Comprehensive actions - improved financial performance
(Thomson Reuters ONE) - Orkla's operating profit (EBITA*) in the third quarter ended at NOK811 million, compared with NOK 334 million in the second quarter andNOK 1,026 million in the same quarter of last year. Cash flow fromoperations for the first nine months amounted to NOK 3.1 billion,compared with NOK 1.5 billion for the same period in 2008. Weakinternational economic conditions continued to impact demand andsales in several of the Group companies, but the underlying trend hasbeen stable through the second and third quarters. The acquisitionand integration of Indalex into Sapa's North American extrusionoperations have now been completed."In the past year, Orkla companies have implemented comprehensiverestructuring and cost-cutting programmes. It is therefore gratifyingto see that these measures are helping to improve their cost positionand not least, ensure a good cash flow. We see clear signs ofstabilisation in important markets, but there are still few stronggrowth signals," says President and CEO Dag J. Opedal.Orka's third-quarter operating revenues totalled NOK 14.1 billion,down from NOK 15.9 billion in 2008. This is largely due to weakmarkets for Elkem and Sapa. Nevertheless, vigorous restructuring andcost-cutting measures contributed to a positive result in the quarterfor these companies. Orkla Brands continues to report positive profitperformance, and Borregaard posted satisfactory results despite weakmarkets. The return on the Share Portfolio at the end of the firstnine months was 26.2 per cent, compared with 30.7 per cent for thebenchmark Morgan Stanley Nordic Index.The equipment damaged in the fire at Elkem Solar's new plant inKristiansand has now been repaired and test operations began inOctober. The ramp-up towards normal production levels will start atthe end of November.Sapa's acquisition of Indalex, its biggest competitor on the USmarket, has been completed with effect from 1 August. Thisacquisition will be followed by further restructuring of SapaProfiles North America, and two or three factories will be closed.Following the Norwegian parliament's decision in 2008 to change thereversion regime, Elkem sold two of its hydropower assets thatoperate under licence for NOK 6 billion in the third quarter.*Operating profit (EBITA): Before amortisation, restructuring andsignificant impairment chargesKey figures Q3-09 (Q3-08) in NOK million:Operating revenues: 14 088 (15 904)EBITA: 811 (1 026)Profit before taxes: 494 (-939)Earnings per share diluted: (NOK) 0,5 (-1,2)Cash flow from operations: 1 663 (365)As of 30 September 2009 (as of 31 december 2008):Net interest-bearing debt: 28 226 (27 424)Equity (%): 50,3 (47,7)Net gearing: 0,59 (0,55)The third quarter in brief- Orkla's operating profit (EBITA) for the third quarter amounted toNOK 811 million, compared with NOK 1,026 million in the same quarterlast year and NOK 334 million in the second quarter of 2009.- Cash flow from operations improved, totalling NOK 3,115 million atthe end of the first nine months, compared with NOK 1,473 million atthe same time last year.- Weak international economic conditions continued to affect demandand sales in several of the Group's industrial businesses.Third-quarter operating revenues totalled NOK 14,088 million (NOK15,904 million)1.- Orkla Brands reported another good quarter with EBITA of NOK 759million (NOK 708 million)1. Orkla Brands International and Orkla FoodIngredients posted improved results, while the Nordic units performedon a par with last year.- Due to comprehensive restructuring and cost-cutting measures, OrklaAluminium Solutions achieved a positive result of NOK 29 million (NOK92 million)1 in the third quarter. The acquisition and integration ofIndalex in the US have proceeded as planned.- In Orkla Materials, Borregaard reported satisfactory third-quarterresults, while Elkem's results reflected continued weak markets andlow capacity utilisation, in addition to the ramp-up plan for ElkemSolar being delayed by the fire in July.- In Orkla Associates, REC reported EBITDA of NOK 429 million (NOK711 million)1 in the third quarter. Jotun's EBIT for the first eightmonths was NOK 858 million (NOK 807 million)1.- At the end of the first nine months, the return on the SharePortfolio was 26.2%, compared with 30.7% for the Morgan StanleyNordic Index (43.5% for the Oslo Børs Benchmark Index).