STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 18.7.2008 AT 9:00
- Group net sales declined due to adverse currency impact
- Market demand stable in Americas, soft in Oceania and slowing down
in Europe
- Improved earnings excluding restructuring charges in the second
quarter
- Raw material, energy and distribution costs remained high
- Cash flow improved due to lower working capital and capital
expenditure
Key figures
EUR million H1 2008 H1 2007 Q2 2008 Q2 2007
Net sales 1,139.1 1,170.8 590.5 606.1
EBIT* 47.0 73.4 27.0 35.7
EBIT margin % 4.1 6.3 4.6 5.9
EPS 0.21 0.43 0.13 0.19
ROI % (12m roll.) 0.2 9.1
* H1 2008 and Q2 2008 includes restructuring charges EUR 6.8 million.
Overview
The demand for consumer packaging in the majority of the markets
remained stable to healthy. However, market softness persisted in
Oceania and signs of slowing demand were experienced in Europe. The
decline in the Group net sales in the reporting period was due to
adverse currency translation impact while modest growth was achieved
in constant currencies.
Earnings improved in the seasonally important second quarter after a
slow start to the year. Excluding the restructuring charges in the UK
and in Sweden, profitability in the second quarter came close to the
level reached in the previous year, corresponding to an EBIT margin
of 5.7% (5.9% in the same period in 2007). Main contributors to this
positive development were Rigid Europe and improving performance in
Films.
The raw material costs remained on a high level throughout the
reporting period and increases in energy and distribution costs
became more pronounced in the second quarter. The current cost level
together with anticipated cost increases led to the revised full-year
outlook on June 18, 2008.
Business review by segment
The sales distribution in the reporting period was the following:
Flexibles and Films Global 32% (31%), Rigid Europe 28% (27%), Molded
Fiber Europe 6% (6%), Rigid and Molded Fiber Americas 25% (26%) as
well as Rigid and Molded Fiber Asia-Oceania-Africa 9% (10%).
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 H1 2008 H1 2007 Q2 2008 Q2 2007
Net sales 357.2 363.1 177.9 176.2
EBIT 15.7 27.2 9.1 12.5
EBIT margin % 4.4 7.5 5.1 7.1
RONA % (12m roll.) 5.1 11.1
Sales within the segment declined during the reporting period but
modest growth was recorded in the second quarter. Sales development
was weak due to adverse currency impact as well as low sales in
Flexibles Europe, North America and Oceania. This was partially
offset by robust growth in Flexibles Asia. In Films, strong growth in
the second quarter contributed to a minor increase in sales for the
reporting period.
Profitability in the period reflects volume shortfall and margin
pressure due to higher raw material costs. Films posted recovering
profitability in the second quarter after a weak start to the year.
In Flexibles Europe, the implementation of the enterprise resource
planning (ERP) platform took place in May 2008. The small facility in
Nagpur, India, was closed in the second quarter 2008. Production at
the new flexible packaging facility in Bangkok, Thailand, will
commence in the third quarter 2008. The reconstructed facility in
Thane, India, is scheduled to be operational by year-end 2008.
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 H1 2008 H1 2007 Q2 2008 Q2 2007
Net sales 326.0 320.4 175.0 173.3
EBIT* 2.2 3.6 0.7 3.3
EBIT margin % 0.7 1.1 0.4 1.9
RONA % (12m roll.) -16.3 -3.5
* H1 2008 and Q2 2008 includes restructuring charges EUR 6.8 million.
Foodservice experienced a good, broad based growth within the segment
in the reporting period, although the pace slowed in the second
quarter. Sales in Consumer Goods were soft throughout the period in
Germany and in the UK. In both divisions, growth in Eastern Europe
was robust.
Excluding restructuring charges in the UK and in Sweden,
profitability in the reporting period reflects favorable price and
mix development as well as an improving trend in operational
efficiency. Benefits from earlier pricing efforts became more visible
in the second quarter.
