ASPO Plc STOCK EXCHANGE BULLETIN August 24, 2009 at 13.00
January-June, continuing operations
- Net sales for Aspo Group's continuing operations in January-June
amounted to EUR 159.3 million (EUR 145.4 million)
- Operating profit was EUR 5.7 million (EUR 6.9 million)
- Profit before taxes amounted to EUR 3.4 million (EUR 5.3 million)
- Earnings per share for continuing operations stood at EUR 0.10 (EUR
0.15)
- The Group's financing situation has continued to be good.
- During the review period, a 2004 convertible capital loan of EUR
14.2 million was repaid and a new five year convertible capital
loan of EUR 15.0 million was issued.
- Continuing operations include a EUR 2.9 million sales gain from m/s
Kontula, a EUR -0.5 million loss from the divestment of German
subsidiary Metex Deutschland, and non-recurring costs of EUR 1.8
million from Telko business operations.
- Aspo specifies its outlook for 2009. It is challenging to reach the
same operating profit level from continuing operations as last year.
Earnings per share is expected to be below last year's record level.
KEY FIGURES
1-6/2009 1-6/2008 1-12/2008
Continuing operations
Net sales, MEUR 159.3 145.4 358.2
Operating profit, MEUR 5.7* 6.9 14.1
Share of net sales, % 3.6 4.7 3.9
Profit before taxes, MEUR 3.4 5.3 9.5
Share of net sales, % 2.1 3.6 2.7
Personnel at the end of period 761 800 821
Earnings per share, EUR, continuing
operations 0.10 0.15 0.27
Earnings per share, EUR, ciscontinued
operations 0.01 0.33
Earnings per share, EUR, total 0.10 0.16 0.60
EPS adjusted for dilution, EUR,
continuing operations 0.09 0.15 0.26
EPS adjusted for dilution, EUR,
discontinued operations 0.01 0.30
EPS adjusted for dilution, EUR, total 0.09 0.16 0.56
Comparable earnings per share, EUR,
continuing operations 0.02 0.27
Comparable earnings per share, EUR,
discontinued operations -0.03
The Group as a whole
Equity per share, EUR 2.32 2.12 2.56
Equity ratio, % 29.4 20.2 30.6
Gearing, % 142.2 199.3 124.9
* includes a EUR 2.9 million sales gain and a EUR -0.5 million sales
loss.
AKI OJANEN, ASPO'S CEO:
"The market situation in Aspo's operating countries continued to be
unexceptionally weak and the national economies in the operating
areas weakened during the review period. It is still challenging to
foresee market development. A prolonged and possibly worsening
economic recession may also have a negative effect on Aspo Group's
development and operations.
The operating result in the first half of the year can be seen as
satisfactory for Aspo in the current market situation.
In accordance with its strategy, Aspo, as a conglomerate, has
decentralized its risks by focusing on several small niche areas:
Leipurin and ESL Shipping generated good results. Telko's and
Kaukomarkkinat's result was weak and during the review period, the
result was depressed by non-recurring costs from reorganizing the
operations and a sales loss from the divestment of the shares in the
German subsidiary Metex Deutschland; the combined effect was EUR 2.3
million. ESL Shipping sold its oldest vessel, m/s Kontula, from which
the company booked a EUR 2.9 million sales gain.
Aspo strategy is to increase its operations in Russia and other CIS
countries. Despite the difficult economic situation, Aspo was
successful in this strategy and raised the net sales in the market
area by 10% during the review period. Volume grew even more as the
Russian currency has devaluated by over 30%. Our operations in the
growth markets were profitable.
The company has launched a cost-cutting program since the acquisition
in the spring of 2008. The fixed costs of the Group's other
operations are expected to decrease by EUR 2 million on an annual
level. The move of Finnish operations into one office and the
outsourcing and efficiency measures in logistics will start to have
full effect from the fourth quarter onwards. The Group's new ERP
system will first be launched in Telko at the beginning of 2010.
ASPO AS A COMPANY
Aspo is a conglomerate that owns and develops businesses in the
Baltic Sea region focusing on demanding B-to-B customers. The aim of
our strong corporate brands - ESL Shipping, Leipurin, Telko and
Kaukomarkkinat - is to be the market leaders in their sectors. They
are responsible for their own operations, customer relationships and
the development of these. Together they generate Aspo's goodwill.
Aspo's Group structure and business operations are developed
persistently without any predefined schedules.
FINANCIAL REPORTING
As of January 1, 2009, the Group has applied the following new and
revised standards: IFRS 8 Operating Segments and IAS 1 Presentation
of Financial Statements. IFRS 8 has an effect on the segment
information and IAS 1 has an effect on the presentation of the income
statement. The comparison figures have been restated according to the
new standards. The changes have no effect on the Group's result or
financial position.
