Larox Corporation Interim Report 23.10.2008 at 8.30 am
INTERIM FINANCIAL REPORT OF THE LAROX GROUP FOR THE PERIOD 1 JANUARY 2008 TO 30
SEPTEMBER 2008
During the three quarters of 2008 net sales totaled EUR 143.9 million (EUR 109.0
million), indicating a growth of 32.1%. Operating profit totaled EUR 11.7
Million (EUR 7.9 million). The result before tax for the review period totaled
EUR 10.2 million (EUR 6.8 million). Earnings per share was EUR 0.77 (EUR 0.45).
Group order backlog at the end of September 2008 totaled EUR 110.1 million (EUR
79.6 million). The amount of new orders received during the nine months' period
of 2008 totaled EUR 159.0 million (EUR 143.5 million).
BUSINESS OPERATIONS
Demand for the Larox products has remained good. During the review period the
order accumulation improved positively. Group order backlog at the end of Sep-
tember 2008 totaled EUR 110.1 million (EUR 79.6 million), which is 38% higher
than at the same moment in the previous year. The amount of new orders received
during the nine months' period of 2008 totaled EUR 159.0 million (EUR 143.5
million).
Approximately 92 % of Group net sales were generated by exports and foreign
operations. Net sales by geographical division were as follows:
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| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| North, Central and South America | 28.5% | 31.1% |
| | | |
--------------------------------------------------------------------------------
| Asia and Australasia | 22.6% | 23.2% |
| | | |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and | 48.9% | 45.7% |
| Africa | | |
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CHANGES IN GROUP STRUCTURE
Larox AB, a Larox-owned subsidiary, was established in Sweden. The company
is a holding company of the subsidiary to be established in China.
The aim is that the subsidiary in China is fully operational during the first
half of the year 2009. The new subsidiary will be responsible for filter sales
and after market services to the existing and potential Larox customers in
China. Furthermore, the company will purchase components from local suppliers
and start local assembly of filters.
According to an acquisition agreement all the shares of Turku Ceramics Oy are
owned by Larox Oyj from the first of October 2008. New Finnish subsidiary will
be consolidated to the Group from that moment on. Turku Ceramics is the only
manufacturer of technical ceramics in Finland and supplies filter elements to
Larox.
The decision published in April regarding the establishment of a subsidiary
responsible for after sales services in Russia goes ahead as planned. In the
service center, situated south of Moscow, will be customer support engineers and
spare parts stock. The aim is that the service center will be fully operational
at the beginning of 2009.
PROFITS AND PROFITABILITY
Larox Group's result before tax for the review period totaled EUR 10.2 million
(EUR 6.8 million, 1 January 2007 to 30 September 2007). The total net sales
were EUR 143.9 million (EUR 109.0 million). The Group showed an operating profit
of EUR 11.7 million (EUR 7.9 million), i.e. 8.1% (7.3%) of net sales. Earnings
per share was EUR 0.77 (0.45).
NET SALES AND RESULT DEVELOPMENT DURING THE THIRD QUARTER
For the third quarter of the year the consolidated net sales totaled EUR 58.8
million (EUR 33.7 million). The Group showed the operating profit of EUR 5.5
million (EUR 1.9 million) and the profit before tax was EUR 4.8 million
(EUR 1.4 million). The amount of new orders received during the third quarter
of the year totaled EUR 53.8 million (EUR 57.5 million). The earnings per
share was EUR 0.35 (EUR 0.10).
BALANCE SHEET AND FINANCING
At the end of September 2008 the Group balance sheet totaled EUR 107.8 million
(EUR 98.7 million). At the turn of the year 2007 the balance sheet total was
EUR 102.9 million. Net financing costs totaled EUR 1.5 million (EUR 1.1
million). Net cash from operating activities continued to be good, EUR 16.4
million (EUR -0.9 million). The equity ratio was 32.6% (31.0%) and at the end
of the previous financial year (31 December 2007) it was 34.2%.
INVESTMENTS
Larox Group's investments totaled EUR 6.2 million (EUR 2.2 million). The
investments include the acquisition of Turku Ceramics Oy, IT applications and
replacement investments.
