Marel/Stork Food Systems
• European and other competition authorities have agreed to the acquisition of
Stork Food Systems without conditions. Marel Food Systems will take full
control of the company on 8 May 2008.
• Proforma sales of Marel/Stork Food Systems core business for Q1 2008 totalled
EUR 155.2 million an increase of 8.9% or 12% on a fixed currency basis. EBIT
was EUR 12.2 million which corresponds to 7.9% of sales and net profit
amounted to EUR 9.4 million.
Marel Food Systems
• Sales for Q1 2008 totalled EUR 74.0 compared with 72.2 million during the
same period the previous year. Sales therefore increased by about 2.5% year
on year. On a fixed exchange rate this is an increase of 5.3%.
• Profit from operations (EBIT) during the period January to March 2008 was EUR
2.2 million, which is 2.9% of sales compared with 3.2 million (4.5% of sales)
last year. Net profit for the period totalled EUR 0.7 million compared with a
EUR 1.0 million profit in 2007.
• Working capital from operations totalled EUR 4.3 million. During 2007, this
was EUR 4.5 million.
• Equity totalled EUR 180.6 million and equity ratio was 42.7%. Net cash at the
end of the period totalled EUR 81.4 million, but was EUR 30.4 million at the
end of 2007. The change may in particular be attributed to LME's sale of
shares in Stork NV, which returned EUR 53 million to Marel Food Systems after
debt repayment.
Hörður Arnarson, CEO:
“With the merger of Stork and Marel, the company will have grown nearly
fivefold, and attained the goal of rapid external growth that was set at the
beginning of 2006 in a much shorter time frame than originally projected. The
focus now is on organic growth and improved performance.
Performance in the first quarter was shaped by extensive integration
activities. Number of employees has been reduced in the first half of 2008,
which will lead to an annual reduction of fixed costs of about EUR 8-9 million.
Price increases implemented at the end of 2007 to meet major raw-material
increases will materialize in Q2 and Q3.
Stork Food Systems showed impressive operational results and strong internal
growth. Profit from operations (EBIT) from core activities was 12.1% in the
first quarter, which exceeded expectations, and proforma EBIT from core
activities of the combined companies totaled about 7.9%.”
Presentation of results 7 May
Marel Food Systems will present performance results at a meeting on Wednesday 7
May 2008 at Hilton Reykjavik Nordica, Suðurlandsbraut 2, in Room A on the first
floor. Hörður Arnarson, CEO, will present the results of Marel Food Systems
and Stork Food Systems for the first quarter 2008, as well as discuss the
merger of the two companies. Árni Oddur Þórðarson, Chairman of the Board, will
then introduce the vision of the combined companies.
For further information, contact:
Hörður Arnarson, CEO Tel: (+354) 563-8000
