NORDIC ALUMINIUM PLC INTERIM REPORT October 23, 2008 9.30 a.m.
Net sales of Nordic Aluminium were EUR 79.80 million (EUR 80.29 million year
2007). The operating profit for the period was EUR 11.36 million (EUR 12.83
million) and the net profit was EUR 8.50 million (EUR 9.49 million).
Net sales and profitability
The net sales of Nordic Aluminium were at the same level as previous year EUR
79.80 million (EUR 80.29 million). The demand was weaker than expected during
the period. The net sales decreased during the third quarter compared to the
previous year being EUR 24.66 million (EUR 25.95 million). The
order back log decreased from the beginning of the year (EUR 7.74 million) and
was EUR 6.50 million at the end of the period.
The Company's profit did not meet the level of the previous year.
International operations and export accounted for EUR 32.54 million (EUR 32.39
million), which is 41 per cent of the net sales.
Profits
The operating profit of Nordic Aluminium amounted to EUR 11.36 million (EUR
12.83 million). Earnings per share for the period were EUR 1.76 (EUR 1.96).
Seasonality of sales and profit
Seasonal fluctuations have minor impact on sales and profit.
Investments
The gross capital expenditures for the period were EUR 6.76 million (EUR 7.13
million.
Personnel
During the first nine months of 2008 the average number of personnel in Nordic
Aluminium Group was 315 (305). At the end of the period the number of employees
was 321 (305).
Risks
Main business risks are related to the uncertainty in the development of the
world economy and its influence on market demand.
Shares
The shares of Nordic Aluminium Plc are traded at the Helsinki Exchanges. The
trading identifier is NOA1V and the ISIN code is FI0009006415. During the first
nine months of the year 2008 a number of 54,025 shares were traded with EUR
1.23 million. The share quotation ranged between EUR 13.52 and EUR 30.00. The
number of shares was 4,836,882 which remained unchanged during the reporting
period. The market capitalisation of the company's shares stood at EUR 80.7
million (EUR 142.2 million) at the end of September.
Ownership
There were no significant changes in the ownership during the period (1-9/2008).
Outlook
The order backlog was EUR 6.50 million (EUR 11.81 million) at the end of the
reporting period. The market outlooks are uncertain and the Company has taken
action to adjust costs and capacity to the decreasing demand. The Company has
started employee negotiations on September 25, 2008. The operative profit for
the fiscal year is expected to be at a lower level than during the previous
year.
The above mentioned predictions are based on the Company's management's best
view of the company's condition and market outlook.
Disclaimer
This release contains certain forward-looking statements that reflect the
current views of the company's management. Due to the nature of these
statements, they contain risks and uncertainties and are subject to changes in
the general economic situation and in the company's business sector.
Accounting policies
These presented interim financial statements have been prepared in accordance
with IAS34 Interim Financial Reporting. Nordic Aluminium applies the same
accounting policies as are applied in 2006 annual financial statements.
The financial information is prepared in accordance with international
financial reporting standards IFRS.
While the group has only one primary business segment, "Aluminium products",
which is equal to the official consolidated income statement and profit and
loss account, the interim report do not include separate information over the
group's primary business segment.
The key figures in this interim financial report are calculated with same
accounting principles than in year 2007 annual financial statement. The
calculation rules of key figures are presented in the financial statements
bulletin of the previous year.
The figures presented in the tables below have been rounded to two decimals,
which should be taken into account when reading the sum figures.
The interim report has not been subject to audit.
CONSOLIDATED INCOME STATEMENT
EUR million 7-9/08 % 1-9/08 % 1-9/07 % 1-12/07 %
Net sales 24.66 79.80 80.29 106.84
Other operating income 0.05 1.50 2.11 10.42
Increase(+) or decrease(-)
finished goods and
work in progress -0.69 -0.25 2.04 1.70
Raw materials and
consumables -12.05 -41.73 -43.89 -58.88
Personnel expenses -3.43 -10.94 -10.41 -14.33
Depreciation and
reduction of value -1.01 -2.92 -2.57 -4.77
Other operating expenses -4.10 -14.10 -14.74 -20.98
Operating profit 3.42 13.9 11.36 14.2 12.83 16.0 20.02 18.7
Financial items 0.13 0.15 0.03 0.06
Profit before taxes 3.56 14.4 11.52 14.4 12.86 16.0 20.07 18.8
Income taxes -0.94 -3.02 -3.37 -5.26
Net profit for the period 2.62 10.6 8.50 10.7 9.49 11.8 14.81 13.9
Attributable to:
Equity holders of
the parent 2.62 8.50 9.49 14.81
CONSOLIDATED BALANCE SHEET
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Non-current assets
Tangible assets 23.19 15.94 19.36
Goodwill 2.25 2.25 2.25
Intangible assets 1.77 1.71 1.76
Tradable financial assets 0.02 0.02 0.02
Other financial assets 0.00 0.00 0.00
Deferred tax liabilities 0.09 0.08 0.09
Total 27.32 20.00 23.48
