Huhtamäki Oyj Stock Exchange Release 24.10.2006 at 8.00
INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2006
Solid performance in the third quarter
* Market demand remained stable, sales volume up 3%
* Sustained growth in Films and Flexibles,strong in emerging markets
but less favorable in Europe, predominantly in the UK; sales volume
in Americas remained on a high level
* Increase in raw material and energy prices impacted margins
* Improved performance during the first nine months
* Sustained growth in Films and Flexibles,strong in emerging markets
but less favorable in Europe, predominantly in the UK; sales volume
in Americas remained on a high level
* Increase in raw material and energy prices impacted margins
* Improved performance during the first nine months
|
Key figures |
|
|
|
|
|
|
|
|
|
Q3 |
Q3 |
Change, |
Q1-Q3 |
Q1-Q3 |
Change, |
|
|
EUR million |
2006 |
2005 |
% |
2006 |
2005 |
% |
2005 |
|
Net sales |
565 |
573 |
-1 |
1,732 |
1,680 |
+3 |
2,244 |
|
EBIT - underlying* |
40 |
43 |
-8 |
134 |
125 |
+7 |
160 |
|
EBIT margin % |
7.0 |
7.5 |
- |
7.7 |
7.5 |
- |
7.1 |
|
EBIT - reported |
38 |
33 |
+14 |
125 |
33 |
+284 |
58 |
|
EPS - reported |
0.25 |
0.20 |
+25 |
0.82 |
-0.05 |
+174 |
0.07 |
|
Free cash flow |
10 |
31 |
-69 |
27 |
60 |
-55 |
66 |
* The underlying EBIT excludes restructuring and goodwill impairment charges
In the third quarter, demand in the mature markets remained stable, while
continuing robust in the emerging markets. Raw material prices rose from the
second quarter of this year and even more sharply compared to the same period
last year. Together with increased energy prices, this has put pressure on
margins.
continuing robust in the emerging markets. Raw material prices rose from the
second quarter of this year and even more sharply compared to the same period
last year. Together with increased energy prices, this has put pressure on
margins.
Compared to the same period last year, volume growth of 3% materialized through
currency translations (-4%) to sales of EUR 565 million (-1%). Volume
development was strong in Asia-Oceania-Africa (+10%), flat in Europe (-1%) and
continued on a high level in the Americas (-2%). In emerging markets, growth
continued at a double-digit rate driven by Asia.
currency translations (-4%) to sales of EUR 565 million (-1%). Volume
development was strong in Asia-Oceania-Africa (+10%), flat in Europe (-1%) and
continued on a high level in the Americas (-2%). In emerging markets, growth
continued at a double-digit rate driven by Asia.
In the third quarter, the group's underlying EBIT before corporate items
decreased by 3% to EUR 37 million (EUR 38 million), corresponding to an EBIT
margin of 6.4% (6.6%). This reflects strong performance in Films and Flexibles
businesses and solid performance in Americas, offset by weakness in certain
Europe Rigid units as well as in Oceania.Corporate net in the quarter was
EUR 3 million (EUR 5 million) reflecting the expiry of the royalty income
relating to a previous divestment of the pharmaceutical business. Hence, the
underlying group EBIT decreased by 8% to EUR 40 million (EUR 43 million),
corresponding to an EBIT margin of 7.0% (7.5%). The reported EBIT, EUR 38
million (EUR 33 million), includes restructuring charges of EUR 2 million
(EUR 10 million).
decreased by 3% to EUR 37 million (EUR 38 million), corresponding to an EBIT
margin of 6.4% (6.6%). This reflects strong performance in Films and Flexibles
businesses and solid performance in Americas, offset by weakness in certain
Europe Rigid units as well as in Oceania.Corporate net in the quarter was
EUR 3 million (EUR 5 million) reflecting the expiry of the royalty income
relating to a previous divestment of the pharmaceutical business. Hence, the
underlying group EBIT decreased by 8% to EUR 40 million (EUR 43 million),
corresponding to an EBIT margin of 7.0% (7.5%). The reported EBIT, EUR 38
million (EUR 33 million), includes restructuring charges of EUR 2 million
(EUR 10 million).