In the UK, a consultation process in Portadown and in Gosport is
ongoing until the end of July 2008. The Consumer Goods rigid plastic
production is expected to cease in Portadown at the end of July 2008
and in Gosport at the end of September 2008. In Karlholmsbruk,
Sweden, union negotiations ended in the second quarter and the rigid
packaging site will be closed by year-end 2008.
Molded Fiber Europe
Molded fiber is used to make fresh product packaging, such as egg and
fruit packaging.
EUR million H1 2008 H1 2007 Q2 2008 Q2 2007
Net sales 70.4 69.3 35.0 34.5
EBIT 5.4 4.8 2.4 2.3
EBIT margin % 7.7 6.9 6.9 6.7
RONA % (12m roll.) 9.4 9.6
Sales and earnings within the segment remained stable in the
reporting period. The development in Eastern Europe and in the waste
paper trading business was favorable, offset by sales decline in the
UK due to a tougher competitive environment and adverse currency
translation impact.
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 H1 2008 H1 2007 Q2 2008 Q2 2007
Net sales 289.3 310.0 155.9 167.2
EBIT 24.9 36.5 15.7 19.4
EBIT margin % 8.6 11.7 10.0 11.6
RONA % (12m roll.) 7.5 13.5
Sales growth in constant currencies was solid with good growth
throughout the reporting period in Retail and in South America. In
Frozen desserts, sales growth accelerated towards the end of the
period. Market softness persisted in Foodservice.
Profitability in the reporting period was stable on a comparable
basis; excluding the EUR 6 million one time gain in the first quarter
of 2007 as well as adverse currency translation impact. The price
increases implemented during the reporting period managed to a large
extent to compensate for the higher raw material, energy and
distribution costs.
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 H1 2008 H1 2007 Q2 2008 Q2 2007
Net sales 103.6 114.8 51.2 58.3
EBIT -1.2 6.0 -1.0 2.7
EBIT margin % -1.2 5.2 -1.9 4.6
RONA % (12m roll.) -0.3 6.6
Sales development was modest in Asia, with slowing growth towards the
end of the reporting period due to phasing issues with new business
in China. Furthermore, as a result of continued general market
softness sales declined in Oceania and in South Africa.
Profitability in the reporting period reflects low sales, the
start-up costs in new capacity in Asia as well as adverse currency
translation impact.
The relocation from the site in Hong Kong to the new facility in
Guangzhou, China, was completed in May 2008. Production in Hong Kong
ceased at the end of the second quarter.
Financial review
The Group EBIT in the reporting period was EUR 47 million (EUR 73
million), corresponding to an EBIT margin of 4.1% (6.3%). In the
second quarter, the Group EBIT was EUR 27 million (EUR 36 million),
corresponding to an EBIT margin of 4.6% (5.9%). However, excluding
the restructuring charges of EUR 7 million in the UK and in Sweden,
the Group EBIT of EUR 34 million (EUR 36 million) came in the second
quarter close to the level reached in the previous year,
corresponding to an EBIT margin of 5.7% (5.9%).
At EUR 20 million, the net financial items in the period were
unchanged from the previous year. Net financial items for the second
quarter amounted to EUR 11 million (unchanged). The income tax
expense was EUR 5 million (EUR 10 million) with the second quarter
accounting for EUR 3 million (EUR 5 million).
The result for the period was EUR 23 million (EUR 44 million) and the
earnings per share (EPS) were EUR 0.21 (EUR 0.43). Correspondingly,
in the second quarter the result was EUR 13 million (EUR 19 million)
and EPS were EUR 0.13 (EUR 0.19). The average number of outstanding
shares used in the EPS calculations was 100,426,461 (unchanged)
excluding 5,061,089 (unchanged) Company's own shares.