As of January 1, 2009, Aspo's reporting segments are as follows: ESL
Shipping, Leipurin, Telko and Kaukomarkkinat. The operations of the
segments are described in the respective segment sections.
Kaukomarkkinat, previously presented in other operations together
with Group administration, is now presented as a separate segment.
Other operations include Group administration and other operations
not belonging to the business units.
The segment structure corresponds to the Group structure and internal
reporting. Management reporting is based on IFRS standards.
As of January 1, 2009, the company reports net sales from the
following geographical areas: Finland, Scandinavia, Baltic countries,
Russia and other CIS countries, and other countries.
Leipurin and Kaukomarkkinat are included in Aspo Group's figures from
the beginning of May 2008. Telko's comparison data includes, from the
beginning of May 2008, Kauko-Telko's industrial raw material
operations that were acquired in the spring of 2008.
OPERATIONAL PERFORMANCE
General uncertainty has continued in the markets. There has not been
an increase in the prices of sold raw materials nor volume growth as
of yet. The demand for raw materials in the food industry has
continued to be stable.
The national economies in the Baltic countries are expected to weaken
in 2009. The general uncertainty in the financial markets has
continued. It is difficult to predict future development or a
possible turn for the better in the real economy. The steep and rapid
decrease in the external value of currencies outside the euro area
has stopped during the first quarter.
Uncertainty continues to be strong concerning the direction of
economic development in the Baltic Sea and CIS markets that are
important for Aspo Group's operations.
The Group's financial position has remained at the same level as in
the 1st quarter of 2009. Due to a decrease in the Group's
interest-bearing debt and general interest rate levels, the total
financing costs are decreasing, even though the financing margins
have increased.
ESL Shipping
ESL Shipping is the leading dry bulk sea transport company operating
in the Baltic Sea area. At the end of the review period, the
company's fleet consisted of 15 company-owned vessels and one
partially owned vessel.
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2009 2008 Change 2009 2008 2008
Net Sales, MEUR 15.1 20.4 -5.3 32.4 41.4 84.1
Operating Profit, MEUR 5.2* 3.8 1.4 9.3* 7.0 15.6
Personnel 215 224 -9 215 224 240
* includes a EUR 2.9 million sales gain
The market for dry bulk cargo marine transport in the Baltic Sea
stabilized but still remained challenging. On international cargo
markets, the drop in dry bulk cargo prices has stopped and the prices
have made a partial upturn. In general, the vessel stock has been
adjusted, and thus overall capacity has decreased. The steel and
construction industries in Scandinavia in particular have continued
to decrease their production capacity, which has affected the amount
of shipping. An increase in demand is expected towards the end of the
year as the steel industry has started to reintroduce production
capacity that has previously been shut down.
The shipping volume in the energy industry remained at normal levels
for the period.
The cargo volume carried by ESL Shipping in the January to June
amounted to 5.2 million tons (6.8). The share of the steel industry
was 2.4 million tons (4.3) and the energy industry represented 2.6
million tons (1.9).
Fleet operations were good considering the market situation. Net
sales amounted to EUR 32.4 million (41.4). Operating profit excluding
the sales gain was EUR 6.4 million (7.0), which is good considering
the market situation.
During the review period, the company's oldest vessel, 29 year old
m/s Kontula, was sold. The divestment was timed to precede necessary
maintenance investments and was a partial solution in adjusting
capacity to the market. During the review period, six units have
been laid up time to time to reduce capacity and five units have been
docked according to plan. The company has agreed on a period charter
for a 20,000 dwt vessel for one year starting from August 2009. The
vessel is suited for winter traffic and fits the company's operations
well. The capacity increase ensures that long term customer
commitments can be carried out also during the fall and winter
seasons.
A 20,000 dwt vessel is being constructed in India. The construction
schedule has been delayed, and the vessel is expected to be ready for
traffic during the spring of 2010. A leasing agreement has been
signed for the vessel.
Leipurin
Leipurin serves the baking and food industry by supplying
ingredients, production machinery and production lines, as well as
related expertise. Leipurin operates in Finland, Russia, Poland,
Estonia, Latvia, Lithuania and Ukraine. In Russia, Leipurin has
operations in several large cities in addition to St. Petersburg and
Moscow. Procurement operations are international.
