NORDIC ALUMINIUM PLC FINANCIAL STATEMENTS RELEASE March 5, 2009 9.00 am
Nordic Aluminium's consolidated net sales in 2008 were EUR 100.15 million
compared with EUR 106.84 million in the previous year. Consolidated operating
profit was EUR 11.00 million (2007: EUR 20.02 million. The operating profit
2007 included a non-recurring gain of approximately EUR 5.00 million.) Net
profit was EUR 8.27 million (EUR 14.81 million. The above mentioned
non-recurring gain influenced the net profit by EUR 3.6 million.) Return on
investment was 24.1 per cent (53.1 per cent) and return on equity 18.4 per cent
(40.6 per cent). The Board proposes the payment of a dividend of 2008 0.40 EUR
per share for a total payment of EUR 1.93 million (EUR 5.56 million).
Group structure
Nordic Aluminium Plc's parent company is Oy Lival Ab. The Nordic Aluminium
Group is made up of the parent company Nordic Aluminium Plc, operating at
Kirkkonummi and Nivala, and its subsidiaries Nordic Aluprofiler AB in Sweden
and Nordic Aluminium Inc. in the United States.
Net sales and profitability
Nordic Aluminium's consolidated net sales in the fiscal year 2008 were EUR
100.15 million (EUR 106.84 million). Due to rapid recession in market demand
turnover dropped 25 per cent during the fourth quarter.
The Company's profit development was negative. The operating profit was weak
during the last quarter. The Company made a devaluation in inventories of EUR
1.6 million based on rapid and abrupt price decrease in aluminium world market
price.
The share of exports and international operations were 40.7 per cent of net
sales as compared with 40.6 per cent the year before. The major export markets
in 2008 were Western Europe, the Nordic countries, Russia and North America.
Net sales per employee was EUR 0.32 million (EUR 0.35 million).
Consolidated operating profit was EUR 11.00 million. The corresponding figure
for the year before was EUR 20.02 million.
Order backlog
Nordic Aluminium's order book at the end of 2008 stood at EUR 5.05 million (EUR
7.74 million).
Purchase behaviour in the market has changed. Customers are not able to give
reliable estimates and order only for actual needs with short delivery times.
Research and development expenses
Nordic Aluminium's research and development expenses in 2008 were EUR 0.33
million (EUR 0.50 million), 0.3 per cent of net sales (0.5 per cent).
Investments
Gross investments in 2008 were EUR 9.64 million (EUR 12.80 million.)
Profitability
Return on investment (ROI) in Nordic Aluminium in 2008 was 24.1 per cent (53.1
per cent) and return on equity (ROE) was 18.4 per cent (40.6 per cent). Diluted
earnings per share were EUR 1.71 (EUR 3.06). Equity per share was EUR 9.56 (EUR
9.02).
Comparable figures to the fiscal year 2007 corrected with the effects of the
fire in the anodizing plant are: Return on investment (ROI) 40.1 per cent,
return on equity (ROE) 30.5 per cent and diluted earnings per share EUR 2.30.
Balance sheet and financing
The consolidated balance sheet total at the end of the 2008 fiscal year was EUR
56.18 million (EUR 57.72 million). Equity ratio was 82.4 per cent (75.6 per
cent). Cash flow from operations before interests and taxes was EUR 19.71
million (EUR 21.72 million).
Authorisations
The Board has no current authorisations for the increase of the Company's share
capital, the procurement of own shares or issuing of convertible bonds or
option loans.
Share capital
The nominal value of Nordic Aluminium Plc's share is EUR 1.28 and the total
number of shares at the end of the fiscal year 2008 was EUR 4,836,882. The
registered share capital is EUR 6,191,208.96. All shares have the same voting
and dividend rights. Nordic Aluminium Plc's shares have been listed on NASDAQ
OMX Helsinki Ltd. since 1997.
Turnover of shares
A total of 66,874 Nordic Aluminium Plc shares were traded on the stock market
in 2008. This corresponds to 1.4 per cent (7.6 per cent) of the Company's total
capital stock. The year's highest quotation was EUR 30.00 (EUR 35.50) and the
lowest EUR 12.50 (EUR 19.50). The average quotation was EUR 21.43 (EUR 27.22).
