STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 22.10.2009 AT 8:30
- Group net sales dampened by economic downturn and customer
cautiousness, divested units and discontinued operations had a
further negative impact on sales
- Earnings improved due to price and mix management and successful
cost containment
- Cash flow continued strong, debt reduced further
- Sales outlook for the remainder of 2009 remains uncertain,
underlying earnings improvement is expected to continue
Key figures
EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008
Net sales 1,561.5 1,711.2 507.1 572.1
EBIT* 112.6 73.2 38.6 26.2
EBIT margin % 7.2 4.3 7.6 4.6
EPS 0.65 0.31 0.23 0.10
ROI % (12m roll.) -2.5 -0.2 - -
* EBIT includes non-recurring charges of EUR 3.8 million in Q1-Q3
2009 and EUR 6.8 million in Q1-Q3 2008 and EUR 0.1 million in Q3
2008.
Overview
In the first nine months of the year uncertainty and customer
cautiousness characterized the demand for consumer packaging.
Although majority of the Group's segments are considered to be of a
defensive nature with mainly food and personal care related packaging
products, the Group net sales were not immune to the economic
downturn and declined during the reporting period. Additionally, the
divested units and discontinued operations had a negative impact on
sales.
Operating earnings for the reporting period continued well above the
corresponding period in 2008. In spite of lower sales, earnings
improved due to price and mix management as well as successful cost
containment. Profitability improved markedly in Rigid Consumer Goods
Plastics and North America segments. The earnings improvement
together with lower net financial items resulted in earnings per
share (EPS) more than doubling during the reporting period.
At EUR 167 million, free cash flow improved by EUR 100 million
compared to the previous year. Cash flow generation was good in all
segments, especially in Flexibles Global. Net debt reduced strongly.
During the reporting period the rigid plastic consumer goods
businesses in South America and in South Africa as well as the
expanded polystyrene packaging business in Australia were divested.
The strategic review of the remaining rigid plastic consumer goods
operations in Europe and Australia is ongoing.
Business review by segment
The current segment structure for financial reporting was adopted as
of January 1, 2009. The sales distribution by segment is the
following: Flexibles Global 22% (unchanged against same period in
2008), Films Global 8% (9%), North America 26% (22%), Rough Molded
Fiber Global 10% (9%), Foodservice Europe-Asia-Oceania 21%
(unchanged) and Rigid Consumer Goods Plastics 13% (17%).
Flexibles Global
Flexibles business is organized as a global segment. Flexibles are
used for consumer packaging of a wide range and variety of food,
personal and health care and other products.
EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008
Net sales 354.1 380.5 114.8 125.3
EBIT 21.2 15.6 7.6 3.9
EBIT margin % 6.0 4.1 6.6 3.1
RONA % (12m roll.) 1.4 3.7 - -
In Europe sales recovery visible in the second quarter did not carry
on to the third quarter. In Asia-Oceania sales development continued
subdued due to soft and competitive market conditions. The
discontinued operations in North America had a negative impact on
sales.
Improved profitability reflects cost containment as well as
elimination of loss-making operations.
Films Global
Films business is organized as a global segment. 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 Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008
Net sales 121.6 158.8 41.3 52.3
EBIT* -1.4 7.8 1.5 3.7
EBIT margin % -1.2 4.9 3.6 7.1
RONA % (12m roll.) -1.0 5.9 - -
* EBIT includes non-recurring charges of EUR 3.8 million in Q2 2009.
Sales within the segment suffered from weak demand of industrial
applications during the reporting period. The consumer related
products were more resilient to the economic downturn. In the third
quarter some recovery of orders was experienced.
Profitability reflects significant volume shortfall partially offset
by cost reduction efforts and better operational control.
The divestment of the release paper business and further focus on
release films in Forchheim, Germany, is expected to be completed by
the end of the first quarter 2010.
North America
The segment includes the Rigid and Molded Fiber business in North
America and Mexico. Rigid paper and plastic packaging, which serves
ice-cream and other consumer goods as well as foodservice markets, is
completed with Molded Fiber Chinet® disposable tableware products.
EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008
Net sales 411.5 386.1 129.3 133.4
EBIT 52.6 32.2 14.5 10.5
EBIT margin % 12.8 8.3 11.2 7.9
RONA % (12m roll.) 14.3 7.9 - -
Sales within the segment grew during the reporting period. However,
in constant currencies sales were below the level of the
corresponding period in 2008. In the third quarter sales were at
previous year's level in Frozen desserts and Retail, while declining
in Foodservice due to soft market conditions and product portfolio
optimization.
