Nurminen Logistics Plc Interim report 2 May 2013 at 1:00 p.m.
NURMINEN LOGISTICS KEY FIGURES 1 JANUARY - 31 MARCH 2013
- Net sales were EUR 16.7 million (2012: EUR 19.1 million).
- Reported operating result was EUR -0.2 million (EUR 1.2 million).
- Operating margin was -1.0% (6.1%).
- Operating result excluding non-recurring items was EUR 0.0 million (EUR 1.1 million).
- EBT was EUR -0.5 million (EUR 1.2 million).
- Net result was EUR -0.9 million (EUR 0.9 million).
- Earnings per share, undiluted: EUR -0.08 (EUR 0.04).
- Earnings per share, diluted: EUR -0.08 (EUR 0.04).
TOPI SAARENHOVI, PRESIDENT AND CEO:
“The market situation in the first quarter of the year was weaker than in the comparison period. This was reflected particularly in Finland as lower net sales and weaker profitability. Due to the weak market development, we predict that our net sales and operating profit will be slightly lower than in 2012.
Demand in the internal market of Russia and the CIS area, which is particularly important to railway and transit logistics, remained in a better lever than in other markets despite slightly weaker development in the first quarter of the year. In rail exports from Finland to Russia, customers postponed their deliveries in expectation of lowered customs duties on certain export products. The markets remained challenging for other business operations, although the positive development in exports of certain products improved our volumes in the Kotka and Vuosaari units.
The investments we began last year in our Russian organisation and the markets of Russia and its neighbouring areas had a positive effect on the development of our Russian railway operations. I am particularly pleased with our customer base expanding and sales developing according to plan in Russia. These positive developments helped us achieve a good utilisation rate of rolling stock despite the slowing down of exports from Finland to Russia in the first quarter. We will continue our systematic efforts to develop our business operations in the markets of Russia and its neighbouring countries.
Despite a positive development in the cargo handling volumes of our Vuosaari terminal, the unit’s result is still at an unsatisfactory level and it remains one of our key development areas. In addition, we have implemented structural changes in our Finnish operations necessitated by the need to improve profitability and efficiency. These changes also led to reductions in personnel. Due to changes in the markets, we are seeking solutions to elevate the Group’s profitability to the level specified in our long-term objectives.”
MARKET SITUATION IN THE REVIEW PERIOD
The Russian and CIS area market, which is of high importance to Nurminen Logistics’ business operations, remained active despite a moderate slowing down in the first months of the year. The market situation and demand in Finland weakened, although there were differences between different business segments and services.
In railway logistics, the moderate slowing down of the Russian market resulted in a slight oversupply of certain wagon types, which in turn led to increased price competition between rail operators. In Finnish rail exports, the demand for transport services was down from the comparison period and also lower than expected. The factors behind this included the postponement of deliveries of certain export products due to expected reductions in customs duties as well as the increased share of road transport in exports from Finland to Russia. The demand for import transport of raw wood remained at a good level during the period under review.
The demand for special transports and projects was at a low level in the early part of the review period throughout the company’s market area. The market situation improved towards the end of the period under review, particularly in Russia and the CIS area.
In transit logistics, the demand on routes between the Baltic countries and Russia remained at a good level. However, the demand for transport from the Baltic countries to Central Asia weakened somewhat. In Finland, demand was weaker for transit to Russia through Kotka, although positive development in the demand for export and chemicals logistics services improved the situation.
The forwarding and value-added services markets in Southern Finland and at Vuosaari Harbor remained challenging. Intensified competition and a general decline in volumes resulted in low price levels. Demand among forest industry customers improved while the demand from the mechanical engineering industry declined.The slowing down of the Finnish markets and lower import volumes led to decreased demand for forwarding services.
NET SALES AND FINANCIAL PERFORMANCE 1 JANUARY - 31 MARCH 2013
The net sales for the financial period amounted to EUR 16.7 million (2012: EUR 19.1 million), which represents a decrease of 12.6% compared to 2012. The reported operating result was EUR -168 (1,175) thousand, down 114.3% from the comparison period. The operating result includes non-recurring items of EUR -202 (69) thousand. The comparative operating result was therefore EUR 34 thousand, which is decrease of 96.9% compared to 2012.
The non-recurring items in the review period were related to reductions in personnel. The non-recurring profit of the corresponding period in the 2012 financial year resulted from a partial payment of a receivable written down in the 2010 financial statements.
