STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 25.10.2007 AT 8:00
Interim Report 1.1.-30.9.2007: During the third quarter, operational
result dampened while net sales increased from the previous year
* Net sales growth of 4%
* Group EBIT reflects raw material price increases, negative currency
impact and weak operational result in Asia-Oceania-Africa
* Full-year operational result expected to be around the level of
2006
* Strong measures being taken to decrease working capital and improve
margins
* Strategic measures to accelerate earnings growth
Key figures
Q3 Q3 Q1-Q3 Q1-Q3
EUR million 2007 2006 2007 2006 2006
Net sales 582.4 562.2 1,753.2 1,718.4 2,275.6
EBIT before corporate 32.7 36.4 110.7 113.9 138.1
items, underlying
Corporate net 0.5 3.4 -4.1 20.0 19.5
EBIT, underlying* 33.2 39.8 106.6 133.9 157.6
EBIT margin %, underlying 5.7 7.1 6.1 7.8 6.9
EBIT, reported 33.2 38.1 106.6 125.1 145.5
EPS, reported 0.18 0.25 0.61 0.82 0.94
* The underlying EBIT excludes restructuring charges
Business review
In the third quarter, market demand for consumer packaging in the
majority of the mature markets was stable. However, in North America
a slowdown in demand was experienced, especially in September. Demand
continued healthy in the emerging markets. While the prices for the
main raw materials remained on a high level during the quarter, they
showed a clear increase compared to the average level of the previous
year.
Volume growth (+3%), although slower than expected, and price/mix
changes (+2%) had a positive impact on reported net sales of EUR
582.4 million (+4%). The impact from currency translations on net
sales was negative (-1%).
In January-September, net sales was EUR 1,753.2 million (+2%). The
geographical distribution of sales was the following: Europe 53%
(53%), Americas 30% (31%) and Asia-Oceania-Africa 17% (16%).
Europe
Q3 Q3 Q1-Q3 Q1-Q3
EUR million 2007 2006 2007 2006 2006
Net sales 310.2 296.5 935.4 900.3 1,188.7
EBIT, underlying 14.7 14.9 43.0 48.7 52.1
EBIT margin %, underlying 4.7 5.0 4.6 5.4 4.4
EBIT, reported 14.7 13.2 43.0 39.9 40.3
RONA % underlying - - 5.7 7.8 6.7
(12m roll.)
In Europe, sales growth within Consumer Goods segment in the third
quarter was solid in the Flexibles business and improving in the
Films business after temporary issues following the implementation of
the new enterprise resource planning (ERP) platform. While sales
performance in the Rigid Consumer Goods business was overall stable,
weakness in sales continued in the UK and was also experienced in
Southern Europe. Within Foodservice segment, sales growth remained
healthy driven by Eastern and Southern Europe. For the quarter, the
reported net sales was EUR 310.2 million (+5%) with a positive impact
from volume (+5%).
The region's underlying EBIT was EUR 14.7 million (-1%),
corresponding to an EBIT margin of 4.7% (5.0%). This reflects
favorable volume development and recovering profitability of the
Films business, offset by weaker than expected price/mix development.
The reported EBIT was EUR 14.7 million. In the previous year the
reported EBIT of EUR 13.2 million included restructuring charges of
EUR 1.7 million.
With reference to the earlier announced programs, the capacity
expansion in Foodservice beverage cups in several European units was
completed during the quarter.
In January-September, net sales was EUR 935.4 million (+4%). The
underlying EBIT of EUR 43.0 million (-12%) corresponded to an EBIT
margin of 4.6% (5.4%). The reported EBIT was 43.0 million (EUR 39.9
million).
Americas
Q3 Q3 Q1-Q3 Q1-Q3
EUR million 2007 2006 2007 2006 2006
Net sales 170.0 173.8 518.9 541.2 711.5
EBIT, underlying 13.5 14.0 52.2 47.4 61.3
EBIT margin %, underlying 7.9 8.1 10.1 8.8 8.6
EBIT, reported 13.5 14.0 52.2 47.4 61.3
RONA % underlying - - 11.8 11.0 11.0
(12m roll.)