The improvement in profitability reflects strong market positions,
successful mix management and cost containment. In the third quarter
favorable currency translation impact diminished and raw material
costs increased.
The closure of the rigid plastics site in Phoenix, USA, was completed
in the third quarter 2009.
Rough Molded Fiber Global
The segment includes the Rough Molded Fiber business in Europe,
Oceania, Africa and South America. Rough molded fiber is used to make
fresh product packaging, such as egg and fruit packaging.
EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008
Net sales 151.6 162.3 52.0 53.4
EBIT 12.8 9.8 4.7 3.7
EBIT margin % 8.4 6.0 9.0 6.9
RONA % (12m roll.) 6.8 7.6 - -
In constant currencies sales growth was achieved in packaging
operations, i.e. excluding machine and waste paper trade businesses.
In the third quarter sales for egg packaging accelerated especially
in Europe and Africa.
The improvement in profitability reflects favorable sales development
and cost containment.
During the third quarter the production unit in Roodekoop, South
Africa, was sold to Polyoak Packaging (Pty) Ltd. The divested unit
made injection molded plastic packaging, had annual net sales of
approximately EUR 5 million and employed some 55 people. All South
African units are reported under Rough Molded Fiber Global segment.
Foodservice Europe-Asia-Oceania
Foodservice paper and plastic disposable tableware is supplied to
foodservice operators and fast food restaurants.
EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008
Net sales 341.5 374.6 116.2 126.8
EBIT 15.6 13.6 6.8 5.9
EBIT margin % 4.6 3.6 5.9 4.7
RONA % (12m roll.) 0.2 1.0 - -
Overall sales within the segment declined during the reporting
period. In Oceania sales continued on a good level with robust growth
recorded in the third quarter.
Profitability reflects cost containment, successful price and mix
management as well as improved performance in Asia-Oceania.
The closure of the site in Balakong, Malaysia, was completed in the
third quarter 2009.
Rigid Consumer Goods Plastics
The segment includes the Rigid Consumer Goods Plastics business in
Europe and Oceania. Rigid plastic packaging serves the consumer goods
markets with fresh food, dairy, ice cream and edible fats packaging.
EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008
Net sales 220.3 303.0 66.5 97.9
EBIT 16.2 -5.7 4.5 -1.4
EBIT margin % 7.4 -1.9 6.8 -1.4
RONA % (12m roll.) -85.6 -27.2 - -
* EBIT includes non-recurring charges of EUR 6.8 million in Q2 2008
and EUR 0.1 million in Q3 2008.
Sales within the segment declined during the reporting period. The
divested units and discontinued operations had a negative impact on
sales.
Clear improvement in profitability reflects better operational
control and cost containment partially offset by increased pressure
on margins.
The strategic review of the remaining rigid plastic consumer goods
operations in Europe and Australia is ongoing.
Financial review
The Group EBIT for the reporting period was EUR 113 million (EUR 73
million), corresponding to an EBIT margin of 7.2% (4.3%). Excluding
non-recurring charges of EUR 4 million (EUR 7 million), the Group
EBIT for the reporting period was EUR 117 million (EUR 80 million),
corresponding to an EBIT margin of 7.4% (4.6%). In the third quarter,
the Group EBIT was EUR 39 million (EUR 26 million), corresponding to
an EBIT margin of 7.6% (4.5%).
The net financial items for the reporting period were EUR -21 million
(EUR -34 million) and for the third quarter EUR -6 million (EUR -14
million). Tax expense for the period was EUR 18 million (EUR 7
million) and for the third quarter EUR 7 million (EUR 2 million).
The result for the period was EUR 74 million (EUR 33 million) and EPS
attributable to equity holders of the parent company were EUR 0.65
(EUR 0.31). Correspondingly in the third quarter these were EUR 27
million (EUR 10 million) and EUR 0.23 (EUR 0.10). The average number
of outstanding shares used in the EPS calculations was 100,426,461
(unchanged) excluding 5,061,089 (unchanged) of the Company's own
shares.