On the last trading day of the year the share traded at an average price of EUR
12.71 (EUR 29.40).
Shares and ownership
There were no major changes in the ownership of Nordic Aluminium Plc during the
year. At the end of the fiscal year 2008 Nordic Aluminium Plc's ownership was
as follows:
The biggest shareholders Dec 31, 2008 Number of Share of capital
Owner shares and votes
%
Oy Lival Ab 3,087,945 63.84
Varma Mutual Pension Employment
Insurance Company 250,000 5.17
Aktia Capital Unit Trust 225,000 4.65
Evli-Select Mutual Fund 173,840 3.60
Veritas Mutual Pension Insurance Company 169,000 3.49
Lival-Lindström, Stig 99,050 2.05
Fondita Micro Cap Mutual Trust 60,000 1.24
Paajanen, Robert 53,250 1.10
Hietala, Pekka 50,318 1.04
Mutual Fund Evli Nordic Dividend 35,111 0.73
Others 633,368 13.09
Total 4,836,882 100.00
The number of nominee-registered shares at the end of 2008 was 36,799, which
equals 0.76 per cent of the company's shares and votes. The total number of
shareholders at the end of the year was 935.
Shareholders by sector Dec 31, 2008 Number of Share
shares
%
Companies 3,214,139 66.45
Financial and insurance institutions 538,638 11.14
Associations 443,464 9.17
Non-profit associations 39,850 0.82
Households 599,322 12.39
Owners outside Finland 1,469 0.03
Total 4,836,882 100.00
Shareholders by size of holdings Dec 31, 2008
Number of shares Number of % Number of %
owners shares
1 - 200 534 57.11 52,173 1.08
201 - 2,000 341 36.47 205,382 4.25
2,001 - 20,000 46 4.92 250,997 5.19
20,001 - 200,000 11 1.18 765,385 15.82
200,001 - 2,000,000 2 0.21 475,000 9.82
2,000,001 - 9,999,999 1 0.11 3,087,945 63.84
Total 935 100.00 4,836,882 100.00
Insider issues
Nordic Aluminium Plc adheres to the guidelines for insiders issued by NASDAQ
OMX Helsinki Ltd. Nordic Aluminium Plc's permanent insiders are: Members of the
Board of Directors, Managing Director & CEO, Secretary of the Board and the
Members of the Management Group as well as named individuals within the
Company's financial administration, sales and marketing and production. The
appointed insider issue responsible is the Company's CFO. Up-to-date insider
data is maintained in the Central Securities Depository at Euroclear Finland
Ltd's premises.
The Company recommends that the permanent insiders' investments in the
Company's are to be long-term investments. According to NASDAQ OMX Helsinki
Ltd. guidelines for insiders and the Company's own Insider Guidelines trading
in the Company's securities should be done at the times when the market has as
exact information as possible of the issues and matters influencing the value
of the security.
Annual General Meeting
The Annual General Meeting of Nordic Aluminium Plc on April 1, 2008 adopted the
financial statements and discharged the members of the Board and the Managing
Director from liability. The Meeting also decided to approve the proposal of
the Board for a dividend of 2007 EUR 1.15 per share (EUR 0.85) or a total of
EUR 5.56 million.
The Annual General Meeting elected Stig Lival-Lindström, Robert Paajanen and
Eric Westerlund regular members of the Board of Directors. The board elected
Stig Lival-Lindström Chairman on the same date.
The Annual General Meeting elected Authorised Public Accountants Tomi Englund,
Authorised Public Accountant and Lars Winberg, Authorised Public Accountant,
auditors, with Ernst & Young Oy, Authorised Public Accountant, deputy auditor.
Personnel
In 2008 the Nordic Aluminium Group had an average number of 315 employees. The
corresponding number the year before was 306. At the end of 2008 the Group had
294 employees as compared with the number of 309 on the previous year.
Prospects
The order backlog for the Group was EUR 5.05 million (EUR 7.74 million).
Market prospects are still weak and uncertain due to the turmoil in the global
economy. Production volume and turnover are expected to be clearly lower than
in year 2008. The Company has adjusted its operations to meet the declined
demand. The Company is prepared to make additional adjustments if the market
demand and profit development so requires. Despite the adjustments made to the
production volume and cuts in fixed costs the profitability will be
significantly lower.