- On 4 October 2009, following the Storting's adoption of a newreversion regime in autumn 2008, Elkem entered into an agreement tosell its hydropower plants in Salten and Bremanger, operating underlicence, for NOK 6 billion.The GroupOrkla's third-quarter operating revenues totalled NOK 14,088 million(NOK 15,904 million)*. The decline was largely driven by low demandin Orkla Aluminium Solutions, and slow markets for Elkem'ssilicon-related businesses.The Norwegian krone strengthened in the third quarter, against boththe USD and euro-related currencies, but was nevertheless weaker thanin the corresponding quarter of 2008. Currency translation effectstherefore had a positive impact on operating revenues, amounting toaround NOK 400 million in the third quarter and around NOK 1.65billion in the first nine months.The Group's EBITA for the third quarter was NOK 811 million (NOK1,026 million)*. Orkla Brands reported a satisfactory third-quarterprofit performance with underlying** profit growth of 6%. Markets forOrkla Aluminium Solutions remained very slow in Europe and the US,although the latter saw slight growth compared with the previousquarter. Wide-ranging restructuring and cost-cutting measurescontributed to positive EBITA of NOK 29 million in the quarter (NOK92 million)*. In Orkla Materials, Elkem's results reflect continuedweak markets and low capacity utilisation in the silicon-relatedbusiness. Average capacity utilisation in the third quarter was 57%,excluding Solar. Due to the fire in July, Elkem Solar had noproduction of any significance in the third quarter and thus made asubstantial negative contribution to profit. The damage has beenrepaired and test run begun mid-October. The ordinary ramp-up of thefactory will commence as soon as the repairs have been tested andapproved. Borregaard reported satisfactory third-quarter profit, andEBITA ended at NOK 128 million (NOK 110 million)*. For the Group as awhole, EBITA was affected by currency translation effects totallingNOK -18 million in the quarter, and NOK -38 million in the first ninemonths.Orkla's equity interests in REC (39.7%) and Jotun (42.5%) arepresented according to the equity method on the line for associates.The contribution from associates to Group third-quarter profittotalled NOK -328 million (NOK 573 million)*. Of the total amount,REC's contribution to Orkla's profit for the quarter accounts for NOK-401 million (NOK 496 million)*.At the end of the first nine months, the return on the SharePortfolio was 26.2%, compared with 30.7% for the Morgan StanleyNordic Index (43.5% for the Oslo Børs Benchmark Index). Gains, lossesand write-downs on the Share Portfolio ended at NOK 334 million inthe third quarter, of which realised portfolio gains amounted to NOK297 million and write-downs of portfolio investments totalled NOK 97million. Dividends received in the third quarter totalled NOK 14million, and NOK 238 million for the first nine months.Group profit before tax for the third quarter was NOK 494 million(NOK -939 million)*, while earnings per share, diluted, were NOK 1.4(NOK 1.3)* at the end of the first nine months. The tax charge isestimated to be NOK 92 million so far this year.Strong focus on increasing capital efficiency helped to boost cashflow from operations in the third quarter to NOK 1,663 million (NOK365 million)*, and cash flow from operations for the first ninemonths of 2009 totalled NOK 3,115 million, compared with NOK 1,473million in the same period of last year. After the Group'sparticipation in the REC and SPDE share issues, and the acquisitionof Indalex, all in the third quarter, net interest-bearingliabilities amounted to NOK 28.2 billion at quarter-end.In connection with the acquisition and integration of Indalex in theUS, Orkla Aluminium Solutions will carry out further restructuring ofits extrusion operations in North America. The factories in Morrisand Calgary will be closed in the course of the fourth quarter, andminor changes will also be made at other factories. In thisconnection, a restructuring provision of NOK 94 million was made inthe third quarter. The agreement to divest the business in Catawba incompliance with the requirements of the US Department of Justice hasbeen signed.* The figures in brackets refer to the corresponding period of theprevious year.** Excluding acquisition, divestments and currency translationeffects.Ref.:SVP Investor RelationsRune HellandTel.: +47-2254 4411SVP Corporate CommunicationsOle Kristian LundeTel.: +47-2254 4431http://hugin.info/111/R/1351390/326589.pdfhttp://hugin.info/111/R/1351390/326590.pdfhttp://hugin.info/111/R/1351390/326591.xlsThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 30.10.2009 - 06:54 Uhr
Sprache: Deutsch
News-ID 7645
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 268 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Comprehensive actions - improved financial performance"
steht unter der journalistisch-redaktionellen Verantwortung von
Orkla ASA (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