Balance sheet and cash flow
Free cash flow in the reporting period was EUR 73 million (EUR -43
million), with a strong second quarter amounting to EUR 85 million
(EUR -6 million). The improvement was due to phasing of working
capital and capital expenditure. Capital expenditure for the period
was EUR 31 million (EUR 57 million), with the second quarter spending
at EUR 18 million (EUR 32 million). Net debt was EUR 710 million (EUR
797 million) at the end of June 2008. This corresponds to a gearing
ratio of 0.94 (0.92).
In the short-term, cash generation and net debt reduction continue as
key focus areas within the Group.
Personnel
The Group had 15,373 (15,129) employees at the end of June 2008.
Changes in Group management
Mr. Jukka Moisio was appointed by the Board of Directors as Huhtamäki
Oyj's CEO effective from April 1, 2008. Mr. Juha Salonen was
appointed as Senior Vice President, Administration and General
Counsel and member of the Group Executive Team starting on April 22,
2008. Mr. Maurice Petitjean, Executive Vice President, Flexibles and
Films Global, and member of the Group Executive Team resigned
effective from May 22, 2008.
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
In 2008, the Group EBIT is expected to be below the 2007 underlying
Group EBIT of EUR 136 million*. Capital expenditure in 2008 is
expected to be below EUR 100 million.
*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 - September
30, 2008 on October 22.
Espoo, July 17, 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 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 14:00
Finnish / 12:00 UK / 07:00 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: 54351082
All results 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
H1 H1 Q2 Q2 Q1-Q4
EUR million 2008 2007 2008 2007 2007
Net sales 1,139.1 1,170.8 590.5 606.1 2,311.0
Cost of goods sold -983.2 -989.8 -508.3 -510.7 -2,028.0
Gross profit 155.9 181.0 82.2 95.4 283.0
Other operating income 7.3 13.4 3.6 3.4 31.9
Sales and marketing -42.1 -41.4 -22.3 -21.4 -83.6
Research and development -8.5 -9.6 -4.2 -4.8 -17.8
Administration costs -58.8 -61.6 -29.6 -31.5 -122.6
Other operating expenses -6.8 -8.4 -2.7 -5.4 -62.8
-108.9 -107.6 -55.2 -59.7 -254.9
Earnings before interest and
taxes 47.0 73.4 27.0 35.7 28.1
Financial income 7.1 4.9 3.1 3.2 9.2
Financial expenses -27.1 -25.1 -14.5 -14.3 -51.7
Income of associated companies 0.3 0.2 0.2 0.1 0.4
Result before taxes 27.3 53.4 15.8 24.7 -14.0
Income tax expense -4.8 -9.6 -2.7 -5.3 -6.2
Result for the period 22.5 43.8 13.1 19.4 -20.2
Attributable to:
Equity holders of
the parent company 21.4 42.8 12.7 19.0 -22.5
Minority interest 1.1 1.0 0.4 0.4 2.3
Basic earnings per share
(EUR)
for the shareholders of
parent company 0.21 0.43 0.13 0.19 -0.22
Diluted earnings per share
(EUR)
for the shareholders of
parent company 0.21 0.42 0.13 0.18 -0.22
Group balance sheet (IFRS)
Unaudited
Jun 30 Dec 31 Jun 30
EUR million 2008 2007 2007
ASSETS
Non-current assets
Goodwill 466.7 471.9 523.4
Other intangible assets 40.2 41.4 35.6
Tangible assets 763.1 799.3 853.1
Investments in
associated companies 1.6 1.5 1.7
Available for sale investments 1.9 1.9 1.7
Interest bearing receivables 1.9 0.9 3.0
Deferred tax assets 13.5 13.7 17.5
