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2014-02-10 08:00:00 CET 2014-02-10 08:01:01 CET REGULATED INFORMATION Tikkurila Oyj - Financial Statement ReleaseTikkurila's Interim Report for January-December 2013 - Continued solid financial performanceTikkurila Oyj Stock Exchange Release February 10, 2014 at 9:00 a.m. (CET+1) Tikkurila's Interim Report for January-December 2013 - Continued solid financial performance Full-year 2013 highlights * Revenue decreased by 2.6 percent to EUR 653.0 million (2012: EUR 670.4 million). * Operating profit (EBIT) excluding non-recurring items was EUR 72.6 (73.7) million, i.e. 11.1 (11.0) percent of revenue. * Operating profit (EBIT) was EUR 71.5 (66.3) million, i.e. 10.9 (9.9) percent of revenue. * EPS was EUR 1.14 (0.92). Diluted EPS was EUR 1.13 (0.92). * The Board proposes a dividend of EUR 0.80 (0.76) per share, which corresponds to about 70.5 (82.4) percent of the Group's 2013 earnings per share. * Cash flow after capital expenditure was EUR 66.9 (50.3) million. October-December 2013 highlights * Revenue decreased by 4.0 percent to EUR 116.7 million (10-12/2012: EUR 121.5 million). * Operating loss (EBIT) excluding non-recurring items was EUR -4.2 (-3.2) million, i.e. -3.6 (-2.7) percent of revenue. * Operating loss (EBIT) was EUR -5.2 (-4.0) million, i.e. -4.4 (-3.3) percent of revenue. * EPS was EUR -0.11 (-0.10). Revenue and EBIT estimates for 2014 * Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level. Key Figures (EUR million) 10-12/2013 10-12/2012 Change % 1-12/2013 1-12/2012 Change % ------------------------------------------------------------------------------- Income statement Revenue 116.7 121.5 -4.0% 653.0 670.4 -2.6% Operating profit (EBIT), excluding non- -4.2 -3.2 -30.5% 72.6 73.7 -1.5% recurring items Operating profit (EBIT) margin, 11.1% 11.0% excluding non- -3.6% -2.7% recurring items, % Operating profit -5.2 -4.0 -28.6% 71.5 66.3 7.7% (EBIT) Operating profit -4.4% -3.3% 10.9% 9.9% (EBIT) margin, % Profit before -6.1% -4.2 -44.8% 67.0 59.3 13.1% taxes Net profit -4.8 -4.5 -6.7% 50.1 40.7 23.1% Other key indicators EPS*, EUR -0.11 -0.10 -6.7% 1.14 0.92 23.1% ROCE, % rolling 23.5% 21.0% 23.5% 21.0% Cash flow after capital 11.4 9.8 16.6 % 66.9 50.3 33.2% expenditure Net interest- bearing debt at period-end 48.6 80.8 -39.8% Gearing, % 23.4% 40.6% Equity ratio, % 50.1% 45.9% Personnel at 3,133 3,223 -2.8% period-end Comments by Erkki Järvinen, President and CEO:"There were no significant changes in the market environment in the last quarter of the year. Demand continued to be fairly weak, which manifested as lower sales volumes in all our main markets, compared to the comparison period. In Russia, consumer confidence weakened during the last months of the year, whereas in our other markets, confidence strengthened slightly. The decrease in sales throughout the year was due to the uncertain economic situation, decline in construction, slower home sales, and cautious spending by consumers. Economic growth in our key markets was fairly weak, estimated at less than one percent. Furthermore, weakened currencies reduced our euro-denominated revenue. On the other hand, the favorable development of the sales mix and price increases implemented in certain markets had a positive impact on our revenue which in total was slightly lower than the level of the comparison period. In 2013, operative profitability was at the same, excellent level than in the comparison period. Profitability was supported, in particular, by the restructuring measures in recent years, streamlining of operations and the expense level which was lower than in the comparison period. In Russia and Scandinavia, marketing investments were higher than in the comparison period. The operating profit margin improved clearly in all reporting segments, with the exception of SBU East where the result was burdened by decreased revenue, a higher expense level and weaker ruble. We will continue measures to increase revenue and the reorganization of the distribution channel solutions in Russia in 2014. In addition, we will invest in improving the service level and increasing cost