2008-08-21 07:30:24 CEST
2008-08-21 07:30:36 CEST
REGULATED INFORMATION
Aspo - Interim report (Q1 and Q3)
ASPO INTERIM REPORT JANUARY 1 - JUNE 30, 2008
ASPO Plc STOCK EXCHANGE BULLETIN August 21, 2008, at 8:30
a.m.
Net sales grew to EUR 140.8 million, operating profit EUR 7.0 million
- Net sales for Aspo Group's continuing operations in January-June
amounted to EUR 140.8 million (EUR 102.7 million)
- Operating profit totaled EUR 7.0 million (EUR 17.7 million,
including a sales gain of EUR 10.2 million)
- Profit before taxes amounted to EUR 5.4 million (EUR 17.1 million)
- Earnings per share for continuing operations were EUR 0.14 (EUR
0.50 with the sales gain representing EUR 0.29)
- Kauko-Telko's figures for May-June are consolidated in Aspo Group's
figures
- The Kauko-Telko acquisition was primarily financed through a bank
loan, which naturally has a significant impact on Aspo Group's equity
ratio and gearing in the second quarter
- The Autotank Group was sold to Gilbarco Veeder-Root; a sales gain
of approximately EUR 9 million of the EUR 28 million sales price will
be recorded for the third quarter, thus improving the equity ratio
and gearing
- The Group's net sales continue to grow and the full-year earnings
per share are expected to be close to last year's record high
KEY FIGURES**)
1-6/2008 1-6/2007 1-12/2007
Continuing operations
Net sales, MEUR 140.8 102.7 208.9
Operating profit, MEUR 7.0 17.7* 25.3*
Share of net sales, % 5.0 17.2 12.1
Profit before taxes, MEUR 5.4 17.1 24.3
Share of net sales, % 3.8 16.7 11.6
Personnel at the end of period 792 387 390
Earnings per share, EUR, 0.14 0.50 0.71
continuing operations
Earnings per share, EUR, 0.02 -0.03 -0.12
discontinued operations
Earnings per share, EUR, total 0.16 0.47 0.59
EPS adjusted for dilution, EUR, 0.14 0.46 0.67
continuing operations
EPS adjusted for dilution, EUR, 0.02 -0.03 -0.11
discontinued operations
EPS adjusted for dilution, EUR, total 0.16 0.43 0.56
Comparable earnings per share, EUR,
continuing operations 0.21 0.41
The Group as a whole
Equity per share, EUR 2.12 2.34 2.43
Equity ratio, % 20.2 41.9 45.1
Gearing, % 199.3 50.0 32.4
*) including a sales gain of EUR 10.2 million
Gustav Nyberg, CEO of Aspo:"Aspo Group went through considerable structural reorganization in
the first half. The Group's business operations were fully
reorganized following the biggest business acquisition in the
company's history. In line with the new brand strategy, the new units
were named after recognized business names: Telko, ESL Shipping and
Leipurin. Aspo's developing businesses were transferred to the new
Aspo Ventures Unit.
The new structure will make Aspo more diversified in terms of risks.
At the same time, it offers the Group stronger growth potential in
the Baltic Sea region and in the CIS countries.
All business units continued to operate in favorable market
conditions. ESL Shipping saw its net sales decline somewhat while
other units were able to increase their net sales. The takeover of
the acquired business caused a temporary increase in the parent
company's costs. Nevertheless, the Group's costs remained in check
and the Group's comparable profit picked up from last year. All units
were able to improve their operating profits.
At the end of the reporting period, Aspo announced that it had sold
the Autotank Group to the US-based Gilbarco Veeder-Root, one of the
world's leading fuelling systems suppliers. This transaction was an
important step in terms of Aspo's structural reorganization. It will
strengthen the Group's financial position while redefining and
clarifying the business structure. Authorities have approved the
transaction and the deal was closed on August 19, 2008."
GROUP STRUCTURE
After the Kauko-Telko acquisition, Aspo reorganized its operations.
The new Aspo features three independent companies with a strong
market position: ESL Shipping, the Leipurin Group and Telko. In
addition, the newly established Aspo Ventures Unit took in Aspo's
developing businesses, such as Autotank and Kaukomarkkinat. With this
reorganization, Aspo abandoned the previous Chemicals, Shipping and
Systems Divisions. Aspo Group's financial reporting will reflect the
new segment division as of May 1, 2008.
The Ventures Unit's Autotank business was sold in the second quarter.