Balance sheet and cash flow
Free cash flow for the reporting period was EUR 167 million (EUR 67
million), with the third quarter amounting to EUR 65 million (EUR -6
million). The improvement was due to prudent working capital
management, higher earnings and lower capital expenditure. While all
segments contributed with good cash flow generation, Flexibles Global
continued as most successful. Capital expenditure was EUR 32 million
(EUR 48 million), with the third quarter spending at EUR 14 million
(EUR 16 million).
Net debt was EUR 424 million (EUR 723 million) at the end of
September 2009. This corresponds to a gearing ratio of 0.58 (0.93).
Total assets on the balance sheet were EUR 1,837 million (EUR 2,197
million).
Personnel
The Group had 13,346 (14,794) employees at the end of September 2009.
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. Material
changes in general economic conditions or in the financial markets
could have an adverse effect on the implementation of the Group's
strategy and on its business performance and earnings.
Outlook for 2009
Sales outlook for the remainder of 2009 remains uncertain, the
underlying earnings improvement is expected to continue.
Price and mix management, supply chain initiatives, control over
costs and capital spending, positive cash flow generation and net
debt reduction continue as key focus areas within the Group. Capital
expenditure in 2009 is expected to be clearly below EUR 100 million.
Financial calendar in 2010
The Results 2009 will be published on February 12, 2010.
Additionally, the following interim reports will be published during
the course of the year: January 1 - March 31, 2010 on April 22,
January 1 - June 30, 2010 on July 22 and January 1 - September 30,
2010 on October 21. Huhtamäki Oyj's Annual General Meeting is planned
to be held on March 24, 2010.
Espoo, October 21, 2009
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
Mrs. Minna Kylänpää, Head of Group Communications, tel. +358-10-686
7863
A news conference for analysts and media will be held at 11:00
Finnish time at the head office, address Keilaranta 10, Espoo,
Finland. CEO Jukka Moisio and CFO Timo Salonen will present the
results, after which a buffet lunch is served. 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: 29752470
All results materials will be available 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.
Huhtamäki Oyj
January 1 - September 30, 2009
Group income statement (IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Net sales 1,561.5 1,711.2 507.1 572.1 2,260.0
Cost of goods sold -1,292.7 -1,479.2 -418.9 -496.0 -2,043.2
Gross profit 268.8 232.0 88.2 76.1 216.8
Other operating income 14.8 14.2 4.3 6.9 21.6
Sales and marketing -57.7 -63.5 -18.4 -21.4 -84.8
Research and development -12.1 -12.0 -4.4 -3.5 -16.2
Administration costs -90.0 -87.1 -28.0 -28.3 -117.2
Other operating expenses -11.2 -10.4 -3.1 -3.6 -94.7
-156.2 -158.8 -49.6 -49.9 -291.3
Earnings before interest and 112.6 73.2 38.6 26.2 -74.5
taxes
Financial income 20.3 7.5 6.3 0.4 10.0
Financial expenses -41.5 -41.6 -12.0 -14.5 -55.7
Income of associated 0.5 0.4 0.2 0.1 0.5
companies
Result before taxes 91.9 39.5 33.1 12.2 -119.7
Income taxes -18.3 -6.9 -6.6 -2.1 9.5
Result for the period 73.6 32.6 26.5 10.1 -110.2
Attributable to:
Equity holders of the parent 71.6 31.0 25.9 9.6 -111.9
company
Minority interest 2.0 1.6 0.6 0.5 1.7
EPS (EUR) from result for 0.71 0.31 0.25 0.10 -1.11
