2007-07-20 08:30:00 CEST
2007-07-20 08:30:00 CEST
REGULATED INFORMATION
Tulikivi Oyj - Half Year financial report
Interim Report 01-06/2007
Interim Report, January-June/2007
- The Tulikivi Group's sales were EUR 36.6 (37.2) million.
- The Group's profit before taxes was EUR 1.1 (3.3) million.
- The order book amounted to EUR 9.1 (12.6) million at period's
end.
- Fireplace exports have developed according to plan, with the
exception of exports to Germany.
Sales and result
The Group's sales amounted to EUR 36.6 million (EUR 37.2 million
in January-June 2006). The Fireplaces Business posted sales of EUR
31.4 (32.7) million, the Natural Stone Products Business sales of
EUR 4.0 (3.8) million and Other Operations sales of EUR 1.2 (0.7)
million. The comparable sales of the Fireplaces Business - that
is, exclusive of ceramic fireplace sales in Q1 - amounted to EUR
27.8 million.
The share of sales accounted for by Finland was EUR 18.7 (17.2)
million, representing 51.1 (46.2) per cent. Exports accounted for
EUR 17.9 (20.0) million. The largest countries for exports were
France and Germany.
The Group's operating profit was EUR 1.3 (3.4) million. The
Fireplaces Business had an operating profit of EUR 2.8 (5.0)
million, the Natural Stone Products Business an operating profit
of EUR 0.3 (0.1) million and Other Operations an operating loss of
EUR 1.8 (1.7) million.
Consolidated profit before taxes was EUR 1.1 (3.3) million.
Earnings per share amounted to EUR 0.02 (0.07).
The sales of the Fireplaces Business declined due to weaker demand
for fireplaces in Germany and the launch of the new distribution
channel in Finland. Fireplace demand in Germany has been
exceptionally weak in the first part of the year, which is evident
in the decline in both fireplace exports to Germany and total
exports of stone lining for heaters. In addition, the start-up
expenses of the new plant cut into consolidated profit.
Financing and investments
The Group's financial position is good. The Group's working
capital increased by EUR 4.8 million during the review period,
mainly due to the decline in trade payables and accrued
liabilities. Working capital has also been tied up in products
slated for delivery in the autumn. Due to the growth in working
capital, the cash flow from operating activities before
investments became negative, EUR -2.1 (4.0) million. The Group's
net financial expenses amounted to EUR 0.2 (0.2) million.
The equity ratio was 42.6 per cent (44.3 per cent at June 30,
2006). The ratio of interest-bearing net debt to shareholders'
equity, or gearing, was 75.1 (58.5) per cent. Current ratio was
1.6 (1.7). Shareholders' equity per share amounted to EUR 0.76
(0.74).
The Group's investments totalled EUR 3.2 (17.2) million during the
report period. The major investments during the review period were
earmarked for production and quarrying machines, opening new
quarries and the distribution channel change.
Resolutions of the Annual General Meeting
Dividend payout
Tulikivi Corporation's Annual General Meeting held on April 13,
2007, resolved to pay a dividend of EUR 0.090 on Series A shares
and EUR 0.088 on Series K shares.
Administrative bodies
Bishop Ambrosius, Mr. Juhani Erma, Mr. Eero Makkonen, Mrs. Maarit
Toivanen-Koivisto, Mr. Heikki Vauhkonen, Mr. Reijo Vauhkonen and
Mr. Matti Virtaala were elected as members of the Board of
Directors of the parent company and its business subsidiaries.
From amongst its number, the Board elected Mr. Matti Virtaala as
chairman and Mr. Heikki Vauhkonen as vice chairman. The firm of
independent public accountants KPMG Oy Ab of Helsinki was elected
as the auditor.
Authorization to acquire the company's own shares
The Annual General Meeting authorized the Board of Directors to
acquire the company's own shares. A maximum of 2,760,397 Series A
shares in the company and 954,000 Series K shares in the company
will be bought back.