The investment program which started in the beginning of 2008 will be finalized
during the first half of 2009. The new extrusion line will start production
during March 2009.
The above mentioned predictions are based on the Company's management's best
view of the Company's condition and market outlook.
Risk management
The objective of Nordic Aluminium Plc's risk management is to secure business
continuity in all possible situations. The CEO and the Board of Directors are
responsible for risk management.
As part of the risk management the Company's insurance policies are
re-evaluated annually. The factories and commercial activities are full value
insured.
Main long term risks are related to the possible uncertainty in the development
of the world economy and its influence on market demand.
The insurance company of the Kirkkonummi production facility has placed a
regression claim for EUR 7.1 million based on the total amount of compensation
due to the fire in the anodizing plant in June 2007. Nordic Aluminium's view is
that the demand is groundless.
The Board's proposal on the allocation of profits
The net profit of the parent company for the year is EUR 7,695,911.87 and its
distributable earnings EUR 29,193,765.02.
The Board proposes that a dividend of EUR 0.40 per share, or a total of EUR
1,934,752.80, be declared and that the remaining balance of EUR 27,259,012.22
be retained in profit and loss account.
The Board has evaluated the company's future and finds that the proposal above
does not risk the liquidity.
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 annual financial statements have been prepared in accordance
with IAS34 Interim Financial Reporting. Nordic Aluminium applies the same
accounting policies as are applied in 2007 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 annual financial statements do not include separate
information over the group's primary business segment.
The key figures in these annual financial statements are calculated with same
accounting principles than in year 2007 annual financial statements. The
calculation rules of key figures are presented in the financial statements 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 financial statements bulletin has been subject to audit.
CONSOLIDATED INCOME STATEMENT
(EUR million), SUMMARY 1.1. - 1.1. -
31.12.2008 31.12.2007
Net sales 100.15 106.84
Other operating income 1.67 10.42
Increase(+) or decrease(-)
finished goods and
work in progress -3.65 1.70
Raw materials and
consumables -51.19 -58.88
Personnel expenses -14.90 -14.33
Depreciation and
reduction of value -3.95 -4.77
Other operating expenses -17.14 -20.98
Operating profit 11.00 20.02
Financial items 0.23 0.06
Profit before taxes 11.22 20.07
Income taxes -2.95 -5.26
Net profit for the period 8.27 14.81
CONSOLIDATED BALANCE SHEET
EUR million Dec 31, Dec 31,
2008 2007
Non-current assets
Tangible assets 25.07 19.36
Goodwill 2.25 2.25
Intangible assets 1.74 1.76
Tradable financial assets 0.02 0.02
Other financial assets 0.00 0.00
Deferred tax liabilities 0.09 0.09
Total 29.17 23.48
Current assets
Inventories 8.15 12.69
Accounts receivable and other
current assets 11.51 14.35
Financial assets 7.35 7.21
Total 27.01 34.24
Cash in hand and at banks 56.18 57.72
EUR million Dec 31, Dec 31,
2008 2007
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 6.19
Share premium account 3.45 3.45
Conversion difference -0.27 -0.23
Retained earnings 36.92 34.21
Total 46.29 43.63
Long-term liabilities
Deferred tax liabilities 1.75 1.60
Provisions 0.07 0.14
Interest bearing liabilities 0.09 0.13
Total 1.91 1.87
Short-term liabilities
Accounts payable 7.93 11.37
Provisions 0.00 0.09
Short-term interest
bearing liabilities 0.05 0.77
Total 7.98 12.22
Total liabilities 9.89 14.09
Total shareholders' equity and
liabilities 56.18 57.72
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 1-12/08 1-12/07
Cash flow from operations
Net profit (loss) 8.27 14.81
