NORDIC ALUMINIUM PLC INTERIM REPORT October 22, 2009 8.45 am
Net sales of Nordic Aluminium were EUR 48.48 million (EUR 79.80 million year
2008). Earnings per share were EUR 0.78 (EUR 1.76). The operating profit for
the period was EUR 5.07 million (EUR 11.36 million) and the net profit was EUR
3.75 million (EUR 8.50 million).
Net sales and profitability
The net sales of Nordic Aluminium accounted for EUR 48.48 million (EUR 79.80
million). The production volume measured in tons has stayed low. The production
volume was limited by low demand.
The order backlog is EUR 4.29 million being clearly lower than last year (EUR
6.50 million), which is in line with the current demand.
The Company's profitability did not meet the level of the previous year. The
operating profit was EUR 5.07 million (EUR 11.36 million). The most significant
factor that caused the profit decrease was declined production volume.
International operations and export accounted for EUR 21.35 million (EUR 32.54
million), which is 44 per cent of the net sales.
Profits
The operating profit of Nordic Aluminium amounted to EUR 5.07 million (EUR
11.36 million). Earnings per share for the period were EUR 0.78 (EUR 1.76).
Seasonality of sales and profit
Seasonal fluctuation has little effect on sales and profit.
Investments
The gross capital expenditures for the period were EUR 6.00 million (EUR 6.76
million.
Personnel
During the first nine months of 2009 the average number of personnel in Nordic
Aluminium Group was 228 (315). At the end of the period the number of employees
was 182 (321).
Nordic Aluminium Plc was engaged in employee negotiations in compliance with
the Act on Cooperation during January. The conclusion of the negotiation was
that the whole personnel were temporarily laid off on average of three weeks.
Nordic Aluminium Plc was engaged in employee negotiations in compliance with
the Act on Cooperation during April and May. The conclusion of the negotiation
was that 102 employment contracts were terminated.
Robert Paajanen the CEO of Nordic Aluminium resigned on July 20, 2009. Peter
Högel started as new CEO on July 21, 2009.
Transactions after the reporting period
Nordic Aluminium Plc started employee negotiations in compliance with the Act
on Cooperation. These negotiations will be held to adapt the Company's
operations to the current market situation and in addition operations
reorganization and partial outsourcing.
The possible effects for the employees due to reorganization of the operation
are approximately 51 employees. These negotiations will affect all personnel
groups, and started on October 5, 2009.
Risks
Main business risks are related to the uncertainty in the development of the
world economy and its influence on market demand.
Shares
The shares of Nordic Aluminium Plc are traded at the Helsinki Exchanges. The
trading identifier is NOA1V and the ISIN code is FI0009006415. During the first
nine months of the year 2009 a number of 232,429 shares were traded with EUR
3.11 million. The share quotation ranged between EUR 9.84 and EUR 17.50. The
number of shares was 4,836,882 which remained unchanged during the reporting
period. The market capitalisation of the company's shares stood at EUR 72.4
million (EUR 80.7 million) at the end of September.
Dividend from the financial year 2008 was EUR 0.40 per share, amounting to EUR
1,934,752.80.
Ownership
There were no significant changes in the ownership during the period (1-9/2009).
Outlook
The order backlog for the Group was EUR 4.29 million (EUR 6.50 million) at the
end of the reporting period.
Market demand and production volume are expected to stay at a low level. Due to
the situation in the global economy the market prospects are still weak and
uncertain. The customers are not able to predict their needs even on a short
term. The Company continues to adapt its resources to meet the market demand.
Affirmative effects of actions made are not visible in the short term, thus the
result of Q4/2009 is expected to be the weakest quarterly result in 2009.
The above mentioned predictions are based on the Company's management's best
view of the company's condition and market outlook.
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 interim financial statements have been prepared in accordance
with IAS34 Interim Financial Reporting. Nordic Aluminium applies the same
accounting policies as are applied in 2008 annual financial statements. The
group has implemented the following new and revised standards as per Jan 1,
2009: IFRS 8 Segment Reporting and IAS 1 Presenting Financial Statement.
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 interim report do not include separate information over the
group's primary business segment.
The key figures in this interim financial report are calculated with same
accounting principles than in year 2008 annual financial statement. The
calculation rules of key figures are presented in the financial statements
bulletin 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 interim report has not been subject to audit.
