ASPO GROUP INTERIM REPORT JANUARY 1 TO SEPTEMBER 30, 2009
(Thomson Reuters ONE) - ASPO Plc STOCK EXCHANGE BULLETIN October 26, 2009 at 10:15ASPO'S 2009 OUTLOOK UPGRADEDJanuary-September, continuing operations- Net sales for Aspo Group's continuing operations inJanuary-September amounted to EUR 239.3 million (EUR 258.0 million)- Operating profit was EUR 11.3 million (EUR 12.9 million)- Profit before taxes amounted to EUR 7.7 million (EUR 9.9 million)- Earnings per share for continuing operations stood at EUR 0.23 (EUR0.26)- The Group's financial position improved during the quarter and isat a good level.- During the second quarter, a 2004 convertible capital loan of EUR14.2 million was repaid and a new convertible capital loan of EUR15.0 million was issued.- The operating profit for the second quarter includes a EUR 2.9million sales gain from m/s Kontula, a EUR -0.5 million loss from thedivestment of Metex Deutschland, and non-recurring costs of EUR 1.8million from Telko business operations.- In the third quarter, a EUR 3.2 million sales gain was recordedfrom the divestment of Hamina Terminal Services Oy's operations. Thedeal dissolved some of Telko's goodwill.- Aspo specifies its outlook for 2009. Aspo has the preconditions toreach the same operating profit level of continuing operations aslast year. Earnings per share is expected to be below last year'srecord level.KEY FIGURES 1-9/09 1-9/08 1-12/08Continuing operationsNet sales, MEUR 239.3 258.0 358.2Operating profit, MEUR 11.3 12.9 14.1Share of net sales, % 4.7 5.0 3.9Profit before taxes, MEUR 7.7 9.9 9.5Share of net sales, % 3.2 3.8 2.7Personnel at the end of period 707 804 821Earnings per share, EUR,continuing operations 0.23 0.26 0.27Earnings per share, EUR,discontinued operations 0.30 0.33Earnings per share, EUR, total 0.23 0.56 0.60EPS adjusted for dilution, EUR,continuing operations 0.22 0.25 0.26EPS adjusted for dilution, EUR,discontinued operations 0.28 0.30EPS adjusted for dilution, EUR,total 0.22 0.53 0.56Comparable earnings per share,EUR,continuing operations 0.06* 0.26 0.27Comparable earnings per share,EUR,discontinued operations -0.01 -0.03The Group as a wholeEquity per share, EUR 2.45 2.55 2.56Equity ratio, % 32.4 25.9 30.6Gearing, % 113.2 139.4 124.9* excluding the sales gains from m/s Kontula and Hamina TerminalServices' operations.AKI OJANEN, ASPO'S CEO:"The market situation for our operations was challenging andstatistics related to industrial production and public economy showedthat the market had weakened. We estimate that the toughest marketsituation was seen this summer.Aspo's operating profit level can be considered good in the currentmarket situation. Aspo has actively carried out measures focusing onthe strategy of its business units. Telko and Kaukomarkkinat havecarried out divestments. Structural changes aimed at improvingshareholder value are part of Aspo's operating model. Our investmentsin the future have been particularly visible as activities on theRussian market and in other CIS countries. Operations have beenlaunched in several major cities in Russia and operations haveexpanded in Ukraine.Aspo's strategy is to further increase its operations in Russia andother CIS countries. We have been successful both in risk managementand in developing profitable operations in growth markets. In Russia,demand growth in the business areas we represent has remained gooddespite the general financial and economic crisis.The move of Aspo Group's operations to a single premises in Finlandwas completed in August. Business operations and their administrationare now housed in one office. In connection with this move, bothKaukomarkkinat and Leipurin outsourced their inventory operations,which reduces the cost level and increases flexibility in differentmarket conditions. Our cost efficiency in administrative costs willreach a new level from the fourth quarter; the effect of ourcost-cutting program is approximately EUR 2 million per year.Separate efficiency programs for each business unit will improve theprofitability of the business segments.Telko has turned its operations back to the black. The result of allbusiness operations was in line with our expectations."ASPO AS A COMPANYAspo is a conglomerate that owns and develops business operations inthe Baltic Sea region focusing on demanding B-to-B customers. Ourstrong company brands - ESL Shipping, Leipurin, Telko andKaukomarkkinat - aim to be the market leaders in their sectors. Theyare responsible for their own operations, customer