4-6/ 4-6/ 1-6/ 5-6/ 5-12/
2009 2008 Change 2009 2008 2008
Net Sales, MEUR 26.7 17.0 9.7 48.4 17.0 69.3
Operating Profit, MEUR 1.2 0.8 0.4 1.5 0.8 3.1
Personnel 193 167 26 193 167 168
The raw material prices for the food industry continued decreasing
further during the first half of the year. The order book for machine
deliveries has increased and is at 2008 levels.
Earnings development in baking industry sales continued to be good in
all market areas. New agencies in Russia and Ukraine have been
opened. In bakery machine deliveries, normal delivery volumes for the
period were achieved.
Telko
Telko is the leading expert and supplier of industrial chemicals and
plastic raw materials in the Baltic Sea region. It operates in
Finland, the Baltic countries, Scandinavia, Poland, Ukraine, Russia,
and Belarus. Procurement operations are international.
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2009 2008 Change 2009 2008 2008
Net Sales, MEUR 31.0 49.0 -18.0 59.8 80.4 172.7
Operating Profit, MEUR -1.8 1.3 -3.1 -1.7 2.1 1.0
Personnel 225 222 3 225 222 230
The steep drop in the prices and demand of petrochemical products
that began in the fall, turned around in the second quarter. Price
levels and demand have still remained weak.
Customers continued to decrease their volumes and adjusted orders to
their own volume of orders and production. Part of the industry began
production standstills already in May, which lowered volumes in
Finland and Sweden in particular. The shortage of capacity in
operations has weakened the result. Telko adjusted its organization
to current demand and cut its personnel by a total of 12 people in
Finland and Sweden. The result in the second quarter included EUR 1.8
million in non-recurring costs.
In order to ensure a new direction for operations, Telko's management
was renewed and Kalle Kettunen, M.Sc., MBA, started working as the
new CEO of Telko on August 1, 2009. The costs arising from the change
were booked in the review period.
Kaukomarkkinat
Kaukomarkkinat specializes in energy efficiency technology, the
efficiency of the process industry, and security and audio-visual
applications. Company operations are based on the products of the
best companies in the industry and the willingness of the company's
own experts to improve the operations or efficiency of its customers.
Kaukomarkkinat operates in Finland, Poland, Russia, China, and
Vietnam.
4-6/ 4-6/ 1-6/ 5-6/ 5-12/
2009 2008 Change 2009 2008 2008
Net Sales, MEUR 7.9 6.4 1.5 17.7 6.4 30.8
Operating Profit, MEUR -0.9* 0.1 -1.0 0.1* 0.1 2.1
Personnel 97 95 2 97 95 100
* includes a EUR -0.5 million sales loss
During the review period, a delay in projects in the industrial
machinery unit in particular caused Kaukomarkkinat's weak operating
result, which was visible mainly in Finland and China. The Moscow
agency was shut down and the agency in St. Petersburg was downsized.
The German subsidiary Metex Deutschland was divested, which caused a
EUR -0.5 million sales loss for the period. The operations of Metex
did not fit Kaukomarkkinat strategically because the operations
mainly had an engineering industry nature.
The operating profit adjusted by the non-recurring sales loss was EUR
0.6 million (0.1). In products that improve energy efficiency, normal
seasonal fluctuation was seen and sales were in line with
expectations.
Other operations
Other operations include Aspo Group's administration and other
operations not belonging to the business units. The Group's
administration costs have been higher than usual since the summer of
2008 due to the acquisition. The cost-cutting program for fixed costs
will have full effect from the fourth quarter onwards.
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2009 2008 Change 2009 2008 2008
Net Sales, MEUR 0.2 0.1 0.1 1.0 0.2 1.3
Operating Profit, MEUR -1.8 -2.0 0.2 -3.5 -3.1 -7.7
Personnel 31 92 -61 31 92 83
NET SALES AND PROFIT, CONTINUING OPERATIONS
Net sales for Aspo Group's continuing operations in January-June 2009
amounted to EUR 159.3 million (EUR 145.4 million). ESL Shippings' net
sales decreased as a result of a drop in cargo volumes and selling of
a vessel. The net sales of Leipurin and Kaukomarkkinat are included
for the entire period. However in the comparison figures, they are
only included for 5-6/2008. Telko's net sales decreased compared to
last year as a result of a drop in volumes and prices as well as the
unfavorable development of currency exchange rates.
Aspo Group's net sales for continuing operations in April-June
amounted to EUR 80.9 million compared with EUR 92.9 million in the
corresponding period last year.