CONSOLIDATED INCOME STATEMENT
EUR million 7-9/09 % 7-9/08 % 1-9/09 % 1-9/08 % 1-12/08 %
Net sales 15.25 24.66 48.48 79.80 100.15
Other operating income 0.01 0.05 0.04 1.50 1.67
Increase(+) or decrease(-)
finished goods and
work in progress 0.53 -0.69 -0.86 -0.25 -3.65
Raw materials and
consumables -7.55 -12.05 -22.95 -41.73 -51.19
Personnel expenses -2.91 -3.43 -9.24 -10.94 -14.90
Depreciation and
reduction of value -1.21 -1.01 -3.46 -2.92 -3.95
Other operating exp. -2.27 -4.10 -6.94 -14.10 -17.14
Operating profit 1.85 12.1 3.42 13.9 5.07 10.5 11.36 14.2 11.00 11.0
Financial items -0.01 0.13 0.01 0.15 0.23
Profit before taxes 1.84 12.1 3.56 14.4 5.08 10.5 11.52 14.4 11.22 11.2
Income taxes -0.50 -0.94 -1.33 -3.02 -2.95
Net profit for the per. 1.34 8.8 2.62 10.6 3.75 7.7 8.50 10.7 8.27 8.3
Profit attributable to:
Owners of the parent 1.34 8.8 2.62 10.6 3.75 7.7 8.50 10.7 8.27 8.3
Minority interest 0.00 0.00 0.00 0.00 0.00
Other comprehensive income:
Conversion difference 0.01 -0.02 0.00 0.00 -0.05
Total comprehensive income
attributable to:
Owners of the parent 1.35 8.9 2.64 10.7 3,75 7,7 8.50 10.7 8,22 8,2
Minority interest 0.00 0,00 0,00 0.00 0,00
Basic and diluted
earnings per share, EUR 0.28 0.54 0.78 1.76 1.71
CONSOLIDATED BALANCE SHEET
EUR million Sept 30, Sept 30, Dec 31,
2009 2008 2008
Non-current assets
Tangible assets 27.80 23.19 25.07
Goodwill 2.25 2.25 2.25
Intangible assets 1.52 1.77 1.74
Tradable financial assets 0.02 0.02 0.02
Other financial assets 0.00 0.00 0.00
Deferred tax liabilities 0.10 0.09 0.09
Total 31.68 27.32 29.17
Current assets
Inventories 7.26 11.63 8.15
Accounts receivable and other
current assets 10.86 15.08 11.51
Advance payments 0.14 0.04 0,00
Cash in hand and at banks 7.13 4.76 7.35
Total 25.38 31.51 27.01
Total assets 57.07 58.84 56.18
EUR million Sept 30, Sept 30, Dec 31,
2009 2008 2008
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 6.19 6.19
Share premium account 3.45 3.45 3.45
Conversion difference -0.28 -0.23 -0.28
Retained earnings 38.73 37.15 36.92
Shareholders' equity:
Owners of the parent 48.10 46.56 46.29
Minority interest 0.00 0.00 0.00
Total 48.10 46.56 46.29
Long-term liabilities
Deferred tax liabilities 1.76 1.60 1.75
Provisions 0.07 0.14 0.07
Interest bearing liabilities 0.10 0.10 0.09
Total 1.93 1.83 1.91
Short-term liabilities
Accounts payable 7.03 10.31 7.93
Provisions 0.00 0.09 0.00
Short-term interest
bearing liabilities 0.01 0.05 0.05
Total 7.04 10.44 7.98
Total liabilities 8.97 12.27 9.89
Total shareholders' equity and
liabilities 57.07 58.84 56.18
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 7-9/09 7-9/08 1-9/09 1-9/08 1-12/08
Cash flow from operations
Net profit (loss) 1.35 2.62 3.75 8.50 8.27
Corrections
Depr. according to plan 1.21 1.01 3.46 2.92 3.95
Financial items 0.03 -0.13 0.01 -0.15 -0.23
Taxes 0.51 0.94 1.34 3.02 2.95
Cash flow before change
in net working capital 3.09 4.44 8.56 14.29 14.94
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -0.74 -0.40 0.51 -0.77 3.75
Inventories
increase(-)/decrease(+) -0.81 1.28 0.88 1.06 4.54
Short-term interest bearing
liabilities
increase(+)/decrease(-) 0.20 -3.13 -0.90 -1.92 -3.52
Total -1.35 -2.25 0.49 -1.64 4.77
Cash flow from operations before
interests and taxes 1.74 2.20 9.05 12.65 19.71
Paid interests and payments for
other financial expenses -0.03 0.00 -0.14 -0.09 -0.18
Received interests and payments
from other financial income 0.02 0.13 0.15 0.24 0.40
Paid income taxes -0.50 -0.94 -1.33 -2.16 -3.86
Cash flow from operations(A) 1.23 1.39 7.73 10.63 16.07
Cash flow from investing activities
Investments in tangible and
intangible assets -1.08 -1.55 -6.00 -6.76 -9.64
Income from sales of tangible