In the Americas, sales declined within Consumer Goods segment
especially in the Frozen desserts and the Pet food categories during
the quarter. The shortfall was partially mitigated by sales growth in
Retail within Foodservice segment. Growth in the South American Rigid
businesses continued on a good level. For the quarter, the positive
impact from price/mix changes (+6%) compensated for the decline in
volume (-2%). The reported net sales of EUR 170.0 million (-2%) was
depressed by currency translations (-6%).
The region's underlying EBIT was EUR 13.5 million (-3%),
corresponding to an EBIT margin of 7.9% (8.1%). This reflects volume
shortfall and negative currency impact offset by favorable mix
development, diligent price management and continued improvement in
operational efficiency.
The new capacity added to the existing flexibles packaging facility
in Malvern, USA, is on track and scheduled to be operational by
year-end 2007.
In January-September, net sales was EUR 518.9 million (-4%). The
underlying EBIT of EUR 52.2 million (+10%) corresponded to an EBIT
margin of 10.1% (8.8%).
Asia-Oceania-Africa
Q3 Q3 Q1-Q3 Q1-Q3
EUR million 2007 2006 2007 2006 2006
Net sales 102.2 91.9 298.9 276.9 375.4
EBIT, underlying 4.5 7.5 15.5 17.8 24.7
EBIT margin %, underlying 4.4 8.2 5.2 6.4 6.6
EBIT, reported 4.5 7.5 15.5 17.8 24.4
RONA % underlying - - 6.7 8.1 8.1
(12m roll.)
In Asia-Oceania-Africa, sales performance within Consumer Goods and
Foodservice segments was solid during the third quarter. In Asia,
volume growth remained favorable driven by the Flexibles business,
especially with the introduction of new capacity in Rudrapur, India.
In Oceania, sales growth in the Rigid businesses was overall steady.
For the quarter, there was continued volume growth (+5%) and a
positive impact from price/mix changes (+3%). The reported net sales
of EUR 102.2 million (+11%) was boosted further by currency
translations (+3%).
The region's underlying EBIT was EUR 4.5 million (-40%),
corresponding to an EBIT margin of 4.4% (8.2%). This reflects
start-up costs associated with investments in new capacity,
especially in Guangzhou, China, as well as unfavorable margin
development in India. In Oceania Foodservice, weakness in operational
result was due to one-off items and operational inefficiency.
The relocation from Hong Kong, China, to the new rigid packaging
facility in Guangzhou, China, progressed and is expected to be
completed during the first quarter of 2008. Construction work at the
new flexibles packaging facility in Bangkok, Thailand, started during
the quarter with production expected to commence around mid 2008.
In January-September, net sales was EUR 298.9 million (+8%). The
underlying EBIT of EUR 15.5 million (-13%) corresponded to an EBIT
margin of 5.2% (6.4%).
Financial review
In the third quarter, the underlying EBIT before corporate items was
EUR 32.7 million (-10%), corresponding to an EBIT margin of 5.6%
(6.5%). Corporate net was EUR 0.5 million (EUR 3.4 million)
reflecting the expected reduction in royalty income.
The underlying Group EBIT was EUR 33.2 million (EUR 39.8 million),
corresponding to an EBIT margin of 5.7% (7.1%). The reported EBIT was
EUR 33.2 million. In the previous year the reported EBIT of EUR 38.1
million included restructuring charges of EUR 1.7 million.
At EUR -10.7 million (EUR -9.0 million), the increase in net
financial items was mainly due to higher interest rates and debt
level. The reported profit for the period was EUR 18.7 million (EUR
26.6 million), and EPS was EUR 0.18 (EUR 0.25).
In January-September, the Group's underlying EBIT was EUR 106.6
million (-20%), corresponding to an EBIT margin of 6.1% (7.8%). This
reflects mainly a EUR 24.1 million reduction in corporate net as well
as a weaker operational result. The reported EBIT was 106.6 million.