Net Sales by Segment,
MEUR
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2009 2008 Change 2009 2008 2008
ESL Shipping 15.1 20.4 -5.3 32.4 41.4 84.1
Leipurin 26.7 17.0 9.7 48.4 17.0 69.3
Telko 31.0 49.0 -18.0 59.8 80.4 172.7
Kaukomarkkinat 7.9 6.4 1.5 17.7 6.4 30.8
Other operations 0.2 0.1 0.1 1.0 0.2 1.3
Continuing operations
total 80.9 92.9 -12.0 159.3 145.4 358.2
Discontinued operations 19.9 -19.9 32.5 45.1
Total 80.9 112.8 -31.9 159.3 177.9 403.3
Inter-segment net sales is not considerable.
Net Sales by Market Area, MEUR
4-6/09 4-6/08 Change 1-6/09 1-6/08 1-12/08
Finland 38.2 44.7 -6.5 75.3 67.6 166.0
Nordic countries 6.4 12.6 -6.2 13.4 21.2 47.5
Baltic countries 10.5 8.0 2.5 18.0 11.5 32.8
Russia + other CIS
countries 12.6 15.1 -2.5 24.2 25.6 61.1
Other countries 13.2 12.5 0.7 28.4 19.5 50.8
Continuing operations
total 80.9 92.9 -12.0 159.3 145.4 358.2
Discontinued operations 19.9 -19.9 32.5 45.1
Total 80.9 112.8 -31.9 159.3 177.9 403.3
The importance of Russia and other CIS countries has increased. Due
to the devaluation of currencies other than the euro, delivered
volumes have in the first half of the year been relatively higher
than last year. The importance of the CIS countries becomes
emphasized when all of ESL Shipping's raw material exports from
Russia, EUR 19.4 million (15.1), are included in the net sales for
the Russian market area.
MEUR 4-6/09 4-6/08 Change 1-6/09 1-6/08 1-12/08
Russia + other CIS
countries 25.3 20.8 4.5 43.6 39.4 90.6
January-June performance, continuing operations
Aspo Group's operating profit in January-June was EUR 5.7 million,
i.e., 3.6% of net sales (EUR 6.9 million). Planned depreciation
totaled EUR 4.5 million (EUR 4.9 million). The Group's net financial
costs amounted to EUR 2.3 million (EUR 1.6 million). The profit
before taxes in January-June was EUR 3.4 million (EUR 5.3 million),
and the net profit for the period totaled EUR 2.6 million (EUR 3.7
million).
April-June performance, continuing operations
Operating profit for Aspo Group's continuing operations in April-June
amounted to EUR 1.9 million (EUR 4.0 million). ESL Shipping's
operating profit was EUR 5.2 million (3.8), including a EUR 2.9
million sales gain. Leipurin's operating profit amounted to EUR 1.2
million (0.8). Telko's operating profit was EUR -1.8 million (1.3),
including a EUR 1.8 million non-recurring cost. Kaukomarkkinat
generated a EUR -0.9 million loss (0.1), which included a EUR -0.5
million sales loss. Other operations include Aspo Group's
administration and other operations not belonging to the business
units. The operating profit of Other operations was EUR -1.8 million
(-2.0).
Operating Profit by Segment,
MEUR
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2009 2008 Change 2009 2008 2008
ESL Shipping 5.2 3.8 1.4 9.3 7.0 15.6
Leipurin 1.2 0.8 0.4 1.5 0.8 3.1
Telko -1.8 1.3 -3.1 -1.7 2.1 1.0
Kaukomarkkinat -0.9 0.1 -1.0 0.1 0.1 2.1
Other operations -1.8 -2.0 0.2 -3.5 -3.1 -7.7
Continuing operations
total 1.9 4.0 -2.1 5.7 6.9 14.1
Discontinued operations 1.8 -1.8 1.5 9.6
Total 1.9 5.8 -3.9 5.7 8.4 23.7
Earnings per share
Earnings per share for continuing operations stood at EUR 0.10 (EUR
0.15). The Group's earnings per share was EUR 0.10 (0.16) and the
diluted earnings per share was EUR 0.09 (0.16). Equity per share was
EUR 2.32 (2.12).
INVESTMENTS
Investments for the Group's continuing operations in January-June was
EUR 3.9 million (3.7), of which the majority was generated from ESL
Shipping's vessel docking.
Investments by Segment, MEUR
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2009 2008 Change 2009 2008 2008
ESL Shipping 1.5 0.3 1.2 2.3 2.5 18.8
Leipurin 0.1 0.0 0.1 0.3 0.0 0.1
Telko 0.6 0.1 0.5 0.6 0.1 0.4
Kaukomarkkinat 0.2 0.0 0.2 0.3 0.0 0.1
Other operations 0.0 0.1 -0.1 0.4 1.1 1.1
Continuing operations total 2.4 0.5 1.9 3.9 3.7 20.5
Discontinued operations 0.2 -0.2 0.4 0.6
Total 2.4 0.7 1.7 3.9 4.1 21.1
FINANCING
The Group's financing position remained good in the review period.
