ASPO Plc STOCK EXCHANGE BULLETIN October 23, 2008 at 8:30
a.m.
Net sales grew to EUR 258.0 million, operating profit EUR 12.9
million
- Net sales for Aspo Group's continuing operations in
January-September amounted to EUR 258.0 million (EUR 154.7
million)
- Operating profit totaled EUR 12.9 million (EUR 11.3 million and a
sales gain of EUR 10.2 million in addition)
- Profit before taxes amounted to EUR 9.9 million (EUR 10.4 and a
sales gain of EUR 10.2 million in addition)
- Earnings per share for continuing operations were EUR 0.26 (EUR
0.31 and the sales gain representing EUR 0.29)
- Solvency improved and the gearing ratio decreased considerably in
the third quarter thanks to good cash flow and M&A arrangements
- The Group's financing situation has been good and there is no need
for renewed short-term financing
- M/S Eira was repurchased from SEB Leasing for EUR 14.7 million
- Discontinued operations include a EUR 8.2 million sales gain from
the sale of Autotank
- The Group's profit after taxes in January-September was EUR 6.3
million and as a sales gain of EUR 8.2 million in addition (EUR 4.4
million and a sales gain representing EUR 10.2 million)
- The Group's net sales will continue to grow and the full-year
earnings per share are expected to be close to last year's record
high
KEY FIGURES**)
1-9/2008 1-9/2007 1-12/2007
Continuing operations
Net sales, MEUR 258.0 154.7 208.9
Operating profit, MEUR 12.9 21.5* 25.3*
Share of net sales, % 5.0 13.9 12.1
Profit before tax, MEUR 9.9 20.6 24.3
Share of net sales, % 3.8 13.3 11.6
Personnel at the end of period 804 387 390
Earnings per share, EUR,
continuing operations 0.26 0.60 0.71
Earnings per share, EUR,
discontinued operations 0.30 -0.03 -0.12
Earnings per share, EUR, total 0.56 0.57 0.59
EPS adjusted for dilution, EUR,
continuing operations 0.25 0.56 0.67
EPS adjusted for dilution, EUR,
discontinued operations 0.28 -0.04 -0.11
EPS adjusted for dilution, EUR, total 0.53 0.52 0.56
Comparable earnings per share, EUR,
continuing operations 0.26 0.31 0.41
Comparable earnings per share, EUR,
discontinued operations -0.01 -0.03 -0.12
The Group as a whole
Equity per share, EUR 2.55 2.42 2.43
Equity ratio, % 25.9 42.8 45.1
Gearing, % 139.4 41.5 32.4
*) including a sales gain of EUR 10.2 million
**) Kauko-Telko's figures for May-September 2008 are consolidated in
Aspo Group's figures
Gustav Nyberg, CEO of Aspo:" Despite the uncertainty that prevails in the world, Aspo Group's
operations developed well. Net sales grew strongly and the operative
result excluding sales gains clearly improved. The operating profit
for July-September was the best in the Group's history.
In accordance with its strategy, Aspo has decentralized its risks by
focusing on several small niche areas: together, these areas enable
better than average development in a weaker economic cycle as well.
The company has also focused on the growth possibilities in the CIS
market: this was visible for instance as a tripling of the profitable
Russian-based net sales.
During the review period, all business units improved their net sales
and profits. The market situation has remained relatively good in our
main market areas and we are confident about the development in the
last quarter. However, the weak economic situation, which may become
prolonged, naturally affects Aspo Group's operations as well.
The acquisition made earlier in the year depressed the key ratios in
the consolidated balance sheet. In July-September successful M&A
arrangements and good operational cash flow improved the Group's
equity ratio by over 20 percent and lowered the gearing that had
temporarily risen to nearly 200 percent by more than 30 percent to
139.4 percent."
GROUP STRUCTURE
After the Kauko-Telko acquisition, Aspo reorganized its operations
and abandoned the previous Chemicals, Shipping and Systems Divisions.
As part of the reorganization, Kauko-Telko Ltd will be divided into
Telko Ltd, Leipurin Ltd, Hamina Terminal Services Ltd and
Kaukomarkkinat Ltd. Kauko-Telko's centralized administration will be
dissolved and appropriate parts of it will be transferred to
operating activities and Group administration by the end of the year.
The new Aspo features three independent companies with a strong
market position: ESL Shipping, Leipurin and Telko. Aspo Group's
financial reporting will reflect the new segment division as of May
1, 2008. Aspo Group also includes Kaukomarkkinat, which focuses on
business-to-business sales in electronics and industrial machinery.