In the previous year the reported EBIT of EUR 125.1 million included
restructuring charges of EUR 8.8 million. Net financial items were
EUR 30.9 million (EUR 27.4 million). The income tax expense was EUR
13.5 million (EUR 13.9 million), corresponding to a tax rate of 17.8%
(14.2%). The reported profit for the period was EUR 62.5 million (EUR
84.1 million), and EPS was EUR 0.61 (EUR 0.82).
The average number of outstanding shares used in the EPS calculation
was 100,426,461 (98,935,107) excluding 5,061,089 (unchanged)
company's own shares.
On a rolling 12-month basis, the return on investment (ROI) was 7.8%
(9.8%) and return on equity (ROE) was 8.7% (11.8%).
Balance sheet and cash flow
In the end of the third quarter, free cash flow of EUR -2.0 million
(EUR 9.6 million) was impacted by an increase in capital expenditure
to EUR 35.4 million (EUR 27.3 million) as well as elevated level of
working capital. In January-September, free cash flow was EUR -44.7
million (27.3 million) with capital expenditure of EUR 92.5 million
(EUR 73.3 million).
Net debt at the end of the third quarter was EUR 783.4 million (EUR
687.1 million), corresponding to a gearing ratio of 0.90 (0.81).
Personnel
The Group had 14,963 (14,521) employees on September 30, 2007.
Strategic measures to accelerate earnings growth
All businesses will focus on improving profitability and the earlier
confirmed financial targets for the Group remain unchanged. Enhanced
shareholder value will be created through focused growth,
capitalizing on Huhtamaki's positions of strength.
The Flexibles and Films businesses will expand globally and be
recognized as an innovative leader and a best-in-class performer in
chosen product and market segments. Investments will be targeted on
strengthening the position especially in North America and Asia.
Rigid Food and Beverage Packaging will grow selectively with
particular focus on Foodservice in Europe and Asia and on Retail in
North America. Huhtamaki's leading paper and fiber capabilities
strengthen its position also as a supplier of sustainable packaging
alternatives.
Huhtamaki will decrease its presence in such business areas that do
not meet the profitability requirements or do not create value in the
execution of the Group strategy. As a consequence, Huhtamaki is
considering different strategic options for its Consumer Goods
business unit in the UK and all of its operations in South Africa.
Events after the reporting period
Huhtamaki revised the 2007 full-year outlook downwards on October 10,
2007. The revision was due to weakened volumes and operational
results in September as well as softer volume outlook in the
remainder of the year.
In the short-term, measures are being taken to adjust costs to meet
the current volume levels. These include adaption of manning and
overall cost containment.
Short-term risks and uncertainties
Volatile raw material and energy prices as well as movements in
currency translations are considered to be significant short-term
business risks and uncertainties in the Group's operations.
Outlook for 2007
The operational result is expected to be around the level of 2006
(EUR 138.1 million). There will be a significant reduction in
corporate net mainly due to lower royalty income. Consequently, the
underlying EBIT for the full-year is estimated to remain clearly
below the level of 2006 (EUR 157.6 million). Increase in net
financial items and higher tax rate will have an impact on earnings.
This interim report is unaudited.
Espoo, October 24, 2007
Huhtamäki Oyj
Board of Directors
The 2007 Results will be published on February 14, 2008.
For further information, please contact:
Mr. Heikki Takanen, CEO, tel. +358-10-686 7801
Mr. Timo Salonen, CFO, tel. +358-10-686 7880
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
At 11:00 Finnish time a conference for investors, analysts and media
will be held at the head office, address Länsituulentie 7, Espoo. CEO
Heikki Takanen and CFO Timo Salonen will present the results.
At 15:00 Finnish / 13:00 London / 08:00 New York time a conference
call for investors and analysts will start with a management
presentation, followed by a question and answer session. Should you
wish to participate, please dial one of the following numbers:
* Number for participants from Finland: 0923 193 019
* Number for participants outside of Finland: +44 (0) 1452 542 300
* Conference ID: 20386469
All materials will be available on our website at www.huhtamaki.com.
The results presentation slides will be online approximately at
11:00 Finnish time. A replay of the conference call in the form of an
audio webcast will be available during the same evening.