The appreciation of the Russian rouble during the review period increased the company’s financial result by EUR 0.1 million. This exchange rate profit had no cash flow impact.
Railway Logistics
The Railway Logistics business unit’s net sales for the review period amounted to EUR 9,298 (2012: 10,686) thousand and the operating result was EUR 1,005 (2012: 1,420) thousand. The operating result includes non-recurring items of EUR -144 (69) thousand. The comparative operating result was therefore EUR 1,149 (1,351) thousand. The net sales and result were weakened by the export volume from Finland to Russia being lower than in the comparison period, a temporary weakening of demand in the Russian market, and increased price competition. The operating result was improved by gains on the sales of used rolling stock.
Due to weaker volumes in Finnish rail exports, transport and terminal volumes remained low, but the positive development of the company’s Russian customer base and successful sales operations maintained the utilisation rate of rolling stock at a good level. Railway forwarding service sales in internal traffic in Russia and its neighbouring areas remained at a good level.
The operations in St. Petersburg were reorganised as part of the company’s plans to expand its rolling stock in Russia. The efficiency of Finnish operations was improved by lowering the organisational structure and reducing the number of personnel in terminal operations.
Special Transports and Projects
The Special Transports and Projects business unit’s net sales for the review period amounted to EUR 1,748 (1,976) thousand and the operating result was EUR -116 (68) thousand. The operating result includes non-recurring items of EUR -14 (0) thousand. The comparative operating result was therefore EUR -103 (68) thousand. The unit’s transport volume and net sales were down on the comparison period due to lower demand early in the year. A decrease in the utilisation rate of rolling stock weakened the operating result. A moderate increase in market activity and successful sales of project transport services, particularly for transports to Russia and its neighbouring areas, helped grow the operating segment’s order intake towards the end of the review period.
Transit Logistics
The Transit Logistics business unit’s net sales for the review period amounted to EUR 2,739 (3,493) thousand and the operating result was EUR 75 (525) thousand. The operating result includes non-recurring items of EUR -13 (0) thousand. The comparative operating result was therefore EUR 88 (525) thousand. The result of the transit logistics segment weakened in the review period, primarily due to a decline in transport volumes to Central Asia through the Baltic countries. The result of the Kotka and Hamina units remained largely unchanged from the comparison period despite a slight decrease in transit volumes. The factors contributing to this included the improved utilisation rate of terminals and positive development in the sales of chemicals logistics services and new value added services as well as increased export volumes.
Forwarding and Value Added Services
The net sales of the Forwarding and Value Added Services business unit for the review period amounted to EUR 3,051 (3,054) thousand and the operating result was EUR -1,131 (-839) thousand. The operating result includes non-recurring items of EUR -32 (0) thousand. The comparative operating result was therefore EUR -1,100 (-839) thousand. The measures to improve the profitability of the Vuosaari logistics centre continued and the volumes grew by over 20% from the comparison period, but the business unit’s first quarter result weakened as the total volume for forwarding was lower than in the comparison period due to a decline in demand. The measures to improve the profitability of the Vuosaari logistics centre continued according to plan. The operating loss of the Vuosaari logistics centre was EUR -0.7 (-0.6) million in the period under review.
| NET SALES BY UNIT | 1-3/2013 | 1-3/2012 | 1-12/2012 |
| EUR 1,000 | |||
| Railway Logistics | 9,298 | 10,686 | 43,620 |
| Special Transports and Projects | 1,748 | 1,976 | 9,375 |
| Transit Logistics | 2,739 | 3,493 | 13,903 |
| Forwarding and Value Added Services | 3,051 | 3,054 | 11,774 |
| Eliminations | -128 | -82 | -276 |
| Total | 16,709 | 19,127 | 78,396 |
| OPERATING RESULT BY UNIT | 1-3/2013 | 1-3/2012 | 1-12/2012 |
| EUR 1,000 | |||
| Railway Logistics | 1,005 | 1,420 | 6,275 |
| Special Transports and Projects | -116 | 68 | 441 |
| Transit Logistics | 75 | 525 | 2,510 |
| Forwarding and Value Added Services | -1,131 | -839 | -3,805 |
| Total | -168 | 1,175 | 5,421 |
OUTLOOK
Due to the weak market situation at the start of the year, Nurminen Logistics expects its net sales and operating result to be slightly lower than in 2012.