Kaukomarkkinat is reported as part of other operations.
The divestment of the Autotank Group was completed in August and the
Finnish adhesive tape operations of Kaukomarkkinat were sold in
September. In August, an agreement was signed to sell the sourcing
services unit of Kaukomarkkinat. These operations have been reported
as discontinuing operations in accordance with IFRS 5.
The possibilities to divest Kaukomarkkinat's electronic operations
were investigated. As a result of the investigation a decision was
made to continue and develop the operations as part of Aspo's
corporate strategy.
OPERATIONAL PERFORMANCE
The general uncertainty on international markets will continue. The
prices of crude oil and other raw materials have, after a steep rise,
made a downturn. The concerns around the world as to whether the
healthy demand conditions would continue to prevail are growing.
Uncertainty has increased on international financial markets and the
exchange rate fluctuations in our operating areas have increased.
Uncertainty has increased in the Baltic Sea region and CIS markets,
which are important for Aspo, but Aspo's operations still developed
well in the review period. In the shipping business, healthy demand
for transport continued. The decrease in fuel prices has lowered
freight prices, but it had no effect on earnings. The Leipurin
Group's business development has continued as good in Finland and
Russia. In Telko's operations the slight decrease in prices and
market uncertainty has mainly been seen in Scandinavia. All of Aspo's
operations improved their results in Russia.
On the whole, the Aspo Group performed as planned. The disturbances
in international economics did not have a significant effect on
operations.
ESL Shipping
ESL Shipping is the leading dry bulk sea transport company operating
in the Baltic Sea area. As of the end of the period, the fleet
operated by the company comprised 15 units.
7-9/ 2008 7-9/ 2007 Change 1-9/ 1-9/ 2007 1-12/
2008 2007
Net Sales, MEUR 21.8 20.5 1.3 63.2 62.9 85.1
Operating Profit, 4.4 3.8 0.6 11.4 21.0* 25.1*
MEUR
Personnel 229 240 -11 229 240 239
*) including a sales gain of EUR 10.2 million
The market situation for dry bulk cargo transport on the Baltic Sea
continued as good in the third quarter. Uncertainty has increased on
the international markets and freight prices have decreased. The year
has been challenging for ESL Shipping because both its own and leased
tonnage decreased. Furthermore, tonnage was docked for scheduled
maintenance as well as for repairs.
Fleet operations were very successful. In the first nine months and
also in the third quarter, smaller tonnage was able to transport
almost the same cargo volume as last year. The net sales for the
third quarter rose to EUR 21.8 million (EUR 20.5 million). Cost
management was successful and the third quarter result improved
compared to the comparison period.
The cargo volume carried in the January to September period amounted
to 10.4 million tons (11.4). No major changes occurred in the cargo
distribution. The steel industry accounted for 65% of the transport
volumes, the energy industry for 27% and other industries for 8%. The
demand for energy coal caused periodic problems in the logistics
chain. The bottlenecks experienced in Russian coal rail transport to
the Baltic Sea export harbors were mainly caused by a shortage of
rail wagons.
The shipping company currently has two 20,000 gross register ton
vessels being constructed in India. The first vessel will be
completed in summer 2009, and the second in early 2010. Both vessels
are in ESL Shipping's Eira class and will be built to the highest ice
class, 1A Super.
Leipurin
The Leipurin Group serves the baking and other food industry by
supplying ingredients, production machinery and production lines, as
well as related expertise. Besides Finland, the Leipurin Group
operates in Russia, Poland, Estonia, Latvia and Lithuania. In Russia,
the Group operates in Tselyabinsk and Yekaterinburg, in addition to
St. Petersburg and Moscow.
The Leipurin Group became part of Aspo as a result of the Kauko-Telko
acquisition. After the reorganization of the group structure, the
Leipurin Group makes a separate business unit. The figures for the
Leipurin Group presented in the interim report are for May-September,
2008.
7-9/ 7-9/ Change 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Net Sales, MEUR 25.2 25.2 42.2
Operating Profit, 1.2 1.2 2.0
MEUR
Personnel 161 161 161
The Leipurin Group enjoyed a favorable market situation in the Baltic
Sea region in May-September. The price level for basic raw materials
for bakery products has remained unchanged. For some raw material
groups, e.g. cooking oils, the prices have decreased.