Group Income statement
(IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2007 2006 2007 2006 2006
Net sales 1753.2 1718.4 582.4 562.2 2275.6
Cost of goods sold -1484.2 -1461.6 -494.5 -480.4 -1946.4
Gross profit 269.0 256.8 88.0 81.8 329.2
Other operating income 16.5 41.7 3.1 12.1 56.2
Sales and marketing -63.1 -61.7 -21.6 -20.7 -82.8
Research and development -14.1 -15.1 -4.5 -4.8 -19.3
Administration costs -90.8 -94.0 -29.2 -31.0 -126.5
Other operating expenses -10.9 -2.6 -2.6 0.7 -11.3
-162.4 -131.7 -54.8 -43.7 -183.7
Earnings before interest 106.6 125.1 33.2 38.1 145.5
and taxes
Financial income 6.4 9.1 1.5 2.5 11.0
Financial expenses -37.3 -36.5 -12.2 -11.5 -47.9
Income of associated 0.3 0.3 0.1 0.1 0.5
companies
Profit before taxes 76.0 98 22.6 29.2 109.2
Income tax expense -13.5 -13.9 -3.9 -2.6 -12.6
Profit for the period 62.5 84.1 18.7 26.6 96.6
Attributable to:
Equity holders of the parent 61.3 81.5 18.5 25.3 93.3
company
Minority interest 1.2 2.6 0.2 1.3 3.3
Basic earnings per share (EUR)
for the shareholders of parent 0.61 0.82 0.18 0.25 0.94
company
Diluted earnings per share
(EUR)
for the shareholders of parent 0.61 0.81 0.19 0.25 0.93
company
Group balance sheet
(IFRS)
Unaudited
Sep 30 Dec 31 Sep 30
EUR million 2007 2006 2006
ASSETS
Non-current assets
Goodwill 517.4 525.2 528.8
Other intangible assets 36.3 35.1 8.3
Tangible assets 842.5 840.1 816.7
Investments in associated 1.7 1.5 1.9
companies
Available for sale 1.7 1.8 1.9
investments
Interest bearing 1.0 6.6 6.1
receivables
Deferred tax assets 19.4 14.1 14.0
Employee benefit assets 60.9 64.0 65.7
Other non-current assets 4.9 5.0 4.8
1485.8 1493.4 1448.2
Current assets
Inventory 367.5 341.8 346.3
Interest bearing 0.0 0.5 0.6
receivables
Current tax assets 8.6 9.9 7.4
Trade and other current 426.1 400.7 418.1
receivables
Cash and cash 22.1 22.3 28.6
equivalents
824.3 775.2 801.0
Total assets 2310.1 2268.6 2249.2
EQUITY AND
LIABILITIES
Share capital 358.7 358.7 354.7
Premium fund 104.7 104.7 98.9
Treasury shares -46.5 -46.5 -46.5
Translation differencies -120.6 -106.7 -102.6
Fair value and other 2.1 2.1 3.7
reserves
Retained earnings 552.5 528.8 519.2
Total equity attributable 850.9 841.1 827.4
to equity holders
of the parent company
Minority interest 20.0 19.3 18.7
Total equity 870.9 860.4 846.1
Non-current liabilities
Interest bearing liabilities 367.7 314.7 349.0
Deferred tax liabilities 59.5 62.9 76.7
Employee benefit 110.6 111.4 112.3
liabilities
Provisions 54.4 46.8 54.9
Other non-current 3.8 3.9 4.2
liabilities
596.0 539.7 597.1
Current liabilities
Interest bearing liabilities
-Current portion of long 40.8 41.7 17.1
term loans
-Short term loans 398.1 383.7 356.3
Provisions 6.0 11.9 14.6
Current tax liabilities 21.7 19.7 11.2
Trade and other 376.6 411.5 406.8
current liabilities
843.2 868.5 806.0
Total liabilities 1439.2 1408.2 1403.1
Total equity and liabilities 2310.1 2268.6 2249.2
Sep 30 Dec 31 Sep 30
2007 2006 2006
Net debt 783.4 710.7 687.1
Net debt to equity 0.90 0.83 0.81
(gearing)