relationships, andthe development of these. Together they generate Aspo's goodwill.Aspo's Group structure and business operations are continuallydeveloped without any predefined schedules.From January 1, 2009, Aspo's business segments are ESL Shipping,Leipurin, Telko and Kaukomarkkinat. Other operations include AspoGroup's administration and other operations not belonging to thebusiness units. The segment structure corresponds with Aspo Group'sorganizational structure and internal earnings reporting. IFRSregulations are applied to management reporting.From January 1, 2009, the Group has monitored its net sales on thebasis of the following geographical division: Finland, the Nordiccountries, the Baltic countries, Russia and other CIS countries, andother countries.Leipurin and Kaukomarkkinat have been included in Aspo Group'sfigures from the beginning of May 2008. Telko's comparison figuresinclude Kauko-Telko's industrial raw materials purchased in thespring of 2008 from the beginning of May 2008.OPERATIONAL PERFORMANCEThe prices of raw materials sold have risen and volumes have grownslightly. The demand for raw materials in the food industry hasremained stable. The steel industry, an important customer segmentfor Aspo, has started up production capacity, which is visible in thevolume of steel industry raw material transported by ESL Shipping.Of the foreign currencies used by Aspo, the US dollar in particularhas weakened against the euro. Other foreign currencies used by Aspohave been more stable.ESL ShippingESL Shipping is the leading dry bulk shipping company operating inthe Baltic Sea area. During the review period, the company's fleetconsisted of 17 vessels, of which the company owns 15. As a result ofits operations, ESL Shipping is an integral part of the Finnishenergy and steel industry's security of supply. 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08Net sales, MEUR 13.8 21.8 -8.0 46.2 63.2 84.1Operating profit,MEUR 1.8 4.4 -2.6 11.1 11.4 15.6Personnel 201 229 -28 201 229 240On international freight markets, the drop in dry bulk rates hasstopped and prices have made a partial recovery. In general, thevessels have been laid up, and thus overall market capacity hasfallen. Among important customer segments, the steel industryincreased its production in Scandinavia, which increased the volumeof cargo transported for the steel industry. The cargo volume in theenergy industry fell during the review period compared to theprevious quarter due to high inventory levels in the industry.The cargo volume carried by ESL Shipping from January to Septemberamounted to 7.7 million tons (10.4). The share of the steel industrywas 3.8 million tons (6.8), and the energy industry represented 3.7million tons (2.8).Fleet operations were successful considering the market situation.Net sales for January-September was EUR 46.2 million (63.2).Operating profit amounted to EUR 11.1 million (11.4).During the third quarter some units of the fleet were still laid up.At the end of the period, more capacity has been taken intooperation.In August, the company period chartered a 20,000 dwt vessel for oneyear. The super ice class vessel fits well into the company'soperations. The capacity increase ensures that long-term customercommitments will be carried out also during the winter season.A 20,000 dwt Eira class vessel is being constructed in India. Theconstruction schedule has been delayed and the vessel is expected tobe delivered during the spring of 2010. The vessel has been leased toESL Shipping under a leasing contract.LeipurinLeipurin serves the baking and food industry by supplyingingredients, production machinery and production lines, as well asrelated expertise. Leipurin operates in Finland, Russia, Poland, theBaltic countries and Ukraine. In Russia, Leipurin has operations inseveral large cities in addition to St. Petersburg and Moscow.Procurement operations are international. 