HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 23.4.2008 AT 9:00
- Group net sales in slight decline due to adverse currency impact
- Lower earnings than in previous year due to weak performance in
Films and in
Asia-Oceania-Africa
- Raw material costs on a record high level
- Improving trend in free cash flow
- New segment reporting to improve transparency
Key figures
EUR million Q1 2008 Q1 2007
Net sales 548.6 564.7
EBIT 20.0 37.7
EBIT margin % 3.6 6.7
EPS 0.09 0.24
ROI % (12m roll.) 0.8 9.3
Overview
The decline in the Group net sales was due to adverse currency
translation impact. In constant currencies the Group achieved modest
growth. The first quarter 2008 earnings were below the same period in
the previous year. The main reasons for the lower earnings were weak
performance in the Films business and a significant one time gain of
EUR 6 million received during the first quarter 2007. In addition,
there was an adverse currency impact and the raw material costs
remained on a record high level.
Business review by segment
Starting from 2008 Huhtamaki's segment reporting was revised to
improve transparency. The five new segments, in line with the Group's
internal management structure, are: Flexibles and Films Global, Rigid
Europe, Molded Fiber Europe, Rigid and Molded Fiber Americas as well
as Rigid and Molded Fiber Asia-Oceania-Africa. These will replace the
former geographical segments (Europe, Americas, Asia-Oceania-Africa).
Flexibles and Films Global
Flexibles and Films are organized as a global segment. Flexibles are
used for food and pet food packaging as well as non-food consumer
packaging. Films are mainly used for technical applications in the
label, adhesive tape, hygiene and health care industries as well as
building and construction, automotive, packaging and graphic arts
industries.
EUR million Q1 2008 Q1 2007
Net sales 179.3 186.9
EBIT 6.6 14.7
EBIT margin % 3.7 7.9
RONA % (12m roll.) 5.7 11.5
Sales decline within the segment was due to weakness in Films.
Additionally, sales development in Flexibles North America and Europe
was slow. This was partially offset by robust growth in Flexibles
Asia.
Profitability reflects lower than expected volumes, operational
inefficiency as well as margin pressure due to higher raw material
costs. Films continued to suffer from operational issues following
the earlier implementation of the enterprise resource planning (ERP)
platform as well as the transfer of the release paper line from
Göttingen to Forchheim, Germany. In Flexibles, the weak price/mix
development continued in Europe and the ongoing ramp-up of new
capacity added to the facility in Malvern, USA, had a negative impact
on profitability. Sales growth in India and Thailand contributed
positively to earnings.
Construction of the new flexible packaging facility in Bangkok,
Thailand, proceeded according to schedule with production expected to
commence around mid-year.
Rigid Europe
Rigid paper and plastic packaging serves foodservice and consumer
goods markets in Europe with fresh food, dairy, ice cream, beverage
and personal care packaging as well as disposable tableware. Rigid
packaging is supplied to foodservice operators, fast food restaurants
and food manufacturers.
EUR million Q1 2008 Q1 2007
Net sales 151.0 147.1
EBIT 1.5 0.2
EBIT margin % 1.0 0.1
RONA % (12m roll.) -14.6 -2.8
Foodservice experienced a good, broad based growth within the
segment, while sales in Consumer Goods were soft in Germany and in
the UK.
Profitability reflects favorable mix development as well as an
improving trend in operational efficiency.
Molded Fiber Europe
Molded fiber is used to make fresh product packaging, such as egg and
fruit packaging.
EUR million Q1 2008 Q1 2007
Net sales 35.4 34.6
EBIT 2.9 2.4
EBIT margin % 8.2 6.9
RONA % (12m roll.) 9.3 10.2
Sales and earnings within the segment remained good due to favorable
development in Eastern Europe and in the waste paper trading
business. A tougher competitive environment had a negative impact on
sales in the UK.
Rigid and Molded Fiber Americas
Rigid paper and plastic packaging, which serves ice-cream and other
consumer goods as well as foodservice markets, is complemented with
Molded Fiber Chinet® disposable tableware products. Similar market
channels are a common denominator.