Changes in
shareholders'
equity
Unaudited
Attributable to equity Mino- Total
holders of the parent rity
company inte-
rest
Sha- Sha Trea- Tran- Fair Ret- Total
re re sury slat value ained equi-
Capi issue shares ion and earn- ty
tal premi- diff. other ings
um res-
erv-
es
EUR million
Balance at 353.0 96.8 -46.5 -76.3 -0.2 475.2 802.0 18.4 820.4
Dec 31, 2005
Cash flow
hedges
-Hedge result 2.6 2.6 2.6
deferred to
equity
-Hedge result
recognized in
income 1.8 1.8 1.8
statement
Translation -26.3 -26.3 -2.3 -28.6
differences
Deferred tax -1.5 -1.5 -1.5
in equity
Other changes -1.3 -1.3 -1.3
Net income
recognized
directly in -26.3 2.9 -1.3 -24.7 -2.3 -27.0
equity
Net income 81.5 81.5 2.6 84.1
for the
period
Total
recognized
income and
expense for -26.3 2.9 80.2 56.8 0.3 57.1
the period
Dividend -37.5 -37.5 -37.5
Share 1.2 1.2 1.2
based
payments
Stock options 1.7 2.1 1.0 4.9 4.9
exercised
Balance at 354.7 98.9 -46.5 -102.6 3.7 519.1 827.4 18.7 846.1
Sep 30, 2006
Balance at 358.7 104.7 -46.5 -106.7 2.1 528.8 841.1 19.3 860.4
Dec 31, 2006
Cash flow
hedges
-Hedge result 0.8 0.8 0.8
deferred to
equity
-Hedge result
recognized
in income -1.9 -1.9 -1.9
statement
-Hedge result
transferred
to
carrying amount 0.5 0.5 0.5
of hedged items
Translation -13.9 -13.9 -0.5 -14.4
differences
Deferred tax 0.6 0.6 0.6
in equity
Other changes 3.4 3.4 3.4
Net income
recognized
Directly -13.9 0.0 3.4 -10.5 -0.5 -11.0
in equity
Net income 61.3 61.3 1.2 62.5
for
the period
Total
recognized
income and
expense for -13.9 0.0 64.7 50.7 0.7 51.5
the period
Dividend -42.2 -42.2 -42.2
Share-based 1.2 1.2 1.2
payments
Stock options 0.0 0.0 0.0 0.0 0.0
exercised
Balance at 358.7 104.7 -46.5 -120.6 2.1 552.5 850.9 20.0 870.9
Sep 30, 2007
Group
cash flow
statement
(IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2007 2006 2007 2006 2006
Profit for 62.5 84.1 18.7 26.6 96.6
the period*
Adjustments* 116.7 105.1 42.5 35.2 126.9
-Depreciation 74.2 77.0 25.1 23.2 101.5
and amortization*
-Gain on equity -0.3 -0.3 -0.1 -0.2 -0.5
of minorities*
-Gain/loss 0.5 -0.1 0.2 -0.4 0.1
from disposal
of assets*
-Financial 30.9 26.9 10.6 8.5 36.8
expense/-income*
-Income tax 13.5 13.8 3.9 2.5 12.6
expense*
-Other -2.0 -12.3 2.9 1.7 -23.6
adjustments,
operational*
Change in inventory* -29.8 -46.6 1.2 -19.0 -44.1
Change in -30.9 -43.7 17.6 14.8 -9.7
non-interest bearing
receivables*
Change in -33.2 35.0 -34.3 -9.4 19.3
non-interest bearing
payables*
Dividends received* 0.4 0.3 0.1 0.0 1.0
Interest received* 1.3 2.7 0.6 0.7 2.7
Interest paid* -32.1 -28.7 -11.5 -11.5 -38.0
Other financial 0.4 -0.2 0.0 0.3 0.7
expense
and income*
Taxes paid* -9.8 -12.2 -2.2 -3.0 -16.3
Net cash flows 45.5 95.8 32.7 34.7 139.1
from operating
activities
Capital expenditure* -92.5 -73.3 -35.4 -27.3 -154.0
Proceeds from 2.3 4.8 0.7 2.1 6.5
selling
fixed assets*
Divested subsidiaries 0.0 23.3 0.0 0.0 22.9
Proceeds from 7.1 - 6.6 1.5 1.6
long-term deposits
Payment of -1.6 -1.8 -0.1 - -3.9
long-term deposits
Proceeds from 4.4 16.6 3.9 14.0 24.8