7-9/09 7-9/08 Change 1-9/09 5-9/08 5-12/08Net sales,MEUR 23.4 25.2 -1.8 71.8 42.2 69.3Operatingprofit, MEUR 0.6 1.2 -0.6 2.1 2.0 3.1Personnel 191 161 30 191 161 168No significant line deliveries were booked in the third quarter asdeliveries will focus on the fourth quarter. The result from projectsunder production will materialize in the fourth quarter oncedeliveries are made. The drop in raw materials prices for the foodindustry has slowed down.The share of Russia and CIS countries in net sales in the thirdquarter was 18%, and the share has increased favorably. Operationswere profitable in the region. In Russia, 80% of the customers arelocal bakery entrepreneurs.TelkoTelko is the leading expert and supplier of industrial chemicals andplastic raw materials in the Baltic Sea region. It operates inFinland, the Baltic countries, Scandinavia, Poland, Ukraine, Russia,and Belarus. Procurement operations are international. Business isbased on the representation by the best international principals andon the expertise of the personnel. Telko develops the production andcompetitiveness of the customers' products in cooperation with them. 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08Net sales, MEUR 35.3 51.9 -16.6 95.1 132.4 172.7Operatingprofit, MEUR 4.9 1.4 3.5 3.2 3.5 1.0Personnel 202 227 -25 202 227 230Raw material prices have increased slightly since the summer. Theeffects of internal efficiency measures are visible as lower costs,particularly in Finland and Scandinavia. Operations have been madeprofitable in the third quarter as planned. The share of Russia andCIS countries in net sales was 28%, and the share has increasedfavorably. Operations were profitable. The local production industryis the main client.Half of Telko's net sales are generated from liquid chemicals andhalf from plastics used as industrial raw material.In August, Telko divested its terminal operations in Hamina. A EUR3.2 million sales gain was booked from the deal and some of Telko'sgoodwill was dissolved.Telko's management has been renewed. On August 1, 2009, KalleKettunen M.Sc. (Eng.), MBA, started as the new CEO of Telko.KaukomarkkinatKaukomarkkinat specializes in energy efficiency technology, theefficiency of the process industry, and security and audio-visualapplications. Operations are based on the products of the bestcompanies in the industry and the willingness of the company's ownexperts to improve the operations or efficiency of its customers.Kaukomarkkinat operates in Finland, Poland, Russia, China, andVietnam. 7-9/09 7-9/08 Change 1-9/09 5-9/08 5-12/08Net sales,MEUR 7.4 13.6 -6.2 25.1 20.0 30.8Operatingprofit, MEUR -0.1 1.0 -1.1 0.0 1.1 2.1Personnel 88 103 -15 88 103 100In energy efficiency products, sales have been weaker in Finland thanlast year due to the general economic situation. In project sales forimproving process industry efficiency, a slight recovery has beenwitnessed since the summer, in Poland in particular. Project sales inChina have been weaker than anticipated.In August, component and mechatronics operations were divested. Thedeal has no significant effect on Kaukomarkkinat's earnings. Thebusiness operation divestments completed in the past year havesimplified Kaukomarkkinat's structure and enabled focusing onstrategic focus areas.Other operationsOther operations include Aspo Group's administration and otheroperations not belonging to the business units. The Group'sadministration costs have been higher than usual since the summer of2008 due to the acquisition. The cost-cutting program for fixed costswill have full effect from the fourth quarter onwards. 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08Net sales,MEUR 0.1 0.1 0.0 1.1 0.2 1.3Operatingprofit, MEUR -1.6 -2.0 0.4 -5.1 -5.1 -7.7Personnel 25 84 -59 25 84 83NET SALES AND PROFIT, CONTINUING OPERATIONSNet sales for Aspo Group's continuing operations in January-Septemberamounted to EUR 239.3 million (258.0). ESL Shipping's net salesdecreased as a result of a drop in cargo volumes and the sale of avessel. The net sales of Leipurin and Kaukomarkkinat are included forthe entire review period, but in the comparison figures only forMay-September 2008. Telko's net sales fell compared to the previousyear due to a fall in prices and volumes as well as unfavorablecurrency exchange rate development.Aspo Group's net sales for continuing operations in July-Septemberamounted to EUR 80.0 million compared with EUR 112.6 million in thecorresponding period last year.Net sales by segment, MEUR 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08ESL Shipping 13.8 21.8 -8.0 46.2 63.2 84.1Leipurin 23.4 25.2 -1.8 71.8 42.2 69.3Telko 35.3 51.9 -16.6 95.1 132.4 172.7Kaukomarkkinat 7.4 13.6 -6.2 25.1 20.0 30.8Other operations 0.1 0.1 0.0 1.1 0.2 1.3Continuing operationstotal 80.0 112.6 -32.6 239.3 258.0 358.2Discontinued operations 10.8 -10.8 43.3 45.1Total 80.0 123.4 -43.4 239.3 301.3 403.3Inter-segment net sales is not considerable.Net sales by market area, MEUR 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08Finland 37.7 73.1 -35.4 113.0 140.7 