In August, an agreement was signed to sell the sourcing services unit
of Kaukomarkkinat. Opportunities to sell the electronics and tape
businesses of Kaukomarkkinat are also being explored. These
operations will be reported as discontinuing operations in accordance
with IFRS 5. After the divestitures the Ventures Unit will be
reported as part of other operations.
OPERATIONAL PERFORMANCE
General market uncertainty persisted in the global markets throughout
the first half of 2008. The crude oil price hikes translated into
unusually steep price increases for some raw materials. At the same
time, there were growing concerns around the world as to whether the
healthy demand conditions would continue to prevail. Following the
falling housing prices, economic and financial conditions remained
strained in many markets. The weakening of the US dollar against the
euro compensated to some extent for the multiplier effect of this
situation in Europe.
In the Baltic Sea market, which is important for Aspo, uncertainty
was primarily reflected in industrial raw materials. Particularly in
the Estonian and Latvian markets, the global conditions caused a halt
in growth. Although prices for a number of food industry raw
materials rose, demand did not suffer significantly. In the shipping
business, healthy demand for transport continued. The increase in
fuel prices raised freight prices.
On the whole, the Aspo Group performed as planned. The disturbances
in the global economy did not materially affect business in the
Baltic Sea region, and the CIS countries continued to show positive
development.
ESL Shipping
ESL Shipping is the leading dry bulk sea transport company operating
in the Baltic Sea area. As of the end of the period the fleet
operated by the company comprised 15 units.
1-6/2008 1-6/2007 Change 1-12/2007
Net Sales, MEUR 41.4 42.4 -1.0 85.1
Operating Profit, MEUR 7.0 17.1* -10.1 25.1*
Personnel 224 242 -18 239
*) including a sales gain of EUR 10.2 million
The market situation for dry bulk cargo marine transport was good
both in international markets and in the Baltic Sea region in the
second quarter. The first half was challenging for ESL Shipping
because both its own and leased tonnage decreased. Furthermore,
tonnage had to be docked for scheduled maintenance as well as for
repairs. Higher oil prices raised the price of bunker oil, which
together with active demand helped raise freight prices.
Fleet operations were very successful. In the first half, smaller
tonnage was able to transport almost the same cargo volume as last
year. The cargo volume carried in the January to June period amounted
to 6.8 million tonnes (7.8). Net sales in the second quarter were
almost at the previous year's level. Cost management was more
effective, which resulted in a clearly better profit level.
Consequently, the comparable profit for the first half was better
than a year earlier. The figures for the comparison year include a
sales gain worth EUR 10.2 million.
No major changes occurred in the cargo distribution in the first
half. The steel industry accounted for 63% of the transport volumes,
the energy industry for 28% and other industries for 9%. The demand
for energy coal caused periodic problems in the logistics chain. The
bottlenecks experienced in Russian coal rail transport to the Baltic
Sea export harbors were mainly caused by a shortage of rail wagons.
The shipping company currently has two 20,000 gross register ton
vessels being constructed in India. During the reporting period, the
shipyard revised the vessel delivery schedules. The first vessel will
be completed in summer 2009, and the second in early 2010. Both
vessels are in ESL Shipping's Eira class and will be built to the
highest ice class, 1A Super.
Leipurin
The Leipurin Group serves the baking and other food industry by
supplying ingredients, production machinery and production lines, as
well as related expertise. Besides Finland, the Leipurin Group
operates in Russia, Poland, Estonia, Latvia and Lithuania. In Russia,
the Group operates in Tselyabinsk and Yekaterinburg, in addition to
St. Petersburg and Moscow.
1-6/2008* 1-6/2007 Change 1-12/2007
Net Sales, MEUR 17.0
Operating Profit, MEUR 0.8
Personnel 167
*) The figures for the Leipurin Group presented in the interim report
are for May-June
The Leipurin Group became part of Aspo as a result of the Kauko-Telko
acquisition carried out earlier this year. At the beginning of May,
Aspo disclosed its new group structure, which makes the Leipurin
Group a separate business unit.
The Leipurin Group enjoyed a favorable market situation in the Baltic
Sea region in May and June. Both raw material and equipment
deliveries developed as planned during the period. A number of food
industry raw material prices were increasing in the global markets,
which translated into price increases in the Baltic Sea region as
well.
Domestic baking industry purchases grew, which helped increase both
net sales and volumes. Overall sales development in the Baltic
countries and in Poland was positive. Operations grew in Russia also.
Machinery and equipment deliveries were clearly smaller than a year
earlier due to a lack of major project deliveries during the period.
Order volume was high, predicting a growth in equipment deliveries
towards the year end.