The Group's operations continued developing strongly. Sales grew in
Finland, Russia, the Baltic region and Poland as planned. There were
no significant bakery line project deliveries during the review
period. The order book for the last quarter is normal.
The net sales for July-September were EUR 25.2 million and operating
profit was EUR 1.2 million, the corresponding figures for
May-September were EUR 42.2 million and EUR 2.0 million respectively.
Leipurin Group's figures are included in Aspo Group's figures for
May-September.
Telko
Telko is the leading industrial raw materials and services supplier
in the Baltic Sea region. Telko has two business areas - Plastics and
Chemicals - and it has operations in Finland, Russia, Ukraine,
Belarus, Poland, Estonia, Latvia, Lithuania, Sweden, Denmark and
Norway. Processing operations are based in Finland and Latvia. In
addition, Telko has chemical terminals in Hamina and Rauma.
Telko was formed by combining Aspokem and the raw materials business
of Kauko-Telko. Figures for the acquired business are included in
Telko's figures for May-September, 2008.
7-9/ 7-9/ Change 1-9/ 2008 1-9/ 1-12/
2008 2007 2007 2007
Net Sales, MEUR 51.9 31.5 20.4 132.3 91.8 123.8
Operating Profit, 1.4 0.6 0.8 3.5 2.5 3.1
MEUR
Personnel 227 128 99 227 128 132
The oil price decreased in the third quarter. As a result the prices
of some product groups also made a downturn. On the markets, the
uncertainty regarding the development of prices, consumption and
demand increased. The uncertainty in the general economic situation
was reflected on the markets in Scandinavia and Finland in
particular.
The company was able to forecast a possible price decrease to some
extent and thus limit storage loss. Of the two product groups,
Plastics were successful in Finland, Ukraine and Russia. In
Scandinavia, earnings were depressed by integration costs related to
the business acquisition and decreased sales volumes for an important
client. Chemicals performed well in Finland and in particular in
Russia.
Telko's net sales have increased considerably since the acquisition
and rose to EUR 132.3 million (EUR 91.8 million) in
January-September. Operating profit amounted to EUR 3.5 million (EUR
2.5 million). The net sales for July-September were EUR 51.9 million
(EUR 31.5 million) and operating profit was EUR 1.4 million (EUR 0.6
million). As a result of the integration extra costs were also booked
in the third quarter.
Telko's business operations have been reorganized and the management
system has been renewed. In the future, Telko will focus on improving
efficiency in logistics and customer services.
Other operations
Other operations include Group administration and the electronics and
industrial machinery operations of Kaukomarkkinat.
7-9/ 7-9/ Change 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Net Sales, MEUR 13.8 13.8 20.3
Operating Profit, -1.1 -0.6 -0.5 -4.0 -2.0 -2.9
MEUR
Personnel 187 10 177 187 10 11
NET SALES AND PROFIT, CONTINUING OPERATIONS
Net sales for Aspo Group's continuing operations in January-September
2008 amounted to EUR 258.0 million (EUR 154.7 million). Despite the
decreased capacity, ESL Shipping's net sales improved on last year.
Telko's net sales have grown considerably thanks to positive
development in the CIS market and the business acquisition. Leipurin
Group's raw material sales developed well.
Net sales for Aspo Group's continuing operations in July-September
amounted to EUR 112.6 million (EUR 52.0 million).
Net Sales by Division, MEUR
*)
7-9/ 7-9/ Change 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
ESL Shipping 21.8 20.5 1.3 63.2 62.9 85.1
Leipurin 25.2 25.2 42.2
Telko 51.9 31.5 20.4 132.3 91.8 123.8
Other operations 13.7 13.7 20.3
Continuing operations 112.6 52.0 60.6 258.0 154.7 208.9
total
Discontinued 10.8 14.4 -3.6 43.3 40.5 57.7
operations
Total 123.4 66.4 57.0 301.3 195.2 266.6
Net Sales by Market Area,
MEUR*)
7-9/ 7-9/ Change 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Finland 61.3 31.0 30.3 140.7 96.5 127.7
Nordic countries 12.8 8.9 3.9 35.3 24.8 33.0
Baltic countries 9.6 3.8 5.8 20.6 11.4 15.9
Russia, etc. 28.9 8.3 20.6 61.4 22.0 32.3
Continuing operations 112.6 52.0 60.6 258.0 154.7 208.9
total
Discontinued 10.8 14.4 -3.6 43.3 40.5 57.7
operations
Total 123.4 66.4 57.0 301.3 195.2 266.6
The significance of Russia and other CIS markets in Aspo's business
will be further emphasized when ESL Shipping's raw material
transports from Russia are included in the Russian market area. When
the calculation is carried out this way, the distribution of net
sales between Finland and Russia is as follows:
7-9/ 2008 7-9/ 2007 Change 1-9/ 1-9/ 1-12/ 2007
2008 2007
Finland 53.6 22.8 30.8 117.9 69.5 91.9
Russia, etc. 36.6 16.5 20.1 84.2 49.0 68.1
*) Kauko-Telko's figures for May-September 2008 are consolidated in
Aspo Group's figures
January-September performance, continuing operations
Aspo Group recorded for January-September an operating profit of EUR
12.9 million or 5.0% of net sales (EUR 21.5 million, including a
sales gain of EUR 10.2 million, or 13.9% of net sales). Planned
depreciation totaled EUR 7.8 million (EUR 7.0 million). The Group's
net financial costs amounted to EUR 3.0 million (EUR 0.9 million).