the period
EPS (EUR) attributable to 0.06 - 0.02 - 0.01
hybrid bond investors
EPS (EUR) attributable to 0.65 0.31 0.23 0.10 -1.12
equity holders of the parent
company
Diluted:
EPS (EUR) from result for 0.71 0.31 0.25 0.10 -1.11
the period
EPS (EUR) attributable to 0.06 - 0.02 - 0.01
hybrid bond investors
EPS (EUR) attributable to 0.65 0.31 0.23 0.10 -1.12
equity holders of the parent
company
Group statement of comprehensive income (IFRS)
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Result for the period 73.6 32.6 26.5 10.1 -110.2
Other comprehensive income:
Translation differences -1.3 -0.8 -5.1 17.0 -9.5
Fair value and other reserves -1.4 -2.6 -0.1 -2.4 -9.0
Income tax related to components of 0.3 0.5 0.2 0.5 2.7
other comprehensive income
Other comprehensive income, net of tax -2.4 -2.9 -5.0 15.1 -15.8
Total comprehensive income 71.2 29.7 21.5 25.2 -126.0
Attributable to:
Equity holders of the parent company 69.1 28.3 20.9 24.7 -127.7
Minority interest 2.1 1.4 0.6 0.5 1.7
Group statement of financial position (IFRS)
Unaudited
Sep 30 Dec 31 Sep 30
EUR
million 2009 2008 2008
ASSETS
Non-current assets
Good-
will 393.6 402.4 473.2
Other
intangible
as-
sets 31.4 34.5 39.2
Tangible
as-
sets 634.0 676.3 768.6
Investments
in
asso-
ciated
compa-
nies 2.3 1.9 1.7
Available
for
sale
invest-
ments 1.9 1.9 1.9
Interest
bea-
ring
recei-
vab-
les 1.7 0.1 0.4
Deferred
tax
as-
sets 15.2 15.1 13.6
Employee
benefit
as-
sets 58.2 62.5 60.7
Other non-
current
assets 3.1 3.7 3.7
1,141.4 1,198.4 1,363.0
Current assets
Inven-
tory 257.9 296.7 363.8
Interest
bearing
recei-
vab-
les 18.2 2.1 3.1
Current
tax
as-
sets 8.7 9.4 12.7
Trade and
other
current
recei-
vab-
les 337.5 377.9 409.9
Cash
and cash
equi-
valents 73.4 67.8 44.4
695.7 753.9 833.9
Total
assets 1,837.1 1,952.3 2,196.9
EQUITY AND LIABILITIES
Sha-
re
capi-
tal 358.7 358.7 358.7
Pre-
mium
fund 104.7 104.7 104.7
Trea-
sury
sha-
res -46.5 -46.5 -46.5
Translation
diffe-
ren-
cies -131.9 -130.5 -121.8
Fair value
and other
reser-
ves -6.0 -5.0 -0.6
Retained
earnings 359.8 327.5 467.5
Total equity
attributable to
equity holders
of the parent
com-
pa-
ny 638.8 608.9 762,0
Minority
inte-
rest 19.0 18.4 18.6
Hyb-
rid
bond 75.0 75.0 -
Total
equi-
ty 732.8 702.3 780.6
Non-current liabilities
Interest
bearing
liabilities 384.0 474.7 432.8
Deferred
tax
liabilities 41.2 29.8 45.3
Employee
benefit
liabilities 100.8 103.8 106.4
Provi-
sions 57.5 58.4 60.8
Other
non-
current
liabilities 4.9 6.5 3.7
588.4 673.2 649.0
Current liabilities
Interest bearing
liabilities
- Current portion
of
long
term
loans 26.3 25.2 17.6
- Short
term
loans 107.0 157.3 320.0
Provi-
sions 8.6 10.1 9.0
Current
tax
liabilities 6.8 9.8 9.9
Trade and
other
current
liabilities 367.2 374.4 410.8
515.9 576.8 767.3
Total
liabilities 1,104.3 1,250.0 1,416.3
Total equity and
liabilities 1,837.1 1,952.3 2,196.9
Sep 30 Dec 31 Sep 30
2009 2008 2008
Net
debt 424.0 587.2 722.5
Net
debt
to
equity
(gearing) 0.58 0.84 0.93
Statement of changes in equity
Unaudited
Attributable to equity holders Mino- Hybrid To-
of the parent company rity tal
EUR million Share Sha- Trea- Trans- Fair Retai- Total inte- bond equity
capi- re sury lation value ned rest
tal issue sha- diff. and earn-
pre- res other ings
mium reser-
ves
Balance at
Dec 31, 2007 358.7 104.7 -46.5 -121.1 1.4 475.7 772.9 20.5 - 793.4
Dividend -42.2 -42.2 -42.2
Share-based 1.0 1.0 1.0
payments
Total
comprehensive -0.7 -2.0 31.0 28.3 1.4 29.7
income for