Telko
Telko is the leading industrial raw materials and services supplier
in the Baltic Sea region. Telko has two business areas - Plastics and
Chemicals - and it has operations in Finland, Russia, Ukraine,
Belarus, Poland, Estonia, Latvia, Lithuania, Sweden, Denmark and
Norway. Processing operations are based in Finland and Latvia. In
addition, Telko is engaged in East-West chemical trading.
1-6/2008* 1-6/2007 Change 1-12/2007
Net Sales, MEUR 80.4 60.3 20.1 123.8
Operating Profit, MEUR 2.1 1.9 0.2 3.1
Personnel 222 128 94 132
*) Figures for the acquired business are for May-June
Telko was formed by combining Aspokem and the raw materials business
of Kauko-Telko acquired at the beginning of the year. Figures for the
acquired business are included since the beginning of May.
Oil prices continued to rise in the second quarter. As a result, a
steep rise in the prices of petrochemicals also continued. Several
manufacturers raised their product prices by as much as twenty or
thirty per cent. At the same time, demand appeared to slow down in
some countries, such as Poland, Estonia and Latvia. Demand remained
unchanged or fell slightly in Scandinavia, Finland and Lithuania.
Meanwhile demand continued to grow in Russia and Ukraine, and the
market situation was strong. Of the two product groups, chemicals
outperformed plastics. Comparable delivery volumes in the first half
picked up from last year.
As a result of the business acquisition, the new Telko's net sales
improved significantly. Profitability improved in the second quarter
from the first one. In addition to customer services, Telko focused
on reorganizing its business operations, on creating a new
organization and on combining the control and reporting systems.
Other Operations
Other operations include the Group administration and
Kaukomarkkinat's Industrial Machinery unit for May-June.
1-6/2008 1-6/2007 Change 1-12/2007
Net Sales, MEUR 2.0 0.0 2.0 0.0
Operating Profit, MEUR -2.9 -1.3 -1.6 -2.9
Personnel 179 10 169 11
NET SALES AND PROFIT, CONTINUING OPERATIONS
Net sales for Aspo Group's continuing operations in January-June 2008
amounted to EUR 140.8 million (EUR 102.7 million). ESL Shipping's net
sales decreased slightly from last year owing to capacity reductions.
Following the acquisition, Telko's net sales grew significantly.
Net sales for Aspo Group's continuing operations in April-June
amounted to EUR 88.4 million (EUR 51.0 million).
Net Sales by Division, MEUR*)
4-6/ 4-6/ Change 1-6/ 1-6/ 1-12/
2008 2007 2008 2007 2007
ESL Shipping 20.4 20.6 -0.2 41.4 42.4 85.1
Leipurin 17.0 17.0 17.0
Telko 49.0 30.4 18.6 80.4 60.3 123.8
Other 2.0 2.0 2.0
operations
Continuing
operations total 88.4 51.0 37.4 140.8 102.7 208.9
Discontinued 24.4 14.7 9.7 37.1 26.1 57.7
operations
Total 112.8 65.7 47.1 177.9 128.8 266.6
Net Sales by Market Area,
MEUR*)
4-6/ 2008 4-6/ Change 1-6/ 1-6/ 1-12/
2007 2008 2007 2007
Finland 43.9 31.6 12.3 76.2 65.5 127.7
Nordic countries 14.3 8.2 6.1 21.2 15.9 33.0
Baltic countries 7.8 3.5 4.3 11.0 7.6 15.9
Russia, etc. 22.4 7.7 14.7 32.4 13.7 32.3
Continuing
operations 88.4 51.0 37.4 140.8 102.7 208.9
total
Discontinued 24.4 14.7 9.7 37.1 26.1 57.7
operations
Total 112.8 65.7 47.1 177.9 128.8 266.6
The significance of Russia and other CIS markets in Aspo's business
will be further emphasized when ESL Shipping's raw material
transports from Russia are included in the Russian market area. When
the calculation is carried out this way, the distribution of net
sales between Finland and Russia is as follows:
4-6/* 2008 4-6/ 2007 Change 1-6/ 1-6/ 1-12/ 2007
2008 2007
Finland 37.9 23.6 14.3 61.1 46.7 91.9
Russia, etc. 28.4 15.7 12.7 47.5 32.5 68.1
*) Kauko-Telko's figures for May-June are consolidated in Aspo
Group's figures
January-June performance, continuing operations
Aspo Group recorded for January-June an operating profit of EUR 7.0
million or 5.0% of net sales (EUR 17.7 million, including a sales
gain of EUR 10.2 million, or 17.2% of net sales). Planned
depreciation totaled EUR 4.9 million (EUR 4.7 million). The Group's
net financial costs amounted to EUR 1.6 million (EUR 0.5 million).