In January-September, net sales increased by 3% to EUR 1,732 million. Sales
growth was visible in the Americas at 7% and in Asia-Oceania-Africa at 5%, and
flat in Europe at 1%.
growth was visible in the Americas at 7% and in Asia-Oceania-Africa at 5%, and
flat in Europe at 1%.
In January-September, the group's underlying EBIT increased by 7% to EUR 134
million (EUR 125 million), corresponding to an EBIT margin of 7.7% (7.5%).
The reported EBIT, EUR 125 million (EUR 33 million), includes restructuring
charges of EUR 9 million. The same period last year included EUR 60 million
in restructuring charges and EUR 33 million in goodwill impairment charges.
million (EUR 125 million), corresponding to an EBIT margin of 7.7% (7.5%).
The reported EBIT, EUR 125 million (EUR 33 million), includes restructuring
charges of EUR 9 million. The same period last year included EUR 60 million
in restructuring charges and EUR 33 million in goodwill impairment charges.
Outlook for 2006
The outlook remains unchanged. For the full year, the underlying EBIT
is expected to show a moderate improvement over 2005.
is expected to show a moderate improvement over 2005.
Strategic direction
Since the end of 2004, Huhtamaki has focused on operational efficiency
improvement programs. Parallel to these, further capacity expansion has been
initiated in strategic growth markets. With most of the change programs
completed on schedule, the emphasis will be shifting towards developing
attractive growth platforms and accelerating profitable growth.
improvement programs. Parallel to these, further capacity expansion has been
initiated in strategic growth markets. With most of the change programs
completed on schedule, the emphasis will be shifting towards developing
attractive growth platforms and accelerating profitable growth.
This report is unaudited and has been prepared in accordance with IAS 34
Interim Financial Reporting. Tables on financial statements including
the income statement, balance sheet, cash flow and changes in shareholders'
equity are enclosed with this report.
For further information, please contact:
Mr. Heikki Takanen, CEO, tel. +358-10-686 7801
Mr. Sakari Ahdekivi, CFO, tel. +358-10-686 7853
Ms. Kia Aejmelaeus, Head of Investor Relations,
tel. +358-10-686 7819 or mobile +358-40-765 4616
Ms. Taina Erkkilä, Group Vice President Communications,
tel. +358-10-686 7876 or mobile +358-50-577 4059
Mr. Sakari Ahdekivi, CFO, tel. +358-10-686 7853
Ms. Kia Aejmelaeus, Head of Investor Relations,
tel. +358-10-686 7819 or mobile +358-40-765 4616
Ms. Taina Erkkilä, Group Vice President Communications,
tel. +358-10-686 7876 or mobile +358-50-577 4059
The 2006 Results will be published on February 15, 2007.
HUHTAMÄKI OYJ
Group Communications
Group Communications
Invitation to join Huhtamaki's Interim Report, January 1 - September 30, 2006
results presentation on October 24, 2006
At 11:00 Finnish time a conference for investors, analysts and media
will be held at our head office, address Länsituulentie 7, Espoo.
CEO Heikki Takanen and CFO Sakari Ahdekivi will present the results,
after which a buffet lunch is served.
will be held at our head office, address Länsituulentie 7, Espoo.
CEO Heikki Takanen and CFO Sakari Ahdekivi will present the results,
after which a buffet lunch is served.
At 16:00 Finnish / 14:00 London / 09:00 New York time a conference call
for investors and analysts will start with a management presentation,
followed by a question and answer session. The dial-in number for participants
is +44 20 7162 0125 and the reference code is Huhtamaki. Afterwards you can
also listen to a replay of the conference call in the form of an audio webcast.
for investors and analysts will start with a management presentation,
followed by a question and answer session. The dial-in number for participants
is +44 20 7162 0125 and the reference code is Huhtamaki. Afterwards you can
also listen to a replay of the conference call in the form of an audio webcast.
All materials will be available at our website www.huhtamaki.com.
Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2005 net sales exceeding EUR 2.2 billion. Consumer goods and foodservice markets are served by 15,000 employees in approximately 70 manufacturing and sales units in more than 30 countries worldwide. The parent company, Huhtamäki Oyj, has its head office in Espoo, Finland and is listed on the Helsinki Stock Exchange. Additional information is available at www.huhtamaki.com.