Authorization to decide on share issues and the conveyance of the
company's own shares in the possession of the company and the
granting of special rights that give entitlement to shares as set
forth in Chapter 10, Article 1 of the Companies Act
The Annual General Meeting authorized the Board of Directors to
decide on issuing new shares and the conveyance of own shares in
the company's possession. New shares can be issued or own shares
held by the company conveyed as follows: a maximum of 5,520,794
Series A shares and 1,908,000 Series K shares.
The authorization also includes the right to issue special rights,
as defined in Chapter 10, Article 1 of the Companies Act,
entitling the right holder to subscribe for shares against payment
or by setting off the receivable.
Amendments to the Articles of Association
The company's Articles of Association were amended to conform to
the new Companies Act.
Managing director
Mr. Heikki Vauhkonen was appointed as Tulikivi Corporation's
managing director as from May 28, 2007. A new vice chairman was
not elected to replace him on the Board of Directors. At that
time, Mr. Juha Sivonen was appointed as the head of the Fireplaces
Business.
Merger of Kermansavi Oy into its parent company
The Boards of Directors of Tulikivi Corporation and Kermansavi Oy
decided to merge Kermansavi Oy into Tulikivi Corporation by means
of an absorption merger, as set out in the merger plan signed on
June 29, 2007. The merger aims to clarify the Group structure. The
planned registration date for consummation of the merger is
December 31, 2007.
Risks and uncertainties
The Group's risks and uncertainties have not changed significantly
during the report period. Changes in the business environment -
such as the recovery of demand in Germany and improved efficiency
in distribution channel operations - have the greatest impact on
the Group's operations in the short term. Assessments of the
Group's risks over the long term indicate that its strategic risks
include risks related to its raw material reserves, business
operations as a whole and market position as well as legislative
amendments. Operational risks concern, for instance, products,
distribution channels and processes. For more on this topic, see
the 2006 Annual Report.
Outlook for the future
The growth prospects for construction are good at the annual level
in the Group's main market areas, supporting growth in demand for
Fireplaces. The efficiency of the new distribution channel in
Finland will increase. Demand for Fireplaces in Germany will grow
in the latter half of the year, but will be lower than last
autumn. This means that the Group's sales and result will fall
short of the previous year; that said, good earnings are expected.
Changes in segment reporting
As from January 1, 2007, the Group's business segments are the
Fireplaces Business, Natural Stone Products Business and Other
Operations. The Fireplaces Business includes soapstone and ceramic
Fireplaces as well as stone lining for heaters. The Natural Stone
Products Business includes interior decoration stone products for
households and stone deliveries to construction sites. Other
Operations includes expenses that have not been allocated to the
Group's business functions and tax and financial expenses as well
as sales of ceramic utensils and the expenses of this business.