166.0Nordic countries 7.0 14.1 -7.1 20.4 35.3 47.5Baltic countries 9.8 9.1 0.7 27.8 20.6 32.8Russia + other CIScountries 14.0 12.1 1.9 38.2 37.7 61.1Other countries 11.5 4.2 7.3 39.9 23.7 50.8Continuingoperations total 80.0 112.6 -32.6 239.3 258.0 358.2Discontinuedoperations 10.8 -10.8 43.3 45.1Total 80.0 123.4 -43.4 239.3 301.3 403.3The importance of Russia and other CIS countries has increased. Dueto the devaluation of currencies outside the eurozone, deliveredvolumes have so far this year been relatively higher than last year.The importance of the CIS countries is made clear when all of ESLShipping's raw material exports from Russia are included in the netsales for the Russian market area. In the third quarter, the volumestransported from Russia by ESL Shipping fell as energy industrydeliveries focused on the second quarter. The net sales of Russia andother CIS countries and of Russian originated transports are asfollows:MEUR 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08Russia + other CIScountries 20.4 21.1 -0.7 64.0 60.5 90.6January-September performance, continuing operationsAspo Group's operating profit in January-September was EUR 11.3million (12.9), i.e. 4.7% of net sales. Planned depreciation totaledEUR 6.8 million (7.8). The Group's net financial costs totaled EUR3.6 million (3.0). January-September profit before taxes was EUR 7.7million (9.9), and profit for the period amounted to EUR 6.1 million(6.5).July-September performance, continuing operationsOperating profit for Aspo Group's continuing operations inJuly-September amounted to EUR 5.6 million (6.0). ESL Shipping'soperating profit was EUR 1.8 million (4.4). Leipurin's operatingprofit was EUR 0.6 million (1.2). Telko's operating profit was EUR4.9 million (1.4), including a EUR 3.2 million sales gain from thedivestment of Hamina Terminal Services Oy's operations.Kaukomarkkinat's operating profit was EUR -0.1 million (1.0). Theoperating profit of Other operations was EUR -1.6 million (-2.0).Operating profit by segment, MEUR 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08ESL Shipping 1.8 4.4 -2.6 11.1 11.4 15.6Leipurin 0.6 1.2 -0.6 2.1 2.0 3.1Telko 4.9 1.4 3.5 3.2 3.5 1.0Kaukomarkkinat -0.1 1.0 -1.1 0.0 1.1 2.1Other operations -1.6 -2.0 0.4 -5.1 -5.1 -7.7Continuing operationstotal 5.6 6.0 -0.4 11.3 12.9 14.1Discontinued operations 7.6 -7.6 9.1 9.6Total 5.6 13.6 -8.0 11.3 22.0 23.7Earnings per shareEarnings per share for continuing operations stood at EUR 0.23 (EUR0.26). The Group's earnings per share was EUR 0.23 (0.56) and thediluted earnings per share was EUR 0.22 (0.53). Equity per share wasEUR 2.45 (2.55).INVESTMENTSInvestments in the Group's continuing operations in January-Septembertotaled EUR 5.2 million (19.7), of which the majority was generatedfrom ESL Shipping's vessel docking.Investments by segment, MEUR 7-9/09 7-9/08 Change 1-9/09 1-9/08 1-12/08ESL Shipping 0.6 16.1 -15.5 2.9 18.6 18.8Leipurin 0.1 0.0 0.1 0.4 0.0 0.1Telko 0.3 0.2 0.1 0.9 0.3 0.4Kaukomarkkinat 0.1 0.0 0.1 0.4 0.0 0.1Other operations 0.2 0.0 0.2 0.6 0.8 1.1Continuing operationstotal 1.3 16.3 -15.0 5.2 19.7 20.5Discontinued operations 0.2 -0.2 0.6 0.6Total 1.3 16.5 -15.2 5.2 20.3 21.1FINANCINGThe Group's financing position developed favorably during the reviewperiod. The Group has purposefully reduced its interest-bearing debtand, as a result of this and a drop in general interest rate levels,total financing costs are falling, even though financing margins haveincreased from 2008. Compared to both the comparison period and thesecond quarter in 2009, interest-bearing debt fell and liquidityremained good. At the end of the period, liquid assets amounted toEUR 7.2 million (22.0), interest-bearing debt totaled EUR 78.9million (113.8), and non-interest-bearing debt was EUR 55.4 million(78.0).Aspo Group's gearing was 113.2% (139.4) and the equity ratio was32.4% (25.9). The Group's cash flow from operations remained strong.In January-September net cash flow from operations was EUR 8.6million (17.6). Cash flow from investments in the review period wasEUR 9.8 million, mainly due to the positive cash flow from businessoperation divestments.Aspo Plc and its key financing banks have signed binding financiallimits for a total of EUR 80 million. Credit withdrawn within theframework of these financial limits amounted to EUR 6.0 million atthe end of the review period. The Group has a EUR 50 millioncommercial paper program that was not in use at the end of the reviewperiod.CONVERTIBLE CAPITAL LOANIn