The figures for the comparison period are affected by the purchase of
Kauko-Telko Oy's stock in May 2008. Due to paid dividends of EUR 10.8
million, interest-bearing debt increased slightly compared to the
previous review period. Liquid assets totaled EUR 6.9 million (24.3)
at the end of the period. At the end of the period, interest-bearing
debt totaled EUR 91.9 million (133.6) and non-interest bearing debt
amounted to EUR 53.1 million (88.2).
Aspo Group's gearing was 142.2% (199.3) and the equity ratio was
29.4% (20.2). The Group's cash flow from operations remained strong.
In January-June, net cash flow from operations amounted to EUR 6.0
million (7.1).
Aspo Plc and its key financing banks have signed binding financial
limits for a total of EUR 90 million. Credit withdrawn within the
framework of these financial limits amounted to EUR 12.0 million at
the end of the review period. The company has a EUR 50 million
commercial paper program of which EUR 5 million was in use at the end
of the period.
During the review period, the company strengthened its financing
position by issuing a EUR 15 million convertible capital loan. The
arrangement helped prolong the maturity distribution of
interest-bearing debt.
CONVERTIBLE CAPITAL LOAN
In June, Aspo plc repaid its convertible capital loan from 2004 and
issued a new convertible capital loan for EUR 15 million. The Board
of Directors decided to offer a convertible capital loan for
subscription by a limited group of selected investors (Private
Placement) based on an authorization given by the Extraordinary
Shareholders' Meeting on June 8, 2009. Members of the Aspo Plc Board
of Directors and the company's key personnel have about 7.3 per cent
of the approved loan units, and Aspo Plc shareholders have about 40.0
per cent of the approved loan units. The loan period is June 30, 2009
- June 30, 2014. The loan will be repaid in one installment on June
30, 2014, if the repayment conditions outlined in the loan terms are
met. A fixed annual interest rate of 7 percent is paid on the loan. A
special right to convert the loan units into a maximum of 2,307,000
Company's new shares is incorporated to the 2009 convertible capital
loan and each EUR 50,000 loan unit can be converted to 7,690 new
shares. The conversion price for the share is EUR 6.50.
PERSONNEL
The number of personnel in Aspo Group's continuing operations during
January-June was 761 (800).
Personnel by Segment
1-6/2009 1-6/2008 Change 1-12/2008
ESL Shipping 215 224 -9 240
Leipurin 193 167 26 168
Telko 225 222 3 230
Kaukomarkkinat 97 95 2 100
Other operations 31 92 -61 83
Continuing operations total 761 800 -39 821
Discontinued operations 381 -381 6
Total 761 1181 -420 827
SHARES AND SHAREHOLDERS
During January-June 2009, a total of 1,110,864 Aspo Plc shares were
traded on NASDAQ OMX Helsinki at EUR 5.41 million, or 4.21% of the
shares changed owners. The share reached a high of EUR 6.04 and a low
of EUR 3.94 during the period. The average price was EUR 4.79 and the
closing price was EUR 5.50. The market value of the share capital at
the end of the period, less treasury shares, was EUR 141.8 million.
Aspo Plc's registered share capital on June 30, 2009, was EUR
17,691,729.57 and the total number of shares was 26,406,063. The
company's own shareholding was 620,000 shares, accounting for 2.35%
of Aspo Plc's share capital and votes. The accounting par value of
the shares was EUR 0.67.
At the end of the period, the number of Aspo Plc shareholders was
5,006. A total of 840 062 shares or 3.2% of the total share capital
were nominee registered or held by non-domestic shareholders.
Henrik B. Nyberg announced on January 19, 2009 that his share of Aspo
Plc's share capital and votes fell below 10%.
BOARD AUTHORIZATIONS
The Extraordinary Shareholders' Meeting held on June 8, 2009
authorized the Board of Directors to decide on an issue of shares and
special rights entitling to shares. A maximum of 2,600,000 shares may
be issued on the basis of the authorization. The authorization will
be used for a convertible capital loan to be issued by Aspo Plc,
directed to a limited group of investors. The authorization will not
supersede the authorization to decide on a share issue given to the
Board of Directors by the Annual Shareholders' meeting on 31 March
2009. If the Board of Directors decides on a directed convertible
capital loan, the members of the Board of Directors and the company
key personnel will be reserved the right to subscribe for the
convertible capital loan up to a maximum total of 10% of the amount
of the convertible capital loan.