The January-June profit before taxes was EUR 5.4 million (EUR 17.1
million, including a sales gain of EUR 10.2 million) and the net
profit for the period totaled EUR 3.8 million (EUR 12.9 million).
April-June performance, continuing operations
Aspo Group recorded for April-June an operating profit of EUR 4.0
million or 5.0% of net sales (EUR 13.9 million including a sales gain
of EUR 10.2 million, or 27.2% of net sales). The EUR 0.8 million IFRS
3-compliant seller's margin adjustment on the inventories acquired
through the Kauko-Telko deal weakened the operating profit for the
reporting period. Of the total, EUR 0.3 million worth of adjustment
was recorded for Leipurin, EUR 0.1 million for Telko, EUR 0.1 million
for other operations, and EUR 0.3 million for discontinued
operations. Planned depreciation totaled EUR 2.6 million (EUR 2.5
million). The Group's net financial costs amounted to EUR 1.1 million
(EUR 0.2 million).
The April-June profit before taxes was EUR 2.9 million (EUR 13.7
million, including a sales gain of EUR 10.2 million) and the net
profit for the period totaled EUR 1.7 million (EUR 9.9 million).
Operating Profit by Division, MEUR**)
4-6/ 4-6/ Change 1-6/ 1-6/ 1-12/
2008 2007 2008 2007 2007
ESL Shipping 3.8 13.5* -9.7 7.0 17.1* 25.1*
Leipurin 0.8 0.8 0.8
Telko 1.3 0.9 0.4 2.1 1.9 3.1
Other -1.9 -0.5 -1.4 -2.9 -1.3 -2.9
operations
Continuing
operations total 4.0 13.9 -9.9 7.0 17.7 25.3
Discontinued 1.8 0.5 1.3 1.4 -0.3 -1.5
operations
Total 5.8 14.4 -8.6 8.4 17.4 23.8
*) including a sales gain of EUR 10.2 million
**) Kauko-Telko's figures for May-June are consolidated in Aspo
Group's figures
DISCONTINUED OPERATIONS
On June 26, 2008, Aspo Plc signed a sales contract to sell the entire
capital stock of Autotank Ltd to the US-based Gilbarco Veeder-Root.
The authorities approved the transaction and the deal was closed on
August 19, 2008. The debt-free sale price was EUR 28 million. A
non-recurring sales gain of some EUR 9 million will be recorded for
the third quarter in the profit or loss of Aspo's discontinued
operations which will improve the Group's equity ratio and gearing.
Aspo Plc will sell the sourcing services of Kaukomarkkinat to
Kaukopartio Oy. The deal will produce a sales gain of approximately
one million euro, which will be recorded for the second half in
connection with the transfer of ownership.
Autotank and the sourcing services have been recorded as discontinued
operations in accordance with IFRS 5.
INVESTMENTS, CONTINUING OPERATIONS
In January-June, Aspo Group's investments totaled EUR 99.5 million
(EUR 8.7 million), the acquisition of the entire stock of Kauko-Telko
Oy representing the Group's most significant investment ever, EUR
95.8 million. Other investments totaling EUR 3.7 million primarily
involved advance payments on ESL Shipping's vessel purchases.
Investments by Division,
acquisitions excluded, MEUR*)
4-6/ 4-6/ Change 1-6/ 1-6/ 1-12/
2008 2007 2008 2007 2007
ESL Shipping 0.3 1.4 -1.1 2.5 3.8 3.8
Leipurin
Telko 0.1 0.1 0.1 4.8 5.7
Other operations 0.1 0.1 1.1 0.1 0.1
Continuing operations
total 0.5 1.5 -1.0 3.7 8.7 9.6
Discontinued 0.2 0.1 0.1 0.4 0.4 1.4
operations
Total 0.7 1.6 -0.9 4.1 9.1 11.0
*) Kauko-Telko's figures for May-June are consolidated in Aspo
Group's figures
FINANCING
Liquid assets totaled EUR 24.3 million (EUR 8.3 million) at the end
of the period. There was a total of EUR 133.6 million (EUR 38.6
million) in interest-bearing liabilities on the consolidated balance
sheet at the end of the period.
The increase in interest-bearing liabilities can be attributed to the
bank loan withdrawn to finance the acquisition. Interest-free
liabilities totaled EUR 88.2 million (EUR 38.5 million). The Group's
gearing was 199.3 % (50.0%) and the equity ratio adjusted for
deferred tax liabilities was 20.2% (41.9%). The divestitures after
the second quarter to be recorded for the third quarter, will improve
these key ratios.