June, Aspo Plc repaid its convertible capital loan from 2004 andissued a new convertible capital loan for EUR 15 million. The Boardof Directors decided to offer a convertible capital loan forsubscription by a limited group of selected investors (PrivatePlacement) based on an authorization given by the ExtraordinaryShareholders' Meeting on June 8, 2009. Members of the Aspo Plc Boardof Directors and the company's key personnel have about 7.3% of theapproved loan units, and Aspo Plc shareholders have about 40.0% ofthe approved loan units. The loan period is June 30, 2009 - June 30,2014. The loan will be repaid in one installment on June 30, 2014, ifthe repayment conditions outlined in the loan terms are met. A fixedannual interest rate of 7 percent is paid on the loan. A specialright to convert the loan units into a maximum of 2,307,000 Company'snew shares is incorporated to the 2009 convertible capital loan andeach EUR 50,000 loan unit can be converted to 7,690 new shares. Theconversion price for the share is EUR 6.50.PERSONNELThe number of personnel in Aspo Group's continuing operations duringJanuary-September was 707 (804).Personnel by segment 1-9/09 1-9/08 Change 1-12/08ESL Shipping 201 229 -28 240Leipurin 191 161 30 168Telko 202 227 -25 230Kaukomarkkinat 88 103 -15 100Other operations 25 84 -59 83Continuing operations total 707 804 -97 821Discontinued operations 39 -39 6Total 707 843 -136 827SHARES AND SHAREHOLDERSDuring January-September 2009, a total of 1,532,791 Aspo Plc shareswere traded on NASDAQ OMX Helsinki at EUR 7.91 million, or 5.80% ofthe shares changed owners. The share reached a high of EUR 6.20 and alow of EUR 3.94 during the period.The average price was EUR 5.13 and the closing price was EUR 5.98.The market value of the share capital at the end of the period, lesstreasury shares, was EUR 154.2 million.Aspo Plc's registered share capital on September 30, 2009, was EUR17,691,729.57 and the total number of shares was 26,406,063. Thecompany's own shareholding was 620,000 shares, accounting for 2.35%of Aspo Plc's share capital and votes. The accounting par value ofthe shares was EUR 0.67.At the end of the period, the number of Aspo Plc shareholders was5,071. A total of 834 660 shares or 3.2% of the total share capitalwere nominee registered or held by non-domestic shareholders.Henrik B. Nyberg announced on January 19, 2009 that his share of AspoPlc's share capital and votes fell below 10%.BOARD AUTHORIZATIONSThe Extraordinary Shareholders' Meeting held on June 8, 2009authorized the Board of Directors to decide on an issue of shares andspecial rights entitling to shares. A maximum of 2,600,000 shares maybe issued on the basis of the authorization. The authorization willbe used for a convertible capital loan to be issued by Aspo Plc,directed to a limited group of investors. The authorization will notsupersede the authorization to decide on a share issue given to theBoard of Directors by the Annual Shareholders' meeting on 31 March2009. If the Board of Directors decides on a directed convertiblecapital loan, the members of the Board of Directors and the companykey personnel will be reserved the right to subscribe for theconvertible capital loan up to a maximum total of 10% of the amountof the convertible capital loan.The Board of Directors exercised the authorization on June 8, 2009,and decided to offer a convertible capital loan for subscription by alimited group of selected investors. The maximum loan amount is EUR15,000,000 and the loan period is five years.DIVIDEND DISTRIBUTIONAt the Aspo Plc Annual Shareholders' Meeting on March 31, 2009, theshareholders adopted the Board of Directors' proposal for a dividendof EUR 0.42 per share. The dividend distribution day was April 14,2009, as decided by the General Meeting.MARKET MAKINGAspo has an agreement with Nordea Bank Finland Plc on market-makingfor its share. According to the agreement, Nordea Bank Finland Plcgives Aspo Plc's shares a buy and sell bid so that the highestpossible difference between a buy and sell bid is 3%, calculated fromthe buy bid. The agreement is valid until further notice, and theperiod of notice for the agreement is one month.EVENTS AFTER THE REVIEW PERIODOn October 15, 2009, Aspo Plc published a stock exchange releasestating that ESL Shipping has decided to terminate one of the twoship construction contracts it has signed with an India-basedshipyard. The first ship has been delayed and is estimated to becompleted in spring 2010. The vessel has been