The Board of Directors exercised the authorization on June 8, 2009,
and decided to offer a convertible capital loan for subscription by a
limited group of selected investors. The maximum loan amount is EUR
15,000,000 and the loan period is five years.
DIVIDEND DISTRIBUTION
At the Aspo Plc Annual Shareholders' Meeting on March 31, 2009, the
shareholders adopted the Board of Directors' proposal for a dividend
of EUR 0.42 per share. The dividend distribution day was April 14,
2009, as decided by the General Meeting.
MARKET MAKING
Aspo has an agreement with Nordea Bank Finland Plc on market-making
for its share. According to the agreement, Nordea Bank Finland Plc
gives Aspo Plc's shares a buy and sell bid so that the highest
possible difference between a buy and sell bid is 3%, calculated from
the buy bid. The agreement is valid until further notice, and the
period of notice for the agreement is one month.
EVENTS AFTER THE REVIEW PERIOD
Kaukomarkkinat has divested its component and mechatronics operations
in August. The deal has no significant effect on Kaukomarkkinat's
earnings.
PROSPECTS FOR 2009
The general economic uncertainty in the Baltic Sea region continues.
Industrial demand has decreased from 2008, and it is difficult to
foresee when demand will recover. Food demand will remain normal.
Aspo Group's new structure creates a good base for growth in
continuing operations, both in the eastern and western markets as the
general economic situation improves.
Aspo specifies its outlook for 2009. It is challenging for Aspo to
reach the same operating profit level from continuing operations as
last year. Earnings per share are expected to be below last year's
record level.
Previous outlook
In accordance with the previously published outlook, Aspo has the
preconditions to improve the result of continuing operations in 2009.
The company's net sales will continue growing, but earnings per share
are not expected to reach last year's record level.
ESL Shipping
The aim of the shipping company is to maintain its position as the
leading dry bulk shipping company and transporter on the Baltic Sea
by renewing its fleet. The company sold m/s Kontula, which will be
replaced with a chartered vessel for the winter season 2009.
Two vessels have been ordered from India. The construction schedule
of the first 20,000 dwt vessel is delayed, and the vessel is
estimated to be in traffic during the spring of 2010. A leasing
agreement has been signed for the vessel. Negotiations for
compensation for the loss of income caused by the delay in completion
of the vessels ordered from India and a compensation for the delay
itself are ongoing with the shipyard.
The early fall in particular is expected to be challenging in the
Baltic Sea freight markets. ESL Shipping is prepared to lay up its
fleet if necessary. Dry cargo markets, however, are estimated to
strengthen in the last quarter in the Baltic Sea.
A considerable share of the transportation capacity of 2009 has been
covered with long-term agreements. The Scandinavian steel industry
has estimated that it will increase its capacity during the fall,
which would mean that the transport volume would increase for the
fall season and operating efficiency would be better than in spring
and summer.
ESL Shipping aims at reaching the 2008 operating profit level.
Leipurin
Organic growth is expected to continue in the Leipurin division.
Leipurin will continue establishing itself in Russia's new
megalopolis. The new offices create a good basis for several years of
growth. In the review period test bakery operations have been
launched in Poland, next to existing operations in Finland, Russia,
Estonia, and Lithuania. In Russia, besides St. Petersburg, operations
are also being launched in Novosibirsk from where it will serve the
entire Siberian market.
The order book for the machine unit is at last year's level and
deliveries will be made both in the third and fourth quarter.
Leipurin is expected to make a good result in 2009.
Telko
Telko will focus on improving its result and profitability without a
net sales growth target. The aim is to strengthen the relative market
share. Due to a drop in volumes and prices caused by the economic
recession the organization has been adjusted to demand. Telko focuses
on improving profitability and on producing excellent key customer
service. Net sales growth is targeted once the general economic trend
improves in our market area. In some raw materials, heavy volatility
in prices is expected.
Kaukomarkkinat
The main target of the operation is to grow at least as much as the
general market growth in the Finnish air-source heat pump markets.
Project sales are expected to improve from the second quarter level.
Audio-visual and giant screen operations are being developed as a new
growth area, but its earnings effect will not be substantial in 2009.
Kaukomarkkinat aims at reaching last year's result level adjusted by
the sales loss from the Metex divestment.
Other operations
Other operations include Aspo Group's administration and other
operations not belonging to the business units. Financing costs are
estimated to decrease even though the financing margins have grown
since 2008. The Group's other costs are expected to start decreasing
from the fourth quarter onwards.