Employee benefit assets 55.0 59.2 63.4
Other non-current assets 3.8 4.8 5.1
1,347.7 1,394.6 1,504.5
Current assets
Inventory 354.8 348.5 374.9
Interest bearing receivables 25.4 4.6 8.4
Current tax assets 12.9 17.9 11.3
Trade and other
current receivables 423.3 394.8 443.3
Cash and cash equivalents 42.8 30.8 25.9
859.2 796.6 863.8
Total assets 2,206.9 2,191.2 2,368.3
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 -138.8 -121.1 -106.7
Fair value and other reserves 1.3 1.4 2.0
Retained earnings 454.5 475.7 533.5
Total equity attributable to
equity holders of the parent
company 733.9 772.9 845.6
Minority interest 17.8 20.5 20.4
Total equity 751.7 793.4 866.0
Non-current liabilities
Interest bearing liabilities 399.0 401.1 370.0
Deferred tax liabilities 41.8 38.8 63.6
Employee benefit liabilities 104.2 108.8 111.7
Provisions 57.9 60.3 50.9
Other non-current liabilities 2.3 4.3 3.9
605.2 613.3 600.1
Current liabilities
Interest bearing liabilities
- Current portion of long term loans 18.0 17.9 42.7
- Short term loans 362.8 365.7 421.3
Provisions 11.6 8.0 7.4
Current tax liabilities 13.8 21.1 19.4
Trade and other current liabilities 443.8 371.8 411.4
850.0 784.5 902.2
Total liabilities 1,455.2 1,397.8 1,502.3
Total equity and liabilities 2,206.9 2,191.2 2,368.3
Jun 30 Dec 31 Jun 30
2008 2007 2007
Net debt 709.6 748.5 796.7
Net debt to equity (gearing) 0.94 0.94 0.92
Changes in shareholders' equity
Unaudited
Attributable to equity holders of the parent
company
Sha Sha Trea Trans Fair Retai Total Mino Total
re re sury lation value ned equity rity
capi is sha diff. and earn interest
tal sue res other ings pre reserves
mium
EUR million
Balance at
Dec 31, 358.7 104.7 -46.5 -106.7 2.1 528.8 841.1 19.3 860.4
2006
Cash flow
hedges
Hedge
result
deferred
to equity 1.4 1.4 1.4
Hedge
result
recognized
in
income
statement -1.4 -1.4 -1.4
Translation
differences 0.0 0.1 0.1
Deferred
tax
in equity -0.1 -0.1 -0.1
Other 3.3 3.3 3.3
changes
Income
and expense
recognized
directly
in equity -0.1 3.3 3.2 0.1 3.3
Result for
the period 42.8 42.8 1.0 43.8
Total
recognized
income
and expense
for the -0.1 46.2 46.1 1.1 47.1
period
Dividend -42.2 -42.2 -42.2
Share-based
payments 0.7 0.7 0.7
Balance at
Jun 30, 358.7 104.7 -46.5 -106.7 2.0 533.5 845.6 20.4 866.0
2007
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 -0.3 -0.3 -0.3
Hedge
result
recognized
in
income
statement -3.0 -3.0 -3.0
Hedge
result
transferred
to
carrying
amount of
hedged
items 3.2 3.2 3.2
Translation
differences -17.7 -17.7 -3.8 -21.5
Deferred
tax
in equity 0.0 0.0 0.0
Other
changes -0.8 -0.8 -0.8
Income and
expense
recognized
directly
in equity -17.7 -0.1 -0.8 -18.6 -3.8 -22.4
Result for
the period 21.4 21.4 1.1 22.5
Total
recognized
income
and expense
for the
period -17.7 -0.1 20.6 2.8 -2.7 0.1
Dividend -42.2 -42.2 -42.2
Share-based
payments 0.4 0.4 0.4
Balance at
Jun 30,
2008 358.7 104.7 -46.5 -138.8 1.3 454.5 733.9 17.8 751.7
Group cash flow statement (IFRS)
Unaudited
H1 H1 Q2 Q2 Q1-Q4
EUR million 2008 2007 2008 2007 2007
Result for the period* 22.5 43.8 13.1 19.4 -20.2
Adjustments* 72.4 74.2 41.5 40.6 243.2
- Depreciation, amortization 46.2 49.1 23.1 24.6 203.3
and impairment*
- Gain on equity of -0.3 -0.2 -0.3 -0.1 -0.4
minorities*