Aspo Plc and its key financing banks have signed binding financial
limits for a total of EUR 125 million. Credit withdrawn within the
framework of these financial limits amounted to EUR 85 million at the
end of the period.
In May, Aspo Plc signed an agreement on a domestic EUR 50 million
commercial paper program to expand its financing base. Within the
framework of this program, the company can issue commercial papers
having a maturity of less than one year to be used to finance Aspo's
net working capital and other short-term funding needs. At the end of
the period EUR 22.5 million of the domestic commercial paper program
had been used.
PERSONNEL, CONTINUING OPERATIONS
Aspo Group's personnel in continuing operations averaged 792 (380) in
the first half, compared with 382 for the entire 2007 financial year.
As a result of the Kauko-Telko acquisition, the Group's personnel
doubled.
Average Personnel by Division*)
1-6/2008 1-6/2007 1-12/2007
ESL Shipping 224 242 239
Leipurin 167
Telko 222 128 132
Other operations 179 10 11
Continuing operations total
792 380 382
Discontinued operations 389 308 309
Total 1,181 688 691
*) Kauko-Telko's figures for May-June are consolidated in Aspo
Group's figures
SHARES AND SHAREHOLDERS
From January to June 2008 a total of 2,132,927 Aspo Plc shares worth
EUR 13.4 million, or 8.1% of the stock were traded on the OMX Nordic
Exchange in Helsinki. During the period, the stock reached a high of
EUR 6.90 and a low of EUR 5.36. The average price was EUR 6.33 and
the closing price EUR 5.65. The market capitalization excluding
treasury shares was EUR 145.9 million at the end of the period.
On June 30, 2008, Aspo Plc's registered share capital was EUR
17,690,603.97 and the number of shares was 26,404,383. The company
held 580,242 of its own shares, representing 2.2% of Aspo Plc's share
capital.
Aspo Plc has on April 1, 2008, disposed of 1,500 shares and on June
6, 2008, 13,130 shares within the context of the company's management
incentive program.
At the end of the period, the number of Aspo Plc shareholders was
4,955. A total of 643,104 shares or 2.4% of the total share capital
were nominee registered or held by non-domestic shareholders.
DECISIONS AT THE ANNUAL SHAREHOLDERS' MEETING
Dividend
At the Annual Shareholders' Meeting on April 10, 2008, the
shareholders approved a dividend of EUR 0.42 per share as proposed by
the Board. The dividend payment date was set at April 22, 2008.
Board of Directors and Auditors
Matti Arteva, Esa Karppinen, Roberto Lencioni and Kari Stadigh were
re-elected to the Board of Directors. Risto Salo and Gustav Nyberg
were elected as new members to the Board of Directors. At the meeting
held after the Annual Shareholders' Meeting Kari Stadigh was elected
to carry on as Chairman of the Board and Matti Arteva as
Vice-Chairman.
The authorized public accounting firm PricewaterhouseCoopers Oy will
continue as company auditor. Jan Holmberg, APA, will be the auditor
in charge.
Board's Authorizations
The shareholders authorized the Board to decide on a share issue by
transferring treasury shares, and on the repurchase of company
shares. The authorizations are valid until the Annual Shareholders'
Meeting of 2009, but no more than 18 months from the approval at the
Shareholders' Meeting. Under the authorization, the Board of
Directors has by August 21, 2008, disposed of 14,630 Aspo Plc shares
to Group key personnel within the context of the company's management
incentive program.
EVENTS AFTER THE REPORTING PERIOD
Under an agreement signed on August 11, 2008, ESL Shipping Ltd
repurchased the M/S Eira from SEB Leasing Ltd for a price of EUR 14.7
million. The deal is being financed by a long-term bank loan.
Since its launch, the Eira has been operated by ESL Shipping under
the terms of a bareboat agreement. Transferring ownership of the
vessel to ESL Shipping will improve Aspo Group's net profit by
approximately EUR 0.9 million. In the future, it will generate about
one million euro in annual positive cash flow.
Under an agreement signed on August 19, 2008, Aspo Plc will sell the
sourcing services unit of Kaukomarkkinat to Kaukopartio Oy. The deal
will produce a sales gain of approximately one million euro, which
will be recorded for the second half in connection with the transfer
of ownership.
The sourcing services unit includes the operations in China (Shanghai
and Beijing), Vietnam, and a subsidiary in Hong Kong. The unit's
clients are mainly in the field of specialist convenience goods, as
well as in the textile, shoe and furniture businesses.