In its previous projection (financial statement release 26 February 2013), Nurminen Logistics predicted that its net sales and operating result would be at the same level as in 2012, while earnings per share are expected to improve.
The company’s long-term goal is to grow at a faster rate than the market, on average by over 15% per year. Going forward, over 50% of net sales will come from the growth markets of Russia and its neighbouring countries. The company’s further long-term goals are to improve profitability, achieve an operating profit level of 10% and return on equity of 20%.
SHORT-TERM RISKS AND UNCERTAINTIES
Uncertainty in the world economy may result in lower industrial production volumes and, as a consequence, weaker demand for the company’s services and the cancellation of orders. Unfavourable market development in Russia and its neighbouring countries, in particular, would have a negative effect on the development of the company’s net sales and result.
Overcapacity in Finnish ports keeps price competition intense. The company operates in Vuosaari, Kotka and Hamina harbours and therefore the variation in volume development of these ports has an effect on the company’s result.
Sudden changes to railway tariffs in different countries may have a significant effect on the price competitiveness of rail transport and/or the company. Price competition may also burden the company’s profitability in the future. Structural changes in the Finnish export industry and weaker than expected development of foreign trade would have a negative impact on the development of the company's net sales and profitability. The company has notable customer agreements whose continuity may be significant, especially with respect to the profitability of the company’s business operations in the Baltic countries.
The company has received a total of 32 subsequent levy decisions from the National Board of Customs’ Eastern District Office in Lappeenranta, which state that the company and VG Cargo Plc, which has filed for bankruptcy, are liable to pay import taxes from the year 2009. The company’s liability for the import taxes is, at a maximum, EUR 0.8 million. The company does not consider itself liable for the aforementioned import taxes and has not recorded provisions for the associated costs. If there is a case for subsequent levy, the company’s view is that the levy should primarily be directed at the bankruptcy estate of VG Cargo Plc and be paid from its valid customs guarantee. The company has filed an appeal with the Helsinki District Court against the subsequent levy decisions made by the National Board of Customs.
FINANCIAL POSITION AND BALANCE SHEET
The company’s cash flow from operations was EUR 112 thousand. Cash flow from investments was EUR 400 thousand. Cash flow from financing activities amounted to EUR -697 thousand.
At the end of the review period, cash and cash equivalents amounted to EUR 4,740 thousand. Liquidity weakened in the review period but remained satisfactory.
The Group’s interest-bearing debt totalled EUR 28.2 million and net interest-bearing debt amounted to EUR 23.5 million.
The balance sheet total was EUR 69.7 million and the equity ratio was 42.1%.
CAPITAL EXPENDITURE
The Group’s gross capital expenditure during the review period amounted to EUR 127 (174) thousand, accounting for 0.8% of net sales. Depreciation totalled EUR 1.0 (1.0) million, or 5.8% of net sales.
GROUP STRUCTURE
The company turned its operations in Finland into independent companies at the end of 2012. In the transformation, Nurminen Logistics Plc’s Forwarding and Value Added Services, Railway Logistics and Transit Logistics business units formed one independent company, named Nurminen Logistics Services Oy, and the Special Transports and Projects business unit was transformed into another independent company, named Nurminen Logistics Heavy Oy. The new Finnish companies started operating under the new structure on 1 January 2013. The companies responsible for the Estonian and Lithuanian operations of Nurminen Logistics Plc were be transferred directly under the parent company in 2012. The Russian operations will continue as a separate company directly under the parent company.
The Group comprises the parent company, Nurminen Logistics Plc, as well as the following subsidiaries and associated companies, owned directly or indirectly by the parent (ownership, %): RW Logistics Oy (100%), Nurminen Logistics Services Oy (100%), Nurminen Logistics Heavy Oy (100%), Nurminen Logistics Finland Oy (100%), OOO John Nurminen, St. Petersburg (100%), Nurminen Maritime Latvia SIA (51%), Pelkolan Terminaali Oy (20%), ZAO Irtrans (100%), OOO Nurminen Logistics (100%), OOO John Nurminen Terminal (100%), ZAO Terminal Rubesh (100%), Nurminen Logistics LLC (100%), UAB Nurminen Maritime (51%), Nurminen Maritime Eesti AS (51%), Team Lines Latvia SIA (23%) and Team Lines Estonia Oü (20.3%).
PERSONNEL
At the end of the review period the Group’s number of personnel stood at 336, compared to 341 on 31 December 2012. The number of employees working abroad was 70.
