Quarterly report 3/2004

Transcription

1 Quarterly report 3/2004 Increase in operating revenues to NOK million (1162.7) Operating profit totalled NOK 22.3 mill (18.2). Further cost reductions necessary to improve profitability Strong housing market in Scandinavia Continuing imbalance between cost of raw materials in Sweden and price of sawn redwood timber System interiors for offices at Nordea Liv - supplied by Nordia AS.

2 Profit and Loss Account Change in 3 rd Quarter Nine months Operating revenues 1, , , , , , , ,618.4 Depreciation Cost of goods sold , , , , ,772.7 Operating expenses , , , ,558.9 Operating profit Income from associates Interest and other financial income Interest and other financial expenses Operating result before tax Estimated tax cost Minority interests Net profit Proforma, incl. Are-Group 2003 and 2002 Operating revenues 1, ,195 4,393 4,159 3,884 5,564 5,239 Depreciation Operating profit (in %) Net Operating margin assets 3,039 3,143 2,764 3,039 3,143 2,764 2,829 2,615 Equity (in %) No. of employees 3,247 3,230 3,420 3,210 3,202 3,416 3,150 3,420 Balance Sheet Change in 3 rd Quarter Per Per Intangible assets Tangible assets , Financial assets fixed assets , , , Stocks Receivables and deposits current assets , , , , ,151.7 assets , , , , ,140.2 Share capital* Other equity and capital equity , Long-term liabilities , Current liabilities liabilities , , , , ,221.7 equity and liabilities , , , , ,140.2 Net interest bearing debt Capital employed , ,733 1,555 1,594 1,418 Net working capital , , Changes in total equity for the Group Opening balance 1, Profit/loss from share issue Foreign currency translation Provisions for dividend Own shares Change in reclassified assets Minority interests Changes for year/period equity 1, , *129,542,384 shares at NOK 5.-, adjusted to account for 1,100 own shares. The quarterly report has been prepared using the same accounting principles as those used in the annual accounts and according to NGAAP. 2 MOELVEN INDUSTRIER ASA QUARTERLY REPORT 3/2004

3 Cash Flow Statement Change in 3 rd Quarter Nine months Net cash flow from operations Cash from operating result Cash flow from working capital Cash flow from/to investments Cash flow from/to financing Net cash flow for the period Liquid funds Unutilised credit facilities Available liquid funds Net. investments from acquisitions and sales Fixed assets Current assets Liquid funds assets Equity Interest bearing debt Interest free debt capital : Sale of Norra Ny Skogs AB and Moelven Iberica SA. Acquisition of Nordisol Akustik in Karlstad AB. 2003: Aquisition of Finnforest Danmark A/S, Plyfa Göteborg AB and Woodpaint in Karlstad AB. Deconsolidation of Aicher GMBH as associated company. 2004: Aquisition of Are-Group and Mobilarum AB. Operating revenus Operating profit Quarterly in Quarterly in Key figures 3 rd Quarter Nine months Net operating margin (in %) Gross operating margin (in %) Return on capital employed (in %) Earnings per share (in NOK) Cash flow per share (in NOK) Inv. in fixed assets, excl. acquisition (NOK mill.) Equity ratio (in%) oper. revenue outside Scandinavia (in %) Number of employees 3,247 2,930 3,120 3,210 2,902 3,116 2,853 3,108 Number of shareholders Average number of shares MOELVEN INDUSTRIER ASA QUARTERLY REPORT 3/2004