CONSOLIDATED INCOME STATEMENT
MEUR
1-6/ 1-6/Change, 1-12/ 4-6/ 4-6/Change
2007 2006 % 2006 2007 2006 %
Sales 36.6 37.2 -1.6 82.1 17.4 20.9 -16.8
Other operating
income 0.3 0.3 0.6 0.2 0.2
Increase/decrease in
inventories in
finished goods and
in work in progress 2.1 -0.1 -0.3 0.9 0.0
Production for
own use 0.5 0.5 1.0 0.4 0.3
Raw materials and
consumables 7.4 6.4 14.4 3.5 3.8
External services 5.1 4.2 10.5 2.7 2.6
Personnel expenses 14.5 13.7 28.7 7.0 7.8
Depreciation and
amortisation 3.0 2.4 5.2 1.5 1.4
Other operating
expenses 8.2 7.8 16.3 3.7 4.1
Operating profit 1.3 3.4 -61.9 8.2 0.6 1.7 -62.3
Percentage of sales 3.6 9.2 10.0 3.7 8.2
Finance costs -net -0.2 -0.2 -0.4 -0.1 -0.2
Share of the profit of
associated company 0.0 0.0 0.0
Profit before income
tax 1.1 3.3 -67.1 7.8 0.5 1.5 -64.7
Percentage of sales 2.9 8.8 9.5 3.1 7.4
Income tax expenses -0.3 -0.9 -2.1 -0.2 -0.4
Profit for the period 0.8 2.4 -68.2 5.7 0.4 1.1 -65.2
Earnings per share
attributable to the
equity holders of the
parent company, EUR
basic and diluted 0.02 0.07 0.16
CONSOLIDATED BALANCE SHEET
MEUR 06/07 06/06 12/06
ASSETS
Non-current assets
Property, plant and equipment
Land 1.1 0.9 0.9
Buildings 8.8 8.8 9.0
Machinery and equipment 13.6 13.2 13.8
Other tangible assets 1.3 0.7 1.2
Intangible assets
Goodwill 4.3 3.6 4.0
Other intangible assets 10.7 10.4 10.5
Investment properties 0.2 0.3 0.2
Available-for-sale investments 0.1 0.2 0.1
Receivables
Deferred tax assets 0.6 0.5 0.5
Total non-current assets 40.7 38.6 40.2
Current assets
Inventories 12.9 10.3 10.6
Trade receivables 7.7 9.4 8.5
Current income tax receivables 0.5 0.0 0.0
Other receivables 2.1 1.5 2.0
Cash and cash equivalents 2.0 2.1 4.9
Total current assets 25.2 23.3 26.0
Total assets 65.9 61.9 66.2
EQUITY AND LIABILITIES
Equity 6.3 6.3 6.3
Share capital 7.4 7.4 7.4
Share premium
Retained earnings 14.4 13.7 17.0
Total equity 28.1 27.4 30.7
Non-current liabilities
Deferred income tax liabilities 3.1 2.9 3.0
Provisions 0.8 0.4 0.6
Interest-bearing debt 17.5 17.1 14.7
Other debt 0.4 0.4 0.4
Total non-current liabilities 21.8 20.8 18.7
Current liabilities
Trade and other payables 10.5 12.5 13.7
Current income tax liabilities 0.2 0.4
Short-term interest-bearing debt 5.5 1.0 2.7
Total current liabilities 16.0 13.7 16.8
Total liabilities 37.8 34.5 35.5
Total equity and liabilities 65.9 61.9 66.2
CONSOLIDATED CASH FLOW STATEMENT
MEUR 01-06/ 01-06/ 01-12/
2007 2006 2006
Cash flows from operating activities
Profit for the period 0.8 2.4 5.7
Adjustments:
Non-cash transactions 2.9 2.3 5.1
Interest expenses
and income and taxes 0.5 1.0 2.5
Change in working capital -4.8 -0.8 0.8
Interest paid and received
and taxes paid -1.5 -0.9 -2.1
Net cash flow from operating
activities -2.1 4.0 12.0
Cash flows from investing activities
Acquistion of subsidiaries less cash and
cash equivalents at the time of
acquistion -10.6 -11.0
Investment in property, plant and
equipment and intangible assets -3.2 -5.4 -10.1
Grants received for investments
and sales of property, plant and
equipment 0.2 0.4 1.0
Net cash flow from investing
activities -3.0 -15.6 -20.1
Cash flows from financing activities
Proceed from borrowings 7.0 14.1 15.3
Repayment of borrowings -1.4 -1.9 -3.8
Dividends paid -3.4 -2.6 -2.6
Net cash flow from financing
activities 2.2 9.6 8.9
Change in cash and cash
equivalents -2.9 -2.0 0.8
Cash and cash equivalents at
beginning of period 4.9 4.1 4.1
Cash and cash equivalents at
end of period 2.0 2.1 4.9
STATEMENT OF CHANGES IN EQUITY
MEUR
Share Share Trans- Retained Total
capital prenium lation earnings
fund diff.