The Railway Logistics’ personnel stood at 119, Special Transports and Projects 26, Transit Logistics 90 and Forwarding and Value Added Services at 76. Management and administrative staff numbered to 25.
The company issued a stock exchange release on 19 March 2013 announcing the conclusion of co-determination negotiations held during the review period. As a result of the negotiations, the company decided to reorganise and improve the efficiency of processes, streamline its management structure and consolidate operations. This requires a reduction in personnel of approximately 23 employees and the cost savings are estimated at roughly EUR 700 thousand in 2013 and approximately EUR 1,100 thousand from 2014 onwards. The non-recurring costs associated with this, approximately EUR 200 thousand, were lower than expected and recorded in the first quarter of the year.
SHARE-BASED INCENTIVE PLAN
The share-based incentive plan implemented by the company in 2011 concluded at the end of 2012.
SHARES AND SHAREHOLDERS
The trading volume of Nurminen Logistics Plc’s shares was 61,760 during the period from 1 January to 31 March 2013. This represented 0.48% of the total number of shares. The value of the turnover was EUR 122,476. The lowest price during the review period was EUR 1.85 per share and the highest EUR 2.05 per share. The closing price for the period was EUR 2.00 per share and the market value of the entire share capital was EUR 25,809,456 at the end of the period.
At the end of the review period the company had 527 shareholders.
The company owns 16,330 of its own shares, which represent 0.127% of the votes in the company.
DECISIONS MADE BY THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
Nurminen Logistics Plc's Annual General Meeting of Shareholders held on 15 April 2013 made the following decisions:
Adoption of the financial statements and resolution on the discharge from liability
The Annual General Meeting of Shareholders confirmed the company's financial statements and the Group's financial statements for the financial period 1 January 2012 - 31 December 2012 and released the Board of Directors and the Managing Director from liability.
Repayment of equity from the reserves for invested unrestricted equity
In accordance with the proposal of the Board of Directors, the Annual General Meeting of Shareholders resolved that EUR 0.08 per share shall be distributed from the reserves for invested unrestricted equity as repayment of equity on the basis of the adopted balance sheet in respect of the financial year ending on 31 December 2012. The repayment of equity is paid to shareholders registered in the company’s shareholders’ register held by Euroclear Finland Ltd on the record date 18 April 2012. The payment date is 31 May 2013.
Composition and remuneration of the Board of Directors
The Annual General Meeting of Shareholders resolved that the Board of Directors shall consist of six (6) ordinary members. The Annual General Meeting of Shareholders re-elected the following ordinary members to the Board of Directors: Tero Kivisaari, Jan Lönnblad, Juha Nurminen, Jukka Nurminen and Olli Pohjanvirta. Alexey Grom was elected as a new member of the Board of Directors. In its organising meeting immediately following the Annual General Meeting of Shareholders, the Board of Directors elected Olli Pohjanvirta as the Chairman of the Board. The Board of Directors also appointed an Audit Committee. The members of the Audit Committee are Tero Kivisaari and Jukka Nurminen.
The Annual General Meeting of Shareholders resolved that for the members of the Board elected at the Annual General Meeting for the term ending at the close of the Annual General Meeting in 2014 remuneration level will be as follows: annual remuneration of EUR 80,000 for the Chairman and EUR 20,000 for the other members. Additionally a meeting fee of EUR 1,000 per meeting for the Board and Board Committee meetings shall be paid for each member of the Board living in Finland and EUR 1,500 per meeting for a member of the Board living outside Finland. 50 per cent of the annual remuneration will be paid in the form of Nurminen Logistics Plc's shares and the remainder in money. A member of the Board of Directors may not transfer shares received as annual remuneration before a period of three years has elapsed from receiving shares.
Amendment of Article 2 of the Articles of Association
In accordance with the proposal of the Board of Directors, the Annual General Meeting of Shareholders resolved to amend Article 2 (line of business) of the Articles of Association and add the following sentences to it:”In its capacity as the parent company, the company can attend to the administration, human resources management, financing, finances, information management, legal affairs and communications as well as other joint services and tasks of the Group. The company may engage in operations itself and through subsidiaries and associated companies and joint ventures.”