PERSONNEL
The average number of personnel employed by the Group during the review period
was 526 (456). At the end of the review period it was 557 (466) of whom 266
(219) worked for the parent company. The growth can mainly be seen in the after
sales business areas in Finland, Australia, South Africa, Chile and Peru.
SHARES AND SHAREHOLDERS
During the report period trading in shares totaled 1,700,191, which is 18.1%
of the total number of shares. The value of shares traded was EUR 17.2 million.
During the review period the lowest share price was EUR 8.00 and the highest
was EUR 12.40. The closing price of the share was EUR 8.35 and the total market
value of the shares was EUR 78.3 million. At the end of September there
were 1,850 shareholders.
AUTHORIZATIONS TO THE BOARD OF DIRECTORS DECIDED IN THE ANNUAL GENERAL MEETING
OF SHAREHOLDERS
The authorization to the Board of Directors regarding the repurchase of shares
by using the company's unrestricted shareholders' equity was not used during
the review period. The authorization was for 500.000 Larox Corporation B-series
shares at the maximum and was valid until 30.9.2008.
The authorization to the Board of Directors to decide on shares, stock option
rights or special rights referred to in the Finnish Companies Act chapter 10,
paragraph 1 in one or more lots in such a way that based on the authorization
the total maximum number of Larox Corporation B-series shares is 500 000 was
not used during the review period. The authorization is valid until 30.3.2012.
RISKS AND UNCERTAINTY FACTORS
An evaluation project of risks management was realized during the review period
and its target was to identify different risk areas, their effects,
probabilities as well as current risks management situation. Also the risks
management prin-ciples and systematic program, based on identified risk areas,
were developed. According to Larox risks management system risks are divided
into the following four risk categories: business, operational, damage and
financial risks.
OUTLOOK FOR THE REST OF THE YEAR
Received orders of the period, EUR 159.0 million, show the strong investment
activities in filters.
The outlook for the rest of the year is positive although the availability of
materials and certain components is challenging. The order backlog of EUR 110.1
million at the end of the review period supports this. It is expected that
approximately EUR 34.6 million of the order backlog will be delivered during the
current year. Furthermore Group net sales are expected to grow compared to
previous year. The result and profitability will improve from last year.
The decrease in the market prices of metals and the influence of the financial
crisis on customer business fields create uncertainty in the demand for Larox
products in the long run.
Lappeenranta on 23 October 2008
Larox Corporation
Board of Directors
For further information please contact
Mr Toivo Matti Karppanen
President & CEO
Tel +358 (0) 20 7687 210
Fax +358 (0) 20 7687 277
E-mail topi.karppanen@larox.com
Internet www.larox.com
The financial year-end of the Larox Group is on 31 December 2008.
Publication date for the Larox Group financial statements 2008 is on 13 February
2009.
Annual general meeting of shareholders will be held on 26 March 2009.
Altogether three interim reports will be published during the year 2009:
The interim report for 1.1.-31.3.2009 on 23 April 2009
The interim report for 1.1.-30.6.2009 on 6 August 2009
The interim report for 1.1.-30.9.2009 on 23 October 2009.
Distribution: NASDAQ OMX Helsinki Ltd, central media
www.larox.com
NOTES TO THE INTERIM REPORT
The review is prepared in accordance with all the requirements of IAS 34
Interim Financial Reporting -standard and in accordance with IFRS recognition
and measurement principles.
Larox has applied the same accounting principles in this Interim Report as in
Annual Report 2007. The contents of the changes in standards and interpretations
are presented more detailed in Annual Report 2007.
The preparation of the financial statements in accordance with IFRS requires the
use of estimates and assumptions that affect the reported amounts of assets and
liabilities and the reported amounts of income and expenses during the reporting
period. The estimates are based on management's best knowledge of current events
and actions but actual results may differ from these estimates.
All below figures in the financial statements have been adjusted and therefore
the added sum of individual figures may differ from the presented added figure.
The figures presented have not been audited.
