Quarterly report 2/2004

Transcription

1 Quarterly report 2/2004 Operating revenues increase to NOK million (1306.7) The new businesses Are and Mobilarum are performing as anticipated Operating profit in the second quarter totalled NOK 36.4 million (45.0), which is a significant improvement compared to the three previous quarters The sale of the Group's own shares boosts equity by NOK 35.6 million The non-residential building market in Norway and Sweden has stabilised at a low level of activity The market for sawn white wood timber should remain stable in the European markets, while the prospects for red wood is somewhat less favourable The Board anticipates profit for the third quarter to be somewhat higher than in previous years One of five new apartment buildings in Ålesund built during the seqond quarter using Moelven building systems.

2 Profit and Loss Account Operating revenues 1, , , , , , , ,618.4 Depreciation Cost of goods sold 1, , , , , ,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 -0, Net profit Proforma, incl. Are-Group 2003 and 2002 Operating revenues 1,573 1,492 1,421 2,980 2,825 2,689 5,564 5,239 Depreciation Operating profit (in %) Net Operating margin assets 3,126 3,105 2,934 3,126 3,105 2,934 2,829 2,615 Equity (in %) No. of employees 3,195 3,282 3,409 3,284 3,257 3,424 3,150 3,420 Balance Sheet Change in 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 -96, , , , , ,221.7 equity and liabilities , , , , ,140.2 Net interest bearing debt , Capital employed ,138 1,774 1,701 1,594 1,418 Net working capital , Changes in total equity for the Group Opening balance 1, ,8 888, ,5 878,9 918,5 878,9 Profit/loss ,9 30, ,4 40,2 31,9 74,2 from share issue 0,0 0,0 0, ,0 0,0 0,0 0,0 Foreign currency translation ,6-0, ,5-0,6 13,0-2,8 Provisions for dividend 0.0 0,0 0,0-1,1 0,0 0,0-17,9-29,8 Own shares ,0 0, ,0 0,8 0,0 0,8 Change in reclassified assets 4.5 0,0 0, ,0 0,0-22,2 0,0 Minority interests -0,1 0,3-0, ,2-0,6 0,2-2,8 Changes for year/period ,8 30, ,1 39,8 5,0 39,6 equity 1, ,6 918,7 1, ,6 918,7 923,5 918,5 *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 2/2004

3 Cash Flow Statement Change in 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 0, , , Current assets 0, , , Liquid funds 0, , , assets 0, , , Equity 0, , , Interest bearing debt 0, , , Interest free debt 0, , , capital 0, , , : 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 3,195 2,982 3, ,957 3,124 2,853 3,108 Number of shareholders , , Average number of shares MOELVEN INDUSTRIER ASA QUARTERLY REPORT 2/2004

4 Directors report Highlights On 1 June, Agder-Telemark Skogeierforening and Haldenvassdragets Skogeierforening purchased 4.5 per cent and 3.0 per cent, respectively, of the shares in the Moelven Group, while Glommen Skogeierforening and Mjøsen Skogeierforening expanded their ownership stake to 17.8 per cent and 9.4 per cent, respectively. The Finnish Metsäliitto Andelslag and its subsidiary Finnforest Oyj maintain their majority interest with a total of 65.2 per cent of the shares. No changes have been made to the company's corporate assembly or Board of Directors as a result of the changes in share ownership. Demand for the Group's products has remained relatively stable in the second quarter. The non-residential building market is expected to remain weak in large parts of Scandinavia, and will have a particular impact on businesses in the Moelven Building Group. The activity level in the residential repair and maintenance sector is satisfactory both in Norway and Sweden, and this is of major importance for the Group's planing mill and laminated timber factories. For the sawmills, the availability of raw materials and the relationship between prices for raw timber and prices for processed wood products is critical for profitability. Low logging activity in large parts of Norway and a disproportion between the high price for red wood timber in Sweden and the low price for finished wood products in Europe, have been the two greatest challenges for this part of the business in the second quarter. The market situation for white wood products has been normal. In the course of the past years, the Group has invested considerably in fire-prevention measures, involving considerable efforts to change attitudes and improve routines, combined with an investment programme in technical fire prevention equipment totalling NOK 45 million. These efforts have increased the availability of more reasonable insurance rates, and a new insurance agreement has been signed on better terms that will take effect in the third quarter Second quarter profits for Group Operating revenues in the second quarter increased to NOK million, compared to NOK million for the same period last year. The increase is due both to the acquisition of businesses and due to increased business activity in the existing facilities. Operating profit in the second quarter was NOK 36.4 million (45.0), which is a significant improvement compared to the three previous quarters. Compared to the same period last year, the sawmills are still operating at a low level of profitability, while the planing mills in Moelven Wood posted a significant increase in profits. Net financial expenses totalled NOK 13.2 million (9.4). The increase in financial expenses is primarily due to higher interest-bearing debt as a result of acquired businesses. Profit after taxes totalled NOK 15.1 million (24.9), corresponding to NOK 0.12 per share (0.21). Operating revenues after the first six months of the year were NOK million (2450.1), with operating profit at NOK 41.8 million (75.6) and profit after taxes at NOK 14.1 mill (43.4). Business areas Moelven Timber Group Operations in the businesses in the former Are Group, which became part of Moelven from 1 January this year, have met the expectations. The internal consolidation of the Group's businesses is continuing as planned, and the closing of plants in Gol, Hen and Kværnum has been carried out without having to reduce the overall activity level in the Moelven Timber Group. Laminated timber production in the second quarter has been concentrated at three instead of four plants. The fourth plant (one of the Norwegian plants) was sold to Moelven Massivtre AS, in which Moelven has a 47 per cent ownership stake. The plant will commercialise the production and sale of solid wood elements and will according to plans start production in October 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 4, MOELVEN INDUSTRIER ASA QUARTERLY REPORT 2/2004