4 Directors report Highlights Beyond the normal, seasonal fluctuations expected for the period, no significant change in demand for the Group's products and services was registered in the third quarter. The Moelven Building Group is still feeling the effects of a slow market for new commercial buildings, but has been able in large part to adapt to the situation during the year. The new-build market for housing is growing and the activity level for home improvements is satisfactory both in Norway and Sweden. This has a major impact on the Group's planing mills and glulam factories. For the sawmills, the availability of raw materials and the balance between the cost of raw materials and the price of finished goods is critical for profitability. The trend seen in the second quarter continued into the third quarter, with low logging activity in large parts of Norway and a disproportion between the high price for pine logs in Sweden and the low price for sawn timber products. The market conditions have been normal, however, for spruce products. Profit of the nine month period has not been satisfactory. In addition to emphasising cost-efficient practices throughout the Group, a number of special measures have been put in place that are expected to generate better profitability in the coming year. Third quarter profits Operating revenues in the third quarter for the Group totalled NOK million, compared to NOK million for the same period last year. The increase is due both to the acquisition of businesses and a higher rate of activities at existing factories. Operating profit in the third quarter totalled NOK 22.3 million (18.2). A decrease in both turnover and profit from the second to the third quarter was expected, as it is a normal seasonal fluctuation occurring during the summer months. While the sawmills posted a lower rate of profit compared to the same period last year, the laminated timber business posted a significant improvement in profits. The Moelven Building Group also generated more profit in the third quarter than during the same period last year. Net financial expenses totalled NOK 12.2 million (10.7). The increase in financial expenses is primarily due to higher interest-bearing debt as a result of the acquisition of businesses. Profit after taxes was NOK 7.2 million (5.5), which translates into NOK 0.06 per share (0.05). Operating revenues for the first nine months totalled NOK million (3612.7). Operating profit was NOK 64.1 mill (93.8), and profit after taxes totalled NOK 21.1 mill (48.9). Business areas Moelven Timber Group The Moelven Timber Group specialises in the mechanical processing of wood and most deliveries involve wood-based construction materials. The divisions Timber (sawmills), Wood (planing mills) and Laminated Timber (glulam factories) make up this business area. As a result of the acquisition of the Are Group earlier in 2004, as well as the general market conditions for the divisions in the Moelven Timber Group, strong focus has been put on internal consolidation and cost-efficiency measures. Earlier this year though operations at three companies were closed down, but the overall activity level for the Group remained stable. Another move toward consolidation was the merger of Moelven Langmoen AS and Moelven FireGuard AS in the third quarter. Operating revenues for the Moelven Timber Group in the third quarter totalled NOK million (893.6) and operating profit totalled NOK 15.9 million (14.2). The laminated timber business enjoyed a significant improvement in profits, but the planing mills at Wood also posted a better result compared to the third quarter in The sawmills in Timber had a weaker result, which to a large extent is due to an imbalance in the cost of raw materials and the price of finished products for the Swedish sawmills processing pine. In the first nine months of the year, operating revenues were NOK million (2674.9), and operating Moelven Timber Group 3 rd Quarter Nine months Operating revenues Moelven Timber Group 1, , , , , ,380.8 Timber - sawmills , , , , ,360.1 Wood - processing , , , ,273.8 Laminated Timber Operating profit/loss Moelven Timber Group Timber - sawmills Wood - processing Laminated Timber MOELVEN INDUSTRIER ASA QUARTERLY REPORT 3/2004