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| INCOME STATEMENTS, | | | | | |
| IFRS | | | | | |
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| 1000 EUR | 7-9/2008 | 7-9/2007| 1-9/2008 | 1-9/2007 | 1-12/2007 |
| | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 58 804 | 33 662 | 143 916 | 108 971 | 158 270 |
--------------------------------------------------------------------------------
| Other operating | 419 | 693 | 1 905 | 1 202 | 2 240 |
| income | | | | | |
--------------------------------------------------------------------------------
| Materials | -33 235 | -15 069 | -74 779 | -51 782 | -76 672 |
--------------------------------------------------------------------------------
| External services | -2 293 | -2 508 | -6 345 | -5 805 | -10 186 |
--------------------------------------------------------------------------------
| Employee benefits | -8 927 | -7 337 | -24 445 | -22 225 | -29 906 |
| expense | | | | | |
--------------------------------------------------------------------------------
| Depreciation, | | | | | |
| amortization | | | | | |
--------------------------------------------------------------------------------
| & impairment losses | -986 | -878 | -2 850 | -2 562 | -3 504 |
--------------------------------------------------------------------------------
| Other operating | -8 258 | -6 677 | -25 692 | -19 893 | -27 171 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 5 524 | 1 866 | 11 709 | 7 906 | 13 070 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | -98 | 263 | 471 | 540 | 946 |
--------------------------------------------------------------------------------
| Financial expenses | -877 | -981 | -2 450 | -1 915 | -2 622 |
--------------------------------------------------------------------------------
| Share of | 243 | 211 | 501 | 317 | 361 |
| profit/loss in | | | | | |
| associates | | | | | |
--------------------------------------------------------------------------------
| PROFIT/LOSS BEFORE | 4 792 | 1 379 | 10 231 | 6 848 | 11 755 |
| TAX | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax expense | -1 475 | -400 | -3 037 | -2 602 | -2 259 |
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE | 3 317 | 979 | 7 194 | 4 246 | 9 496 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS basic (EUR) | 0,35 | 0,10 | 0,77 | 0,45 | 1,01 |
--------------------------------------------------------------------------------
| EPS diluted (EUR) | 0,35 | 0,10 | 0,77 | 0,45 | 1,01 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEETS, IFRS | | | |
--------------------------------------------------------------------------------
| 1000 EUR | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | 17 917 | 18 738 | 18 795 |
--------------------------------------------------------------------------------
| Goodwill | 2 778 | 2 937 | 2 926 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 9 141 | 9 213 | 9 257 |
--------------------------------------------------------------------------------
| Investments in associates | 1 754 | 1 315 | 1 393 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 34 | 208 | 23 |
--------------------------------------------------------------------------------
| Receivables | 4 332 | 0 | 0 |
--------------------------------------------------------------------------------
| Deferred tax asset | 5 281 | 3 827 | 5 238 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | 41 237 | 36 273 | 37 633 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 28 742 | 27 475 | 26 592 |
--------------------------------------------------------------------------------
| Trade receivables and other | 32 946 | 32 420 | 36 651 |
| receivables | | | |
--------------------------------------------------------------------------------
| Current tax assets | 1 027 | 191 | 165 |
--------------------------------------------------------------------------------
| Cash and bank | 3 841 | 2 341 | 1 812 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | 66 556 | 62 427 | 65 220 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 107 793 | 98 700 | 102 853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Share capital | 5 629 | 5 629 | 5 629 |
--------------------------------------------------------------------------------
| Share premium account | 5 777 | 5 777 | 5 777 |
--------------------------------------------------------------------------------
| Other reserves | -218 | 75 | 0 |
--------------------------------------------------------------------------------
| Translation differences | -131 | -134 | -127 |
--------------------------------------------------------------------------------
| Retained earnings | 22 627 | 16 404 | 21 566 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 33 684 | 27 751 | 32 845 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 3 307 | 2 620 | 1 804 |
--------------------------------------------------------------------------------
| Long-term financial liabilities | 13 982 | 10 926 | 12 751 |
--------------------------------------------------------------------------------