- Gain/loss from disposal of -0.5 0.3 -0.5 0.1 -8.1
assets*
- Financial expense/-income* 20.0 20.3 11.4 11.2 42.5
- Income tax expense* 4.8 9.6 2.8 5.2 6.2
- Other adjustments, 2.2 -4.9 5.0 -0.4 -0.3
operational*
Change in inventory* -14.7 -31.0 7.3 3.7 -14.8
Change in non-interest -21.5 -48.5 -13.2 -28.9 -3.7
bearing receivables*
Change in non-interest 62.8 1.1 62.9 3.0 -38.5
bearing payables*
Dividends received* 0.2 0.3 0.1 0.2 0.9
Interest received* 0.9 0.7 0.1 0.1 1.3
Interest paid* -20.5 -20.6 -10.5 -8.4 -42.7
Other financial expense and 2.7 0.4 0.7 0.6 -1.1
income*
Taxes paid* -3.0 -7.6 -1.5 -5.6 -18.6
Net cash flows from 101.8 12.8 100.5 24.7 105.8
operating activities
Capital expenditure* -31.3 -57.1 -17.8 -31.5 -147.9
Proceeds from selling fixed 2.0 1.6 1.8 0.5 14.3
assets*
Proceeds from long-term 1.2 0.5 0.2 0.0 7.2
deposits
Payment of long-term -2.2 -1.5 -1.8 -1.5 -6.1
deposits
Proceeds from short-term 5.0 0.5 0.3 0.0 11.5
deposits
Payment of short-term -25.7 -3.9 -22.6 -3.8 -11.0
deposits
Net cash flows from -51.0 -59.9 -39.9 -36.3 -132.0
investing
Proceeds from long-term 156.0 240.2 27.3 75.4 520.2
borrowings
Repayment of long-term -158.0 -187.3 -14.4 -18.3 -434.4
borrowings
Proceeds from short-term 1,450.6 1,568.6 601.5 876.8 2,987.4
borrowings
Repayment of short-term -1,443.8 -1,528.7 -630.0 -879.3 -2,995.0
borrowings
Dividends paid -42.2 -42.2 -42.2 -42.2 -42.2
Net cash flows from -37.4 50.6 -57.8 12.4 36.0
financing
Change in liquid assets 12.0 3.6 2.3 0.7 8.5
Cash flow based 13.4 3.5 2.8 0.8 9.8
Translation difference -1.4 0.1 -0.5 -0.1 -1.3
Liquid assets period start 30.8 22.3 40.5 25.2 22.3
Liquid assets period end 42.8 25.9 42.8 25.9 30.8
Free cash flow (including
figures
marked with *) 72.5 -42.7 84.5 -6.3 -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 standards.
Items below EBIT - financial items and taxes - are not allocated to
the segments.
Net sales
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and 176.2 178.4 354.6 167.9 176.3 175.1 185.7 705.0
Films Global
- Intersegment 1.7 0.9 2.6 0.8 1.2 1.0 1.2 4.2
net sales
Rigid Europe 173.5 149.9 323.4 148.7 161.7 172.1 146.0 628.5
- Intersegment 1.5 1.1 2.6 1.5 1.6 1.2 1.1 5.4
net sales
Molded Fiber 34.9 35.4 70.3 36.5 33.5 34.2 34.3 138.5
Europe
- Intersegment 0.1 0.0 0.1 0.2 0.0 0.4 0.3 0.9
net sales
Rigid and Molded
Fiber
Americas 154.7 132.5 287.2 143.6 153.5 166.5 142.2 605.8
- Intersegment 1.3 0.8 2.1 0.9 0.9 0.7 0.7 3.2
net sales
Rigid and Molded 51.1 52.5 103.6 61.1 57.4 58.2 56.5 233.2
Fiber AOA
- Intersegment 0.0 0.0 0.0 -0.2 0.1 0.1 0.1 0.1
net sales
Elimination of
intersegment net -4.5 -2.9 -7.4 -3.2 -3.8 -3.4 -3.4 -13.8
sales
Total 590.5 548.6 1,139.1 557.8 582.4 606.1 564.7 2,311.0
EBIT
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and 9.1 6.6 15.7 -0.5 11.8 12.5 14.7 38.5
Films Global (1
Rigid Europe (2 0.7 1.5 2.2 -74.3 3.5 3.3 0.2 -67.3
Molded Fiber 2.5 2.9 5.4 3.5 2.5 2.3 2.4 10.7
Europe
Rigid and Molded
Fiber
Americas (3 15.7 9.2 24.9 -6.2 13.1 19.4 17.2 43.5
Rigid and Molded
Fiber
AOA (4 -1.0 -0.2 -1.2 -1.3 1.8 2.7 3.3 6.5
Other activities 0.0 0.0 0.0 0.3 0.5 -4.5 -0.1 -3.8
Total (5 27.0 20.0 47.0 -78.5 33.2 35.7 37.7 28.1
1) Q4 2007 includes goodwill impairment charges MEUR 8.3.