Equity 1 January 2007 6.3 7.4 0.0 17.0 30.7
Translation
differences 0.0 0.0
Items recognised directly
in equity -0.1 -0.1
Profit for the period 0.8 0.8
Dividends paid -3.3 -3.3
Equity 30 June 2007 6.3 7.4 0.0 14.4 28.1
Equity 1 January 2006 6.2 5.4 0.0 13.9 25.5
Translation
differences 0.0 0.0
Items recognised directly
in equity -0.1-0.1
Profit for the period 2.4 2.4
Dividends -2.5 -2.5
Share issue 0.1 2.0 0.0 2.1
Equity 30 June 2006 6.3 7.4 0.0 13.7 27.4
BUSINESS SEGMENTS 01-06/ 01-06/ 1-12/
MEUR 2007 2006 2006
Sales 36.6 37.2 82.1
Fireplaces business 31.4 32.7 72.0
Natural stone products
business 4.0 3.8 7.3
Other operations 1.2 0.7 2.8
Operating profit 1.3 3.4 8.2
Fireplaces business 2.8 5.0 11.0
Natural stone products
business 0.3 0.1 0.3
Other operations -1.8 -1.7 -3.1
BUSINESS SEGMENTS QUARTERLY
MEUR Q2/ Q1/ Q4/ Q3/ Q2/ Q1/
2007 2007 2006 2006 2006 2006
Sales 17.4 19.2 24.4 20.5 20.9 16.3
Fireplaces business 14.7 16.7 21.5 17.8 18.1 14.6
Natural stone products
business 2.1 1.9 1.8 1.7 2.1 1.7
Other operations 0.6 0.6 1.1 1.0 0.7
Operating profit 0.6 0.7 2.4 2.4 1.7 1.7
Fireplaces business 1.4 1.4 3.2 2.8 2.7 2.3
Natural stone products
business 0.2 0.1 0.0 0.2 0.0 0.1
Other operations -1.0 -0.8 -0.8 -0.6 -1.0 -0.7
KEY FINANCIAL RATIOS AND
SHARE RATIOS
06/07 06/06 12/2006
Outstanding orders
(30 June), MEUR 9.1 12.6 10.4
Gross investment, MEUR 3.2 17.2 24.1
Gross investment, % of sales 8.7 46.1 29.4
Average number of staff 711 638 664
Earnings per share, EUR 0.02 0.07 0.16
Equity per share, EUR 0.76 0.74 0.83
Equity ratio, % 42.6 44.3 46.4
Gearing, % 75.1 58.5 49.0
Current ratio 1.6 1.7 1.6
Number of shares average 37143970 36425540 36784755
Number of shares 30 June 37143970 37143970 37143970
NOTES TO THE INTERIM REPORT
This interim report has been prepared in accordance with
International Financial Reporting Standard IAS 34 Interim
Financial Reporting. In preparing of this interim report, Tulikivi
has applied same accounting policies as in the 2006 financial
statements, with the exception of the following new/amended
standards that the group has adopted as from January 1, 2007:
- IFRIC 11, IFRS 2 Group and Treasury Share Transactions
- IFRIC 10, Interim Financial Reporting and Impairment
- IFRS 7 Financial Instruments: Disclosures
- IAS 1 (Amendment) Presentation of Financial Statements: Capital
Disclosures
The changes have no material effect on Tulikivi's interim report.
The key figures presented in the Interim Report have been
calculated using the same formulas as the latest financial
statements. The formulas can be found on page 64 of the 2006
Annual Report.
Business Combinations
On the basis of additional information gained during the review
period, the accounting for the acquisition of the shares in
Kermansavi Oy in 2006, was adjusted by adding environmental
provisions of EUR 0.2 million to provisions and supplementing the
amount of deferred tax liabilities recognized with EUR 0.1
million. Due to these changes, goodwill grew by about EUR 0.3
million, and amounted to EUR 3.6 million on June 30, 2007.