The January-September profit before taxes was EUR 9.9 million (EUR
20.6 million, including a sales gain of EUR 10.2 million) and the net
profit for the period totaled EUR 6.5 million (EUR 15.7 million). The
profit for January-September was depressed by the non-recurring costs
of EUR 0.8 million from the Kauko-Telko acquisition.
July-September performance, continuing operations
Aspo Group recorded for July-September an operating profit of EUR 5.9
million or 5.2% of net sales (EUR 3.8 million or 7.3% of net sales).
Planned depreciation totaled EUR 2.9 million (EUR 2.3 million). The
Group's net financial costs amounted to EUR 1.4 million (EUR 0.4
million).
The July-September profit before taxes was EUR 4.5 million (EUR 3.4
million) and the net profit for the period totaled EUR 2.7 million
(EUR 2.8 million).
Operating Profit by Division,
MEUR**)
7-9/ 7-9/ Change 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
ESL Shipping 4.4 3.8 0.6 11.4 21.0* 25.1*
Leipurin 1.2 1.2 2.0
Telko 1.4 0.6 0.8 3.5 2.5 3.1
Other operations -1.1 -0.6 -0.5 -4.0 -2.0 -2.9
Continuing operations
total 5.9 3.8 2.1 12.9 21.5 25.3
Discontinued 7.7 -0.1 7.8 9.1 -0.4 -1.5
operations
Total 13.6 3.7 9.9 22.0 21.1 23.8
*) including a sales gain of EUR 10.2 million
**) Kauko-Telko's figures for May-September 2008 are consolidated in
Aspo Group's figures
DISCONTINUED OPERATIONS
The divestment of Autotank Ltd to Gilbarco Veeder-Root was completed
in August. A non-recurring sales gain of EUR 8.2 million was recorded
for the third quarter.
The sourcing services unit of Kaukomarkkinat was sold to Kaukopartio
Oy. The deal will produce a sales gain of approximately one million
euro, which will be recorded for the fourth quarter in connection
with the transfer of ownership.
The Finnish adhesive tape business of the Kaukomarkkinat unit was
sold to Oy Telpak Ab in September. A sales gain of EUR 0.2 million
was recorded for the third quarter. The possibilities to divest the
Swedish adhesive tape business of the Kaukomarkkinat unit will be
investigated.
The above operations have been recorded as discontinued operations in
accordance with IFRS 5.
INVESTMENTS
Investments for Aspo Group's continuing operations in
January-September amounted to EUR 115.2 million (EUR 8.7 million). Of
this, the acquisition of Kauko-Telko's stock represented EUR 95.5
million. This is the largest investment the Group has ever made. A
majority of the remaining investments, EUR 19.7 million, was used to
repurchase ESL Shipping's M/S Eira from SEB Leasing (EUR 14.7
million) and advance payments for vessel acquisitions.