| Employee benefit obligations | 479 | 425 | 555 |
--------------------------------------------------------------------------------
| Non-current provisions | 1 197 | 1 568 | 826 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | 18 965 | 15 539 | 15 936 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Short-term financial liabilities | 20 359 | 24 456 | 24 133 |
--------------------------------------------------------------------------------
| Trade payables and other payables | 31 986 | 28 771 | 26 683 |
--------------------------------------------------------------------------------
| Current tax liabilities | 632 | 1 416 | 1 935 |
--------------------------------------------------------------------------------
| Current provisions | 2 166 | 768 | 1 321 |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | 55 143 | 55 411 | 54 072 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 107 793 | 98 700 | 102 853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW STATEMENTS, IFRS | | | |
--------------------------------------------------------------------------------
| 1000 EUR | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit/loss | 7 194 | 4 245 | 9 496 |
--------------------------------------------------------------------------------
| Adjustments to the net | 7 365 | 6 169 | 6 986 |
| profit/loss of the period | | | |
--------------------------------------------------------------------------------
| Change in working capital | 5 200 | -8 114 | -13 817 |
--------------------------------------------------------------------------------
| Interest paid | -1 444 | -1 358 | -1 819 |
--------------------------------------------------------------------------------
| Interest income received | 88 | 45 | 53 |
--------------------------------------------------------------------------------
| Other financing items | 175 | -83 | -50 |
--------------------------------------------------------------------------------
| Income taxes paid | -2 154 | -1 817 | -3 217 |
--------------------------------------------------------------------------------
| Net cash from operating | 16 425 | -912 | -2 368 |
| activities | | | |
--------------------------------------------------------------------------------
| Net cash used in investment | -6 084 | -1 784 | -3 038 |
| activities | | | |
--------------------------------------------------------------------------------
| Increase in loans | 19 370 | 16 957 | 23 197 |
--------------------------------------------------------------------------------
| Decrease in loans | -21 831 | -10 966 | -15 024 |
--------------------------------------------------------------------------------
| Repayment of finance lease | -80 | -68 | -93 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | -5 629 | -2 814 | -2 814 |
--------------------------------------------------------------------------------
| Net cash used in financing | -8 170 | 3 108 | 5 265 |
| activities | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | 2 172 | 413 | -141 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Operating balance of cash and | 1 812 | 1 952 | 1 952 |
| cash equivalents | | | |
--------------------------------------------------------------------------------
| Effect of the foreign exchange | -143 | -25 | 1 |
| rates | | | |
--------------------------------------------------------------------------------
| Closing balance of cash and cash | 3 841 | 2 341 | 1 812 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN | | | | | | | | |
| SHAREHOLD | | | | | | | | |
| ERS' | | | | | | | | |
| EQUITY | | | | | | | | |
| 1-9/2007 | | | | | | | | |
--------------------------------------------------------------------------------
| | Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 EUR | Share | Share | Fair va- | Hed | Oth | Tran | Retain | Total |
| | capita | issue | lue res. | - | er | s | ed | |
| | l | premi | | gin | res | lati | earnin | |
| | | um | | g | erv | on | gs | |
| | | | | res | es | diff | | |
| | | | | . | | . | | |
--------------------------------------------------------------------------------
| SHAREHOLD | 5 629 | 5 777 | 105 | -44 | | -69 | 15 271 | 26 668 |
| ERS' | | | | | | | | |
| EQUITY | | | | | | | | |
| 1 JANUARY | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | 15 | | | | 15 |
| hedging | | | | | | | | |
| recogni | | | | | | | | |
| zed in | | | | | | | | |
| equity, | | | | | | | | |
| net of | | | | | | | | |
| tax | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | -65 | -340 | -405 |
| translati | | | | | | | | |
| on | | | | | | | | |
| differenc | | | | | | | | |
| e | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | 15 | | -65 | -340 | -391 |
| profits | | | | | | | | |
| and | | | | | | | | |
| losses | | | | | | | | |
| recognize | | | | | | | | |
| d | | | | | | | | |
| directly | | | | | | | | |
| in | | | | | | | | |
| sharehold | | | | | | | | |
| ers | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