the year
Other changes 2.0 2.0 -3.3 -1.3
Balance at
Sep 30, 2008 358.7 104.7 -46.5 -121.8 -0.6 467.5 762.0 18.6 - 780.6
Balance at
Dec 31, 2008 358.7 104.7 -46.5 -130.5 -5.0 327.5 608.9 18.4 75.0 702.3
Dividend -34.1 -34.1 -34.1
Share-based 2.2 2.2 2.2
payments
Stock options 0.1 0.1 0.1
excercised
Interest on -6.7 -6.7 -6.7
Hybrid Bond
Total -1.4 -1.1 71.6 69.1 2.1 71.2
comprehensive
income for
the year
Other changes -0.7 -0.7 -1.5 -2.2
Balance at
Sep 30, 2009 358.7 104.7 -46.5 -131.9 -6.0 359.8 638.8 19.0 75.0 732.8
Group cash flow statement (IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Result for the period* 73.6 32.6 26.5 10.1 -110.2
Adjustments* 103.6 109.8 35.5 37.4 280.0
- Depreciation, amortization 65.7 72.5 16.8 26.3 245.9
and impairment*
- Gain on equity of -0.5 -0.4 -0.2 -0.1 -0.5
minorities*
- Gain/loss from disposal of 0.4 -3.9 -0.3 -3.4 -4.3
assets*
- Financial expense/-income* 21.1 34.1 5.6 14.1 45.7
- Income tax expense* 18.4 6.9 6.6 2.1 -9.5
- Other adjustments, -1.5 0.6 7.0 -1.6 2.7
operational*
Change in inventory* 36.6 -18.4 4.2 -3.7 38.2
Change in non-interest bearing 15.2 -9.2 12.1 12.3 8.2
receivables*
Change in non-interest bearing -6.0 32.8 10.5 -30.0 2.8
payables*
Dividends received* 0.3 0.2 0.2 0.0 0.5
Interest received* 1.5 1.4 0.5 0.5 1.7
Interest paid* -18.4 -33.7 -8.4 -13.2 -43.2
Other financial expense and -3.6 -0.3 -1.0 -3.0 -2.1
income*
Taxes paid* -7.3 -6.5 -1.7 -3.5 -5.0
Net cash flows from operating 195.5 108.7 78.4 6.9 170.9
activities
Capital expenditure* -31.7 -47.7 -14.0 -16.4 -74.3
Proceeds from selling fixed
assets* 3.5 5.9 0.5 3.9 7.1
Divested subsidiaries 36.6 - 1.3 - -
Proceeds from long-term 0.8 3.0 0.4 1.8 3.3
deposits
Payment of long-term deposits -2.5 -2.5 -1.8 -0.3 -2.5
Proceeds from short-term 2.8 29.6 0.4 24.6 33.4
deposits
Payment of short-term deposits -17.6 -28.3 -5.6 -2.6 -31.4
Net cash flows from investing -8.1 -40.0 -18.8 11.0 -64.4
Proceeds from long-term 573.1 317.6 219.6 161.6 489.3
borrowings
Repayment of long-term -668.2 -284.0 -302.8 -126.0 -415.9
borrowings
Proceeds from short-term 224.1 2,117.7 100.6 667.1 2,446.3
borrowings
Repayment of short-term -275.2 -2,163.9 -85.5 -720.1 -2,620.5
borrowings
Dividends paid -34.1 -42.2 - 0.0 -42.2
Hybrid bond - - - - 75.0
Proceeds from stock options 0.1 - 0.1 - -
exercised
Net cash flows from financing -180.2 -54.8 -68.0 -17.4 -68.0
Change in liquid assets 5.6 13.6 -11.4 1.6 37.0
Cash flow based 7.2 13.9 -8.4 0.5 38.5
Translation difference -1.6 -0.3 -3.0 1.1 -1.5
Liquid assets period start 67.8 30.8 84.8 42.8 30.8
Liquid assets period end 73.4 44.4 73.4 44.4 67.8
Free cash flow (including 167.3 66.9 64.9 -5.6 103.7
figures marked with *)
NOTES FOR THE INTERIM REPORT
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 2008.
Changes in accounting principles
The Group has adopted the following IFRS standards and
interpretations considered applicable to Huhtamaki, with effect from
January 1, 2009:
- IAS 23 Borrowing cost. The amendment requires capitalization of
borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset as part of the cost
of asset.
- IAS 1 Presentation of Financial Statements -amendment. Amended
standard has changed the presentation of income statement and
statement of changes in shareholders' equity.
- IFRIC 13 Customer Loyalty Programmes. The interpretation addresses
the accounting by entities that operate customer loyalty programmes
with their customers.