Corrections
Depreciation according to plan 3.95 4.77
Financial items -0.23 -0.06
Taxes 2.95 5.26
Cash flow before change
in net working capital 14.94 24.79
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) 3.75 -0.89
Inventories
increase(-)/decrease(+) 4.54 -2.45
Short-term interest bearing liabilities
increase(+)/decrease(-) -3.52 0.27
Total 4.77 -3.07
Cash flow from operations before
interests and taxes 19.71 21.72
Paid interests and payments for
other financial expenses -0.18 -0.21
Received interests and payments
from other financial income 0.40 0.26
Paid income taxes -3.89 -2.94
Cash flow from operations(A) 16.05 18.83
Cash flow from investing activities
Investments in tangible and
intangible assets -9.64 -12.80
Income from sales of tangible
and intangible assets 0.00 0.00
Repayment of loan receivables 0.00 0.00
Cash flow from investments(B) -9.64 -12.80
Cash flow from financial items
Rights issue 0.00 0.00
Withdrawals of short-term loans 0.00 0.00
Amortization of short-term loans -0.72 -0.71
Amortization of long-term loans 0.07 -0.61
Dividends paid -5.56 -4.11
Cash flow from financial items(C) -6.22 -5.43
Change in cash flow (A+B+C) 0.20 0.60
Conversion difference -0.05 -0.07
Total 0.15 0.53
Cash in hand and at banks
in the beginning of period 7.21 6.67
Cash in hand and at banks
in the end of period 7.35 7.21
Change 0.15 0.53
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Share prem. Conversion Retained Total
Equity account difference earnings equity
Equity
1.1.2007 6.19 3.45 -0.16 23.50 32.99
Conversion diff. -0.07 -0.07
Net profit 14.80 14.82
Earnings and costs total 14.75
Dividends -4.11 -4.11
Warrants used 0.00 0.00 0.00
-4.11
Equity
31.12.2007 6.19 3.45 -0.23 34.21 43.63
Equity
1.1.2008 6.19 3.45 -0.23 34.21 43.63
Conversion
difference -0.05 -0.05
Net profit 8.27 8.27
Earnings and costs total 8.22
Dividends -5.56 -5.56
Warrants used 0.00 0.00 0.00
-5.56
Equity
31.12.2008 6.19 3.45 -0.27 36.92 46.29
KEY FIGURES:
EUR million 1-12/08 1-12/07
Diluted earnings per share, EUR 1.71 3.06
Equity ratio, % 82.4 75.6
Gearing, % -15.9 -14.4
Balance sheet total, EUR million 56.18 57.72
NOTES:
EUR million 1-12/08 1-12/07
Equity/share, EUR 9.56 9.02
Investments, EUR million 9.64 12.80
Average number of personnel 315 306
Geographical segments:
Net sales
EUR million 1-12/08 1-12/07
Finland 59.42 63.43
Other countries 40.73 43.41
Total 100.15 106.84
Taxes:
EUR million 1-12/08 1-12/07
Current income tax 2.79 4.27
Change in deferred income tax 0.16 0.98
Total 2.95 5.26
Inventories:
EUR million Dec 31, Dec 31,
2008 2007
Raw materials and consumables 1.26 1.90
Work in progress 2.58 4.23
Finished goods 4.30 6.56
Total 8.15 12.69
Interest bearing loans and borrowings:
EUR million Dec 31, Dec 31,
2008 2007
Bank loan 0.00 0.73
Obligations under finance leases 0.14 0.18
Total 0.14 0.91
Contingent liabilities:
EUR million Dec 31, Dec 31,
2008 2007
Consignation liability 0.19 1.86
Rental and leasing liabilities 9.67 11.47
Corporate mortgages given 0.00 8.41
Related party disclosures:
EUR million Dec 31, Dec 31,
2008 2007
Sales 9.09 8.79
Purchases 0.02 0.02
Receivables 0.01 0.03
Accounts payable 0.00 0.02
Order bakclog:
EUR million Dec 31, Dec 31,
2008 2007
5.05 7.74
The financial statements for the fiscal year 2008 have been audited. The key
data have been calculated as instructed by the FSA Standard 5.1.
Nordic Aluminium Plc's Annual General Meeting will be held on April 1, 2009.
Nordic Aluminium Plc's next Interim Report for the first quarter of 2009 will
be published on April 28, 2009. All releases can be viewed at Nordic
Aluminium's homepages www.nordicaluminium.fi.
Kirkkonummi March 5, 2009
NORDIC ALUMINIUM PLC
Board of Directors
Robert Paajanen
Managing Director
For further information please contact:
Robert Paajanen, Managing Director, Nordic Aluminium,
phone +358 20 7660 220
Distribution:
NASDAQ OMX Helsinki Ltd.
The Main Media
www.nordicaluminium.fi
NOAE0509