2011-02-11 08:00:00 CET
2011-02-11 08:01:01 CET
REGULATED INFORMATION
Tikkurila Oyj - Financial Statement Release
Tikkurila's Financial Statement Release, January 1-December 31, 2010 - Revenue increased and operating profit improved clearly
Tikkurila Oyj
Stock Exchange Release
February 11, 2011 at 9:00 a.m. (CET+1)
Full year 2010 highlights
* Revenue for 2010 increased by 11.0 percent in comparison to the previous
year and was EUR 588.6 million (2009: EUR 530.2 million).
* Operating profit (EBIT) excluding non-recurring items was EUR 59.7 (50.2)
million, i.e. 10.1 (9.5) percent of revenue.
* Cash flow after capital expenditure was EUR 51.4 (45.3) million.
* EPS was EUR 0.83 (0.63).
* The Board proposes a dividend of EUR 0.70 per share, which corresponds to
about 84 percent of Group's 2010 earnings per share.
October-December 2010 highlights
* Revenue for the last quarter increased by 15.1 percent in comparison to the
previous year and was EUR 113.3 million (10-12/2009: EUR 98.4 million).
* Operating loss (EBIT) excluding non-recurring items was EUR -1.4 (-4.6)
million, i.e. -1.2 (-4.7) percent of revenue.
* EPS was EUR -0.10 (-0.05).
Key Figures
(EUR million) 10-12/2010 10-12/2009 Change % 1-12/2010 1-12/2009 Change %
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Income statement
Revenue 113.3 98.4 15.1% 588.6 530.2 11.0%
Operating profit
(EBIT),
excluding non-
recurring items -1.4 -4.6 69.7% 59.7 50.2 19.0%
Operating profit
(EBIT) margin,
excluding non-
recurring items, % -1.2% -4.7% 10.1% 9.5%
Operating profit
(EBIT) -1.0 -4.6 77.5% 60.8 47.7 27.3%
Operating profit
(EBIT) margin, % -0.9% -4.7% 10.3% 9.0%
Profit before tax -3.8 -6.4 40.4% 52.0 35.7 45.5%
Net profit -4.4 -2.2 -104.6% 36.5 27.8 31.4%
Other key indicators
EPS*, EUR -0.10 -0.05 -100.0% 0.83 0.63 31.7%
ROCE, % p.a. 19.2% 15.7% 19.2% 15.7%
Cash flow after
capital
expenditure 14.0 6.9 101.1% 51.4 45.3 13.4%
Net interest-
bearing debt
at period-end 78.6 129.5 -39.3%
Gearing, % 41.4% 90.0%
Equity ratio, % 41.1% 35.7%
Personnel at
period-end 3,468 3,538 -2.0%
* As calculated by using the amount of shares outstanding of 44,108,252.
Comments by President and CEO Erkki Järvinen"I am happy with the year 2010. Our revenue grew thanks to higher sales volumes
and exchange rate fluctuations. Taking into account the cost pressures related
to raw materials, I consider our improved profitability to be our biggest
achievement of the year. In line with our medium-term target, 2010's operating
profit margin increased to 10 percent. Our gearing clearly decreased, while
return on capital employed improved. Our efforts were supported by economic
recovery in our main markets, our strong product and service selection and
improved efficiency in our operations. We want to thank our customers, partners
and employees for the good results.
Among our strategic business units, the biggest growth was seen in East and
Scandinavia, where sales volumes improved significantly and operating profits
grew by nearly one third from last year. In these areas we succeeded in
transferring the increased raw material costs to our sales prices.
SBU Central Eastern Europe's profitability was clearly weaker than that of the
other business units. This is due to the tough competition in the area, as well
as the higher relative share of industrial coatings. In addition, many units in
the area are in the start-up phase. We aim to improve our position in Central
Eastern Europe by enhancing the cost-efficiency of our operations, as well as
through organic growth and selected acquisitions.
Our main challenges last year were related to the price and availability of raw
materials. We are now focusing on securing sufficient raw material deliveries by
expanding our delivery network where possible and adapting our raw material base
where applicable."
Outlook for 2011
GDP growth is expected to continue in the key market areas of the Tikkurila
Group in 2011. Further raw material cost increases are predicted. The suppliers
for the paint industry will probably not be able to fully match the increasing
demand, due to some of the capacity shutdowns carried out during the recession.
In 2011, Tikkurila expects revenue growth to exceed the average GDP growth in
Tikkurila's main market areas. In spite of the rising raw material prices,
Tikkurila expects EBIT margin as a percentage of revenue to stay at the same
level as in 2010. These estimates are based on the assumption that foreign
exchange rates will stay close to the end of 2010 level and that the gradual
economic recovery of Tikkurila's key markets will continue. The estimates are
also based on Tikkurila's current business structure.
Board of Directors' proposal for the distribution of profit
Tikkurila Oyj's retained earnings totaled EUR 71.1 million on December
31, 2010. The Board proposes to the Annual General Meeting that a dividend of
EUR 0.70 per share will be distributed for the year ended on December 31, 2010
and that the rest be retained in the unrestricted equity. The proposed dividend
totals EUR 30.9 million, which corresponds to approximately 84 percent of the
Group's net profit for 2010.
Disclosing procedures of financial reviews
Tikkurila Oyj follows the new disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority, and from now on
discloses relevant information (i.e. information likely to have a material
effect on the value of Tikkurila's share price) related to its periodic
information reviews via Stock Exchange Release. Tikkurila's Financial Statement
Release is attached to this release and is also available on company's website
at www.tikkurilagroup.com/fi.
Press conference and conference call
Tikkurila will hold a press conference about its Financial Statement Release for
2010 for the media and analysts today on February 11, 2011 starting at 12.00
noon Finnish time at hotel Kämp's Mirror Room (address: Pohjoisesplanadi
29, 00100 Helsinki). The conference will be held in Finnish. Attendees will be
served lunch in connection with the conference, starting at 11.30 am Finnish
time. The Financial Statements will be presented by Erkki Järvinen, President
and CEO, and Jukka Havia, CFO.
A conference call in English will be held at 3.00 pm Finnish time. Participants
will be asked for their full name and conference ID, which is 42448865. In order
to participate in the conference call, please dial in 5-10 minutes before the
beginning of the event as follows:
From Finland (free call): 0800 112 363
From Russia (free call): 8108 002 097 2044
From Sweden (free call): 0200 890 171
From USA (free call): 1866 966 9439
From UK (free call): 0800 694 0257
UK Standard International (all countries): +44 (0) 1452 555 566
A stock exchange release and presentation material will be available before the
events at www.tikkurilagroup.com/investors. A recording of the conference call
will be available on Tikkurila's website later.
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
Susanna Aaltonen, Group Vice President, Communications & IR
Mobile +358 40 593 4221,susanna.aaltonen@tikkurila.com
Tikkurila provides consumers, professionals and the industry with user-friendly
and environmentally sustainable solutions for protection and decoration.
Tikkurila is a strong regional player that aims to be the leading paint company
in the Nordic area and Eastern Europe including Russia. - Tikkurila inspires you
to color your life.
www.tikkurila.com
[HUG#1487823]
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