These newly adopted standards have not had 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
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR
million 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles
Global 114.0 118.2 119.7 351.9 117.9 123.9 124.7 127.8 494.3
-
Intersegment
net
sales 0.8 0.8 0.6 2.2 -0.8 1.4 1.7 1.0 3.3
Films
Global 40.4 38.3 40.0 118.7 40.9 50.8 51.6 50.5 193.8
-
Intersegment
net
sales 0.9 0.8 1.2 2.9 1.0 1.5 1.8 2.6 6.9
North
America 128.3 152.1 128.1 408.5 148.5 132.4 137.6 113.3 531.8
-
Intersegment
net
sales 1.0 1.0 1.0 3.0 1.4 1.0 1.0 0.8 4.2
Rough
Molded
Fiber
Global 51.6 51.0 48.3 150.9 51.5 53.1 54.1 54.7 213.4
-
Intersegment
net
sales 0.4 0.3 0.0 0.7 0.2 0.3 0.1 0.0 0.6
Foodservice
Europe-
Asia-
Oceania 111.2 117.8 97.1 326.1 107.0 118.7 124.6 106.4 456.7
-
Intersegment
net
sales 5.0 3.0 7.4 15.4 7.9 8.1 8.2 8.6 32.8
Rigid
Consumer
Goods
Plastics 61.6 70.4 73.4 205.4 83.0 93.2 97.9 95.9 370.0
-
Intersegment
net
sales 4.9 5.7 4.3 14.9 3.8 4.7 6.4 4.9 19.8
Elimination
of
intersegment
net
sales 13.0 11.6 14.5 39.1 13.5 17.0 19.2 17.9 67.6
Total 507.1 547.8 506.6 1,561.5 548.8 572.1 590.5 548.6 2,260.0
EBIT
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global (1 7.6 4.8 8.8 21.2 -16.6 3.9 5.5 6.2 -1.0
Films Global (2 1.5 -3.4 0.5 -1.4 0.1 3.7 3.6 0.5 7.9
North America (3 14.5 23.6 14.5 52.6 1.2 10.5 14.4 7.3 33.4
Rough Molded Fiber 4.7 4.3 3.8 12.8 -1.4 3.7 3.0 3.1 8.4
Global (4
Foodservice 6.8 6.4 2.4 15.6 -15.2 5.9 5.3 2.4 -1.6
Europe-Asia-Oceania
(5
Rigid Consumer 4.5 6.0 5.7 16.2 -117.7 -1.4 -4.8 0.5 -123.4
Goods Plastics (6
Other activities -1.0 -2.7 -0.7 -4.4 1.9 -0.1 0.0 0.0 1.8
Total (7 38.6 39.0 35.0 112.6 -147.7 26.2 27.0 20.0 -74.5
1) Q4 2008 includes restructuring charges MEUR 1.7, goodwill
impairment charges MEUR 7.4 and tangible asset impairment charges
MEUR 8.8.
2) Q2 and Q1-Q3 2009 includes restructuring charges MEUR 3.8.
3) Q4 2008 includes restructuring charges MEUR 2.0 and tangible asset
impairment charges MEUR 3.2.
4) Q4 2008 includes goodwill impairment charges MEUR 3.7.
5) Q4 2008 includes restructuring charges MEUR 3.3, goodwill
impairment charges MEUR 7.1 and tangible asset impairment charges
MEUR 4.1.
6) Q4 2008 includes restructuring charges MEUR 2.3, goodwill
impairment charges MEUR 54.1 and tangible asset impairment charges
MEUR 60.9, Q3 2008 includes restructuring charges MEUR 0.1, Q2 2008
includes restructuring charges MEUR 6.8.
7) Q2 and Q1-Q3 2009 includes restructuring charges MEUR 3.8. Q4 2008
includes restructuring charges MEUR 9.3, goodwill impairment charges
MEUR 72.3 and tangible asset impairment charges MEUR 77.0, Q3 2008
includes restructuring charges MEUR 0.1, Q2 2008 includes
restructuring charges MEUR 6.8, total amount MEUR 165.5.