EUR million Q1 2008 Q1 2007
Net sales 133.3 142.9
EBIT 9.2 17.2
EBIT margin % 6.9 12.0
RONA % (12m roll.) 8.0 13.6
Sales growth in constant currencies was solid with good growth in
Retail and in South America. Market softness persisted in Frozen
desserts, spreading also into Foodservice during the quarter.
Profitability was stable on a comparable basis; excluding the EUR 6
million one time gain in 2007 as well as adverse currency translation
impact.
Rigid and Molded Fiber Asia-Oceania-Africa
Rigid paper and plastic packaging serves foodservice and consumer
goods markets. The segment also includes the Molded Fiber business
which makes fresh product packaging.
EUR million Q1 2008 Q1 2007
Net sales 52.5 56.6
EBIT -0.2 3.3
EBIT margin % -0.4 5.8
RONA % (12m roll.) 1.5 6.6
Good growth in Asia did not compensate for the weak sales development
in South Africa and in Consumer Goods Oceania.
Profitability reflects low sales as well as operational inefficiency
in Oceania, the start-up costs in new capacity in Asia and market
turmoil experienced in South Africa.
The relocation from the site in Hong Kong to the new facility in
Guangzhou, China, is progressing with completion expected during the
first half of this year.
Financial review
The Group EBIT was EUR 20 million (EUR 38 million in the first
quarter 2007), corresponding to an EBIT margin of 3.6% (6.7%). At EUR
9 million, the net financial items were unchanged from the previous
year. The income tax expense was EUR 2 million (EUR 4 million). The
result for the period was EUR 9 million (EUR 24 million). The
earnings per share (EPS) were EUR 0.09 (EUR 0.24). The average number
of outstanding shares used in the EPS calculation was 100,426,461
(unchanged) excluding 5,061,089 (unchanged) Company's own shares.
Balance sheet and cash flow
Free cash flow for the quarter was EUR -12 million (EUR -37 million).
The improving trend was due to more efficient working capital
management as well as lower capital expenditure. Capital expenditure
amounted to EUR 14 million (EUR 24 million). Net debt was EUR 741
million (EUR 743 million). This corresponds to a gearing ratio of
1.01 (0.84).
Personnel
The Group had 15,198 (14,885) employees at the end of March 2008.
New CEO appointed
Mr. Jukka Moisio was appointed by the Board of Directors as Huhtamäki
Oyj's CEO, effective from April 1, 2008.
Resolutions taken by the Annual General Meeting
The Annual General Meeting (AGM) of Huhtamäki Oyj was held on March
31, 2008 in Helsinki, Finland. The meeting approved the Company's
Financial Statements and the Consolidated Financial Statements for
2007 and discharged the Company's Board of Directors and the CEO from
liability. The dividend for 2007 was set at EUR 0.42 per share
(unchanged). To the Board of Directors were re-elected Ms. Eija
Ailasmaa, Mr. George V. Bayly, Mr. Robertus van Gestel, Mr. Mikael
Lilius, Mr. Anthony J.B. Simon and Mr. Jukka Suominen. Mr. Rolf
Börjesson was elected as a new member to the Board of Directors. The
Board of Directors elected Mikael Lilius as the Chairman of the Board
and Jukka Suominen as the Vice Chairman of the Board. In addition,
the Board of Directors resolved upon members of its committees for a
term which lasts until the end of the Annual General Meeting
following the election.
Events after the reporting period
Huhtamaki has completed the review of different strategic options for
its operations in South Africa and for its Rigid Consumer Goods
business unit in the UK. As a result of the review Huhtamaki has
decided to continue its operations in South Africa. In the UK,
Huhtamaki is aiming to cease production of rigid plastic consumer
goods packaging due to volume decline as well as continued increases
in manufacturing and energy costs. The Consumer Goods business unit
is loss-making with annual net sales of around EUR 30 million. The
annualized earnings improvement is expected to be EUR 3-4 million. A
consultation process will start in relation to approximately 160
employees impacted at the Portadown and Gosport sites. Huhtamaki will
continue to serve the UK Consumer Goods customers with specialty
products, mainly paper based, from other Huhtamaki facilities. The
manufacturing of foodservice products at the Gosport site will
continue.