After the amendment, Article 2 of the Articles of Association read as follows:
“§2 The company's business area is to produce and provide logistics and forwarding services, engage in transport and in financing activities and other activities related to the above in Finland and abroad. With respect to the forwarding business the company may grant guarantees to parties levying customs duties, taxes and other public fees. To conduct its activities, the company may own and possess properties, hold shares in companies that support and complement its activities and engage in leasing of office and warehouse premises. In addition, the company may acquire, own and sell securities. In its capacity as the parent company, the company can attend to the administration, human resources management, financing, finances, information management, legal affairs and communications as well as other joint services and tasks of the Group. The company may engage in operations itself and through subsidiaries and associated companies and joint ventures.”
Authorising the Board of Directors to decide on the repurchase of the company's own shares
Annual General Meeting authorised the Board to decide on the repurchasing a maximum of 50,000 of the company's shares. The authorisation will be used for the paying of remuneration of the Board members. The own shares may be repurchased pursuant to the authorisation only by using unrestricted equity. The price payable for the shares shall be based on the price of the company's shares in public trading. The own shares may be repurchased in deviation from the proportional shareholdings of the shareholders (directed repurchase). The authorisation includes the right whereby the Board is authorised to decide on all other matters related to the acquisition of own shares.
The authorisation remains in force until 30 April 2014.
Authorising the Board of Directors to decide on the issuance of shares as well as the issuance of options and other special rights entitling to shares
Annual General Meeting authorised the Board to decide on issuance of shares and/or special rights entitling to shares pursuant to chapter 10 section 1 of the Finnish Companies Act.
Based on the aforesaid authorisation the Board is entitled to release or assign, either by one or several resolutions, shares and/or special rights up to a maximum equivalent of 20,000,000 new shares so that aforesaid shares and/or special rights can be used, e.g., for the financing of company and business acquisitions corporate and business trading or for other business arrangements and investments, for the expansion of owner structure, paying of remuneration of the Board members and/or for the creating incentives for, or encouraging commitment in, personnel.
The authorisation gives the Board the right to decide on share issue with or without payment. The authorisation for deciding on a share issue without payment also includes the right to decide on the issue for the company itself, so that the authorisation may be used in such a way that in total no more than one tenth (1/10) of all shares in the company may from time to time be in the possession of the company and its subsidiaries.
The authorisation includes the right whereby the Board is entitled to decide of all other issues of shares and special rights. Furthermore, the Board is entitled to decide on share issues, option rights and other special rights in every way similarly as the Annual General Meeting could decide on these. The authorisation also includes right to decide on directed issues of shares and/or special rights.
The authorisation remains in force until 30 April 2014.
Auditor
KPMG Oy Ab, Authorised Public Accountant audit-firm, was re-elected as Nurminen Logistics Plc's auditor. Mr Lasse Holopainen acts as the responsible auditor. The auditor's term ends at the end of the first Annual General Meeting following the election. Auditor’s fee will be paid in accordance with the auditor´s invoice accepted by the company.
DIVIDEND POLICY
The company’s Board of Directors has on 14 May 2008 determined the company’s dividend policy, according to which Nurminen Logistics Plc aims to annually distribute as dividends approximately one third of its net profit, provided that the company’s financial position allows this.
AUTHORISATIONS GIVEN TO THE BOARD
Authorising the Board of Directors to decide on the repurchase of the company's own shares
Annual General Meeting authorised the Board to decide on the repurchasing a maximum of 50,000 of the company's shares. The authorisation will be used for the paying of remuneration of the Board members. The own shares may be repurchased pursuant to the authorisation only by using unrestricted equity. The price payable for the shares shall be based on the price of the company's shares in public trading. The own shares may be repurchased in deviation from the proportional shareholdings of the shareholders (directed repurchase). The authorisation includes the right whereby the Board is authorised to decide on all other matters related to the acquisition of own shares.
The authorisation remains in force until 30 April 2014.
Authorising the Board of Directors to decide on the issuance of shares as well as the issuance of options and other special rights entitling to shares
Annual General Meeting authorised the Board to decide on issuance of shares and/or special rights entitling to shares pursuant to chapter 10 section 1 of the Finnish Companies Act.
Based on the aforesaid authorisation the Board is entitled to release or assign, either by one or several resolutions, shares and/or special rights up to a maximum equivalent of 20,000,000 new shares so that aforesaid shares and/or special rights can be used, e.g., for the financing of company and business acquisitions corporate and business trading or for other business arrangements and investments, for the expansion of owner structure, paying of remuneration of the Board members and/or for the creating incentives for, or encouraging commitment in, personnel.