short-term deposits
Payment of -3.9 - 0.0 - -8.1
short-term deposits
Net cash flows -84.2 -30.4 -24.3 -9.6 -110.2
from investing
Proceeds from 331.6 393.0 91.4 162.9 409.0
long-term
borrowings
Repayment of -280.5 -446.3 -93.2 -183.7 -495.5
long-term
borrowings
Proceeds from 2167.0 1957.5 598.4 656.2 2612.7
short-term
borrowings
Repayment of -2137.1 -1942.8 -608.4 -668.7 -2543.6
short-term
borrowings
Dividends paid -42.2 -37.5 0.0 0.0 -37.5
Proceeds from 0.0 4.8 0.0 1.7 13.5
stock option
exercises
Net cash flows 38.9 -71.3 -11.7 -31.6 -41.4
from financing
Change in -0.2 -9.0 -3.8 -6.1 -15.3
liquid assets
Cash flow based 0.2 -5.9 -3.2 -6.5 -12.5
Translation -0.3 -3.1 -0.7 0.4 -2.8
difference
Liquid assets 22.3 37.6 25.9 34.7 37.6
period start
Liquid assets 22.1 28.6 22.1 28.6 22.3
period end
Free cash flow -44.7 27.3 -2.0 9.5 -8.4
(including figures
marked with *)
NOTES FOR THE INTERIM REPORT
This interim report has been prepared in accordance with IAS 34
Interim
Financial Reporting. Except for accounting policy changes listed
below,
the same accounting policies have been applied in the interim
financial
statements as in annual financial statements for 2006.
Interim report is unaudited.
Changes in accounting principles
The Group has adopted the following IFRS standards and
interpretations
considered applicable to Huhtamaki, with effect from January 1, 2007:"IAS 1 Presentation of Financial statements: Capital disclosures:
The Amendment to IAS 1 requires information about capital and capital
management during the accounting period.
IFRIC 8 Scope of IFRS 2 Share-Based Payments: The interpretation
applies
to share-based payments, where the received compensation is below
the fair value of granted equity instrument.
IFRIC 9 Reassessment of Embedded Derivatives: The interpretation
requires
the determination of whether the arrangement contains embedded
derivatives,
which have to be reported separately as derivative instruments.
IFRIC 10 Interim Financial reporting and Impairment: IFRIC 10 denies
to
reverse the impairment charge reported in interim report at later
closing dates."
The effect of these newly adopted standards has not had a material
impact
on the reported results or disclosures.
In 2006 in the Americas segment the price reduction type item has
been
transferred from sales and marketing costs to amend net sales.
In the business segment the whole item fell on the Foodservice
segment.
The effect of this restatement on net sales was EUR -3.9 million in
Q1,
EUR -6.7 million in Q2 and EUR -3.2 million in Q3 of 2006.
The restatement did not have material impact on net sales based key
ratios.
Regions
Net sales
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2007 2006 2006 2006 2006 2006
Europe 310.2 320.3 304.9 935.4 288.4 296.5 311.2 292.6 1188.7
Americas 170 185.2 163.7 518.9 170.3 173.8 191.1 176.3 711.5
Asia-Oceania-Africa 102.2 100.6 96.1 298.9 98.5 91.9 91.8 93.2 375.4
Total 582.4 606.1 564.7 1753.2 557.2 562.2 594.1 562.1 2275.6
Interregional salesare not significant.