Investments by Division,
acquisitions excluded, MEUR*)
7-9/ 7-9/ Change 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
ESL Shipping 16.1 0.0 16.1 18.6 3.8 3.8
Leipurin 0.0 0.0 0.0
Telko 0.2 0.0 0.2 0.3 4.8 5.7
Other operations 0.0 0.0 0.0 0.8 0.1 0.1
Continuing operations
total 16.3 0.0 16.3 19.7 8.7 9.6
Discontinued 0.2 0.3 -0.1 0.6 0.7 1.4
operations
Total 16.5 0.3 16.2 20.3 9.4 11.0
*) Kauko-Telko's figures for May-September 2008 are consolidated in
Aspo Group's figures
FINANCING
At the end of the review period, the Group had EUR 22.0 million (EUR
11.9 million) in liquid assets. There was a total of EUR 113.8
million (EUR 37.9 million) in interest-bearing liabilities on the
consolidated balance sheet at the end of the period. The bank loan
withdrawn in the previous quarter to finance the Kauko-Telko
acquisition increased the amount of interest-bearing debt
considerably. In the third quarter the interest-bearing liabilities
were significantly affected by a EUR 14 million long-term bank loan
taken to finance the repurchase of the M/S Eira and the EUR 28
million price from the divestment of Autotank Ltd's shares.
Interest-free liabilities totaled EUR 78.0 million (EUR 38.1
million). The Group's gearing was 139.4% (41.5%) and the equity ratio
adjusted for deferred tax liabilities was 25.9% (42.8%).
Aspo Plc and its key financing banks have signed binding financial
limits for a total of EUR 125 million. Credit withdrawn within the
framework of these financial limits amounted to EUR 65.5 million at
the end of the period.
In May, Aspo Plc signed a domestic EUR 50 million commercial paper
program to expand its financing base. Within the framework of this
program, the company can issue commercial papers having a maturity of
less than one year to be used to finance Aspo's net working capital
and other short-term funding needs. At the end of the period EUR 10.0
million of the domestic commercial paper program had been used.
After the review period, Aspo signed a EUR 20 million two year loan
contract.
PERSONNEL, CONTINUING OPERATIONS
Aspo Group's personnel in continuing operations averaged 804 (378)
for January-September, compared with 382 for the entire fiscal year
2007. As a result of the Kauko-Telko acquisition, the Group's
personnel doubled.
Average Personnel by Division*)
1-9/2008 1-9/2007 1-12/2007
ESL Shipping 229 240 239
Leipurin 161
Telko 227 128 132
Other operations 187 10 11
Continuing operations total
804 378 382
Discontinued operations 39 307 309
Total 843 685 691
*) Kauko-Telko's figures for May-September 2008 are consolidated in
Aspo Group's figures
Following the Kauko-Telko acquisition, Aspo is reorganizing its
operations. As part of the reorganization, Kauko-Telko Ltd will be
divided into Telko Ltd, Leipurin Ltd, Hamina Terminal Services Ltd
and Kaukomarkkinat Ltd. Kauko-Telko's centralized administration will
be dissolved and appropriate parts of it will be transferred to
operating activities and Group administration by the end of the year.
Due to the planned reorganization, Aspo has initiated statutory
negotiations with personnel representatives, as required under the
Act on Co-Operation Within Undertakings, concerning all Kauko-Telko's
administrative personnel.
SHARES AND SHAREHOLDERS
From January to September 2008 a total of 2,732,350 Aspo Plc shares
worth EUR 16.8 million, or 10.3% of the stock were traded on the
NASDAQ OMX Exchange in Helsinki. During the period, the stock reached
a high of EUR 6.90 and a low of EUR 5.05. The average price was EUR
6.19 and the closing price EUR 5.16. The market capitalization
excluding treasury shares was EUR 133.2 million at the end of the
period.
On September 30, 2008, Aspo Plc's registered share capital was EUR
17,690,603.97 and the number of shares was 26,404,383. The company
held 587,974 of its own shares, representing 2.2% of Aspo Plc's share
capital.
Aspo Plc has on April 1, 2008, disposed of 1,500 shares and on June
6, 2008, 13,130 shares within the context of the company's management
incentive program.
At the end of the period, the number of Aspo Plc shareholders was
4,914. A total of 600,548 shares or 2.3% of the total share capital
were nominee registered or held by non-domestic shareholders.
EVENTS AFTER THE REPORTING PERIOD
Following the Kauko-Telko acquisition, Aspo is reorganizing its
operations. As part of the reorganization, Kauko-Telko Ltd will be
divided into Telko Ltd, Leipurin Ltd, Hamina Terminal Services Ltd
and Kaukomarkkinat Ltd. Kauko-Telko's centralized administration will
be dissolved and appropriate parts of it will be transferred to
operating activities and Group administration by the end of the year.
Due to the reorganization, Aspo has initiated statutory negotiations
with personnel representatives, as required under the Act on
Co-Operation Within Undertakings, concerning all Kauko-Telko's
administrative personnel groups and no more than 50 people. The
potential reduction in personnel due to the reorganization of
operations is estimated at 10 to 15 persons. The statutory
negotiations were commenced on October 9, 2008, and they will last
six weeks.