The capital stock of Autotank Ltd was transferred to Gilbarco
Veeder-Root on August 19, 2008. Gilbarco and Aspo signed an agreement
on the sale on June 26, 2008. The debt-free sale price was EUR 28
million. A non-recurring sales gain of about EUR 9 million will be
recorded for the third quarter in the profit or loss of Aspo's
discontinued operations.
PROSPECTS FOR 2008
Uncertainty regarding the price stability in the global raw material
markets has increased since the turn of the year. The main concern
has been the decline of economic growth in the United States and its
potential impact on Europe and Asia.
Aspo's business operations focus on narrow niche sectors. The growth
and profitability of operations mainly depend on demand from the
industrial sector in the Baltic Sea area and the CIS market. In the
Nordic countries, a stable basis for demand appears to be continuing
in fiscal 2008. The growth trend in the Eastern markets - in Russia
and Ukraine, in particular - is also expected to continue.
Only May and June figures of Kauko-Telko, which was acquired in the
first half of 2008, are consolidated. The acquisition will have a
more powerful effect on net sales towards the year end. The Group's
profit development is expected to improve during the second half.
Divestitures after the second quarter, with the sale of Autotank
being the biggest one, will hold back sales growth.
The Group's net sales will continue to grow and the full-year
earnings per share are expected to be close the last year's record
high.
ESL Shipping
The international dry bulk cargo market appears to be continuing more
strongly than usual, and good demand is expected to continue in the
Baltic Sea region as well.
The company's operations have become more diversified over the past
few years, and a wide service range for the needs of exporting and
importing industry in the Baltic Sea region have been developed
besides traditional shipping. The steel industry has become the
company's largest customer group. The proportion of the energy
industry is less than one-third.
Transport capacity in the second half will grow somewhat as the M/S
Tali returns to operation early in the third quarter. In addition,
all repair dockages planned for this year were completed in the first
half. The new tonnage under construction cannot be taken into use in
traffic this year.
The current situation does not hold realistic potential for
increasing operating profit compared with last year. If fleet
operations are successful and there are no problems with the
availability of goods, the comparable full-year operating profit may
be close to last year's level.
The currency risks involved in the shipping operations are, for the
most part, hedged by forward contracts. To protect ourselves against
the risks associated with the fluctuation in fuel prices, our
customer contracts include special bunker clauses.
Leipurin
Leipurin will invest in the current fiscal year in Russia especially
in logistics and capable personnel, which is estimated to have a
positive impact on net sales. The order backlog of machinery and
equipment has remained strong. Leipurin is estimated to generate net
sales and earnings at approximately last year's level.
In the long term, Leipurin holds ample opportunities in the CIS
markets. For instance in Russia, the proportion of consumption of
Western-style bread is increasing rapidly along with general changes
in consumption behavior.
In Finland, Leipurin has the objective to maintain its strong market
position, in the Baltic countries the objective is continued growth.
Telko
Insecurity in the markets will probably increase until a more
detailed picture of the impact of the United States economic
situation on the global economy emerges. The prices for
petrochemicals follow the changes in the demand for oil and oil
prices. The impact in Europe largely depends on the overall economic
situation and the strength of the euro.
The organic growth in the net sales of Telko appears to be
continuing. Sales growth may come to a halt and even take a downward
turn in individual markets, such as in the Baltic countries. Modest
growth is expected in the Nordic countries, while strong growth
appears to be continuing in the CIS countries.
Due to business acquisition, Telko's net sales will show strong
growth in the second half. Operating profit is also expected to grow
from last year.
The largest risks for Telko Group are related to the potentially
negative impact of the European Union's REACH regulation. Other risks
include political and financial instability in Russia and Ukraine.
Other Operations
The Industrial Machinery unit of Kaukomarkkinat will focus on serving
the paper and pulp industry. Its operations run on a healthy basis
and prospects are good. The net sales and profit accumulated from
these operations are not significant from the Group's perspective.