| changes | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | | | 4 245 | 4 245 |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 15 | | -65 | 3 905 | 3 855 |
| profits | | | | | | | | |
| and | | | | | | | | |
| losses | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | | -2 814 | -2 814 |
| distribut | | | | | | | | |
| ion | | | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | | | | | | | 42 | 42 |
| ed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLD | 5 629 | 5 777 | 105 | -30 | | -134 | 16 404 | 27 751 |
| ERS' | | | | | | | | |
| EQUITY | | | | | | | | |
| 30 JUNE | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN | | | | | | | | |
| SHAREHOLD | | | | | | | | |
| ERS' | | | | | | | | |
| EQUITY | | | | | | | | |
| 1-9/2008 | | | | | | | | |
--------------------------------------------------------------------------------
| | Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 EUR | Share | Share | Fa | Hed- ging | Oth | Tran | Retain | Total |
| | capita | issue | ir | res. | er | s | ed | |
| | l | premi | va | | res | lati | earnin | |
| | | um | - | | erv | on | gs | |
| | | | lu | | es | diff | | |
| | | | e | | | . | | |
| | | | re | | | | | |
| | | | s. | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLD | 5 629 | 5 777 | | | | -127 | 21 566 | 32 845 |
| ERS' | | | | | | | | |
| EQUITY | | | | | | | | |
| 1 JANUARY | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | -218 | | | | -218 |
| hedging | | | | | | | | |
| recogni | | | | | | | | |
| zed in | | | | | | | | |
| equity, | | | | | | | | |
| net of | | | | | | | | |
| tax | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | | -607 | -607 |
| translati | | | | | | | | |
| on | | | | | | | | |
| differenc | | | | | | | | |
| e | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | -218 | | -4 | | -222 |
| profits | | | | | | | | |
| and | | | | | | | | |
| losses | | | | | | | | |
| recognize | | | | | | | | |
| d | | | | | | | | |
| directly | | | | | | | | |
| in | | | | | | | | |
| sharehold | | | | | | | | |
| ers | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | | | 7 194 | 7 194 |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | -218 | | -4 | 6 587 | 6 365 |
| profits | | | | | | | | |
| and | | | | | | | | |
| losses | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | | -5 629 | -5 629 |
| distribut | | | | | | | | |
| ion | | | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | | | | | | | 103 | 103 |
| ed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLD | 5 629 | 5 777 | | -218 | | -131 | 22 627 | 33 684 |
| ERS' | | | | | | | | |
| EQUITY | | | | | | | | |
| 30 JUNE | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY RATIOS OF LAROX GROUP | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1000 | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New orders | 158 982 | 143 509 | 208 421 |
--------------------------------------------------------------------------------
| Group order backlog at end of period | 110 087 | 79 606 | 97 330 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 143 916 | 108 971 | 158 270 |
--------------------------------------------------------------------------------
| Operating profit | 11 709 | 7 906 | 13 070 |
--------------------------------------------------------------------------------
| % of net sales | 8.1 | 7.3 | 8.3 |
--------------------------------------------------------------------------------
| Net financing costs | 1 479 | 1 059 | 1 315 |
--------------------------------------------------------------------------------
| % of net sales | 1.0 | 1.0 | 0.8 |
--------------------------------------------------------------------------------
| Result before taxes | 10 231 | 6 848 | 11 755 |
--------------------------------------------------------------------------------
| Result for the period | 7 194 | 4 246 | 9 496 |
--------------------------------------------------------------------------------
| EPS basic and diluted (EUR) | 0.77 | 0.45 | 1.01 |
--------------------------------------------------------------------------------
| Investments | 6 207 | 2 210 | 3 284 |
--------------------------------------------------------------------------------
| Shareholders' equity per share at end | 3.59 | 2.96 | 3.50 |
| of period, EUR | | | |
--------------------------------------------------------------------------------
| Equity Ratio % | 32.6 | 31.0 | 34.2 |
--------------------------------------------------------------------------------
| Contingent liabilities | 28.0 | 27.8 | 27.7 |
--------------------------------------------------------------------------------
| Trading price at end of period, EUR | 8.35 | 15.19 | 12.00 |
--------------------------------------------------------------------------------
| Market capitalization at end of period, | | |
--------------------------------------------------------------------------------
| EUR million *) | 78.3 | 142.5 | 112.6 |
--------------------------------------------------------------------------------
*) The price of the A share is based on the B share's last trading rate of the
reporting period (weighted average).