OUTLOOK FOR REST OF 2008
The Group's net sales will continue to grow and the full-year
earnings per share are expected to be close to last year's record
high.
Aspo's business operations focus on small niche areas. Operational
growth and performance mainly depends on industrial demand in the
Baltic Sea region and CIS market. The uncertainty on the financial
markets may decrease industrial investments and make it difficult for
customers to acquire working capital on the CIS market in particular.
Exchange rate fluctuations may increase in our operating areas.
General uncertainty on international raw material markets concerning
the sustainability of price levels has increased and the prices of
some raw materials have decreased heavily.
The May-September figures for the acquired Kauko-Telko are
consolidated. The acquisition will increase the net sales towards the
end of the year and the Group earnings are expected to improve. Sales
growth is held back by the divestments made in the third quarter,
with the sale of Autotank being the biggest one. Possible
non-recurring costs caused by the co-operation negotiations initiated
in Kauko-Telko will affect the result in the last quarter.
ESL Shipping
If fleet operations are successful and there are no problems with the
availability of cargoes, the comparable full-year operating profit
may be close to last year's level.
The freight rates in international bulk freight markets have made a
downturn. In the Baltic Sea, the price level is not expected to drop
significantly because the freight prices on the Baltic Sea have not
followed the international increase in full either.
The company's operations have become more diversified over the past
few years, and a wide service range for the needs of exporting and
importing industry in the Baltic Sea region have been developed
besides traditional shipping. The steel industry has become the
company's largest customer group. The proportion of the energy
industry is less than one-third.
The transport capacity is expected to be in full use towards the end
of the year. A considerable share of the transportation capacity of
2009 has been covered with long-term agreements. All repair dockages
planned for this year have been completed.
The exchange rate risks related to shipping operations have been
hedged by forward contracts for the most part. To protect ourselves
against the risks associated with the fluctuation of fuel prices, our
customer contracts include special bunker clauses.
Leipurin
The demand from the food industry has been good despite the economic
uncertainty. The prices of raw materials are expected to remain at
the historically high level. The growth is expected to continue as
strong in Russia and remain unchanged in Finland and the Baltic
countries. Leipurin Group is looking into the possibility of
expanding its operations to Russia's new metropolises and to Ukraine.
A new logistics center will be taken into use in St. Petersburg, a
move which will increase costs towards the end of the year.
The economic uncertainty and international financial crisis may
affect the liquidity of customers and decrease investments in
machinery. Exchange rate fluctuations may increase the operational
risk.
Telko
As a result of the acquisition, Telko's net sales will grow strongly
in the last quarter as well. Operating profit is also expected to
grow from last year.
Uncertainty has increased in the markets. The prices of
petrochemicals have been decreasing. The general economic situation
may manifest itself as a surprising price decrease or as cyclicality.
On the Russian and Ukrainian markets, the development is expected to
continue as strong despite the economic uncertainty. The development
in Finland, Scandinavia and the Baltic countries is more uncertain.
Telko Group's risks are related to the instability of international
demand and supply, the prices of petrochemical products and the
currencies in the operating areas. Other risks include political and
financial instability in Russia and Ukraine.
Other Operations
The Kaukomarkkinat unit has increased its net sales and operating
profit. The sales of heating pumps, which is part of the electronics
operations, is expected to remain stable. A possible recession will
decrease greenfield construction and increase renovations, which is
expected to increase the demand for heating pumps. The operations of
the industrial machinery unit run on a healthy basis and prospects
are good. Operations in the Chinese joint venture unit are expected
to start in the first half of 2009.
