|
|||
2011-08-11 08:00:00 CEST 2011-08-11 08:01:11 CEST REGULATED INFORMATION Tikkurila Oyj - Interim report (Q1 and Q3)Tikkurila's Interim Report for January-June 2011 - Favorable revenue development continued while cost inflation weakened profitabilityTikkurila Oyj Stock Exchange Release August 11, 2011 at 9:00 a.m. (CET+1) April-June 2011 highlights * Revenue for the second quarter increased by 8.7 percent in comparison to the corresponding period last year and was EUR 198.3 million (4-6/2010: EUR 182.5 million). * Operating profit (EBIT) excluding non-recurring items was EUR 27.5 (28.4) million, i.e. 13.8 (15.5) percent of revenue. * Non-recurring items totaled EUR 0.0 (0.7) million. * EPS was EUR 0.39 (0.46). * Tikkurila reiterates its outlook for 2011. * General economic uncertainty has increased, in particular after the review period. January-June 2011 highlights * Revenue for the first half of the year increased by 10.3 percent in comparison to the corresponding period last year and was EUR 332.8 million (1-6/2010: EUR 301.8 million). * Operating profit (EBIT) excluding non-recurring items was EUR 34.0 (35.9) million, i.e. 10.2 (11.9) percent of revenue. * EPS was EUR 0.42 (0.55). Key Figures (EUR million) 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ 2011 2010 % 2011 2010 % 2010 -------------------------------------------------------------------------------- Income statement Revenue 198.3 182.5 8.7% 332.8 301.8 10.3% 588.6 Operating profit (EBIT), excluding non-recurring items 27.5 28.4 -3.2% 34.0 35.9 -5.2% 59.7 Operating profit (EBIT) margin, excluding non-recurring items, % 13.8% 15.5% 10.2% 11.9% 10.1% Operating profit (EBIT) 27.5 29.1 -5.5% 34.0 36.6 -7.0% 60.8 Operating profit (EBIT) margin, % 13.8% 15.9% 10.2% 12.1% 10.3% Profit before taxes 23.9 27.9 -14.6% 27.3 33.8 -19.3% 52.0 Net profit 17.0 20.5 -17.0% 18.5 24.1 -23.2% 36.5 Other key indicators EPS*, EUR 0.39 0.46 -17.0% 0.42 0.55 -23.2% 0.83 ROCE, % p.a. 18.8% 18.5% 18.8% 18.5% 19.2% Cash flow after capital expenditure 1.7 5.1 -67.2% -26.0 -25.0 -3.8% 51.4 Net interest-bearing debt at period- end 137.7 155.3 -11.3% 78.6 Gearing, % 77.1% 87.0% 41.4% Equity ratio, % 34.4% 34.2% 41.1% Personnel at period-end 3,794 3,946 -3.8% 3,468 * As calculated by using the amount of shares outstanding of 44,108,252. Comments by Erkki Järvinen, President and CEO:"Our revenue developed according to our expectations in the second quarter of the year. The market situation continued to be reasonably favorable in all of our key operating areas, and our revenue grew particularly due to sales price increases. Growth was brisk in the SBU East area and in its largest market Russia, where both sales volumes grew and the transfer of demand to the higher price and quality grade products continued. In Finland, the sales development did not meet our expectations. Our profitability in the second quarter was weakened by the continued challenging development in the prices and availability of the key raw materials, as well as the extensive cost inflation in other areas. Salary expenses rose in Russia, in particular, where we also further increased our sales and marketing inputs. During the first half of the year, we managed to transfer the increased raw material costs to our sales prices reasonably well, although not in full. During the review period the prices of the key raw materials were approximately 20 percent higher than in the corresponding period last year. It would seem that challenges related to both the prices and the availability of the raw materials will continue during the remainder of the year as well. We will continue to raise the sales prices in the coming months in order to cover the increased costs. The recent rapid weakening of the outlook of the global economy and the possible escalation of the European debt crisis have increased the uncertainty of the market development. Consumer confidence has declined in Finland and Sweden in the past few months. Immediately after the end of the review period at the beginning of July 2011, we completed the acquisition of the operations of the Zorka Color paint company in Serbia. The acquisition strengthens our foothold in the interesting and developing market in the Balkans." Outlook for 2011 After the review period financial uncertainty has gained momentum, and therefore it is more difficult to forecast the development during the rest of the year. The purchase behavior of Tikkurila's customers and their customers might change due to the prevailing uncertainty in the international markets. GDP growth is expected to continue in the key market areas of the Tikkurila Group in 2011, but regional and country-specific variances might increase. 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. Tikkurila reiterates its revenue growth and EBIT margin guidance for the financial year 2011. 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 would stay close to the end of 2010 level and that the gradual economic recovery of Tikkurila's key markets would continue. The estimates are also based on Tikkurila's current business structure, when the impact of mergers, acquisitions or divestments carried out in 2011 is excluded. In order to enhance profitability and competitiveness, Tikkurila has decided to continue to increase sales prices as well as to implement additional measures to increase efficiency and decrease expenses. 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 discloses relevant information (i.e. information likely to have a material effect on the value of Tikkurila's share price) related to its Interim Report with this Stock Exchange Release. Tikkurila's Interim Report for January-June 2011 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 regarding its January-June 2011 Interim Report for the media and analysts today on August 11, 2011, 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 Interim Report will be presented by Erkki Järvinen, President and CEO, and Jukka Havia, CFO. A conference call in English will be held at 3:00 p.m. (CET+1). The participants will be asked to provide their full name and a conference ID (80352169). To participate in the conference call, please dial one of the following numbers 5-10 minutes before the conference: From Finland (no charge): 0800 112 363 From Russia (no charge): 8108 002 097 2044 From Sweden (no charge): 0200 890 171 From the USA (no charge): 1866 966 9439 UK Standard International (from all countries): +44 (0) 1452 555 566 The stock exchange release and presentation materials will be available before the event at www.tikkurilagroup.com/investors. A recording of the conference call will be available at the same address after the conference. 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#1537653] |
|||
|