Helsinki, August 21, 2008
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
4-6/08 4-6/07
MEUR % MEUR %
Net sales 88.4 100.0 51.0 100.0
Other operating income 0.6 0.7 10.2 20.0
Depreciation and write-downs -2.6 -2.9 -2.5 -4.9
Operating profit 4.0 4.5 13.9* 27.1
Financial income and expenses -1.1 -1.2 -0.2 -0.4
Profit before taxes 2.9 3.3 13.7 26.9
Profit for the period, continuing operations
1.7 1.9 9.9 19.4
Profit for the period, discontinued operations
1.3 0.4
Profit for the period 3.0 10.3
Profit attributable to shareholders
3.0 10.3
Minority interest
1-6/08 1-6/07 1-12/07
MEUR % MEUR % MEUR %
Net sales 140.8 100.0 102.7 100.0 208.9 100.0
Other operating income 1.1 0.8 10.2 0.7 10.4 0.4
Depreciation and write-downs -4.9 -3.5 -4.7 -4.3 -9.4 -4.1
Operating profit 7.0 5.0 17.7* 17.2 25.3* 12.1
Financial income and expenses -1.6 -1.1 -0.5 -0.5 -1.1 -0.5
Profit before taxes 5.4 3.8 17.1 16.7 24.3 11.6
Profit for the period, continuing
operations 3.8 2.7 12.9 12.6 18.4 8.8
Profit for the period,
discontinued operations 0.4 -0.8 -3.0
Profit attributable to
shareholders 4.2 12.1 15.3
Minority interest 0.1
*) including a sales gain of EUR 10.2 million
ASPO GROUP BALANCE SHEET 6/08 6/07 Change 12/07
MEUR MEUR % MEUR
Assets
Non-current assets
Intangible assets 16.5 1.4 1078.6 2.6
Goodwill 41.9 10.5 299.0 10.1
Tangible assets 57.5 53.7 7.1 47.3
Available-for-sale assets 0.2 0.2 0.2
Long-term receivables 1.1 0.2 450.0 2.5
Shares in associated companies 1.1 1.4 -21.4 1.1
Total non-current assets 118.3 67.4 75.5 63.8
Current assets
Inventories 37.7 23.3 61.8 24.0
Sales and other receivables 55.6 47.7 16.6 40.1
Cash and bank deposits 20.1 8.3 142.2 13.1
Total current assets 113.4 79.3 43.0 77.2
Assets classified as held for sale 44.9
Total assets 276.6 146.7 88.5 141.0
Shareholders' Equity and Liabilities
Shareholders' equity
Share capital 17.7 17.5 1.1 17.7
Other shareholders' equity 37.1 43.0 -13.7 45.3
Shareholders' equity attributable 54.7 60.4 -9.4 62.8
to equity holders of the parent 0.1 0.1 0.2
Minority interest
Long-term liabilities 33.1 28.7 15.3 25.7
Short-term liabilities 122.6 57.5 113.2 52.3
Liabilities classified as held for sale
66.1
Total shareholders' equity
and liabilities 276.6 146.7 88.5 141.0
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A = Share Capital
B = Premium Fund
C = Fair Value Fund
D = Other Funds
E = Repurchased Shares
F = Translation Difference
G = Retained Earnings
H = Total
I = Minority Interest
J = Total Shareholders' Equity
MEUR A B C D E F G H I J
Balance at
31.12.2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0
Translation
differences -0.2
Increase in
hedging reserve -0.5
Share of
deferred taxes 0.3
Net profit for
the period 4.2
Dividend payment -10.8
Share repurchase -0.6
Net result recognized
directly to equity -0.5
Balance at
30.6.2008 17.7 4.3 -1.2 0.5 -3.6 -0.2 37.2 54.7 0.1 54.8
Balance at
31.12.2006 17.5 2.5 0.0 0.2 -1.8 0.1 39.7 58.1 0.1 58.2
Translation
differences -0.1
Increase in
hedging reserve 0.0
Net profit for
the period 12.1
Dividend payment -10.5
Share disposal 0.2 0.4
Conversion of
convertible bond
to shares 0.1
Balance at
30.6.2007 17.5 2.6 0.0 0.4 -1.4 0.0 41.3 60.4 0.1 60.5
Accounting principles
All figures are unaudited. This interim report has been prepared in
accordance with the IAS 34 (Interim Reports) standard. The accounting
principles that were applied in the preparation of the financial
statements of December 31, 2007 have been applied in the preparation
of this interim report.
