Honkarakenne's consolidated net sales for the first quarter of 2007 amounted to
EUR 18.5 million, compared with EUR 13.9 million in the same period last year.
The net sales increased by 4.6 million euros, which is a 33% improvement on the
previous year. Profit before tax showed a loss of EUR 0.1 million (loss of MEUR
2.3)
The profit for the beginning of the year will show a loss due to seasonal
changes. The winter season production volumes and deliveries were significantly
better in comparison to previous years. In addition to favorable volumes, the
profit was also boosted by improved utilization rates at the factories, more
efficient raw material use, and lower overhead costs. The weakening of the
Japa-nese Yen continues to burden the profitability of Japanese exports. The
price of the raw wood material has increased very rapidly, which weakened the
otherwise favorable profit development.
The net sales increased in Finland, Russia and France. The 100-house project in
Kazakhstan is progressing as planned. The increase in VAT resulted in smaller
German exports than last year, and the Japanese exports fell short of the
previ-ous year's figures due to the weakened Yen.
The market situation has remained favorable in Honka's main market areas
Honkarakenne Group's order book amounted to EUR 39.6 million (27.8) at the end
of March, i.e. it was 42 per cent bigger than the corresponding figure from
last year.
Financing and investments
The financial position of the Group has remained stable. The equity ratio stood
at 39.7% (37.6%) and interest-bearing net liabilities at EUR 9.1 million (EUR
17.5 million). Group's liquid assets totaled EUR 4.0 million (EUR 1.8 million).
Gearing stood at 52.9% (99.9%). Capital expenditure totaled EUR 0.6 million
(EUR 0.7 million).
Own shares
Honkarakenne Oyj has repurchased 40.556 of its B shares during the period under
review for an average price of EUR 5.57 per share.
At the end of the review period the company held 69,100 of its B shares with a
total nominal value of EUR 138,200.00 and a total purchase price of EUR
379,353.34. These shares represent 1.84% of the company's capital stock and
0.73% of the voting rights. The purchase cost has been deducted from
sharehold-ers' equity in the consolidated financial statements.
The Board of Directors has been granted a share repurchase authorization, valid
until 4 April 2008, to repurchase company shares for an amount equivalent to a
maximum of 5% of the company's capital stock. The Board of Directors has also
been granted authority, also valid until 4 April 2008, to dispose of 187,448 B
shares.
Strengthening program
The company's Board of Directors held a meeting on 30 March 2007 and agreed on
a strengthening program, which enables rapid profitability improvement. The
ef-fects of the strengthening program will be seen mainly in the result of
2008.
Future Outlook
The price of raw wood material has continued its upward climb, which forces the
company to transfer the new increases to its sales prices during the spring and
summer. Nevertheless, the heavily increased prices have not weakened the demand
that has remained stable.
The net sales and profit of the second quarter will exceed last year's figures,
thanks to excellent advance sales and order book.
Further information: CEO and President Esko Teerikorpi, tel. +358 20 575 7816,
+358 40 580 6111, esko.teerikorpi@honka.com.
This and previous press releases can be found on the company's website at
www.honka.com, Investors. The interim report for January-June 2007 will be
pub-lished on 9 August 2007.