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| KEY FIGURES BY | | | | | |
| QUARTERS | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2008 | 2008 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| EUR 1000 | 7-9 | 4-6 | 1-3 | 10-12 | 7-9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New orders | 53 759 | 51 906 | 53 317 | 64 912 | 57 471 |
--------------------------------------------------------------------------------
| Group order backlog | 110 087 | 115 675 | 109 183 | 97 330 | 79 606 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 58 804 | 47 548 | 37 563 | 49 298 | 33 662 |
--------------------------------------------------------------------------------
| Operating profit | 5 524 | 3 460 | 2 726 | 5 164 | 1 886 |
--------------------------------------------------------------------------------
| % of net sales | 9.4 | 7.3 | 7.3 | 10.5 | 5.6 |
--------------------------------------------------------------------------------
| Net financing costs | 732 | 233 | 514 | 256 | 507 |
--------------------------------------------------------------------------------
| % of net sales | 1.2 | 0.5 | 1.4 | 0.5 | 1.5 |
--------------------------------------------------------------------------------
| Result before taxes | 4 792 | 3 227 | 2 212 | 4 908 | 1 379 |
--------------------------------------------------------------------------------
| Result for the | 3 317 | 2 548 | 1 329 | 5 250 | 979 |
| quarter | | | | | |
--------------------------------------------------------------------------------
| EPS basic and | 0.35 | 0.27 | 0.14 | 0.56 | 0.10 |
| diluted (EUR) | | | | | |
--------------------------------------------------------------------------------
DIVIDENDS PAID
Based on the resolution of the annual general meeting of shareholders held
on 26 March 2008 a dividend of EUR 0.60 per share was paid; a total of EUR
5.628.960. The dividends were paid on 7 April 2008.
Investments
--------------------------------------------------------------------------------
| Property, plant and equipment | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost 1 Jan | | 29 520 | 28 589 | 28 589 |
--------------------------------------------------------------------------------
| Translation differences | | -76 | -113 | -120 |
--------------------------------------------------------------------------------
| Additions | | 896 | 872 | 1 144 |
--------------------------------------------------------------------------------
| Disposals | | 0 | -93 | -93 |
--------------------------------------------------------------------------------
| Acquisition cost 30 Jun | | 30 340 | 29 255 | 29 520 |
--------------------------------------------------------------------------------
| Cumulative depreciations 1 Jan | -20 263 | -19 023 | -19 023 |
--------------------------------------------------------------------------------
| Translation differences | | 67 | 118 | 163 |
--------------------------------------------------------------------------------
| Depreciation for the period | -1 003 | -1 137 | -1 403 |
--------------------------------------------------------------------------------
| Cumulative depreciations 30 | | -21 199 | -20 042 | -20 263 |
| Jun | | | | |
--------------------------------------------------------------------------------
| Carrying value 30 Jun, 2008 | 9 141 | 9 213 | 9 257 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Intangible assets (exluding goodwill) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost 1 Jan | | 29 858 | 27 772 | 27 772 |
--------------------------------------------------------------------------------
| Translation differences | | 7 | -29 | -55 |
--------------------------------------------------------------------------------
| Additions | | 968 | 1 336 | 2 141 |
--------------------------------------------------------------------------------
| Disposals | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Acquisition cost 30 Jun | | 30 833 | 29 079 | 29 858 |
--------------------------------------------------------------------------------
| Cumulative depreciations 1 Jan | -11 063 | -8 901 | -8 901 |
--------------------------------------------------------------------------------
| Translation differences | | -5 | -15 | -61 |
--------------------------------------------------------------------------------
| Depreciation for the period | -1 848 | -1 425 | -2 101 |
--------------------------------------------------------------------------------
| Cumulative depreciations 30 | | -12 916 | -10 341 | -11 063 |
| Jun | | | | |
--------------------------------------------------------------------------------
| Carrying value 30 Jun, 2008 | 17 917 | 18 738 | 18 795 |
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Geographical segments
--------------------------------------------------------------------------------
| Net sales 1000 EUR | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| North, Central and South America | 41 045 | 33 927 | 45 881 |
--------------------------------------------------------------------------------
| Asia and Australasia | 32 526 | 25 244 | 40 479 |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and Africa | 70 345 | 49 800 | 71 910 |
--------------------------------------------------------------------------------
| Total net sales | 143 916 | 108 971 | 158 270 |
--------------------------------------------------------------------------------
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| Assets 1000 EUR | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| North, Central and South America | 13 692 | 9 979 | 11 647 |
--------------------------------------------------------------------------------
| Asia and Australasia | 6 664 | 7 922 | 8 133 |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and Africa | 96 202 | 89 227 | 114 904 |
--------------------------------------------------------------------------------
| Internal items | -8 765 | -8 428 | -31 831 |
--------------------------------------------------------------------------------