Huhtamaki has started union negotiations in Karlholmsbruk, Sweden,
with the aim to close down the rigid packaging site. The annual net
sales of the site are around EUR 4 million and it currently employs
approximately 40 people. Huhtamaki intends to concentrate its EPS
(Expanded Polystyrene) packaging business in Europe to the facility
in Siemianowice, Poland, where similar production already exists. The
customers of the site to be closed will be served from facilities in
Poland and in Finland.
Short-term risks and uncertainties
Volatile raw material and energy prices as well as movements in
currency translations are considered to be relevant short-term
business risks and uncertainties in the Group's operations.
Outlook for 2008
The underlying Group EBIT in 2007 was EUR 136 million*. In 2008,
Group EBIT is expected to be at this level before costs related to
the planned closures of operations in the UK and Sweden. These costs
are expected to have an approximately EUR 10 million adverse impact
on EBIT. At approximately EUR 100 million, capital expenditure is
expected to be significantly lower than in 2007.
*Excluding restructuring, goodwill impairment and tangible asset
impairment charges, total amount EUR 108 million.
Financial reporting in 2008
Huhtamaki will publish the interim report for January 1 - June 30,
2008 on July 18 and January 1 - September 30, 2008 on October 22.
Espoo, April 22, 2008
Huhtamäki Oyj
Board of Directors
For further information, please contact:
Mr. Jukka Moisio, 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. Minna Staffans, Head of Group Communications, tel. +358-10-686
7863 or mobile +358-50-527 6696
A news conference for analysts, investors and media will be held at
11:00 Finnish time at the head office, address Keilaranta 10, Espoo.
CEO Jukka Moisio and CFO Timo Salonen will present the results. A
conference call for analysts and investors will start at 16:00
Finnish / 14:00 UK / 09:00 New York time with a management
presentation, followed by a question and answer session. To
participate, please dial one of the following numbers 5-10 minutes
prior to the call start:
- Number for participants from Finland: 0923 114 173
- Number for participants outside of Finland: +44 (0) 1452 555 566
- Conference ID: 42923097
All results materials will be available on 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 Q1 Q1-Q4
EUR million 2008 2007 2007
Net sales 548.6 564.7 2,311.0
Cost of goods sold -474.9 -479.1 -2,028.0
Gross profit 73.7 85.6 283.0
Other operating income 3.7 10.0 31.9
Sales and marketing -19.8 -20.0 -83.6
Research and development -4.3 -4.8 -17.8
Administration costs -29.2 -30.1 -122.6
Other operating expenses -4.1 -3.0 -62.8
-53.7 -47.9 -254.9
Earnings before interest
and taxes 20.0 37.7 28.1
Financial income 4.0 1.7 9.2
Financial expenses -12.6 -10.8 -51.7
Income of associated
companies 0.1 0.1 0.4
Result before taxes 11.5 28.7 -14.0
Income tax expense -2.1 -4.3 -6.2
Result for the period 9.4 24.4 -20.2
Attributable to:
Equity holders of the
parent company 8.7 23.9 -22.5
Minority interest 0.7 0.5 2.3
Basic earnings per share (EUR)
for the shareholders of parent
company 0.09 0.24 -0.22
Diluted earnings per share (EUR)
for the shareholders of
parent company 0.09 0.24 -0.22
Group balance sheet
(IFRS)
Unaudited
Mar 31 Dec 31 Mar 31
EUR million 2008 2007 2007
ASSETS
Non-current assets
Goodwill 465.7 471.9 524.2
Other intangible assets 41.2 41.4 37.7
Tangible assets 760.6 799.3 839.0
Investments in associated
companies 1.4 1.5 1.6
Available for sale