leased to ESL Shippingunder a leasing agreement. The second vessel has been substantiallydelayed and, as a result of this delay, ESL Shipping has decided toenforce its right of termination pursuant to the constructioncontract.Cancelling the ship will have an impact on the dissolution ofcurrency protections of future intended payment installments, andcapital asset items entered on the balance sheet. As a result ofthese measures, exchange rate losses will be recorded. For the returnof advance payments, ESL Shipping will receive a positive cash flowof about EUR 9 million and interest income.ESL Shipping estimates that the compensation for the delay of thefirst ship and the termination of the second ship order will not havea significant total impact on the company's result. The impacts areexpected to be felt at the end of 2009 and at the beginning of 2010.OUTLOOK FOR REST OF 2009The general economic uncertainty in the Baltic Sea region is likelyto continue despite a slight glimmer of hope regarding generalimprovement in the economy. Industrial demand has decreased from2008, and it is difficult to foresee at what speed demand willrecover. Food demand will remain normal. Among important industrialsegments, the steel industry in Scandinavia in particular hasincreased production, which has had a positive effect on Aspo'sresult. The reduction in the Group's cost level has had a positiveeffect on its earnings development. Financial costs are expected tofall considerably as a result of lower general interest rate levelsand a fall in the amount of interest-bearing debt, even thoughfinancial margins have increased from 2008.Aspo Group's structure creates a good foundation for growth incontinuing operations, in both the eastern and western markets, asthe general economic situation recovers.Aspo specifies its outlook for 2009. Aspo has the preconditions toreach the same operating profit level of continuing operations aslast year. Earnings per share is expected to be below last year'srecord level.Previous outlookIn accordance with the previously published outlook, it ischallenging for Aspo to reach the same operating profit level fromcontinuing operations as last year. Earnings per share are expectedto be below last year's record level.ESL ShippingThe aim of the shipping company is to maintain its position as theleading dry bulk shipping company and transporter on the Baltic Seaby renewing its fleet. In August, ESL Shipping time-chartered a20,000 dtw super ice class vessel for one year. The chartered vesselensures that the company is able to serve its customers in allconditions.Dry cargo freight markets relevant for ESL Shipping are estimated tostrengthen in the fourth quarter. A considerable share of the cargocapacity for the rest of 2009 has been covered with long-termcontracts.The Finnish Government is preparing changes to the tonnage taxlegislation. The company would be able to choose between tonnagetaxation and taxation in accordance with the present business taxact. Aspo expects ESL Shipping to join up to the possible revisedtonnage-based taxation scheme and also expects the change to have apositive effect on the result.ESL Shipping aims to reach the 2008 operating profit level.LeipurinOrganic growth is expected to continue in the Leipurin division.Leipurin will continue establishing itself in Russia's new majorcities. The new offices create a good foundation for several years ofgrowth.The bakery raw material unit expects modest organic growth tocontinue on the western markets. Other food industry operations aimto expand operations outside Finland; the aim in Russia is to expandoperations in the meat industry in particular. The order book for themachine unit is at last year's level and line deliveries will befocused on the fourth quarter. The first machine deliveries havealready been made to Poland, and delivery of the first bakery line toSweden will be completed in December.Leipurin expects to improve its net sales in the CIS countries. Newoffices in Siberia and the Volga region are already profitable.A good operating profit level is expected from Leipurin.TelkoTelko will focus on ensuring that its earnings development ispositive. Operationally, Telko aims to strengthen its relative marketposition in Northern Europe and the CIS countries. Due to a drop involumes and prices caused by the economic recession, the organizationhas been adjusted to meet demand in Finland and Sweden. Operationaldevelopment in Russia and other CIS countries has continued