The authorisation gives the Board the right to decide on share issue with or without payment. The authorisation for deciding on a share issue without payment also includes the right to decide on the issue for the company itself, so that the authorisation may be used in such a way that in total no more than one tenth (1/10) of all shares in the company may from time to time be in the possession of the company and its subsidiaries.
The authorisation includes the right whereby the Board is entitled to decide of all other issues of shares and special rights. Furthermore, the Board is entitled to decide on share issues, option rights and other special rights in every way similarly as the Annual General Meeting could decide on these. The authorisation also includes right to decide on directed issues of shares and/or special rights.
The authorisation remains in force until 30 April 2014.
OTHER EVENTS DURING THE REVIEW PERIOD
Nurminen Logistics Plc issued a stock exchange release on 17 January 2013 announcing the end of market making on 18 February 2013 in accordance with the liquidity providing agreement between Nurminen Logistics Plc and Evli Bank Plc for the share of Nurminen Logistics Plc.
On 19 March 2013, the company issued a stock exchange release to announce the conclusion of co-determination negotiations concerning all of the company’s personnel in Finland, 270 employees in total. As a result of the negotiations, the company has decided to reorganise and improve the efficiency of processes, streamline its management structure and consolidate operations. The adjustment requirement agreed upon in the negotiations concerns 26 employees, fewer than the previously reported figure of 28. Some of these employees can be transferred to new positions. The need for personnel reductions is estimated to be approximately 23 employees. The cost savings associated with the adjustments implemented as a result of the co-determination negotiations are estimated at approximately EUR 700,000 in 2013 and EUR 1,100,000 from 2014 onwards. The non-recurring costs associated with the adjustments in 2013, approximately EUR 350,000, were recorded in the first quarter of the year. The planned changes will not affect the company’s strategy of strengthening its position in domestic railway transport in Russia and nearby countries as well as rail transport between Finland and Russia.
EVENTS AFTER THE REVIEW PERIOD
The company issued a stock exchange release on 22 April 2013 to announce that Nurminen Logistics Services Oy and Transval Handling Oy have signed an agreement for the outsourcing of goods handling at Nurminen Logistics’ Vuosaari terminal. The agreement took effect on 1 May 2013, with 20 employees previously employed by Nurminen Logistics Services Oy transferring to Transval Handling Oy on the same date. The change did not involve any reductions in personnel and the employees transferred to the new employer as existing employees.
Disclaimer
Certain statements in this bulletin are forward-looking and are based on the management's current views. Due to their nature, they involve risks and uncertainties and are susceptible to changes in the general economic or industry conditions.
Nurminen Logistics Plc
Board of Directors
For more information, please contact: Topi Saarenhovi, President and CEO, tel. +358 10 545 2431.
DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.nurminenlogistics.com
Nurminen Logistics provides high-quality logistics services, such as railway transport, terminal services, forwarding, special and heavy transport and value-added services. The company has gathered logistics know-how from three centuries, starting in 1886. Nurminen Logistics’ main market areas are Finland, the Baltic Sea region, Russia and other Eastern European countries. The company’s share is listed on NASDAQ OMX Helsinki.