investments 1.9 1.9 1.7
Interest bearing
receivables 0.4 0.9 6.1
Deferred tax assets 15.8 13.7 15.5
Employee benefit assets 55.5 59.2 63.7
Other non-current assets 3.7 4.8 5.0
1,346.2 1,394.6 1,494.5
Current assets
Inventory 359.1 348.5 375.7
Interest bearing
receivables 2.9 4.6 0.0
Current tax assets 12.3 17.9 10.5
Trade and other current
receivables 399.4 394.8 418.8
Cash and cash 40.5 30.8 25.2
equivalents
814.2 796.6 830.2
Total assets 2,160.4 2,191.2 2,324.7
EQUITY AND LIABILITIES
Share capital 358.7 358.7 358.7
Premium fund 104.7 104.7 104.7
Treasury shares -46.5 -46.5 -46.5
Translation differencies -145.6 -121.1 -108.2
Fair value and other
reserves -0.7 1.4 2.9
Retained earnings 445.6 475.7 555.8
Total equity attributable
to equity holders
of the parent company 716.2 772.9 867.4
Minority interest 19.4 20.5 20.0
Total equity 735.6 793.4 887.4
Non-current liabilities
Interest bearing liabilities 383.9 401.1 311.8
Deferred tax liabilities 38.1 38.8 66.4
Employee benefit liabilities 105.4 108.8 111.8
Provisions 57.6 60.3 46.1
Other non-current liabilities 4.3 4.3 4.0
589.3 613.3 540.1
Current liabilities
Interest bearing liabilities
-Current portion of long term
loans 22.2 17.9 45.6
-Short term loans 378.5 365.7 416.6
Provisions 6.6 8.0 8.4
Current tax liabilities 17.6 21.1 19.0
Trade and other current
liabilities 410.6 371.8 407.6
835.5 784.5 897.2
Total liabilities 1,424.8 1,397.8 1,437.3
Total equity and liabilities 2,160.4 2,191.2 2,324.7
Mar 31 Dec 31 Mar 31
2008 2007 2007
Net debt 740.8 748.5 742.6
Net debt to equity
(gearing) 1.01 0.94 0.84
Changes in
shareholders'
equity
Unaudited
Attributable to equity holders Minority Total
of the parent company interest
EUR Share Share Trea- Trans- Fair Re- Total
million capital Issue Sury lation value tained
premium shares diff. and ear-
other nings
reser-
ves
equity
Balance at
Dec 31, 2006 358.7 104.7 -46.5 -106.7 2.1 528.8 841.1 19.3 860.4
Cash flow
hedges
- Hedge
result
deferred
to equity 0.8 0.8 0.8
- Hedge
result
recognized in
income
statement -1.4 -1.4 -1.4
Translation
differences -1.5 -1.5 0.2 -1.3
Deferred tax
in equity 1.4 1.4 1.4
Other changes 2.7 2.7 2.7
Income and
expense
recognized
directly
in equity -1.5 0.8 2.7 2.1 0.2 2.3
Result for
the period 23.9 23.9 0.5 24.4
Total
recognized
income
and expense
for the
period -1.5 0.8 26.7 26.0 0.7 26.7
Dividend 0.0 0.0 0.0
Share-based
payments 0.3 0.3 0.3
Balance at
Mar 31, 2007 358.7 104.7 -46.5 -108.2 2.9 555,8 867.4 20.0 887.4
Balance at
Dec 31, 2007 358.7 104.7 -46.5 -121.1 1.4 475.7 772.9 20.5 793.4
Cash flow
hedges
- Hedge
result
deferred to
equity -0.2 -0.2 -0.2
-Hedge
result
recognized in
income
statement -0.2 -0.2 -0.2
-Hedge
result
transferred
to
carrying
amount of
hedged items 0.7 0.7 0.7
Translation
differences -24.5 -24.5 -1.8 -26.3
Deferred tax
in equity 0.6 0.,6 0.6
Other changes 3.0 3.0 3.0
Income and
expense
recognized
directly in
equity -24.5 -2.1 3.0 -23.6 -1.,8 -25.4
Result for
the period 8.7 8.7 0.7 9.4
Total
recognized
income
and expense
for the
period -24.5 -2.1 11.7 -14.9 -1.1 -16.0
Dividend -42.2 -42.2 -42.2
Share-based
payments 0.4 0.4 0.4
Balance at
Mar 31, 2008 358.7 104.7 -46.5 -145.6 -0.7 445.6 716.2 19.4 735.6
Group cash
flow statement
(IFRS)
Unaudited
Q1 Q1 Q1-Q4
EUR million 2008 2007 2007
Result for
the period* 9.4 24.4 -20.2
Adjustments* 30.9 33.5 243.2
- Depreciation,
amortization
and impairment* 23.1 24.5 203.3
- Gain on
equity of
minorities* -0.1 -0.1 -0.4
- Gain/loss
from disposal
of assets* - 0.2 -8.1
- Financial
expense/-income* 8.6 9.1 42.5