Helsinki, October 23, 2008
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
7-9/08 7-9/07
MEUR % MEUR %
Net sales 112.6 100.0 52.0 100.0
Other operating income 1.2 1.1 0.1 0.2
Depreciation and write-downs -2.9 -2.6 -2.3 -4.4
Operating profit 5.9 5.2 3.8 7.3
Financial income and expenses -1.4 -1.2 -0.4 -0.8
Profit before taxes 4.5 4.0 3.4 6.5
Profit for the period, continuing operations
2.7 2.4 2.8 5.4
Profit for the period, discontinued operations
7.7 -0.1
Profit for the period 10.4 2.7
Profit attributable to shareholders
10.3 2.7
Minority interest 0.1
1-9/08 1-9/07 1-12/07
MEUR % MEUR % MEUR %
Net sales 258.0 100.0 154.7 100.0 208.9 100.0
Other operating income 1.2 0.5 10.3 6.7 10.4 5.0
Depreciation and write-downs -7.8 -3.0 -7.0 -4.5 -9.4 -4.5
Operating profit 12.9 5.0 21.5* 13.9 25.3* 12.1
Financial income and expenses -3.0 -1.2 -0.9 -0.5 -1.1 -0.5
Profit before taxes 9.9 3.8 20.6 13.4 24.3 11.6
Profit for the period, continuing
operations 6.5 2.5 15.7 10.2 18.4 8.8
Profit for the period,
discontinued operations 8.1 -1.2 -3.1
of which the gain on the sale of
the Autotank Group 8.2
Profit for the period 14.6
Profit attributable to
shareholders 14.5 14.6 15.3
Minority interest 0.1 0.1 0.1
*) including a sales gain of EUR 10.2 million
ASPO GROUP BALANCE SHEET 9/08 9/07 Change 12/07
MEUR MEUR % MEUR
Assets
Non-current assets
Intangible assets 17.0 1.6 962.5 2.6
Goodwill 41.3 10.8 282.4 10.1
Tangible assets 71.4 51.4 38.9 47.3
Available-for-sale assets 0.2 0.2 0.2
Long-term receivables 0.9 2.3 -60.9 2.5
Shares in associated companies 1.1 1.4 -21.4 1.1
Total non-current assets 131.9 67.7 94.8 63.8
Current assets
Inventories 41.5 23.4 77.4 24.0
Sales and other receivables 59.1 45.0 31.3 40.1
Cash and bank deposits 22.0 11.9 84.9 13.1
Total current assets 122.6 80.3 52.7 77.2
Assets classified as held for sale 3.1
Total assets 257.6 148.0 74.1 141.0
Shareholders' Equity and Liabilities
Shareholders' equity
Share capital 17.7 17.5 1.1 17.7
Other shareholders' equity 48.0 45.3 6.0 45.3
Shareholders' equity attributable 65.7 62.6 5.0 62.8
to equity holders of the parent 0.1 0.2 0.2
Minority interest
Long-term liabilities 47.3 27.1 74.5 25.7
Short-term liabilities 142.8 58.1 145.8 52.3
Liabilities classified as held for sale
1.7
Total shareholders' equity
and liabilities 257.6 148.0 74.1 141.0
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A = Share Capital
B = Premium Fund
C = Fair Value Fund
D = Other Funds
E = Repurchased Shares
F = Translation Difference
G = Retained Earnings
H = Total
I = Minority Interest
J = Total Shareholders' Equity
MEUR A B C D E F G H I J
Balance at
31/12/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0
Translation
differences -0.2
Increase in
hedging reserve 0.6
Share of
deferred taxes -0.2
Net profit for
the period 14.6
Dividend payment -10.8
Share repurchase -0.6
Net result recognised
directly to equity -0.5
Balance at
30/09/2008 17.7 4.3 -0.6 0.5 -3.6 -0.2 47.6 65.7 0.1 65.8
Balance at
31/12/2006 17.5 2.5 0.0 0.2 -1.8 0.1 39.7 58.1 0.1 58.2
Translation
differences 0.1
Increase in
hedging reserve -0.5 0.0
Share of
deferred taxes 0.0
Net profit for
the period 14.6 0.1
Dividend payment -10.5
Share repurchase -0.5
Share disposal 0.2 0.4
Conversion of
convertible bond
to shares 0.0 0.6
Balance at
30/09/2007 17.5 3.1 -0.5 0.4 -1.9 0.2 43.8 62.6 0.2 62.8
Accounting principles
All figures are unaudited. This interim report has been prepared in
accordance with the IAS 34 (Interim Reports) standard. The accounting
principles that were applied in the preparation of the financial
statements of December 31, 2007 have been applied in the preparation
of this interim report.