5 Operating revenues in the second quarter for the Moelven Timber Group totalled NOK million (976.2), with operating profit at NOK 36.4 million (42.4). Both the planning mills at Moelven Wood, as well as the laminated timber business, have had satisfactory progress. The sawmills in the Moelven Timber Group, however, generated a lower profit, which in large part was due to an imbalance in the costs for raw materials and the prices for finished products made at the sawmills in Sweden processing red wood. In the first six months of the year, operating revenues totalled NOK million (1781.3), and operating profit was NOK 50.3 million (77.4). Moelven Building Group The vacancy rate for offices in the largest cities in Sweden and Norway is still quite high and the demand for new non-residential buildings has stabilised at a low level. The need to adapt capacity has been largest in the area modular system interiors. The Moelven Building Group has experienced an increase in deliveries as a result of the acquisition of businesses and increased deliveries for multi-family housing. After the acquisition of Mobilarum, the Group now produces building modules at four plants in Sweden. The work coordinating operations between the plants, which will involve some degree of product specialisation, is progressing as planned, and profitability at the Swedish module factories is improving. Operating revenues for the Moelven Building Group in the second quarter were NOK million (336.0), and operating profit totalled NOK 9.2 million (11.8). Both Moelven Modular Buildings and Moelven Modular System Interiors posted a somewhat weaker final result. Operating revenues the first six months were NOK million (680.7), and operating profit totalled NOK 9.6 million (18.8). 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 second quarter totalled NOK 20.9 million (11.8), with an operating loss of NOK 9.2 mill (-9.0). For the first six months, operating revenues totalled NOK 36.6 million (24.1), with an operating loss of NOK 18.1mill (-20.6). Employees At the end of the second quarter, the Group had 3284 employees (2957). The number of employees has increased by 29 in the course of the second quarter, which is due to normal seasonal variations and a somewhat higher level of contract activities in parts of the Moelven Building Group. Absenteeism due to illness was 6.4 per cent (6.8) in the second quarter. Investments, balance sheet and financing Investments totalling NOK 57 mill (48) were made in the second quarter, primarily in the area of maintenance. The largest single investment was linked to the construction of Telemarksbruket, which is scheduled to be completed by the beginning of the fourth quarter. At the end of the second quarter, the Group had assets totalling NOK million (2580.3) and employed capital totalling NOK 2138 mill (1774). The increase is due to the acquisition of the Are Group and Mobilarum. The amount of capital employed has been reduced somewhat in the second quarter, which is a development that will continue as a result of normal seasonal variations through the last six months of the year. In connection with the changes in ownership structure, the Group sold own shares, which strengthened equity by NOK 35.6 million. Equity at the end of the second quarter totalled NOK mill (982.6), corresponding to an equity ratio of 35.1 per cent (38.1). The reduction compared to the year before is the product of the recent acquisitions. The goal of the Board is to increase the equity ratio gradually to approximately 40 per cent. 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 2/2004

6 SENDER: Moelven Industrier ASA P.O. Box 134, N-2391 Moelv Tel Fax Internett: HUGIN Online: Net interest-bearing debt totalled NOK 1041 million (791), and the liquidity reserve was NOK mill (440.6). Prospects The Board expects that the non-residential building market will remain slow during the second half of the year. The Moelven Building Group has focussed on industrialised, module-based concepts and the sale of these should perform somewhat better than the overall market. The market for wood-based construction material, which in large part is used for repair and maintenance of residential building, is expected to remain at a satisfactory level, while prices for certain types of sawn red wood timber is expected to continue to be low. Overall, the Board expects that profit this year for the Group will be somewhat lower than last year. Board of Directors, Moelven Industrier ASA Moelv, 23 July 2004 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 2/2004