and intangible assets 0.00 0.00 0.00 0.00 0.00
Repayment of loan receivables 0.00 0.00 0.00 0.00 0.00
Cash flow from investments(B)-1.08 -1.55 -6.00 -6.76 -9.64
Cash flow from financial items
Rights issue 0.00 0.00 0.00 0.00 0.00
Withdrawals of
short-term loans 0.00 0.00 0.00 0.00 0.00
Amortization of
short-term loans 0.00 0.00 -0.03 -0.72 -0.72
Withdrawals of
long-term loans 0.00 0.00 0.01 0.00 0.00
Amortization of
long-term loans 0.00 -0.01 0.00 -0.03 0.05
Dividends paid 0.00 0.00 -1.94 -5.56 -5.56
Cash flow from
financial items(C) 0.00 -0.01 -1.96 -6.31 -6.24
Change in cash flow (A+B+C) 0.14 -0.16 -0.23 -2.45 0.20
Conversion difference 0.01 -0.02 0.00 0.00 -0.05
Total 0.16 -0.19 -0.23 -2.45 0.15
Cash in hand and at banks
in the beginning of period 6.96 4.95 7.35 7.21 7.21
Cash in hand and at banks
in the end of period 7.12 4.76 7.12 4.76 7.35
Change 0.16 -0.19 -0.23 -2.45 0.15
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Sh.pr. Convers. Retained. Total
Equity account diff. earnings equity
Equity
01.01.2008 6.19 3.45 -0.23 34.20 43.63
Comprehensive income 0.00 8.50 8.50
Earning and costs tot. 8.50
Dividends -5.56 -5.56
Warrants used 0.00
-5,56
Equity
30.09.2008 6.19 3.45 -0.23 37.15 46.56
Equity
01.01.2009 6.19 3.45 -0.28 36.92 46.27
Comprehensive income -0.01 3.75 3.76
Earning and costs tot. 3.76
Dividends -1.93 -1.93
Warrants used 0.00
-1.93
Equity
30.09.2009 6.19 3.45 -0.27 38.74 48.10
KEY FIGURES:
EUR million Sept 30, Sept 30, Sept 30, Dec 31,
2009 2008 2007 2008
Basic and diluted
earnings per share, EUR 0.78 1.76 1.96 1.71
Equity ratio, % 84.3 79.1 67.8 82.4
Gearing, % -14.6 -10.2 -12.6 -15.9
Balance sheet total, EUR million 57.07 58.84 56.54 56.18
NOTES:
EUR million Sept 30, Sept 30, Sept 30, Dec 31,
2009 2008 2007 2008
Equity/share, EUR 9.94 9.63 7.92 9.56
Investments, EUR mill. 6.00 6.76 7.13 9.64
Average number of personnel 228 315 305 315
Number of personnel at the end of
the period 182 321 305 294
Geographical segments:
Net sales
EUR million 1-9/09 1-9/08 1-9/07 1-12/08
Finland 27.13 47.27 47.90 59.42
Other countries 21.35 32.54 32.39 40.73
Total 48.48 79.80 80.29 100.15
Taxes:
EUR million 1-9/09 1-9/08 1-9/07 1-12/08
Current income tax 1.33 3.02 3.36 2.79
Change in deferred income tax 0.00 0.01 0.01 0.16
Total 1.33 3.03 3.37 2.95
Inventories:
EUR million Sept 30, Sept 30, Sept 30, Dec 31,
2009 2008 2007 2008
Raw materials and consumables 1.30 1.09 1.56 1.26
Work in progress 2.87 4.70 4.71 2.58
Finished goods 3.09 5.84 6.41 4.30
Total 7.26 11.63 12.67 8.15
Interest bearing loans and borrowings:
EUR million Sept 30, Sept 30, Sept 30, Dec 31,
2009 2008 2007 2008
Bank loan 0.00 0.00 1.45 0.00
Obligations under finance leases 0.05 0.15 0.05 0.14
Total 0.05 0.15 1.50 0.14
Contingent liabilities:
EUR million Sept 30, Sept 30, Sept 30, Dec 31,
2009 2008 2007 2008
Consignation liability 0.23 1.39 1.93 0.19
Rental and leasing liabilities 8.01 10.22 10.30 9.67
Corporate mortgages given 0.00 8.41 8.41 0.00
Related party disclosures:
EUR million 1-9/09 1-9/08 1-9/07 1-12/08
Sales 5.39 7.41 7.02 9.09
Purchases 0.00 0.02 0.11 0.02
Receivables 0.52 0.29 0.65 0.01
Order bakclog:
EUR million Sept 30, Sept 30, Sept 30, Dec 31,
2009 2008 2007 2008
4.29 6.50 11.81 5.05
Nordic Aluminium Plc publishes its Financial Statements Bulletin for the fiscal
year 2009 on March 4, 2010. The company bulletins will be published also on
web-pages www.nordicaluminium.fi.
Kirkkonummi October 22, 2009
NORDIC ALUMINIUM PLC
The Board of Directors
Peter Högel
Managing Director
For further information please contact:
Managing Director Peter Högel, tel. +358 20 7660 207
Distribution:
OMX NASDAQ Helsinki
The Main Media
www.nordicaluminium.fi
NOAE1909