2) H1 and Q2 2008 include restructuring charges MEUR 6.8, 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
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and Films Global 6.1 5.9 12.0 6.3 5.7 5.8 5.2 23.0
Rigid Europe 6.9 7.0 13.9 7.7 8.5 7.8 8.2 32.2
Molded Fiber Europe 1.9 1.9 3.8 1.8 1.9 1.9 1.9 7.5
Rigid and Molded Fiber
Americas 5.0 5.0 10.0 5.6 5.8 5.9 6.0 23.3
Rigid and Molded Fiber AOA 3.0 3.1 6.1 3.1 3.0 3.0 2.9 12.0
Other activities 0.2 0.2 0.4 0.2 0.2 0.2 0.3 0.9
Total 23.1 23.1 46.2 24.7 25.1 24.6 24.5 98.9
Net assets allocated to the segments (6
Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2008 2008 2007 2007 2007 2007
Flexibles and Films Global 513.9 526.7 542.9 547.7 528.0 513.9
Rigid Europe 378.2 399.9 407.6 494.0 502.9 494.4
Molded Fiber Europe 121.8 121.5 119.1 118.7 116.4 116.1
Rigid and Molded Fiber
Americas 403.3 413.1 417.1 456.9 478.6 474.2
Rigid and Molded Fiber AOA 189.5 188.0 201.3 204.5 209.3 197.1
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
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and Films
Global 9.6 6.8 16.4 15.3 15.1 12.6 8.6 51.6
Rigid Europe 3.2 2.2 5.4 9.8 8.6 7.9 9.5 35.8
Molded Fiber Europe 0.4 0.6 1.0 7.3 0.8 0.8 0.8 9.7
Rigid and Molded
Fiber Americas 2.9 1.3 4.2 15.7 6.0 3.3 1.9 26.9
Rigid and Molded
Fiber AOA 1.8 1.8 3.6 6.4 4.8 6.6 4.5 22.3
Other activities 0.0 0.7 0.7 0.9 0.1 0.3 0.3 1.6
Total 17.8 13.5 31.3 55.4 35.4 31.5 25.6 147.9
RONA, % (12m roll.)
Q2 Q1 Q4 Q3 Q2 Q1
2008 2008 2007 2007 2007 2007
Flexibles and Films Global 5.1% 5.7% 7.2% 10.2% 11.1% 11.5%
Rigid Europe -16.3% -14.6% -14.2% -1.3% -3.5% -2.8%
Molded Fiber Europe 9.4% 9.3% 9.0% 8.9% 9.6% 10.2%
Rigid and Molded Fiber
Americas 7.5% 8.0% 9.5% 13.3% 13.5% 13.6%
Rigid and Molded Fiber AOA -0.3% 1.5% 3.2% 5.8% 6.6% 6.6%
Operating Cash Flow
Q2 Q1 H1 Q4 * Q3 * Q2 * Q1 * Q1-Q4 *
EUR million 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and Films 14.3 7.2 21.5 7.2 -18.9 9.6 -4.0 -6.1
Global
Rigid Europe 30.2 1.1 31.3 17.2 16.2 -7.7 -7.7 18.0
Molded Fiber Europe 3.9 1.6 5.5 5.1 1.5 4.0 1.2 11.8
Rigid and Molded Fiber
Americas 27.5 -2.5 25.0 25.6 21.9 9.7 -3.2 54.0
Rigid and Molded Fiber
AOA 4.7 3.8 8.5 -0.8 0.5 -3.1 -5.8 -9.2
*) In 2007 operating cashflow calculations the FX translation has
been changed.