ASPO GROUP CASH FLOW STATEMENT
1-9/08 1-9/07 1-12/07
MEUR MEUR MEUR
Net operational cash flow 17.6 4.5 8.5
Investments
Investments in tangible and
intangible assets -20.6 -4.8 -5.7
Gains on the sale of tangible
and intangible assets 0.7 10.3 11.2
Purchases of subsidiary shares -77.6 -4.7 -4.7
Sale of subsidiary shares 25.6
Total Cash Flow From Investments -71.9 0.8 0.7
Financing
Repurchase of shares -0.7 -0.5 -1.6
Share disposal 0.1
Change in short-term borrowings 54.8 8.1 6.8
Change in long-term receivables 1.5 0.1 0.1
Change in long-term borrowings 13.4 -2.0 -1.4
Dividends paid -10.8 -10.6 -10.6
Total Financing 58.3 -4.9 -6.7
Impact of changes in exchange rates 0.2 0.1
Increase / Decrease in liquid funds 4.0 0.6 2.6
Liquid funds in beginning of year 13.2 9.1 9.1
Liquid funds and used
overdraft limit at period end 17.1 9.7 11.7
Used overdraft limit at period end 4.9 2.2 1.5
Liquid funds at period end 22.0 11.9 13.2
KEY FIGURES AND RATIOS
1-9/08 1-9/07 1-12/07
Earnings per share, EUR,
continuing operations 0.26 0.60 0.71
Earnings per share, EUR,
discontinued operations 0.30 -0.03 -0.12
Earnings per share total 0.56 0.57 0.59
EPS adjusted for dilution, EUR,
continuing operations 0.25 0.56 0.67
EPS adjusted for dilution, EUR,
discontinued operations 0.28 -0.04 -0.11
EPS adjusted for dilution, EUR, total 0.53 0.52 0.56
Comparable earnings per share, EUR,
continuing operations 0.26 0.31 0.41
Comparable earnings per share, EUR,
discontinued operations -0.01 -0.03 -0.12
The whole group
Equity per share, EUR 2.55 2.42 2.43
Equity ratio, % 25.9 42.8 45.1
Gearing, % 139.4 41.5 32.4
Discontinued Operations, total
1-9/08 1-9/07 1-12/07
MEUR MEUR MEUR
Net sales 43.3 40.5 57.7
Other operating income 0.0 0.0 0.4
Depreciations and write downs -0.4 -0.3 -0.4
Operating profit 9.1 -0.4 -1.5
Financial income and expenses -0.8 -0.6 -1.4
Profit before taxes 8.3 -1.0 -2.9
Profit for the period 8.1 -1.1 -3.1
- of which the gain on the sale of the
Autotank Group 8.2
Income Statement of
the Autotank Group
1-9/08 1-9/07 1-12/07
MEUR MEUR MEUR
Net sales 34.3 40.5 57.7
Other operating income 8.2 0.4
Depreciations and write downs -0.3 -0.3 -0.4
Operating profit 8.8 -0.4 -1.5
Financial income and expenses -0.7 -0.6 -1.4
Profit before taxes 8.1 -1.0 -2.9
Profit for the period 7.9 -1.1 -3.1
Assets of Discontinued Operations 30.9.2008
Long term assets 0.3
Short term assets 2.8
Total assets held for sale 3.1
Assets classified as
held for sale
Short-term liabilities 1.7
Total liabilities held for sale 1.7
Liabilities and financing costs attributable to discontinued
operations have been recorded in their results.
Kauko-Telko Acquisition
Preliminary combination
Fair Values Book Value
Recorded in Combination Before
MEUR MEUR
Acquired assets
Intangible assets 18.0 4.6
Tangible assets 12.6 8.9
Inventories 23.9 23.1
Accounts receivable and other 30.5 30.5
assets
Cash and bank deposits 20.7 20.7
Total assets 105.7 87.8
Long-term liabilities 11.2 6.6
Short-term liabilities 37.2 37.2
Net assets 57.3
Goodwill 38.2
Total acquisition price 95.5
The total acquisition cost was EUR 95.5 million including estimated
expert fees of EUR 1.8 million.
FINANCIAL INFORMATION
Aspo has arranged a press conference for the media and analysts to be
held today, October 23, 2008, starting at 10:00 at Palace Gourmet,
Eteläranta 10, 00130 Helsinki.
ASPO Plc
Gustav Nyberg Dick Blomqvist
CEO CFO
For more information, please contact
Gustav Nyberg, +358 9 40 503 6420
gustav.nyberg@aspo.fi
Aspo is a conglomerate focusing on sectors that require extensive
specialist knowledge. Aspo owns and develops the leading businesses
in its sector, which include ESL Shipping, Leipurin as well as Telko.
Aspo serves demanding business-to-business clients. In 2007, the
company's net sales (pro forma) amounted to EUR 495.3 million.
DISTRIBUTION:
NASDAQ OMX Helsinki
Key Media
www.aspo.com