Income taxes
01-06/0701-06/06 01-12/06
Taxes for the current and previous
financial periods 0.4 0.9 2.1
Deferred taxes -0.1 0.0 0.0
Total 0.3 0.9 2.1
Collateral and securities given
And other commitments
MEUR 6/2007 6/2006 12/
2006
Loans from credit institutions
and other non-current liabilities,
secured by mortgages and pledges 23.0 18.0 17.4
Mortgages and pledges given 26.7 26.7 27.7
Other mortgages and pledges given
by the company on its own behalf 2.2 1.7 2.1
Derivatives
Interest rate swaps;
nominal value 8.3 8.3 8.3
Interest rate swaps; fair value 0.2 0.0 0.1
Forward contracts
Forward contracts; nominal value 0.2
Forward contracts; fair value 0.0
Environmental and warranty provisions
Environmental Warranty
EUR million provisions provisions
Provisions, Jan. 1, 2007 0.2 0.4
Increase in provisions 0.2 0.0
Provisions, June 30, 2007 0.4 0.4
Provisions and obligations are itemized in the notes to the 2006
consolidated financial statements under notes 25. Provisions and
33. Other contingent liabilities.
Rate development and exchange of Series A shares
During the report period, 2,695,986 shares were traded, with the
value of share turnover being EUR 8.5 million. The highest rating
for the share was EUR 3.75 and the lowest was EUR 2.82. The
closing rate for the period was EUR 2.92.
According to the decision of the Annual General Meeting held on
April 13, 2007, the Board of Directors has an authorization to
acquire no more than a total of 2,760,397 Series A shares and no
more than a total of 954,000 Series K shares of the company. The
authorization is in force until the Annual General Meeting to be
held in 2008 but, however, not for a longer period than 18 months
as of the resolution by the General Meeting. In addition, the
Board of Directors has an authorization to decide on issuing new
shares and own shares held by the company. The new shares or the
company's own shares in possession of the company will be issued
in the following amounts: A total of no more than 5,520,794 Series
A shares and no more than 1,908,000 Series K shares. The
authorization is valid until the 2008 Annual General Meeting.
Largest shareholders on 30 June 2007
Name of shareholder Shares Proportion
of total
vote
Vauhkonen Reijo 4 152 179 24.2 %
Vauhkonen Heikki 2 999 739 24.1 %
Elo Eliisa 2 957 020 5.9 %
Virtaala Matti 2 417 152 12.6 %
Mutual Pension Insurance
Company Ilmarinen 1 902 380 1.5 %
Mutanen Susanna 1 643 800 7.2 %
Vauhkonen Mikko 797 700 3.6 %
Paatero Ilkka 718 430 0.6 %
Nuutinen Tarja 674 540 3.5 %
Fondita Nordic Small Cap
Placfond 517 000 0.4 %
Other shareholders 18 364 030 16.4 %
The interim report has not been audited.
The companies included in the Group are the parent company
Tulikivi Corporation and subsidiaries Kermansavi Oy, Kivia Oy, AWL-
Marmori Oy, Tulikivi U.S. Inc. and OOO Tulikivi. Group companies
include also Uuni Vertriebs GmbH (former Tulikivi Vertriebs GmbH)
and The New Alberene Stone Company, Inc., which are dormant.
Parent company has a fixed place of business in Germany, Tulikivi
Oyj Niederlassung Deutschland. The Group has associated companies
Stone Pole Oy and Leppävirran Matkailukeskus Oy.
TULIKIVI CORPORATION
Board of directors
Matti Virtaala, Chairman of the Board
Distribution: Helsinki Stock Exchange
Central Media
www.tulikivi.com
Additional information: Tulikivi Corporation, 83900 Juuka, tel.
+358-207-636 000, www.tulikivi.com
- Chairman of the Board of Directors Matti Virtaala
- Managing Director Heikki Vauhkonen
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