Satisfactory for Orkla in 2011 in challenging markets
(Thomson Reuters ONE) -
Orkla delivered satisfactory operating profit for 2011 taken into account that
the markets for many of its businesses were challenging. Sales rose by 6% to NOK
61 billion, while operating profit amounted to NOK 4,041 million, approximately
NOK 100 million higher than in 2010. The process of turning Orkla into purely a
branded consumer goods company is in full swing. Orkla's financial leeway was
significantly strengthened in 2011 through the sale of businesses, which means
that the Group is well positioned to grow in the branded goods sector.
Fourth-quarter operating profit (EBITA) totalled NOK 1,052 million, compared
with NOK 1,322 million in 2010. The negative difference is largely explained by
the fact that Orkla realised a gain of around NOK 200 million in the last
quarter of 2010 through the sale of Orkla's headquarters in Oslo. Orkla Brands
delivered operating profit which, underlying, was 3% lower than in the same
period of 2010. The decline is ascribable to weak sales towards the end of the
year for certain categories such as confectionery and biscuits, and the fall in
Lilleborg's export deliveries. Particularly Stabburet, Axellus, the Chips Group
and Orkla Brands Russia reported good improvement in the fourth quarter of 2011.
"Despite demanding markets, it is gratifying to see that Orkla Brands is
maintaining its strong market positions in the Nordic region, despite having
raised prices to compensate for higher raw material costs. We are also pleased
that the measures implemented in Russia are now producing results," says
President and CEO Bjørn M. Wiggen.
As expected, Sapa's fourth-quarter results were weaker than for the same period
of 2010. In North America, Sapa Profiles continues to deliver a positive
performance with both volume and profit growth. The market trend in Europe is
still weak, but the reduced cost base is making a positive contribution. The
primary reason for the weaker results is the negative trend for Sapa Heat
Transfer's Swedish business. Volumes have been moved from the Swedish operations
to China, and price rises and organisational and other operational improvements
have been carried out to improve Heat Transfer's results.
The sell-off of holdings in the share portfolio is an ongoing process in line
with the strategy announced by the Group. The portfolio was reduced by a further
NOK 2 billion in the fourth quarter, bringing the total reduction in 2011 to NOK
4.5 billion. At year-end, the value of the portfolio was NOK 5.5 billion. Sales
of portfolio holdings will continue in 2012.
"In the course of 2011, we strengthened our financial leeway through the sale of
Elkem and the sell-off of holdings in the share portfolio. At the same time, we
have paid out substantial capital to our shareholders. We have identified
several possible candidates for acquisition, and have the necessary expertise
and patience to make good acquisitions," says Orkla`s President and CEO Bjørn M.
Wiggen.
The Board of Directors proposes a dividend for the fiscal year 2011 of NOK 2,50
per share.
Orkla ASA
Oslo, 9 February 2012
Ref.:
Senior VP Corporate Communication and Public Affairs
Johan Chr. Hovland
Telephone +47 22 54 44 86/+47 917 63 491
Senior VP Investor Relations
Rune Helland
Telephone +47 22 54 44 11
VP Investor Relations
Siv M. S. Brekke
Telephone +47 22 54 44 55/+47 930 56 093
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
4th Quarter 2011:
http://hugin.info/111/R/1583924/495458.pdf
Quarterly and accounting figures 4th Quarter 2011:
http://hugin.info/111/R/1583924/495466.xls
Presentation of 4th Quarter 2011:
http://hugin.info/111/R/1583924/495459.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Orkla ASA via Thomson Reuters ONE
[HUG#1583924]
Unternehmensinformation / Kurzprofil:
Datum: 09.02.2012 - 06:56 Uhr
Sprache: Deutsch
News-ID 112676
Anzahl Zeichen: 4746
contact information:
Town:
Oslo
Kategorie:
Business News
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