5 profit totalled NOK 66.2 million (91.6). Moelven Building Group The Moelven Building Group supplies system solutions to the commercial building market as an industrialised alternative to traditional on-site construction. The companies in the Moelven Building Group are organised into two business areas: Modular Buildings and Modular System Interiors. The companies in Modular System Interiors operate almost exclusively in the commercial building market. As a result of the continuing slow pace of new-builds in that market, these companies have had to carry out major adjustments in concept development and capacity utilisation. A number of necessary adjustments have been carried out during The companies in the Modular Buildings division supply module-based solutions for commercial buildings, public buildings and apartment buildings. Due to the slowdown in major commercial building projects and offshore-related construction projects, a conscious strategy has been put in place to develop new concepts. For example, the market for module-based apartment buildings is increasing in Norway and Sweden, and so a new production line was started in the third quarter that specifically targets this market. Operating revenues for the Moelven Building Group in the third quarter totalled NOK million (279.2), and operating profit was NOK 15.0 million (9.8). Modular Buildings is responsible for the increase in profit compared to the previous year. Operating revenues for the first nine months of the year totalled NOK mill (959.9), and operating profit was at NOK 24.6 mill (28.6). Other businesses This business area consists of the Group's two holding companies and joint services in Norway and Sweden, as well as some smaller businesses that are not involved in core Group business activities. Operating revenues in the third quarter totalled NOK 16.0 mill (9.7), and the operating loss was NOK -8.6 mill (-5.8). For the year to date, operating revenues at the end of the third quarter totalled NOK 52.6 mill (33.8), with an operating loss of NOK mill (-26.4). Employees At the end of the third quarter the Group had 3210 employees (2909). Compared with the previous quarter, this was a decrease of 74 persons. Absenteeism due to illness was 6.4 percent (6.7) in the third quarter. Investments, balance sheet and financing Investments totalling NOK 51 million (59) were made in the third quarter, and total investments for the first three quarters of the year amounted to NOK 142 million (132). Except for the new production line for modules, most investments involved maintenance and upgrades designed to increase processing efficiency for businesses in the Moelven Timber Group. Moelven Norsälven AB in Sweden started up production with new equipment in the third quarter, and the new facility at Moelven Telemarksbruket AS was opened on 14 October. Significant investments have also been made to improve fire safety for businesses in the Moelven Timber Group. At the end of the third quarter, the Group had assets totalling NOK 3,039 million (3007) and capital employed totalling NOK 2,042 mill (1733). The increase is due to the acquisition of the Are Group and Mobilarum. The amount of tied-up capital has been reduced, which is a development that is expected to continue in the fourth quarter as a result of normal seasonal variations. The amount of tied up capital is expected to increase again in the first quarter of next year. Equity at the end of the third quarter totalled NOK 1101,8 mill (987,0), corresponding to an equity ratio of 36.3 per cent (38.4). The reduction compared to the year before - is due to the recent acquisitions. The goal of the Board is to increase the equity ratio gradually to approximately 40 per cent. Net interest-bearing debt totalled NOK 941 million (746), and the liquidity reserve was NOK 800 million (505). Prospects The Board expects the commercial building market to remain at the current level during the fourth quarter and into next year, while the sale of industrialised, module-based concepts - the primary focus of the Moelven Building Group - should perform somewhat better than the overall market. The high level of market activity relating to apartment Moelven Building Group 3 rd Quarter Nine months Operating revenues Moelven Building Group , ,241.5 Modular Buildings Modular System Interiors Operating profit/loss Moelven Building Group Modular Buildings Modular System Interiors MOELVEN INDUSTRIER ASA QUARTERLY REPORT 3/2004

6 SENDER: Moelven Industrier ASA P.O. Box 134, N-2391 Moelv Tel Fax Internett: HUGIN Online: building construction is also expected to continue. The market for wood-based construction materials, which in large part is used for rehabilitation of housing, is expected to remain at a satisfactory level, while prices for certain types of industrial timber are expected to continue to remain disappointingly low. Overall, the Board expects that profit this year for the Group will be somewhat lower than last year. Moelv, 18 October 2004 Board of Directors, Moelven Industrier ASA Moelven Industrier ASA is a Scandinavian industrial group that supplies products and associated services to the Scandinavian building market. The Group's businesses employ over persons and have a total annual turnover of some NOK 5.6 billion. The Group's close to fortyfive business units are organised into two business areas: the Moelven Timber Group and the Moelven Building Group. Moelven is a member of Finnforest Corporation Oyj. Finnforest Corporation, owned by Metsäliittogroup, is Europe's biggest international mechanical wood group with a turnover of EUR 1.8 billion. Moelven Industrier ASA is Finnforest's majority-owned Norwegian-based subsidiary. Operations are grouped into two industrial divisions: Engineered Wood and Solid Wood. Finnforest's main geographical markets are the UK, Germany, France, Scandinavia and Finland, Its customers include industrial end users, DIY stores, building suppliers and timber merchants, building contractors and developers. Finnforest Corporation operates in over 20 countries and employs over 7,600 people. 6 MOELVEN INDUSTRIER ASA QUARTERLY REPORT 3/2004