strongly.Operations in the CIS countries are more profitable than on average.The aim is to increase the number of offices in Russia's majorcities. The company is investigating the possibility of establishingitself in new CIS countries.Telko will focus on improving profitability and on producingexcellent key customer service. Net sales growth will be sought oncethe general price level and the economic trend improves.KaukomarkkinatThe main target of the operation is to grow at least as much as thegeneral market growth in the Finnish energy efficiency equipmentmarkets. Project sales are expected to recover from the third quarterlevel. Audio-visual and giant screen operations are being developedas a new growth area, but they will not have a significant earningseffect in 2009. General market growth for energy efficiency equipmentis expected to create possibilities for Kaukomarkkinat as its currentstrong principals expand their product selection to new applicationareas. The current main product is from air to air heat pumps.Kaukomarkkinat aims to match last year's operating profit adjusted bythe sales loss from the German subsidiary divestment.Other operationsOther operations include Aspo Group's administration and otheroperations not belonging to the business units. The Group's othercosts are expected to fall in line with what has been previouslyannounced.Operational risksThe general economic situation is affecting industrial demand in theBaltic Sea region. Among Aspo's customer segments, the economicrecession will affect basic industries, particularly the steel andconstruction industries. It is more difficult to foresee the changesin demand in emerging markets. The overall markets in Russia inparticular are expected to develop positively in Aspo's businessareas despite the recession. The uncertainty in the financial marketsand the economic recession can further weaken the value of currenciesin our neighboring areas (Russia, Ukraine, the Baltic region, Poland,and Sweden) and can possibly weaken customers' solvency.Operational risks are discussed in more detail in the 2008 Report ofthe Board of Directors.Helsinki, October 26, 2009ASPO PlcBoard of DirectorsASPO GROUP INCOME STATEMENT 7-9/09 7-9/08 MEUR % MEUR %Net sales 80.0 100 112.6 100Other operating income 3.4 4.3 1.2 1.1Depreciation and write-downs -2.3 -2.9 -2.9 0.0Operating profit 5.6 7.0 6,0 5.3Financial income and expenses -1.3 -1.6 -1.4 -1.2Profit before taxes 4.3 5.4 4.6 4.1Profit for the periodcontinuing operations 3.5 4.4 2.8 2.5Profit for the perioddiscontinued operations 7.6 6.7Profit for the period 3.5 4.4 10.4 9.2Other comprehensive incomeTranslation differences 0.1 0.0Cash flow hedges -0.5 1.1Net result recognized directlyto equity 0.0Income taxes on othercomprehensive income 0.2 -0.5Other comprehensive income forthe year, net of taxes -0.2 0.6Total comprehensive income 3.3 11,0Profit attributable toshareholders 3.4 10.3Minority interest 0.1 0.1Total comprehensive incomeattributable to shareholders 3.2 10.9Minority interest 0.1 0.1 1-9/09 1-9/08 1-12/08 MEUR % MEUR % MEUR %Net sales 239.3 100.0 258.0 100.0 358.2 100.0Other operating income 7.3 3.1 1.2 0.5 1.6 0.4Depreciation and write-downs -6.8 -2.8 -7.8 -3.0 -10.8 -3.0Operating profit 11.3 4.7 12.9 5.0 14.1 3.9Financial income and expenses -3.6 -1.5 -3.0 -1.2 -4.6 -1.3Profit before taxes 7.7 3.2 9.9 3.8 9.5 2.7Profit for the periodcontinuing operations 6.1 2.5 6.5 2.5 7.0 2.0Profit for the perioddiscontinued operations 8.1 3.1 8.5 2.4Profit for the period 6.1 2.5 14.6 5.7 15.5 4.3Other comprehensive incomeTranslation differences -0.5 -0.2 -1.5Cash flow hedges -0.5 0.6 0.9Net result recognizeddirectly to equity -0.5Income taxes on othercomprehensive income 0.2 -0.2 -0.2Other comprehensive incomefor the year, net of taxes -0.8 -0.3 -0.8Total comprehensive income 5.3 14.3 14.7Profit attributable toshareholders 6.0 14.5 15.5Minority interest 0.1 0.1 0.0Total comprehensive incomeattributable to shareholders 5.2 14.2 14.7Minority interest 0.1 0.1 0.0ASPO GROUP BALANCE SHEET 09/09 09/08 Change 12/08 MEUR MEUR % MEURAssetsNon-current assetsIntangible assets 15.9 17.0 -6.5 17.0Goodwill 39.9 41.3 -3.4 40.4Tangible assets 61.2 71.4 -14.3 69.1Available-for-sale assets 0.2 0.2 0.0 0.2Long-term receivables 1.4 0.9 55.6 1.1Shares in associatedcompanies 0.9 1.1 -18.2 0.9Total non-current assets 119.5 131.9 -9.4 128.7Current assetsInventories 27.1 41.5 -34.7 33.4Sales and other receivables 43.7 59.1 -26.1 43.3Cash and bank deposits 7.2 