TABLES
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 1-3/2013 | 1-3/2012 | 1-12/2012 |
| EUR 1,000 | |||
| NET SALES | 16 709 | 19 127 | 78 396 |
| Other operating income | 212 | 217 | 721 |
| Materials and services | -7 306 | -8 504 | -33 801 |
| Employee benefit expenses | -3 870 | -3 883 | -15 900 |
| Depreciation, amortisation and impairment losses | -967 | -1 009 | -4 004 |
| Other operating expenses | -4 945 | -4 773 | -19 991 |
| OPERATING RESULT | -168 | 1 175 | 5 421 |
| Financial income | 82 | 550 | 478 |
| Financial expenses | -453 | -547 | -2 040 |
| Share of profit in equity-accounted investees | 19 | 31 | 185 |
| RESULT BEFORE TAX | -520 | 1 209 | 4 044 |
| Income taxes | -355 | -316 | -1 360 |
| PROFIT / LOSS FOR THE PERIOD | -875 | 893 | 2 684 |
| Other comprehensive income | |||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: | |||
| Translation differences | 382 | 1 609 | 867 |
| Other comprehensive income for the period after tax | 382 | 1 609 | 867 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -493 | 2 502 | 3 552 |
| Result attributable to | |||
| Equity holders of the parent company | -1 051 | 503 | 682 |
| Non-controlling interest | 176 | 390 | 2 002 |
| Total comprehensive income attributable to | |||
| Equity holders of the parent company | -669 | 2 112 | 1 550 |
| Non-controlling interest | 176 | 390 | 2 002 |
| EPS undiluted | -0,08 | 0,04 | 0,05 |
| EPS diluted | -0,08 | 0,04 | 0,05 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 31.3.2013 | 31.3.2012 | 31.12.2012 |
| EUR 1,000 | |||
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 37 939 | 41 436 | 38 737 |
| Goodwill | 9 516 | 9 516 | 9 516 |
| Other intangible assets | 722 | 921 | 813 |
| Investments in equity-accounted investees | 368 | 287 | 389 |
| Receivables | 35 | 35 | 35 |
| Deferred tax assets | 1 105 | 986 | 1 068 |
| NON-CURRENT ASSETS | 49 684 | 53 181 | 50 558 |
| Current assets | |||
| Trade and other receivables | 15 046 | 13 410 | 14 157 |
| Current tax receivables | 184 | 38 | 156 |
| Cash and cash equivalents | 4 740 | 3 109 | 4 901 |
| CURRENT ASSETS | 19 970 | 16 557 | 19 214 |
| ASSETS TOTAL | 69 654 | 69 738 | 69 772 |
| EQUITY AND LIABILITIES | |||
| Share capital | 4 215 | 4 215 | 4 215 |
| Other reserves | 17 566 | 18 729 | 17 346 |
| Retained earnings | 4 933 | 5 970 | 5 799 |
| Non-controlling interest | 2 613 | 1 454 | 2 437 |
| EQUITY, TOTAL | 29 326 | 30 367 | 29 797 |
| Non-current liabilities | |||
| Deferred tax liability | 516 | 400 | 431 |
| Other liabilities | 649 | 651 | 656 |
| Interest-bearing finance liabilities | 17 565 | 18 859 | 17 571 |
| NON-CURRENT LIABILITIES | 18 730 | 19 910 | 18 658 |
| Current liabilities | |||
| Current tax liabilities | 214 | 2 | 283 |
| Interest-bearing finance liabilities | 10 640 | 10 007 | 11 536 |
| Trade payables and other liabilities | 10 743 | 9 452 | 9 497 |
| CURRENT LIABILITIES | 21 598 | 19 461 | 21 317 |
| TOTAL LIABILITIES | 40 328 | 39 371 | 39 975 |
| TOTAL EQUITY AND LIABILITIES | 69 654 | 69 738 | 69 772 |
| CONDENSED CONSOLIDATED CASH FLOW STATEMENT | 1-3/2013 | 1-3/2012 | 1-12/2012 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit/Loss for the period | -875 | 893 | 2 684 |
| Gains and losses on disposals of property, plant and equipment and other non-current assets | -160 | -121 | -559 |
| Depreciation, amortisation and impairment losses | 967 | 1 009 | 4 004 |
| Unrealised foreign exchange gains and losses | -81 | -529 | -322 |
| Other adjustments | 677 | 702 | 2 603 |
| Paid and received interest | -205 | -237 | -1 300 |
| Taxes paid | -543 | -347 | -1 160 |
| Changes in working capital | 333 | -713 | -1 578 |
| Cash flow from operating activities | 112 | 656 | 4 372 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| Proceeds from sale of property, plant and equipment and intangible assets | 527 | 142 | 639 |
| Investments in property, plant and equipment and intangible assets | -127 | -174 | -1 151 |
| Cash flow from investing activities | 400 | -32 | -512 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Investment by non-controlling interest | 0 | 0 | 63 |
| Acquisition of own shares | 0 | 0 | -70 |
| Changes in liabilities | -697 | -62 | 66 |