Current assets
Inventories 11.63 12.67 12.69
Accounts receivable and other
current assets 15.08 17.52 14.35
Advance payments 0.04 0.00 0,00
Cash in hand and at banks 4.76 6.34 7.21
Total 31.51 36.54 34.24
Total assets 58.84 56.54 57.72
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 6.19 6.19
Share premium account 3.45 3.45 3.45
Conversion difference -0.23 -0.20 -0.23
Retained earnings 37.15 28.88 34.21
Total 46.56 38.33 43.63
Long-term liabilities
Deferred tax liabilities 1.60 0.62 1.60
Provisions 0.14 0.14 0.14
Interest bearing liabilities 0.10 0.03 0.13
Total 1.83 0.79 1.87
Short-term liabilities
Accounts payable 10.31 15.86 11.37
Provisions 0.09 0.09 0.09
Short-term interest
bearing liabilities 0.05 1.47 0.77
Total 10.44 17.42 12.22
Total liabilities 12.27 18.21 14.09
Total shareholders' equity and
liabilities 58.84 56.54 57.72
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 7-9/08 1-9/08 1-9/07 1-12/07
Cash flow from operations
Net profit (loss) 2.62 8.50 9.49 14.81
Corrections
Depr. according to plan 1.01 2.92 2.57 4.77
Financial items -0.13 -0.15 -0.03 -0.06
Taxes 0.94 3.02 3.37 5.26
Cash flow before change
in net working capital 4.44 14.29 15.40 24.79
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -0.40 -0.77 -4.06 -0.89
Inventories
increase(-)/decrease(+) 1.28 1.06 -2.43 -2.45
Short-term interest bearing
liabilities
increase(+)/decrease(-) -3.13 -1.92 4.73 0.27
Total -2.25 -1.64 -1.76 -3.07
Cash flow from operations before
interests and taxes 2.20 12.65 13.64 21.72
Paid interests and payments for
other financial expenses 0.00 -0.09 -0.16 -0.21
Received interests and payments
from other financial income 0.13 0.24 0.19 0.26
Paid income taxes -0.94 -2.16 -1.99 -2.94
Cash flow from operations(A) 1.39 10.63 11.68 18.83
Cash flow from investing activities
Investments in tangible and
intangible assets -1.55 -6.76 -7.13 -12.80
Income from sales of tangible
and intangible assets 0.00 0.00 0.00 0.00
Repayment of loan receivables 0.00 0.00 0.00 0.00
Cash flow from investments(B)-1.55 -6.76 -7.13 -12.80
Cash flow from financial items
Rights issue 0.00 0.00 0.00 0.00
Withdrawals of
short-term loans 0.00 0.00 0.00 0.00
Amortization of
short-term loans 0.00 -0.72 0.00 -0.71
Amortization of
long-term loans -0.01 -0.03 -0.72 -0.61
Dividends paid 0.00 -5.56 -4.11 -4.11
Cash flow from
financial items(C) -0.01 -6.31 -4.83 -5.43
Change in cash flow (A+B+C) -0.16 -2.45 -0.29 0.60
Conversion difference -0.02 0.00 -0.04 -0.07
Total -0.19 -2.45 -0.33 0.53
Cash in hand and at banks
in the beginning of period 4.95 7.21 6.67 6.67
Cash in hand and at banks
in the end of period 4.76 4.76 6.34 7.21
Change -0.19 -2.45 -0.33 0.53
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Sh.pr. Convers. Retained. Total
Equity account diff. earnings equity
Equity
01.01.2007 6.19 3.45 -0.16 23.50 32.99
Conversion diff. -0.07 -0.07
Net profit 14.81 14.81
Earning and costs tot. 14.74
Dividends -4.11 -4.11
Warrants used 0.00 0.00 0.00
-4.11
Equity
31.12.2007 6.19 3.45 -0.23 34.20 43.63
Equity
01.01.2008 6.19 3.45 -0.23 34.20 43.63
Conversion diff. 0.00 0.00
Net profit 8.50 8.50
Earning and costs tot. 8.50
Dividends -5.56 -5.56
Warrants used 0.00
-5.56
Equity
30.09.2008 6.19 3.45 -0.23 37.15 46.56
KEY FIGURES:
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Diluted earnings per share, EUR 1.76 1.96 3.06
Equity ratio, % 79.1 67.8 75.6
Gearing, % -10.2 -12.6 -14.4
Balance sheet total, EUR million 58.84 56.54 57.72
NOTES:
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Equity/share, EUR 9.63 7.92 9.02
Investments, EUR mill. 6.76 7.13 12.80
Average number of personnel 315 305 306
Geographical segments:
Net sales
EUR million 1-9/08 1-9/07 1-12/07
Finland 47.27 47.90 63.43
Other countries 32.54 32.39 43.41
Total 79.80 80.29 106.84
Taxes:
EUR million 1-9/08 1-9/07 1-12/07
Current income tax 3.02 3.36 4.27
Change in deferred income tax 0.01 0.01 0.98
Total 3.03 3.37 5.26
Inventories:
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Raw materials and consumables 1.09 1.56 1.90
Work in progress 4.70 4.71 4.23
Finished goods 5.84 6.41 6.56
Total 11.63 12.67 12.69
Interest bearing loans and borrowings:
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Bank loan 0.00 1.45 0.73
Obligations under finance leases 0.15 0.05 0.18
Total 0.15 1.50 0.90
Contingent liabilities:
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Consignation liability 1.39 1.93 1.86
Rental and leasing liabilities 10.22 10.30 11.50
Corporate mortgages given 8.41 8.41 8.41
Related party disclosures:
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
Sales 7.41 7.02 8.79
Purchases 0.02 0.11 0.02
Receivables 0.29 0.65 0.03
Order bakclog:
EUR million Sept 30, Sept 30, Dec 31,
2008 2007 2007
6.50 11.81 7.74
Nordic Aluminium Plc publishes publishes its Financial Bulletin for the fiscal
year 2008 on March 5, 2009. The company bulletins will be published also on
web-pages www.nordicaluminium.fi.
Kirkkonummi October 23, 2008
NORDIC ALUMINIUM PLC
The Board of Directors
Robert Paajanen
Managing Director
For further information please contact:
Managing Director Robert Paajanen, tel. +358 20 7660 220
Distribution:
NASDAQ OMX Helsinki Ltd.
The Main Media
www.nordicaluminium.fi
NOAE1108