effectiveness, which may call for additional investments in production capacity modernization, among other things. We will also pursue increased innovativeness, faster lead times, and increased utilization of digital solutions in all our operations. We have been modifying and simplifying our structures in recent years. These measures have also supported good profitability in our operations in the challenging economic situation. We also have the necessary financial prerequisites to develop our business operations through mergers, acquisitions and joint ventures. Due to the weak short-term economic outlook and recent adverse development in foreign exchange rates, we expect our revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level." Outlook for 2014 The economic situation in Europe is expected to improve moderately in 2014. Considerable regional differences are forecasted between Tikkurila's different markets in private consumption and construction volumes in 2014, but overall growth is estimated to remain rather weak. The GDPs in Tikkurila's key markets, i.e. Russia, Sweden, Finland, and Poland, are expected to grow approximately two percent, on average, in 2014. Based on these estimates, no considerable change is expected in the demand for Tikkurila's products compared to last year. Cost inflation is expected to continue, and investments in sales, marketing and innovation activities are forecasted to increase the fixed cost level. Raw material prices are forecasted to remain stable. Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level. Board of Directors' proposal for the distribution of profit Tikkurila Oyj's retained earnings totaled EUR 100.3 million on December 31, 2013. The Board proposes to the Annual General Meeting that a dividend of EUR 0.80 per share will be distributed for the year ended on December 31, 2013, and that the rest be retained in the unrestricted equity. The proposed dividend totals about EUR 35.3 million, which corresponds to approximately 70.5 percent of the Group's net profit for 2013. It is proposed that the record date for the payment of the dividend will be March 28, 2014, and that the dividend will be paid on April 9, 2014. Press conference and webcast Tikkurila will hold a press conference regarding its Financial Statement Release for 2013 for the media and analysts today on February 10, 2014, at 12:00 p.m. (CET+1) in the Akseli Gallén-Kallela Cabinet at the Hotel Kämp, (address Pohjoisesplanadi 29, 00100 Helsinki). The conference will be held in Finnish language. Attendees will be served lunch at the conference premises starting at 11:30 (CET+1). The result will be presented by Erkki Järvinen, President and CEO, and Jukka Havia, CFO. A live webcast, conducted in English, will be organized on February 10, 2014 at 3:00 p.m. The live webcast will be available at www.tikkurilagroup.com. The participants can also join a telephone conference that will be arranged in conjunction with the live webcast. The telephone conference details are set out below: +358 9 2313 9201 (Finnish callers) +44 20 7162 0077 (UK callers) +1 334 323 6201 (US callers) Participant code: 940697 An on-demand version of the webcast will be available at www.tikkurilagroup.com/investors later during the same day. The stock exchange release and presentation materials will be available before the event at www.tikkurilagroup.com/investors. Tikkurila Oyj Erkki Järvinen, President and CEO For further information, please contact: Erkki Järvinen, President and CEO Mobile +358 400 455 913, erkki.jarvinen@tikkurila.com Jukka Havia, CFO Mobile +358 50 355 3757, jukka.havia@tikkurila.com Minna Avellan, Manager, Investor Relations Mobile +358 40 533 7932, minna.avellan@tikkurila.com For 150 years already, Tikkurila has provided consumers and professionals with user-friendly and sustainable solutions for surface protection and decoration. Tikkurila wants to be the leading paint company in the Nordic area as well as in Russia and other selected Eastern European countries. - Tikkurila inspires you to color your life. www.tikkurilagroup.com [HUG#1760276] |
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