EBIT
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2007 2006 2006 2006 2006 2006
Europe 14.7 14.7 13.6 43.0 0.4 13.2 16.4 10.2 40.3
Americas 13.5 20.2 18.5 52.2 13.9 14.0 19.7 13.7 61.3
Asia-Oceania-Africa 4.5 5.3 5.7 15.5 6.6 7.5 4.1 6.3 24.4
EBIT before 32.7 40.2 37.8 110.7 20.9 34.7 40.2 30.2 126.0
corporate items
Corporate net 0.5 -4.5 -0.1 -4.1 -0.5 3.4 9.6 7.0 19.5
Total 33.2 35.7 37.7 106.6 20.4 38.1 49.8 37.2 145.5
Underlying EBIT
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2007 2006 2006 2006 2006 2006
Europe 14.7 14.7 13.6 43.0 3.4 14.9 19.8 13.9 52.1
Americas 13.5 20.2 18.5 52.2 13.9 14.0 19.7 13.7 61.3
Asia-Oceania-Africa 4.5 5.3 5.7 15.5 6.9 7.5 4.1 6.3 24.7
EBIT before 32.7 40.2 37.8 110.7 24.2 36.4 43.6 33.9 138.1
corporate items
Corporate net 0.5 -4.5 -0.1 -4.1 -0.5 3.4 9.6 7.0 19.5
Total 33.2 35.7 37.7 106.6 23.7 39.8 53.2 40.9 157.6
Net assets
and RONA % (12m roll.)
Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2007 2007 2007 2006 2006 2006 2006
Europe 819.5 803.8 789.7 782.7 779.4 778.6 784.8
RONA-% underlying 5.7 % 5.8 % 6.6% 6.7% 7.8% 8.2% 8.7%
RONA-% reported 5.3 % 5.2 % 5.5% 5.1% 6.1% 5.5% 0.1%
Americas 558.7 565.0 566.2 558.1 564.5 565.9 573.4
RONA-% underlying 11.8 % 11.8 % 11.7% 11.0% 11.0% 10.9% 9.7%
RONA-% reported 11.8 % 11.8 % 11.7% 11.0% 11.0% 10.9% 4.3%
Asia-Oceania-Africa 332.6 319.0 303.4 301.0 295.8 292.2 293.9
RONA-% underlying 6.7 % 7.9 % 7.9% 8.1% 8.1% 7.7% 8.4%
RONA-% reported 6.7 % 7.9 % 7.9% 8.1% 6.1% 5.6% 5.8%
Business
segments
Net sales
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2007 2006 2006 2006 2006 2006
Consumer 377.4 390.2 389.2 1156.8 359.0 368.2 379.6 388.5 1495.3
Goods
Foodservice 205 215.9 175.5 596.4 198.2 194.0 214.5 173.6 780.3
Total 582.4 606.1 564.7 1753.2 557.2 562.2 594.1 562.1 2275.6
Intersegment
sales are not
significant.
EBIT
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2007 2006 2006 2006 2006 2006
Consumer 23.4 26.8 26.5 76.7 11.6 23.7 21.1 18.1 74.7
Goods
Foodservice 9.3 13.4 11.3 48.1 9.3 11.0 19.1 12.1 51.3
EBIT before 32.7 40.2 37.8 110.7 20.9 34.7 40.2 30.2 126.0
corporate
items
Corporate net 0.5 -4.5 -0.1 -4.1 -0.5 3.4 9.6 7.0 19.5
Total 33.2 35.7 37.7 106.6 20.4 38.1 49.8 37.2 145.5
Underlying
EBIT
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2007 2006 2006 2006 2006 2006
Consumer 23.4 26.8 26.5 76.7 14.5 25.2 23.5 20.9 84.1
Goods
Foodservice 9.3 13.4 11.3 34.0 9.7 11.2 20.1 13.0 54.0
EBIT before 32.7 40.2 37.8 110.7 24.2 36.4 43.6 33.9 138.1
corporate
items
Corporate net 0.5 -4.5 -0.1 28.1 -0.5 3.4 9.6 7.0 19.5
Total 33.2 35.7 37.7 138.8 23.7 39.8 53.2 40.9 157.6
Other information
Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2007 2006 2006
Equity per share (EUR) 8.48 8.34 8.37
ROE, % 8.7 11.8 11.7
ROI, % 7.8 9.8 9.4
Capital expenditure 92.5 73.3 154.0
Personnel 14963 14521 14792
Profit before taxes 87.2 112.0 109.2
(12m roll.)
