Quarterly Report 1/2004

Transcription

1 Quarterly Report 1/2004 Operating revenues increased in 1 th quarter to NOK mill. Operating profit decreased to NOK 5.4 mill. The operations of the Moelven Timber Group have been affected by the imbalance between raw material costs and finished goods prices for the Swedish sawmills. Moelven Building Group has experienced low levels of activity in the commercial building market in both Sweden and Norway. The Are Group has been included in the Moelven Timber Group accounts from 1 January The acquisition of the modular building manufacturer Mobilarum AB is included in the Moelven Building Group's accounts from 15 March 2004.

2 Profit and Loss Account 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 Operating revenues 1,407 1,333 1,268 5,564 5,239 Depreciation Operating Profit Net Operating Profit Assets 3,170 3,031 2,985 2,829 2,615 Equity in % No. of Employees 3,105 3,307 3,394 3,150 3,420 Balance Sheet Per Intangible assets Tangible assets 1, Financial assets fixed assets 1, , , Stocks 1, Receivables and deposits current assets 1, , , , ,151.7 assets 3, , , , ,140.2 Share capital* Other equity and capital equity 1, Long-term liabilities 1, Current liabilities liabilities 2, , , , ,221.7 equity and liabilities 3, , , , ,140.2 Net interest bearing debt 1, Capital employed 2,202 1,661 1,691 1,594 1,418 Working capital 1,383 1, Changes in total equity for the Group Opening balance Profit/loss from capital expansion 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 2,846,334 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 1/2004

3 Cash Flow Statement Net cash flow from operations Cash from operating profit 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 Add. net investm. as a result of acquisitions and sales: Current assets Fixed 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 revenues Operating profit Quarterly in Quarterly in Key figures 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 3,255 3,007 3,094 2,853 3,108 Number of shareholders , Average number of shares MOELVEN INDUSTRIER ASA QUARTERLY REPORT 1/2004

4 Directors report Highlights Completing the acquisition of the Are Group was the single biggest event in the first quarter, and the timber industry companies that were previously part of the Are Group have been included in the Timber Group business area as well as in the Group accounts from 1 January In the first quarter, an acquisition was also completed in the Building Group business area. The company acquired was the modular building manufacturer Mobilarium AB, which has been included in the accounts from 15 March. This company has production facilities in Kil and Torsby in Sweden, has an annual turnover of around SEK 160 millions and has 150 employees. For the Moelven Timber Group, the market in the first quarter has seen a certain degree of imbalance for the sawmills in Sweden between the prices of raw materials and those of processed goods, whilst the Moelven Building Group has experienced low levels of activity in the commercial property market in both Norway and Sweden. Demand for wood-based building materials for rehabilitation, conversion and extension of houses has been normal for the time of year. The market conditions, which are extremely difficult in some areas, combined with significant internal restructuring, have as in the previous quarter resulted in unsatisfactory profitability. However, the Board expects results to improve in the coming quarters. To ensure that the Group has the necessary financial flexibility at a time of significant expansion in spite of the challenging market conditions, 10.5 million new shares have been issued, whilst the number of own shares held by the company has been reduced by 0.2 millions. Both the new issue and the sale of own shares were carried out at a price of NOK per share, which in total has given the Group NOK millions of new equity. Two long-term loans have also been taken up. In the view of the Board, the new financing means that the Group's liquidity reserve will be satisfactory through to the end of 2008, assuming normal operating conditions. Group results for the first quarter Operating revenues in the first quarter were NOK millions, compared with NOK millions the previous year. Of the increase NOK 190 millions was due to acquisitions. If the acquisitions had been carried out a year earlier, the comparable operating revenues in 2003 would have been NOK 1333 millions. The reduction in operating revenues on a pro-forma basis is primarily due to lower activity in the commercial property market. The operating profit was NOK 5.4 millions (30.6). The biggest reduction was at the sawmills in the Moelven Timber Group and at the Moelven Building Group. Net financial expenses were NOK 13.0 millions (5.6). The increase was mainly due to higher interest-bearing debt as a result of acquisitions and increased working capital. The loss after financial expenses was NOK 7.6 millions (profit of 25.0). It has been calculated a tax income of NOK 6.6 millions in the first quarter. This is primarily due to the fact that it has been decided that losses that can be carried forward in certain Swedish businesses that were acquired in 1998 will allow to claim a deduction on future income. The tax expense in the corresponding period last year was NOK 7.0 millions. The loss after taxation in the first quarter was NOK 1.0 mill (profit of 18.4), corresponding to a loss of NOK 0.01 per share (profit of 0.16). Business areas Moelven Timber Group The Moelven Timber Group is made up of three divisions: Moelven Timber (sawmills), Moelven Wood (planing mills) and Moelven Laminated Timber (laminated timber factories). A common feature of these divisions is that they are involved in the mechanical processing of timber, and that the majority of their products, directly or indirectly, become wood-based building materials. Operating revenues in the first quarter were NOK mill (805.1) Moelven Timber Group 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 1/2004