Operational risks
The general economic situation is affecting the industrial demand in
the Baltic Sea region. Among Aspo's customer segments, the economic
recession will affect basic industry such as the steel and
construction industries in particular. It is more difficult to
foresee the changes in demand in emerging markets. The overall
markets in Russia in particular are expected to develop positively
despite the recession. The recession in the financial markets and the
economy can further weaken the value of currencies in our neighboring
areas (Russia, the Ukraine, the Baltic region, and Poland) and can
possibly weaken customers' solvency. Raw material prices that
decreased in late 2008 and early 2009 have started to show the first
signs of recovery.
The operational risks are discussed in more detail in the 2008 Report
of the Board of Directors.
Helsinki, August 24, 2009
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
4-6/09 4-6/08
MEUR % MEUR %
Net sales 80.9 100 92.9 100
Other operating income 3.2 4.0 0.6 0.6
Depreciation and write-downs -2.2 -2.7 -2.6 0.0
Operating profit 1.9 2.3 4.0 4.3
Financial income and expenses -1.0 -1.2 -1.1 -1.2
Profit before taxes 0.9 1.1 2.9 3.1
Profit for the period continuing operations 0.7 0.9 1.6 1.7
Profit for the period discontinued operations 1.4 1.5
Profit for the period 0.7 3.0
Other comprehensive income
Translation differences 0.3 0.0
Cash flow hedges -0.9 0.3
Net result recognized directly to equity -0.5
Income tax on other comprehensive income 0.2 -0.2
Other comprehensive income for the year, net
of taxes -0.4 -0.4
Total comprehensive income 0.3 2.6
Profit attributable to shareholders 0.7 3.0
Minority interest 0.0 0.0
Total comprehensive income attributable to
shareholders 0.3 2.6
Minority interest 0.0 0.0
1-6/09 1-6/08 1-12/08
MEUR % MEUR % MEUR %
Net sales 159.3 100.0 145.4 100.0 358.2 100.0
Other operating income 3.9 2.4 1.1 0.8 1.6 0.4
Depreciation and write-downs -4.5 -2.8 -4.9 -3.4 -10.8 -3.0
Operating profit 5.7 3.6 6.9 4.7 14.1 3.9
Financial income and expenses -2.3 -1.4 -1.6 -1.1 -4.6 -1.3
Profit before taxes 3.4 2.1 5.3 3.6 9.5 2.7
Profit for the period
continuing operations 2.6 1.6 3.7 2.5 7.0 2.0
Profit for the period
discontinued operations 0.5 0.0 8.5
Profit for the period 2.6 4.2 15.5
Other comprehensive income
Translation differences -0.6 -0.2 -1.5
Cash flow hedges 0.0 -0.5 0.9
Net result recognized
directly to equity -0.5
Income tax on other
comprehensive income 0.0 0.3 -0.2
Other comprehensive income
for the year, net of taxes -0.6 -0.9 -0.8
Total comprehensive income 2.0 3.3 14.7
Profit attributable to
shareholders 2.6 4.2 15.5
Minority interest 0.0 0.0 0.0
Total comprehensive income
attributable to shareholders 2.0 3.3 14.7
Minority interest 0.0 0.0 0.0
ASPO GROUP BALANCE SHEET 06/09 06/08 Change 12/08
MEUR MEUR % MEUR
Assets
Non-current assets
Intangible assets 16.3 16.5 -1.2 17.0
Goodwill 40.5 41.9 -3.3 40.4
Tangible assets 69.1 57.5 20.2 69.1
Available-for-sale assets 0.2 0.2 0.0 0.2
Long-term receivables 1.3 1.1 18.2 1.1
Shares in associated companies 0.9 1.1 -18.2 0.9
Total non-current assets 128.3 118.3 8.5 128.7
Current assets
Inventories 26.3 37.7 -30.2 33.4
Sales and other receivables 43.3 55.6 -22.1 43.3
Cash and bank deposits 6.9 20.1 -65.7 12.6
Total current assets 76.5 113.4 -32.5 89.3
Assets classified as held for sale 44.9 0.7
Total assets 204.8 276.6 -26.0 218.7
Shareholders' Equity and Liabilities
Shareholders' equity
Share capital 17.7 17.7 0.0 17.7
Other shareholders' equity 42.1 37.1 13.5 48.3
Shareholders' equity attributable
to equity holders of the parent 59.8 54.7 9.3 66.0
Minority interest 0.0 0.1 -100.0 0.0
Long-term liabilities 82.7 33.1 149.8 50.2
Short-term liabilities 62.3 122.6 -49.2 102.0
Liabilities classified as held for sale 66.1 0.5
Total shareholders' equity