| Dividends paid / repayments of equity | 0 | 0 | -1 532 |
| Cash flow from financing activities | -697 | -62 | -1 474 |
| CHANGE IN CASH AND CASH EQUIVALENTS | -161 | 619 | 2 411 |
| Cash and cash equivalents at beginning of period | 4 901 | 2 490 | 2 490 |
| Cash and cash equivalents at end of period | 4 740 | 3 109 | 4 901 |
A= Share capital
B= Share premium reserve
C= Legal reserve
D= Reserve for invested unrestricted equity
E= Translation differences
F= Retained earnings
G= Non-controlling interest
H= Total
| STATEMENT OF CHANGES IN EQUITY 1-3/2012 EUR 1,000 | A | B | C | D | E | F | G | H |
| Equity 1.1.2012 | 4215 | 86 | 2378 | 19131 | -3699 | 4673 | 1064 | 27848 |
| Result for the period | 0 | 0 | 0 | 0 | 0 | 503 | 390 | 893 |
| Total comprehensive income for the period / translation differences | 0 | 0 | 0 | 0 | 832 | 777 | 0 | 1609 |
| Other changes | 0 | 0 | 0 | 0 | 0 | 18 | 0 | 18 |
| Equity 31.3.2012 | 4215 | 86 | 2378 | 19131 | -2867 | 5970 | 1454 | 30367 |
| STATEMENT OF CHANGES IN EQUITY 1-3/2013 EUR 1,000 | A | B | C | D | E | F | G | H |
| Equity 1.1.2013 | 4215 | 86 | 2378 | 18158 | -3276 | 5799 | 2437 | 29797 |
| Result for the period | 0 | 0 | 0 | 0 | 0 | -1051 | 176 | -875 |
| Total comprehensive income for the period / translation differences | 0 | 0 | 0 | 0 | 219 | 162 | 0 | 382 |
| Other changes | 0 | 0 | 0 | 0 | 0 | 23 | 0 | 23 |
| Equity 31.3.2013 | 4215 | 86 | 2378 | 18158 | -3057 | 4933 | 2613 | 29326 |
RELATED PARTY TRANSACTIONS
The related parties comprise the members of the Board of Directors and Executive Board of Nurminen Logistics and companies in which these members have control. Related parties are also deemed to include shareholders with direct or indirect control or substantial influence.
| Related party transactions | 1-3/2013 |
| EUR 1,000 | |
| Sales | 1 |
| Purchases | 61 |
| Interest expenses | 5 |
| Current liabilities | 1 287 |
KEY FIGURES
| KEY FIGURES | 1-3/2013 | 1-3/2012 | 1-12/2012 |
| Gross capital expenditure, EUR 1,000 | 127 | 174 | 1 145 |
| Personnel | 336 | 346 | 341 |
| Operating margin % | -1,0 % | 6,1 % | 6,9 % |
| Share price development | |||
| Share price at beginning of period | 1,88 | 1,78 | 1,78 |
| Share price at end of period | 2,00 | 1,95 | 1,88 |
| Highest for the period | 2,05 | 2,34 | 2,34 |
| Lowest for the period | 1,85 | 1,78 | 1,78 |
| Eguity/share EUR | 2,07 | 2,35 | 2,12 |
| Earnings/share (EPS) EUR, undiluted | -0,08 | 0,04 | 0,05 |
| Earnings/share (EPS) EUR, diluted | -0,08 | 0,04 | 0,05 |
| Equity ratio % | 42,10 | 43,54 | 42,71 |
OTHER LIABILITIES AND COMMITMENTS
| Contingencies and commitments, EUR 1,000 | 31.3.2013 | 31.3.2012 | 31.12.2012 |
| Mortgages given | 11 000 | 7 000 | 11 000 |
| Other contingent liabilities | 14 580 | 11 458 | 14 580 |
| Rent liabilities | 77 568 | 81 700 | 79 174 |
Accounting policies
The interim financial information has been prepared in accordance with IAS 34 'Interim Financial Reporting'. The IFRS recognition and measurement principles as described in the annual financial statements for 2012 have also been applied in the preparation of the interim financial information, with the changes mentioned below. Other adopted new and amended IFRS-standards and interpretations have not had significant impact on reported figures.
The Group has applied the following revised and amended standards as of 1 January 2013:
Amendments to IAS 1 Presentation of financial statements
Amendments to IFRS 7 Financial Instruments: Disclosures
All figures have been rounded and consequently the sum of individual figures can deviate from the presented sum figure. Key figures have been calculated using exact figures. This interim report is unaudited.
Calculation of Key Figures
Equity ratio (%) =
Equity
______________________________________ x 100
Balance sheet total – advances received
Earnings per share (EUR) =
Result attributable to equity holders of the parent company ________________________________________________________
Weighted average number of ordinary shares outstanding
Equity per share (EUR) =
Equity attributable to equity holders of the parent company
________________________________________
Undiluted number of shares outstanding at the end of the financial year