- Income tax
expense* 2.0 4.3 6.2
- Other adjustments,
operational* -2.7 -4.5 -0.3
Change in
inventory* -22.0 -34.7 -14.8
Change in
non-interest bearing
receivables* -8.3 -19.6 -3.7
Change in
non-interest bearing
payables* -0.1 -1.9 -38.5
Dividends
received* 0.1 0.1 0.9
Interest
received* 0.8 0.6 1.3
Interest paid* -10.0 -12.2 -42.7
Other financial
expense
and income* 2.0 -0.2 -1.1
Taxes paid* -1.5 -1.9 -18.6
Net cash
flows from
operating activities 1.3 -11.9 105.8
Capital
expenditure* -13.5 -25.6 -147.9
Proceeds
from selling
fixed assets* 0.2 1.1 14.3
Proceeds
from long-term
deposits 0.9 0.5 7.2
Payment of
long-term deposits -0.3 -0.1 -6.1
Proceeds from
short-term deposits 4.5 0.5 11.5
Payment of
short-term deposits -2.9 - -11.0
Net cash flows
from investing -11.1 -23.6 -132.0
Proceeds from
long-term borrowings 128.6 164.8 520.2
Repayment of
long-term borrowings -143.5 -169.0 -434.4
Proceeds from
short-term borrowings 849.1 691.8 2,987.4
Repayment of
short-term borrowings -813.8 -649.4 -2,995.0
Dividends paid - - -42.2
Net cash flows
from financing 20.4 38.2 36.0
Change in
liquid assets 9.7 2.9 8.5
Cash flow
based 10.6 2.7 9.8
Translation
difference -0.9 0.2 -1.3
Liquid assets
period start 30.8 22.3 22.3
Liquid assets
period end 40.5 25.2 30.8
Free cash flow
(including figures
marked with *) -12.0 -36.4 -27.8
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
2007.
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, 2008:
- IFRS 8 Operating segments. IFRS 8 assumes that segment reporting
reflects the Group's management and internal reporting structure. The
five new segments are in line with Huhtamaki's internal management
structure and will replace the former geographical segments.
- IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum
Funding requirements and their Interaction. The interpretation
provides guidance on assessing the amount of the surplus that can be
recognized as defined benefit asset. It also explains how the pension
asset or liability may be affected by a statutory or contractual
minimum funding requirement.
These newly adopted standards have not had a material impact on the
reported results.
Segments
Segment information is presented according to the IFRS tandards.
Items below EBIT - financial items and taxes - are not allocated to
the segments.
Net sales
Q1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2007 2007 2007 2007 2007
Flexibles and
Films Global 178.4 167.9 176.3 175.1 185.7 705.0
- Intersegment
net sales 0.9 0.8 1.2 1.0 1.2 4.2
Rigid Europe 149.9 148.7 161.7 172.1 146.0 628.5
- Intersegment
net sales 1.1 1.5 1.6 1.2 1.1 5.4
Molded Fiber
Europe 35.4 36.5 33.5 34.2 34.3 138.5
- Intersegment
net sales 0.0 0.2 0.0 0.4 0.3 0.9
Rigid and
Molded Fiber
Americas 132.5 143.6 153.5 166.5 142.2 605.8
- Intersegment
net sales 0.8 0.9 0.9 0.7 0.7 3.2
Rigid and
Molded Fiber
AOA 52.5 61.1 57.4 58.2 56.5 233.2
- Intersegment
net sales 0.0 -0.2 0.1 0.1 0.1 0.1
Elimination of
intersegment
net sales -2.9 -3.2 -3.8 -3.4 -3.4 -13.8
Total 548.6 557.8 582.4 606.1 564.7 2,311.0
EBIT
Q1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2007 2007 2007 2007 2007
Flexibles and
Films Global (1 6.6 -0.5 11.8 12.5 14.7 38.5
Rigid Europe (2 1.5 -74.3 3.5 3.3 0.2 -67.3
Molded Fiber
Europe 2.9 3.5 2.5 2.3 2.4 10.7
Rigid and
Molded Fiber
Americas (3 9.2 -6.2 13.1 19.4 17.2 43.5
Rigid and
Molded Fiber
AOA (4 -0.2 -1.3 1.8 2.7 3.3 6.5
Other activities 0.0 0.3 0.5 -4.5 -0.1 -3.8
Total (5 20.0 -78.5 33.2 35.7 37.7 28.1
1) Q4 2007 includes goodwill impairment charges MEUR 8.3.