Depreciation 69.6 68.6 92.6
Amortization of other 4.4 2.0 2.7
intangible assets
Share capital and shareholders
At the end of the review period, the company's registered share
capital was
EUR 358,657,670.00 (354,700,872.40) corresponding to a total number
of
outstanding shares of 105,487,550 (104,323,786) including 5,061,089
(unchanged) company's own shares. The company's own shares represent
4.8% of the total number of shares. The net figure of outstanding
shares
was 100,426,461 (99,262,697).
At the end of September there were 21,273 (21,157) registered
shareholders.
Nominee registered shares including foreign ownership accounted for
26.9% (22.5%).
Share developments
Huhtamaki's share is quoted on the Helsinki Stock Exchange on the
Nordic Large Cap
list under the Materials sector. At the end of September, the
company's market
capitalization was EUR 1,125.6 million (EUR 1,424.0 million) and EUR
1,071.5 million
(EUR 1,354.9 million) excluding company's own shares.
With a closing price of EUR 10.67 (EUR 13.65) the share price
decreased by 28.3%
(-1.9%) from the beginning of the year, while the OMX Helsinki CAP PI
Index increased
by 14.5% (+11.4%). In January-September, the volume weighted average
price for
the Huhtamaki share was EUR 12.40 (EUR 14.42). The highest price paid
was
EUR 15.89 on January 15, 2007 and the lowest price paid was EUR 10.37
on July 27, 2007.
During the first nine months, the cumulative value of the Huhtamaki
share turnover
was EUR 1,083.2 million (EUR 789.0 million). The trading volume of
87.7 million
(54.7 million) shares equaled an average daily turnover of EUR 5.7
million
(EUR 4.2 million) or, correspondingly 464,239 (289,285) shares. In
total, turnover of
the company's 2003 A, B and C option rights was EUR 3.1 million,
corresponding to
a trading volume of 732,138.
Contingent liabilities
Sep 30 Dec 31 Sep 30
2007 2006 2006
EUR million
Mortgages 14.5 14.7 14.8
Guarantee obligations 5.6 3.8 4.1
Lease payments 53.8 59.3 59.5
Capital expenditure 45.0 27.4 33.2
commitments
Nominal values of
derivative instruments
Sep 30 Dec 31 Sep 30 2007 2006 2006
EUR million
Currency forwards, 67 54 75
transaction risk hedges
Currency forwards, 106 112 84
translation risk hedges
Currency swaps, 142 107 185
financing hedges
Currency options 2 1 0
Interest rate swaps 154 139 225
Electricity forwards - 2 -
The following EUR rates have been applied to GBP, INR, AUD and USD
Q3/07 Q3/06
Income statement, average: GBP 1 = 1.478 1.459
INR 1 = 0.018 0.018
AUD 1 = 0.611 0.601
USD 1 = 0.744 0.804
Q3/07 Q3/06
Balance sheet, month end: GBP 1 = 1.435 1.476
INR 1 = 0.018 0.017
AUD 1 = 0.622 0.589
USD 1 = 0.705 0.790
Definitions for key indicators
Earnings per share = Profit before taxes - minority interest - taxes
/ Average number of shares outstanding
Earnings per share (diluted) = Diluted profit before taxes -
minority interest - taxes / Average fully diluted number of shares
outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity +
minority interest (average)
RONA-% = 100 x Earnings before interest and taxes (12 m roll.) / Net
assets (12 m roll.)
Shareholders' equity per share = Equity / Issue-adjusted number of
shares at period end
Return on equity (ROE) = 100 x (Profit for the period) / Equity +
minority interest (average)
Return on investment (ROI) = 100 x (Profit before taxes + interest
expenses + net other financial expenses) / Balance sheet total -
Interest-free liabilities (average)
Interim Report 1.1.-30.9.2007: During the third quarter, operational result dampened while net sales increased from the previous year
| Source: Huhtamäki Oyj
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