid and
Molded Fiber
Americas 8.6 27.5 -2.5 33.6 25.6 21.9 9.7 -3.2 54.0
Rigid and
Molded
Fiber AOA 5.2 4.7 3.8 13.7 -0.8 0.5 -3.1 -5.8 -9.2
*) In 2007 operating cashflow calculations the FX translation has
been changed.
As net sales and EBIT of reportable segments form Groups' total net
sales and EBIT, reconciliations to corresponding amounts are not
presented.
Other information
Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2008 2007 2007
Equity per share (EUR) 7.59 8.48 7.70
ROE, % (12m roll.) -6.5 8.7 -2.4
ROI, % (12m roll.) -0.2 7.8 1.8
Personnel 14,794 14,963 15,092
Result before taxes (12m roll.)
-50.5 87.2 -14.0
Depreciation 66.9 69.6 92.9
Amortization of other
intangible assets 5.6 4.4 6.0
Share capital and shareholders
At the end of the reporting period, the Company's registered share
capital was EUR 358,657,670.00 (unchanged) corresponding to a total
number of outstanding shares of 105,487,550 (unchanged) including
5,061,089 (unchanged) Company's own shares. The Company's own shares
had the total accountable par value of EUR 17,207,702.60,
representing 4.8% of the total number of shares and voting rights.
The amount of outstanding shares net of Company's own shares was
100,426,461 (unchanged).
There were 21,819 (21,273) registered shareholders at the end of
September 2008. Foreign ownership including nominee registered shares
accounted for 27.1% (26.9%).
Share developments
The Company's share is quoted on the NASDAQ OMX Helsinki Ltd on the
Nordic Mid Cap list under the Materials sector. At the end of
September 2008, the Company's market capitalization was EUR 589.7
million (EUR 1,125.6 million) and EUR 561.4 million (EUR 1,071.5
million) excluding Company's own shares. With a closing price of EUR
5.59 (EUR 10.67) the share price decreased by 31% (-28%) from the
beginning of the year, while the OMX Helsinki CAP PI Index decreased
by 35% (+15%). In January-September 2008, the volume weighted average
price for the Company's share was EUR 6.75 (EUR 12.40). The highest
price paid was EUR 8.36 on January 2, 2008 and the lowest price paid
was EUR 4.83 on July 15, 2008.
During the reporting period the cumulative value of the Company's
share turnover was EUR 574.2 million (EUR 1,083.2 million). The
trading volume of 84.8 million (87.7 million) shares equaled an
average daily turnover of EUR 3.0 million (EUR 5.7 million) or,
correspondingly 444,106 (464,239) shares. In total, turnover of the
Company's 2003 A, B and C option rights was EUR 460,356,
corresponding to a trading volume of 486,257.
Contingent liabilities
Sep 30 Dec 31 Sep 30
2008 2007 2007
EUR million
Mortgages 14.5 14.5 14.5
Guarantee obligations 1.8 2.8 5.6
Lease payments 56.3 55.6 53.8
Capital expenditure commitments 24.2 19.4 45.0
Nominal values of derivative instruments
Sep 30 Dec 31 Sep 30
2008 2007 2007
EUR million
Currency forwards,
transaction risk hedges 78 45 67
Currency forwards,
translation risk hedges 36 101 106
Currency swaps,
financing hedges 112 143 142
Currency options 1 -1 2
Interest rate swaps 176 164 154
Electricity forwards - 1 -
The following EUR rates have been applied to GBP, INR, AUD and USD
Q3/08 Q3/07
Income statement, average: GBP 1 = 1.282 1.478
INR 1 = 0.016 0.018
AUD 1 = 0.601 0.611
USD 1 = 0.655 0.744
Q3/08 Q3/07
Balance sheet, month end: GBP 1 = 1.265 1.435
INR 1 = 0.015 0.018
AUD 1 = 0.564 0.622
USD 1 = 0.699 0.705
Definitions for key indicators
Earnings per share = Result before taxes - minority interest - taxes
/ Average number of shares outstanding
Earnings per share (diluted) = Diluted result before taxes - minority
interest - taxes / Average fully diluted number of shares outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity +
minority interest (average)
RONA, % = 100 x Earnings before interest and taxes (12 m roll.) /
Net assets (12 m roll.)
Operating cash flow = Ebit + depreciation and amortization (including
impairment) - capital expenditures + disposals +/- change in
inventories, trade receivables and trade payables
Shareholders' equity per share = Equity / Issue-adjusted number of
shares at period end
Return on equity (ROE) = 100 x (Result for the period ) (12 m roll.)
/ Equity + minority interest (average)
Return on investment (ROI) = 100 x (Result before taxes + interest
expenses + net other financial expenses) (12 m roll.) / Balance sheet
total - Interest-free liabilities (average)
Interim Report January 1 - September 30, 2008: Stable sales in the reporting period
| Source: Huhtamäki Oyj
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