2) Q4 2007 includes restructuring charges MEUR 1.4, goodwill
impairment charges MEUR 31.6 and tangible asset impairment charges
MEUR 46.0.
3) Q4 2007 includes goodwill impairment charges MEUR 5.1 and tangible
asset impairment charges MEUR 11.8.
4) Q4 2007 includes restructuring charges MEUR 2.3 and goodwill
impairment charges MEUR 1.6.
5) Q4 2007 includes restructuring charges MEUR 3.7, goodwill
impairment charges MEUR 46.6 and tangible asset impairment charges
MEUR 57.7, total amount MEUR 108.0.
Depreciation and amortization
Q1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2007 2007 2007 2007 2007
Flexibles and
Films Global 5.9 6.3 5.7 5.8 5.2 23.0
Rigid Europe 7.0 7.7 8.5 7.8 8.2 32.2
Molded Fiber
Europe 1.9 1.8 1.9 1.9 1.9 7.5
Rigid and Molded
Fiber Americas 5.0 5.6 5.8 5.9 6.0 23.3
Rigid and Molded
Fiber AOA 3.1 3.1 3.0 3.0 2.9 12.0
Other activities 0.2 0.2 0.2 0.2 0.3 0.9
Total 23.1 24.7 25.1 24.6 24.5 98.9
Net assets
allocated to
the segments (6
Q1 Q4 Q3 Q2 Q1
EUR million 2008 2007 2007 2007 2007
Flexibles and
Films Global 526.7 542.9 547.7 528.0 513.9
Rigid Europe 399.9 407.6 494.0 502.9 494.4
Molded Fiber
Europe 121.5 119.1 118.7 116.4 116.1
Rigid and Molded
Fiber Americas 413.1 417.1 456.9 478.6 474.2
Rigid and Molded
Fiber AOA 188.0 201.3 204.5 209.3 197.1
6) Net assets include the following balance sheet items: intangible
and tangible assets, other non-current assets, inventories, trade and
other current receivables (excluding accrued interest income), other
non-current liabilities and trade and other current liabilities
(excluding accrued interest expense).
Capital
expenditure
Q1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2007 2007 2007 2007 2007
Flexibles and
Films Global 6.8 15.3 15.1 12.6 8.6 51.6
Rigid Europe 2.2 9.8 8.6 7.9 9.5 35.8
Molded Fiber
Europe 0.6 7.3 0.8 0.8 0.8 9.7
Rigid and Molded
Fiber Americas 1.3 15.7 6.0 3.3 1.9 26.9
Rigid and
Molded Fiber
AOA 1.8 6.4 4.8 6.6 4.5 22.3
Other activities 0.7 0.9 0.1 0.3 0.3 1.6
Total 13.5 55.4 35.4 31.5 25.6 147.9
RONA, %
(12m roll.)
Q1 Q4 Q3 Q2 Q1
2008 2007 2007 2007 2007
Flexibles and
Films Global 5.7 % 7.2% 10.2% 11.1% 11.5%
Rigid Europe -14.6 % -14.2% -1.3% -3.5% -2.8%
Molded Fiber
Europe 9.3 % 9.0% 8.9% 9.6% 10.2%
Rigid and
Molded Fiber
Americas 8.0 % 9.5% 13.3% 13.5% 13.6%
Rigid and
Molded Fiber
AOA 1.5 % 3.2% 5.8% 6.6% 6.6%
Operating Cash Flow
Q1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2007 2007 2007 2007 2007
Flexibles and
Films Global 7.2 8.2 -16.9 8.5 -5.7 -5.9
Rigid Europe 1.1 17.3 16.9 -8.9 -6.9 18.4
Molded
Fiber Europe 1.6 5.2 1.4 4.0 1.4 12.0
Rigid and Molded
Fiber Americas -2.5 26.8 26.3 10.5 -3.3 60.3
Rigid and Molded
Fiber AOA 3.8 0.6 2.0 -4.6 -5.7 -7.7
As net sales and EBIT of reportable segments form Groups' total net
sales and EBIT, reconciliations to corresponding amounts are not
presented.