ASPO GROUP CASH FLOW STATEMENT
1-6/08 1-6/07 1-12/07
MEUR MEUR MEUR
Net operational cash flow 7.1 0.1 8.5
Investments
Investments in tangible and
intangible assets -4.1 -4.4 -5.7
Gain on the sale of tangible
and intangible assets 0.4 10.2 11.2
Purchases of subsidiary shares -77.9 -4.5 -4.7
Total cash flow from investments -81.6 1.3 0.7
Financing
Share acquisition -0.6 -1.6
Share disposal 0.1 8.7
Change in short-term borrowings 92.2 6.8
Change in long-term receivables 0.1 -0.4 0.1
Change in long-term borrowings -0.8 -10.6 -1.4
Dividends paid -10.8 -2.3 -10.6
Total financing 80.2 -6.7
Impact of changes in exchange rates 0.1 0.1
Increase/Decrease in liquid funds 5.7 -0.8 2.6
Liquid funds in beginning of year 13.2 9.1 9.1
Liquid funds and used
overdraft limit at period end 14.7 11.7
Used overdraft limit at period end 5.5 1.5
Liquid funds of discontinued operations
4.2
Liquid funds at period end 24.4 8.3 13.2
KEY FIGURES AND RATIOS
1-6/08 1-6/07 1-12/07
Earnings per share, EUR,
continuing operations 0.14 0.50 0.71
Earnings per share, EUR,
discontinued operations 0.02 -0.03 -0.12
Earnings per share total 0.16 0.47 0.59
EPS adjusted for dilution, EUR, continuing
operations 0.14 0.46 0.67
EPS adjusted for dilution, EUR, discontinued
operations 0.02 -0.03 -0.11
EPS adjusted for dilution, EUR total 0.16 0.43 0.56
Comparable earnings per share, EUR, continuing
operations 0.21 0.41
The Group as a whole
Equity per share, EUR 2.12 2.34 2.43
Equity ratio, % 20.2 41.9 45.1
Gearing, % 199.3 50.0 32.4
Discontinued Operations, total
1-6/08 1-6/07 1-12/07
MEUR MEUR MEUR
Net sales 37.1 26.1 57.7
Other operating income 0.0 0.0 0.4
Depreciations and write downs -0.3 -0.2 -0.4
Operating profit 1.4 -0.3 -1.5
Financial income and expenses -0.7 -0.5 -1.4
Profit before taxes 0.7 -0.8 -2.9
Profit for the period 0.4 -0,8 -3.1
Autotank's Share in Discontinued 1-6/08 1-6/07 1-12/07
Operations MEUR MEUR MEUR
Net sales 29.0 26.1 57.7
Other operating income 0.0 0.0 0.4
Depreciations and write downs -0.3 -0.2 -0.4
Operating profit 1.1 -0.3 -1.5
Financial income and expenses -0.6 -0.5 -1.4
Profit before taxes 0.5 -0.8 -2.9
Profit for the period 0.3 -0.8 -3.1
Autotank Group Cash Flow
Net operational cash flow 0.7 -5.2 -5.4
Investments -0.5 -0.4 -1.3
Financing 0.0 4.6 8.5
Total 0.2 -1.0 1.8
Assets of Discontinued Operations 30.6.2008
Long-term assets, Autotank 11.1
Short-term assets, Autotank 26.0
Other assets 7.8
Total assets held for sale 44.9
Liabilities held for sale
Long-term liabilities, Autotank 2,0
Short-term liabilities, Autotank 64,1
Total liabilities held for sale 66,6
Liabilities and financing costs attributable to discontinued
operations have been recorded in their results.
Kauko-Telko Acquisition
Preliminary combination
Fair Values Book Value
Recorded in Before
Combination
MEUR MEUR
Acquired assets
Intangible assets 18.0 4.6
Tangible assets 12.6 8.9
Inventories 23.9 23.1
Accounts receivable and other assets 30.5 30.5
Cash and bank deposits 20.7 20.7
Total assets 105.7 87.8
Long-term liabilities 11.2 6.6
Short-term liabilities 37.2 37.2
Net assets 57.3
Goodwill 38.5
Total acquisition price 95.8
The total acquisition cost was EUR 95.8 million including estimated
expert fees of EUR 1.8 million.
FINANCIAL REPORTS
Aspo will publish Interim Report for the third quarter on October 23,
2008.
FINANCIAL INFORMATION
Aspo has arranged a press conference for the media and analysts to be
held today, August 21, 2008 starting at 10:00 at Palace Gourmet,
Eteläranta 10,
00130 Helsinki.
ASPO Plc
Gustav Nyberg Dick Blomqvist
CEO CFO
For more information, please contact
Gustav Nyberg, +358 40 503 6420
gustav.nyberg@aspo.fi
Aspo is a conglomerate focusing on sectors that require extensive
specialist knowledge. Aspo owns and develops the leading businesses
in its sector, which include ESL Shipping, Leipurin as well as Telko.
Aspo serves demanding business-to-business clients. In 2007, the
company's net sales (pro forma) amounted to EUR 495.3 million.
Distribution:
OMX Nordic Exchange Helsinki
The Media
www.aspo.com
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