| Total assets | 107 793 | 98 700 | 102 853 |
--------------------------------------------------------------------------------
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| Investments 1000 EUR | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| North, Central and South America | 157 | 61 | 148 |
--------------------------------------------------------------------------------
| Asia and Australasia | 67 | 276 | 332 |
--------------------------------------------------------------------------------
| Europe, CIS, Middle East and Africa | 5 983 | 1 873 | 2 804 |
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| Total investments | 6 207 | 2 210 | 3 284 |
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Commitments and contingencies
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| Loans secured by real estate and corporate mortgages | |
--------------------------------------------------------------------------------
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| 1000 EUR | 30.9.2008 | 30.9.2007 | 31.12.2007 |
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| Pension loans | | | |
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| Loans from financial institutions | 34 115 | 34 815 | 36 577 |
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| Other loans | | | |
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| Total | 34 115 | 34 815 | 36 577 |
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| Real estate mortgages | 6 560 | 6 560 | 6 560 |
| | | | |
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| Corporate mortgages, general | 3 936 | 3 936 | 3 936 |
| pledging | | | |
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| Corporate mortgages, specific | 9 062 | 9 062 | 9 062 |
| pledging | | | |
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| Total | 19 558 | 19 558 | 19 558 |
--------------------------------------------------------------------------------
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| Guarantees for others | | | |
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| Pledged securities *) | 6 476 | 6 476 | 6 476 |
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| Others | 157 | 158 | 124 |
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| Total | 6 633 | 6 634 | 6 600 |
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| *) Book value of secured shares | | | |
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| Other liabilities | | | |
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| Operating lease liabilities 1000 EUR | 919 | 1 137 | 857 |
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| Lease liabilities 1000 EUR | 849 | 744 | 639 |
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Fair and nominal values of derivative instruments
--------------------------------------------------------------------------------
| 1000 EUR | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
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| Currency derivatives: | | | |
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| Currency options | | | 3 155 |
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| Forward contracts | 10 496 | 14 959 | 18 313 |
--------------------------------------------------------------------------------
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| Fair value | -450 | 117 | 244 |
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| Nominal value | 10 496 | 14 959 | 21 468 |
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Related party transactions
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| 1000 EUR | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
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| Transactions with associated | | | |
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| Companies | | | |
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| Sales of goods and services | 5 | 1 | 3 |
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| Purchases of goods and services | 3 175 | 1 982 | 2 829 |
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| Other transactions with related | | |
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| Parties | | | |
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| Purchases of services | 15 | 15 | 22 |
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| Balances with associated companies | | |
--------------------------------------------------------------------------------
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| Trade receivables | 2 | 0 | 1 |
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| Trade payables | 488 | 272 | 783 |
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CALCULATION OF KEY FIGURES
Equity ratio, % =
Shareholders' equity
--------------------------------- x 100
Total assets - advances received
Earnings per share =
Net profit
---------------------------------
Adjusted average number of shares
during the period
Market capitalization at the end of the period =
Number of shares at the end of the period x trading price at the end of the
period weighted by the number of shares traded
Larox develops, designs and manufactures industrial filters and is a
leading technology company in its field. Larox is a full service solution
provider in filtration for separating solids from liquids. It supplies
comprehensive aftermarket services throughout the lifespan of the Larox
solution. Companies world-wide in mining and metallurgy, chemical processing
and related industries benefit from the Larox technologies. Larox operates
in over 40 countries and has over 460 employees. Larox Group is headquartered
in Lappeenranta, Finland where the Group also has production facilities. Net
sales in 2007 totaled 158.3 million euros, of which more than 95 % were
generated by exports and the company's foreign operations.
INTERIM FINANCIAL REPORT OF THE LAROX GROUP FOR THE PERIOD 1 JANUARY 2008 TO 30 SEPTEMBER 2008
| Source: Larox Oyj
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