Stock Exchange Notification No. 12/2007
August 22, 2007
Interim financial report for Auriga Industries A/S
for the period January 1, 2007 - June 30, 2007
Figures in brackets are the figures for 2006.
Revenue increased by DKK 30 million to DKK 2,645 million in the first half of
2007. Cheminova's earnings meet expectations. Hardi had a good half year with
increasing revenue and earnings. The divestment of Skamol will have a positive
impact on Auriga's outlook for the financial year as a whole. However, due to
uncertainty concerning the coming season for Cheminova in Brazil and
non-recurring costs in connection with the implementation of restructuring
initiatives in Cheminova, Auriga is announcing a downward adjustment of the
profit forecast for the year.
• Revenue for the first half totalled DKK 2,645 million (DKK 2,615 million)
with an operating profit of DKK 121 million (DKK 168 million) corresponding to
an EBIT margin of 5 per cent (6 per cent). Profit before tax amounted to DKK 95
million (DKK 137 million), of which DKK 13 million is the operating profit
realised by Skamol in the first half. The net profit was DKK 61 million (DKK 85
million).
• Despite the 12-day strike at Cheminova's factory in Denmark, which resulted
in lower revenue than expected, the profit generated by Cheminova for the first
half was in line with expectations. Uncertainty concerning developments during
the season in Brazil in the second half of the year has made Cheminova reduce
its profit forecast for the year.
• Hardi has experienced positive market trends with growth in many markets.
Revenue and earnings have clearly improved, while the order book is up 40 per
cent relative to last year.
• Revenue in USD for the first half was settled at an exchange rate of just
under DKK 6. Virtually all the expected USD revenue for the remainder of 2007
has been hedged, while a minor share of the revenue for 2008 has also been
hedged.
• Skamol A/S was sold to the Danish equity fund Polaris under an agreement
signed on July 2, 2007. The estimated net proceeds from the sale amount to
approx. DKK 75 million, which will be recog-nised as income in Q3. To this
should be added an operating profit of DKK 13 million in Skamol, which is
recognised as income in the first half.
• Due to substantial changes in market conditions, the financial targets in
Cheminova's Business Plan have been modified. While targets were revenue of DKK
6 billion and an EBIT margin of 14 per cent in 2010, expectations are now of
revenue of DKK 5.5 billion and an EBIT margin of 10 per cent. These results are
conditional upon the implementation of a number of improvement ini-tiatives
which are estimated to lead to non-recurring costs which will negatively affect
results by DKK 20 million in 2007.
Outlook 2007
For 2007 as a whole, Auriga expects revenue of approx. DKK 5.3 billion and a
profit before tax of approx. DKK 100 million. To this should be added the
profit from discontinuing operations, i.e. Ska-mol, of approx. DKK 88 million,
which means that the total profit before tax is expected to be approx. DKK 190
million. At the beginning of the year and after Q1, Auriga's expectations were
of revenue of approx. DKK 5,550 and a profit before tax of approx. DKK 200
million. Less the expected revenue for Skamol, this corresponds to expected
revenue of approx. DKK 5,290 million and a profit before tax of approx. DKK 180
million.
AURIGA INDUSTRIES A/S
Ole Steen Andersen
Chairman of the Board of Directors
Bjørn Albinus
President and CEO
Enquiries concerning this notification should be addressed to President and
CEO, Bjørn Albinus on tel. +45 7010 7030.