22.0 -67.3 12.6Total current assets 78.0 122.6 -36.4 89.3Assets classified as heldfor sale 3.1 -100.0 0.7Total assets 197.5 257.6 -23.3 218.7Shareholders' equity andliabilitiesShareholders' equityShare capital 17.7 17.7 0.0 17.7Other shareholders' equity 45.5 48.0 -5.2 48.3Shareholders' equityattributableto equity holders of theparent 63.2 65.7 -3.8 66.0Minority interest 0.1 0.1 0.0 0.0Long-term liabilities 80.2 47.3 69.6 50.2Short-term liabilities 54.0 142.8 -62.2 102.0Liabilities classified asheld for sale 1.7 -100.0 0.5Total shareholders' equityand liabilities 197.5 257.6 -23.3 218.7STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYA = Share capitalB = Premium fundC = Fair value fundD = Other fundsE = Repurchased sharesF = Translation differenceG = Retained earningsH = TotalI = Minority interestJ = Total shareholders' equityMEUR A B C D E F G H I JBalance at12/31/2008 17.7 4.3 -0.3 0.5 -3.7 -1.5 49.0 66.0 0.0 66.0Totalcomprehensiveincome -0.3 -0.5 6.0 0.1 5.3Dividendpayment -10.8 -10.8Share basedpayment 0.4 0.4Equity share ofconvertible bond 3.3 3.3Share ofdeferredtaxes -0.9 -0.9Balance at9/30/2009 17.7 4.3 -0.6 2.9 -3.7 -2.0 44.6 63.2 0.1 63.3Balance at12/31/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0Totalcomprehensiveincome 0.4 -0.2 14.0 0.1 14.3Dividendpayment -10.8 -10.8Sharerepurchase -0.6 -0.6Change inminorityinterest -0.2Balance at9/30/2008 17.7 4.3 -0.6 0.5 -3.6 -0.2 47.6 65.7 0.1 65.8ASPO GROUP CASH FLOW STATEMENT 1-9/09 1-9/08 1-12/08 MEUR MEUR MEUROperational cash flowOperating profit 11.3 22.1 23.7Adjustments to operating profit 0.6 -0.6 1.3Change in working capital 6.3 3.3 14.9Interest paid -4.5 -4.0 -6.0Interest received 0.4 0.9 1.0Taxes paid -5.5 -4.1 -4.0Net operational cash flow 8.6 17.6 30.9InvestmentsInvestments in tangible andintangible assets -5.3 -20.6 -22.0Gains on the sale of tangibleand intangible assets 3.0 0.7 0.7Gains on the sale of businessoperations 11.1Purchases of subsidiary shares -77.6 -78.2Sale of the subsidiary shares 1.0 25.6 28.8Total cash flow from investments 9.8 -71.9 -70.7FinancingShare acquisition -0.7 -0.8Share disposal 0.1 0.1Change in short-term borrowings -46.5 59.7 16.9Change in long-term borrowings 33.5 14.9 34.0Profit distribution to minorities -0.1Dividends paid -10.8 -10.8 -10.8Total financing -23.8 63.2 39.3Increase / decrease in liquid funds -5.4 8.9 -0.5Liquid funds in beginning of year 12.6 13.1 13.1Liquid funds at period end 7.2 22.0 12.6KEY FIGURES AND RATIOS 1-9/09 1-9/08 1-12/08Earnings per share, EUR, continuingoperations 0.23 0.26 0.27Earnings per share, EUR, discontinuedoperations 0.30 0.33Earnings per share total 0.23 0.56 0.60EPS adjusted for dilution, EUR,continuing operations 0.22 0.25 0.26EPS adjusted for dilution, EUR,discontinued operations 0.28 0.30EPS adjusted for dilution, EUR, total 0.22 0.53 0.56Comparable earnings per share, EUR,continuing operations 0.06 0.26 0.27Comparable earnings per share, EUR,discontinued operations -0.01 -0.03The whole groupEquity per share, EUR 2.45 2.55 2.56Equity ratio, % 32.4 25.9 30.6Gearing, % 113.2 139.4 124.9ACCOUNTING PRINCIPLESAspo Plc's interim report has been compiled in accordance with theprinciples of IAS 34 Interim Financial Reporting. As of January 1,2009, the Group has applied the following new and revised standards:IFRS 8 Operating Segments and IAS 1 Presentation of FinancialStatements. IFRS 8 has an effect on the segment information and IAS 1has an effect on the presentation of the income statement. Thecomparison figures have been restated according to the new standards.The changes have no effect on the Group's result or financialposition.In other regards, the same accounting principles that were applied tothe Financial Statement for December 31, 2008, have been applied. Thecalculation formulas for key figures are explained in the 2008Financial Statements on page 83. The report is unaudited.INFORMATION MEETINGAspo will arrange a press conference for the media and analyststoday, Monday 26 October, 2009, starting at 12:30 at Hotel Kämp,conference room Paavo Nurmi, Pohjoisesplanadi 29, 00100 Helsinki,Finland.ASPO PlcAki Ojanen Arto MeitsaloCEO CFOFor more information, please contactAki Ojanen, tel. +358 9 521 4010, +358 400 106 592aki.ojanen(at)aspo.comwww.aspo.comDistribution:NASDAQ OMX HelsinkiKey mediawww.aspo.comhttp://hugin.info/3023/R/1349913/325569.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 26.10.2009 - 09:15 Uhr
Sprache: Deutsch
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