EBITDA
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 12.1 9.3 13.3 34.7 -11.4 9.0 10.0 10.7 18.3
Films Global 3.0 -2.0 2.1 3.1 1.2 5.4 5.2 1.9 13.7
North America 20.4 29.4 19.8 69.6 6.4 14.8 18.7 11.6 51.5
Rough Molded Fiber 7.5 7.0 6.5 21.0 1.3 6.5 5.9 6.1 19.8
Global
Foodservice 11.9 11.0 7.2 30.1 -9.7 13.5 10.5 7.6 21.9
Europe-Asia-Oceania
Rigid Consumer 6.3 8.5 8.1 22.9 -113.8 3.0 -0.4 5.0 -106.2
Goods Plastics
Other activities -0.9 -2.5 -0.5 -3.9 2.5 0.2 0.2 0.2 3.1
Total 60.3 60.7 56.5 177.5 -123.5 52.4 50.1 43.1 22.1
Depreciation and amortization
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 4.5 4.5 4.5 13.5 5.2 5.1 4.5 4.5 19.3
Films Global 1.5 1.4 1.6 4.5 1.1 1.7 1.6 1.4 5.8
North America 5.9 5.8 5.3 17.0 5.2 4.3 4.3 4.3 18.1
Rough Molded Fiber 2.8 2.7 2.7 8.2 2.7 2.8 2.9 3.0 11.4
Global
Foodservice 5.1 4.6 4.8 14.5 5.5 7.6 5.2 5.2 23.5
Europe-Asia-Oceania
Rigid Consumer Goods 1.8 2.5 2.4 6.7 3.9 4.4 4.4 4.5 17.2
Plastics
Other activities 0.1 0.2 0.2 0.5 0.6 0.3 0.2 0.2 1.3
Total 21.7 21.7 21.5 64.9 24.2 26.2 23.1 23.1 96.6
Net assets allocated to the segments (8
Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2009 2009 2009 2008 2008 2008 2008
Flexibles Global 311.5 325.8 342.2 359.7 389.2 373.1 381.4
Films Global 117.5 125.2 135.8 133.1 146.2 140.8 145.3
North America 365.8 370.8 393.9 379.2 390.2 358.9 370.0
Rough Molded Fiber Global 167.1 169.9 170.4 164.1 177.6 180.2 182.6
Foodservice 236.8 246.6 241.7 244.2 284.0 286.0 293.6
Europe-Asia-Oceania
Rigid Consumer Goods 103.3 103.8 137.3 129.7 262.0 267.7 276.3
Plastics
8) 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
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 2.3 3.2 2.1 7.6 4.9 3.0 8.6 4.7 21.2
Films Global 0.2 0.3 0.2 0.7 0.5 0.8 1.0 2.1 4.4
North America 6.5 2.8 1.0 10.3 5.9 4.0 2.6 1.3 13.8
Rough Molded Fiber 0.7 0.8 1.6 3.1 4.8 3.1 1.0 0.8 9.7
Global
Foodservice 2.7 1.4 2.3 6.4 6.3 4.2 3.2 3.2 16.9
Europe-Asia-Oceania
Rigid Consumer Goods 1.6 1.0 0.8 3.4 4.1 1.3 1.4 0.7 7.5
Plastics
Other activities 0.0 0.2 0.0 0.2 0.1 0.0 0.0 0.7 0.8
Total 14.0 9.7 8.0 31.7 26.6 16.4 17.8 13.5 74.3
RONA, % (12m roll.)
Q3 Q2 Q1 Q4 Q3 Q2 Q1
2009 2009 2009 2008 2008 2008 2008
Flexibles Global 1.4% 0.3% 0.4% -0.3% 3.7% 4.7% 5.5%
Films Global -1.0% 0.7% 5.7% 5.6% 5.9% 6.6% 6.8%
North America 14.3% 13.0% 10.7% 8.9% 7.8% 8.0% 8.7%
Rough Molded Fiber 6.8% 6.1% 5.3% 4.8% 7.6% 7.6% 8.1%
Global
Foodservice 0.2% -0.2% -0.6% -0.6% 1.0% 0.3% 0.3%
Europe-Asia-Oceania
Rigid Consumer Goods -85.6% -67.9% -59.3% -52.8% -27.2% -24.2% -21.1%
Plastics
Operating Cash Flow
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 17.3 23.4 20.0 60.7 12.7 -3.2 6.7 4.6 20.8
Films Global 8.4 8.2 1.9 18.5 13.9 0.5 7.7 2.5 24.6
North America 9.6 22.9 14.5 47.0 16.5 6.7 23.1 -3.9 42.4
Rough Molded Fiber 4.3 8.6 -0.6 12.3 3.6 3.9 8.7 1.2 17.4
Global
Foodservice 18.3 7.1 -2.1 23.3 3.6 7.6 14.5 1.3 27.0
Europe-Asia-Oceania
Rigid Consumer Goods 7.9 11.1 0.7 19.7 11.6 -1.2 19.9 5.5 35.8
Plastics
As net sales and EBIT of reportable segments form Groups' total net
sales and EBIT, reconciliations to corresponding amounts are not
presented.