and liabilities 204.8 276.6 -26.0 218.7
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A = Share Capital
B = Premium Fund
C = Fair Value Fund
D = Other Funds
E = Repurchased Shares
F = Translation Difference
G = Retained Earnings
H = Total
I = Minority Interest
J = Total Shareholders' Equity
MEUR A B C D E F G H I J
Balance at
12/31/2008 17.7 4.3 -0.3 0.5 -3.7 -1.5 49.0 66.0 0.0 66.0
Total
comprehensive
income 0.0 -0.6 2.6 2.0
Dividend payment -10.8 -10.8
Share based
payment 0.2 0.2
Equity share of
convertible capital
loan 3.3 3.3
Share of
deferred taxes -0.9 -0.9
Balance at
6/30/2009 17.7 4.3 -0.3 2.9 -3.7 -2.1 41.0 59.8 0.0 59.8
Balance at
12/31/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0
Total
comprehensive
income -0.2 -0.2 3.7 3.3
Dividend payment -10.8 -10.8
Share repurchase -0.6 -0.6
Balance at
6/30/2008 17.7 4.3 -1.2 0.5 -3.6 -0.2 37.2 54.7 0.1 54.8
ASPO GROUP CASH FLOW STATEMENT
1-6/09 1-6/08 1-12/08
MEUR MEUR MEUR
Net operational cash flow 6.0 7.1 30.9
Investments
Investments in tangible and
intangible assets -3.9 -4.1 -22.0
Gains on the sale of tangible
and intangible assets 3.0 0.4 0.7
Purchases of subsidiary shares -77.9 -78.2
Sale of the subsidiary shares 28.8
Total cash flow from investments -0.9 -81.6 -70.7
Financing
Share acquisition -0.6 -0.8
Share disposal 0.1 0.1
Change in short-term borrowings -35.0 93.5 16.9
Change in long-term borrowings 35.0 -0.8 34.0
Profit distribution to minorities -0.1
Dividends paid -10.8 -10.8 -10.8
Total financing -10.8 81.4 39.3
Increase / Decrease in liquid funds -5.7 6.9 -0.5
Liquid funds in beginning of year 12.6 13.2 13.1
Liquid funds at period end 6.9 20.1 12.6
KEY FIGURES AND RATIOS
1-6/09 1-6/08 1-12/08
Earnings per share, EUR continuing operations 0.10 0.15 0.27
Earnings per share, EUR discontinued operations 0.01 0.33
Earnings per share total 0.10 0.16 0.60
EPS adjusted for dilution, EUR continuing
operations 0.09 0.15 0.26
EPS adjusted for dilution, EUR discontinued
operations 0.01 0.30
EPS adjusted for dilution, EUR total 0.09 0.16 0.56
Comparable earnings per share, EUR continuing
operations 0.02 0.27
Comparable earnings per share, EUR,
Discontinued operations -0.03
The whole group
Equity per share, EUR 2.32 2.12 2.56
Equity ratio, % 29.4 20.2 30.6
Gearing, % 142.2 199.3 124.9
ACCOUNTING PRINCIPLES
Aspo Plc's interim report has been compiled in accordance with the
principles of IAS 34 Interim Financial Reporting. IAS 1 Presentation
of financial statements and IFRS 8 Operating segments have been
applied to the report. In other regards, the same accounting
principles that were applied to the Financial Statement for December
31, 2008, have been applied. The calculation formulas for key figures
are explained in the 2008 Financial Statements on page 83. The report
is unaudited.
FINANCIAL REPORTS
Aspo Plc will publish the following Interim Report in 2009:
for the third quarter on October 26, 2009
INFORMATION MEETING
Aspo will arrange a press conference for the media and analysts
today, Monday 24 August, 2009, starting at 14:30 at Hotel Kämp,
Pohjoisesplanadi 29, 00100 Helsinki, Finland.
ASPO Plc
Aki Ojanen Arto Meitsalo
CEO CFO
For more information, please contact
Aki Ojanen, tel. +358 9 521 4010, +358 400 106 592
aki.ojanen@aspo.com
www.aspo.com
Aspo is a conglomerate that owns and develops businesses in the
Baltic Sea region focusing on demanding B-to-B customers. The aim of
our strong corporate brands - ESL Shipping, Leipurin, Telko and
Kaukomarkkinat - is to be the market leaders in their sectors. They
are responsible for their own operations, customer relationships and
the development of these. Together they generate Aspo's goodwill.
Aspo's Group structure and business operations are developed
persistently without any predefined schedules.
Distribution:
NASDAQ OMX Helsinki
Key Media
www.aspo.com