Other
information
Q1 Q1 Q1-Q4
EUR million 2008 2007 2007
Equity per
share (EUR) 7.13 8.64 7.70
ROE, % -4.3 11.5 -2.4
ROI, % 0.8 9.3 1.8
Personnel 15,198 14,885 15,092
Result before
taxes (12m roll.) -31.3 108.7 -14.0
Depreciation 21.3 23.0 92.9
Amortization
of other
intangible assets 1.8 1.4 6.0
Share capital and shareholders
At the end of March 2008, the Company's registered share capital was
EUR 358,657,670.00 (unchanged) corresponding to a total number of
outstanding shares of 105,487,550 (unchanged) 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 (unchanged).
At the end of the reporting period there were 21,979 (22,033)
registered shareholders.
Foreign ownership including nominee registered shares accounted for
22.5% (25.9%).
Share developments
The Company's share is quoted on the OMX Nordic Exchange Helsinki on
the Nordic Mid Cap list under the Materials sector. At the end of
March 2008, the Company's market capitalization was EUR 715.2 million
(EUR 1,307.0 million) and EUR 680.9 million (EUR 1,244.3 million)
excluding Company's own shares. With a closing price of EUR 6.78 (EUR
12.39) the share price decreased by 17% (-17%) from the beginning of
the year, while the OMX Helsinki CAP PI Index decreased by 11% (+6%).
In January-March 2008, the volume weighted average price for the
Company's share was EUR 7.18 (EUR 13.30). The highest price paid was
EUR 8.36 on January 2, 2008 and the lowest price paid was EUR 6.22 on
March 17, 2008.
During the reporting period the cumulative value of the Company's
share turnover was EUR 280.2 million (EUR 426.9 million). The trading
volume of 39.1 million (32.1 million) shares equaled an average daily
turnover of EUR 4.5 million (EUR 6.7 million) or, correspondingly
631,175 (501,172) shares. In total, turnover of the Company's 2003 A,
B and C option rights was EUR 159,390, corresponding to a trading
volume of 114,051.
Contingent
liabilities
Mar 31 Dec 31 Mar 31
2008 2007 2007
EUR million
Mortgages 14.5 14.5 14.6
Guarantee
obligations 2.1 2.8 6.2
Lease
payments 52.9 55.6 59.1
Capital expenditure
commitments 34.9 19.4 48.5
Nominal values of
derivative instruments
Mar 31 Dec 31 Mar 31
2008 2007 2007
EUR million
Currency forwards,
transaction
risk hedges 53 45 57
Currency forwards,
translation
risk hedges 64 101 111
Currency swaps,
financing hedges 144 143 130
Currency options - -1 -
Interest rate
swaps 157 164 132
Electricity forwards - 1 -
The following EUR rates have been applied to GBP, INR, AUD and USD
Q1/08 Q1/07
Income statement, GBP 1 = 1.320 1.491
average: INR 1 = 0.017 0.017
AUD 1 = 0.605 0.600
USD 1 = 0.667 0.763
Q1/08 Q1/07
Balance sheet, GBP 1 = 1.257 1.471
month end: INR 1 = 0.016 0.017 AUD 1 = 0.577 0.607
USD 1 = 0.632 0.751
Definitions for key indicators
Earnings per share = Result before taxes - minority interest - taxes
/ Average number of shares outstanding
Earnings per share (diluted) = Diluted result 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.)
Operating cash flow = EBIT + depreciation and amortization (including
impairment) - capital expenditures + disposals +/- change in
inventories, trade receivables and trade payables.
Shareholders' equity per share = Equity / Issue-adjusted number of
shares at period end
Return on equity (ROE) = 100 x (Result for the period) / Equity +
minority interest (average)
Return on investment (ROI) = 100 x (Result before taxes + interest
expenses + net other financial expenses) / Balance sheet total -
Interest-free liabilities (average)
Interim Report January 1 - March 31, 2008: Slow start to the year as expected
| Source: Huhtamäki Oyj
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