HONKARAKENNE OYJ
Board of Directors
DISTRIBUTION
Helsinki Stock Exchange
Principal media
Financial supervision
CONSOLIDATED INCOME STATEMENT
(MEUR) 1-3/07 1-3/06 1-12/06
Net sales 18,5 13,9 84,9
Increase/decrease in inventories 2,0 0,8 -1,6
Production for own use 0,0 0,0 0,2
Other operating income 0,3 0,5 2,0
Materials and services 12,2 9,2 51,3
Staff expenses 4,2 3,9 16,6
Depreciations 1,0 1,0 4,0
Other operating expenses 3,2 3,2 14,7
Operating profit/loss 0,1 -2,2 -1,3
Financial income and expenses -0,2 -0,1 -0,5
Profit/loss before taxes -0,1 -2,3 -1,8
Taxes -0,1 +0,5 +0,2
Minority share 0,0 0,0 0,0
Profit/loss for the period -0,2 -1,8 -1,6
CONSOLIDATED BALANCE SHEET
(MEUR) 31.3.07 31.3.06 31.12.06
Assets
Non current assets
- Intangible assets 1,4 1,1 1,3
- Tangible assets 25,0 26,9 25,4
- Loans receivables and
other receivables 0,8 1,2 0,9
- Deferred tax assets 1,4 1,7 1,3
- Investments 0,8 0,9 0,7
Total 29,4 31,8 29,6
Current assets
- Inventories 18,4 16,9 15,7
- Receivables 9,6 9,1 9,4
- Cash and bank receivables 4,0 1,8 4,1
Total 32,0 27,8 29,2
Total assets 61,3 59,6 58,8
Shareholders' equity and liabilities
Capital stock 7,5 7,5 7,5
Other capital and reserves 9,7 10,0 10,1
Total 17,2 17,5 17,6
Minority share 0,0 0,0 0,0
Long term liabilities
Loans 10,7 14,7 11,9
Deferred tax liabilities 1,1 1,3 1,3
Provisions 0,2 0,2 0,2
Other liabilities 0,0 0,1 0,0
Total 12,0 16,3 13,4
Short term liabilities
Loans 2,4 4,6 3,8
Accounts payable and
other liabilities 29,7 21,1 23,9
Total 32,1 25,7 27,7
Total shareholders' equity and
Liabilities 61,3 59,6 58,8
KEY INDICATORS
Earnings per share(EPS), EUR -0,03 -0,49 -0,42
Equity per share, EUR 4,6 4,7 4,7
Equity ratio, % 39,7 37,6 37,7
Interest bearing net
liabilities(MEUR) 9,1 17,5 11,7
Gearing, % 52,9 99,9 65,7
Gross investments (MEUR) 0,6 0,7 2,6
% of net sales 3,2 5,2 3,1
Average number of personnel 432 415 428
Order book (MEUR) 39,6 27,8 32,6
CONSOLIDATED CASH FLOW STATEMENT
(MEUR) 1-3/07 1-3/06 1-12/06
Cash flow from operations +1,9 -3,5 +4,7
Cash flow from investments -0,4 +0,6 -1,6
Cash flow from financing -1,6 +2,6 -1,0
Increase in credit capital 0,0 +3,4 +10,0
Decrease in credit capital -1,3 -0,8 -10,7
Dividends paid 0,0 0,0 0,0
Other financial items -0,3 0,0 -0,3
Change in liquid assets -0,1 -0,3 +2,0
Liquid assets at the beginning
of the period +4,1 +2,1 +2,1
Liquid assets at the end of
the period +4,0 +1,8 +4,1
CONTINGENT LIABILITIES
(MEUR)
For own loans
- Mortgages 20,0 20,9 20,0
- Pledged shares 0,18 0,18 0,18
For others
- Guarantees 0,80 0,68 1,49
Leasing liabilities 0,50 0,59 0,30
Rent liabilities 0,40 0,43 0,42
Other liabilities 0,00 0,10 0,00
Nominal values of forward
exchange contracts 1,9 0,0 0,0
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
1000 EUR
Share Share premium Reserve Retained Total
capital fund fund earnings
1.1.2006 7.498 520 5.316 5.959 19.293
Translation
differences 18 18
Profit/loss
for the period -1.824 -1.824
31.3.2006 7.498 520 5.316 4.153 17.487
1.1.2007 7.498 520 5.316 4.308 17.642
Translation
differences 0 0
Purchase of
own shares -226 -226
Profit/loss
for the period -231 -231
31.3.2007 7.498 520 5.316 3.851 17.185
The accounting principles used in this interim report correspond to IFRS
standards.
The figures are unaudited