Brødrene Hartmann A/S announces the report for the nine months ended
30 September 2008.
Peter Arndrup Poulsen, CEO of Brødrene Hartmann, on the results for
the nine months ended 30 September 2008:"We continued the positive trend with a significant increase in
operating profit. Our normalised EBIT for the nine months ended 30
September 2008 came to DKK 61 million against DKK 21 million in the
year-earlier period.""The improvement was attributable to strong growth in our largest and
most important egg packaging business in Europe."
Peter Arndrup Poulsen on the turnaround plan:"Our turnaround plan proceeded according to plan. The turnaround
activities are largely the reason for the growth in operating profit.
The turnaround plan will be fully implemented by the end of 2008, and
we expect to see the full effects of the activities in 2009."
And on the future:"We continue our focus on increasing Group operating profit with a
financial goal of achieving an EBIT margin of about 10% from 2010.
This goal is to be achieved by optimising the European core business,
adapting the level of activity in Industrial Packaging, lifting sales
and improving utilisation of capacity in North America."
Developments in brief:
In Q3 2008, we continued our turnaround activities as planned under
the 'Forward to basics' plan with the aim of stabilising and
consolidating our business. The plan will be implemented by the end
of 2008 and the Group expects to see the full effects of the
activities in 2009.
As announced in May 2008 in connection with our rights issue, it is
the goal of Hartmann to achieve an EBIT margin of about 10% from 2010
onwards. This goal is to be achieved by optimising the European
business, adapting the level of activity in Industrial Packaging,
lifting sales and improving the utilisation of capacity in North
America. Further information and status information will be included
in Hartmann's annual report for 2008.
Consolidated revenue for the nine months ended 30 September 2009
increased to DKK 1,106 million from DKK 1,070 million last year as a
result of higher volumes and an improved product and price mix in the
core business of egg packaging in Europe. The improvement was
partially offset by lower revenue in Industrial Packaging and Egg
Packaging North America.
Consolidated operating profit (EBIT) improved considerably.
Accumulated profit for 2008 was DKK 39 million compared with a loss
of DKK 172 million in the year-earlier period.
Despite generally higher prices of paper and energy in the first nine
months of 2008 compared with the year-earlier period, accumulated
EBIT for the year adjusted for asset impairment and non-recurring
items increased to DKK 61 million from DKK 21 million in 2007. The
growth was primarily attributable to the turnaround activities in
Hartmann's European core business of egg and industrial packaging.
The Group's cash flows reflected the positive impact of the
significant improvement in earnings for the nine months ended 30
September 2008 and the net proceeds of DKK 252 million from our
rights issue. Accumulated cash flows from operating activities for
2008 increased to DKK 79 million from DKK 11 million last year.
EAT for the nine months ended 30 September 2008 was a loss of DKK 15
million (nine months 2007: a loss of DKK 517 million). Asset
impairment, non-recurring costs and results from discontinued
operations totalled DKK 22 million for the nine months ended 30
September 2008, and DKK 444 million the year-earlier period.
Egg Packaging Europe, Hartmann's largest and most important business
area, showed strong performance in the first nine months of 2008 with
strong revenue and earnings growth.
Egg Packaging North America performed unsatisfactorily during the
first nine months of the year. Activities were influenced by
unfavourable effects of currency hedging and a minor decline in
volumes compared with last year. Volumes are expected to grow again
from the beginning of 2009.
Industrial Packaging performed as expected during the first nine
months of the year. Revenue fell due to the closedown of industrial
packaging activities in Asia and North America and the trimming of
the product portfolio. Revenue was also affected by the decision by
the largest customer in the business area to phase out its purchases
of Hartmann packaging, as expected. EBIT for the nine months ended 30
September 2008 grew due to the turnaround activities launched in
2007, resulting in major reductions in fixed and variable costs.
Hartmann maintains its outlook for 2008. Revenue is expected to be
approx. DKK 1,480 million, EBIT approx. DKK 55 million and
profit/loss for the year (EAT) approx. DKK 0 million.