5 and the operating profit was NOK 13.9 mill (35.0). Of the increase in operating revenues, NOK 190 millions was due to the acquisition. If the acquisition had been carried out a year earlier, the comparable operating revenues for 2003 would have been NOK 995 millions. The reduction in the operating profit was primarily due to a worsening of the relationship between raw material costs and processed goods prices, particularly for the Swedish sawmills. For the Norwegian sawmills, reduced activity in the Norwegian forestry industry has resulted in less access to raw materials. As this situation is expected to continue, it has unfortunately been necessary to make permanent adjustments to capacity, and a decision has been taken to close down the Kværnum Bruk sawmill. The planing mills in Moelven Wood have experienced normal demand for wood-based building materials. For normal seasonal reasons, activity has been low for parts of the first quarter, but has increased in the course of the spring. Price increases have been implemented for planed goods, which will take effect on 1 April. The laminated timber businesses have, like the planing mills, experienced normal demand in the domestic markets, both for standard goods sold through the trade and for projects delivered directly to contractors and clients. The restructuring work that has been implemented in recent years has also resulted in a significantly better cost position. This will be further improved when one of the Norwegian laminated timber factories is converted to the production of solid wood elements. This will be done in collaboration with Viken Forest Owners' Association and Krødherad municipality, and will be completed in the course of the second quarter. Moelven Buildling Group Moelven Building Group is made up of two divisions: Moelven Modular Buildings and Moelven Modular System Interiors. Both divisions supply system solutions for the property market as an industrialised alternative to traditional on-site production. The Building Group business area also covers supplies of electrical installations, either in connection with supplies to the business area's other system solutions, or as independent supplies, primarily to the commercial property market. Operating revenues in the first quarter were NOK millions (344.7) and the operating profit was NOK 0.4 millions (7.0). During the quarter, the land-based commercial property market in both Norway and Sweden was extremely weak. This has had the greatest impact on new commercial properties. The most important adjustments to the operating models of several of the businesses, which were started in 2003, will be completed in the course of the beginning of the second quarter of Demand is showing signs of stabilising, but at a low level. Other activities The part of the Group that is not part of the industrial core businesses of the Moelven Timber Group and Moelven Building Group is organised in a separate business area for other activities. This business area consists of two holding companies in Norway and Sweden respectively, which are responsible for the Group's joint services in the areas of information, human resources, information and communication technology, research and development, economics, insurance and finance. This business area also covers the management of assets that are not connected with operations. Operating revenues in the first quarter were NOK 15.7 millions (12.3) and the operating loss was NOK 8.9 millions (11.4). Employees At the end of the first quarter the Group had 3255 employees (3007). In the first quarter, the number of employees has increased by 402 from the year-end, which is due to acquisitions. Of these employees, 1678 are employed in Norway (1686 at the year-end) and 1558 in Sweden (1147 at the year-end). In the first quarter, absenteeism due to illness was 6.72 percent (7.24), corresponding to complete working days (12874). Investments, balance sheet and financing During the first quarter, NOK 33 millions (24) was invested in existing operations. In addition to investments in existing operations, fixed assets worth NOK millions have been added through acquisitions. At the end of the first quarter, the Moelven Building Group 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 1/2004

6 SENDER: Moelven Industrier ASA P.O. Box 134, N-2391 Moelv Tel Fax Internett: HUGIN Online: Group had total assets of NOK mill (2462.5) and the capital employed was NOK 2202 millions (1661). Of the Group's total assets, 53 percent are related to activities in Sweden, and the balance sheet figures are therefore affected by exchange rate fluctuations between the Swedish and Norwegian currencies. In the first quarter, cash flow from operations was NOK 34.9 millions (66.1), corresponding to NOK 0.28 per share (0.57). Shareholders' equity was NOK millions (940.8), corresponding to 32.9 percent (38.2). The equity ratio is lower than the long-term goal of the Group. This is primarily due to recent acquisitions and seasonally high tied-up working capital. Net interest-bearing debt was NOK 1116 (720) and the liquidity reserve was NOK millions (498.2).. Prospects The Board expects that the market for housing rehabilitation, conversion and extension in Scandinavia will be stable or improve somewhat in the course of This is an important market for the Group, and particularly for the planing mills and the laminated timber operations. The commercial property market in Scandinavia is expected to remain weak, whilst the modular building operations in Norway will have the opportunity of experiencing positive knock-on effects from oil and gas developments. Prices for industrial whitewood and redwood in Europe are expected to remain stable, with the possibility of a slight improvement for whitewood products in the second half of the year. The worsening of the raw material situation for the Norwegian sawmill industry that has occurred over recent years is expected to continue. Jessheim, 27 April 2004 Board of 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 1/2004