As net sales and EBIT of reportable segments form Groups' total net
sales and EBIT, reconciliations to corresponding amounts are not
presented.
Other information
H1 H1 Q1-Q4
EUR million 2008 2007 2007
Equity per share (EUR) 7.31 8.42 7.70
ROE, % -5.3 9.6 -2.4
ROI, % 0.2 9.1 1.8
Personnel 15,373 15,129 15,092
Result before taxes (12m roll.) -40.1 94.0 -14.0
Depreciation 42.5 46.2 92.9
Amortization of other
intangible assets 3.7 2.8 6.0
Share capital and shareholders
At the end of the reporting period, 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
had the total accountable par of EUR 17,207,702.60, representing 4.8%
of the total number of shares and voting rights. The amount of
outstanding shares net of Company's own shares was 100,426,461
(unchanged).
There were 22,120 (21,025) registered shareholders at the end of June
2008. Foreign ownership including nominee registered shares accounted
for 22.8% (27.3%).
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
June 2008, the Company's market capitalization was EUR 573.9 million
(EUR 1,310.2 million) and EUR 546.3 million (EUR 1,247.3 million)
excluding Company's own shares. With a closing price of EUR 5.44 (EUR
12.42) the share price decreased by 33% (0%) from the beginning of
the year, while the OMX Helsinki CAP PI Index decreased by 20%
(+13%). In January-June 2008, the volume weighted average price for
the Company's share was EUR 6.97 (EUR 13.14). The highest price paid
was EUR 8.36 on January 2, 2008 and the lowest price paid was EUR
5.20 on June 23, 2008.
During the reporting period the cumulative value of the Company's
share turnover was EUR 397.3 million (EUR 703.8 million). The trading
volume of 57.0 million (53.6 million) shares equaled an average daily
turnover of EUR 3.2 million (EUR 5.7 million) or, correspondingly
455,689 (432,116) shares. In total, turnover of the Company's 2003 A,
B and C option rights was EUR 401,818, corresponding to a trading
volume of 437,807.
Contingent liabilities
Jun 30 Dec 31 Jun 30
2008 2007 2007
EUR million
Mortgages 14.6 14.5 14.5
Guarantee obligations 1.9 2.8 4.8
Lease payments 59.7 55.6 57.3
Capital expenditure commitments 30.7 19.4 45.0
Nominal values of
derivative instruments
Jun 30 Dec 31 Jun 30
2008 2007 2007
EUR million
Currency forwards,
transaction risk hedges 51 45 58
Currency forwards,
translation risk hedges 47 101 110
Currency swaps,
financing hedges 137 143 138
Currency options 0 -1 2
Interest rate swaps 158 164 131
Electricity forwards - 1 -
The following EUR rates have been applied to GBP, INR, AUD and USD
Q2/08 Q2/07
Income statement, average: GBP 1 = 1.290 1.482
INR 1 = 0.016 0.018
AUD 1 = 0.604 0.608
USD 1 = 0.653 0.752
Q2/08 Q2/07
Balance sheet, month end: GBP 1 = 1.262 1.484
INR 1 = 0.015 0.018 AUD 1 = 0.611 0.630
USD 1 = 0.634 0.740
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 - June 30, 2008: Improved earnings in the second quarter after slow start to the year
| Source: Huhtamäki Oyj
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