Other information
Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2009 2008 2008
Equity per share 7.11 7.59 6.81
(EUR)
ROE, % (12m -9.6 -6.5 -14.8
roll.)
ROI, % (12m -2.5 -0.2 -4.8
roll.)
Personnel
13,346 14,794 14,644
Result before -67.3 -50.5 -119.7
taxes (12m roll.)
Depreciation 60.5 66.9 89.2
Amortization of 4.4 5.6 7.4
other intangible
assets
Share capital and shareholders
At the end of September 2009, 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 value 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 22,444 (21,819) registered shareholders at the end of the
reporting period. Foreign ownership including nominee registered
shares accounted for 27.4% (27.1%).
Share developments
The Company's share is quoted on the NASDAQ OMX Helsinki Ltd on the
Nordic Mid Cap list under the Materials sector.
At the end of September 2009, the Company's market capitalization was
EUR 917.7 million (EUR 589.7 million) and EUR 873.7 million (EUR
561.4 million) excluding Company's own shares. With a closing price
of EUR 8.70 (EUR 5.59) the share price increased by 98% (-31%) from
the beginning of the year, while the OMX Helsinki Cap PI Index
increased by 31% (-35%) and the OMX Helsinki Materials PI Index
increased by 15% (-36%). During the reporting period the volume
weighted average price for the Company's share was EUR 6.75
(unchanged). The highest price paid was EUR 9.05 on September 22,
2009 and the lowest price paid was EUR 4.46 on January 2, 2009.
During the reporting period the cumulative value of the Company's
share turnover was EUR 389.9 million (EUR 574.2 million). The trading
volume of 58.2 million (84.8 million) shares equaled an average daily
turnover of EUR 2.1 million (EUR 3.0 million) or, correspondingly
309,502 (444,106) shares.
In total, turnover of the Company's 2003 A, B and C as well as 2006 A
option rights was EUR 864,131 corresponding to a trading volume of
1,185,832.
Contingent liabilities
Sep 30 Dec 31 Sep 30
2009 2008 2008
EUR million
Mortgages 14.5 14.5 14.5
Guarantee obligations 2.4 2.9 1.8
Lease payments 51.5 49.8 56.3
Capital expenditure commitments 22.3 7.3 24.2
Nominal values of derivative instruments
Sep 30 Dec 31 Sep 30
2009 2008 2008
EUR million
Currency forwards, transaction risk hedges 26 49 78
Currency forwards, translation risk hedges 28 34 36
Currency swaps, financing hedges 142 105 112
Currency options 2 - 1
Interest rate swaps 158 160 176
Interest rate options - 7 -
Electricity forwards 4 6 -
The following EUR rates have been applied to GBP, INR, AUD and USD
Q1-Q3/09 Q1-Q3/08
Income statement, average: GBP 1 = 1.128 1.282
INR 1 = 0.015 0.016
AUD 1 = 0.548 0.601
USD 1 = 0.733 0.655
Q3/09 Q3/08
Balance sheet, month end: GBP 1 = 1.100 1.265
INR 1 = 0.014 0.015
AUD 1 = 0.603 0.564
USD 1 = 0.683 0.699
Definitions for key indicators
EPS from the result for the period = Result for the period - minority
interest / Average number of shares outstanding
EPS from the result for the period (diluted) = Diluted result for the
period - minority interest / Average fully diluted number of shares
outstanding
EPS attributable to hybrid bond investors = Hybrid bond interest /
Average number of shares outstanding
EPS attributable to hybrid bond investors (diluted) = Hybrid bond
interest / Average fully diluted number of shares outstanding
EPS attributable to equity holders of the parent company = Result for
the period - minority interest - hybrid bond interest / Average
number of shares outstanding
EPS attributable to equity holders of the parent company (diluted) =
Diluted result for the period - minority interest - hybrid bond
interest / Average fully diluted number of shares outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity +
minority interest + hybrid bond (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 ) (12 m roll.)
/ Equity + minority interest + hybrid bond (average)
Return on investment (ROI) = 100 x (Result before taxes + interest
expenses + net other financial expenses) (12 m roll.) / Balance sheet
total - Interest-free liabilities (average)
Interim Report January 1 - September 30, 2009: Earnings improvement continued
| Source: Huhtamäki Oyj
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