2014-11-06 12:00:00 CET
2014-11-06 12:00:04 CET
REGULATED INFORMATION
Nurminen Logistics Oyj - Interim report (Q1 and Q3)
NURMINEN LOGISTICS PLC’S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2014
In the third quarter, the company continued to implement efficiency measures to
improve the cost structure, and the operating result improved clearly.
Nurminen Logistics Plc Interim report 6 November
2014 at 1:00 p.m.
Nurminen Logistics key figures 1 January - 30 September 2014
-- Net sales were EUR 40.8 million (2013: EUR 49.4 million).
-- Reported operating result was EUR -0.1 million (EUR 1.1 million).
-- Operating margin was -0.3% (2.2%).
-- Operating result excluding non-recurring items was EUR 0.1 million (EUR 1.5
million).
-- EBT was EUR -1.8 million (EUR -1.2 million).
-- Net result was EUR -2.0 million (EUR -1.9 million).
-- Earnings per share, undiluted: EUR -0.18 (EUR -0.17).
-- Earnings per share, diluted: EUR -0.18 (EUR -0.17).
Third quarter 1 July - 30 September 2014
-- Net sales were EUR 12.6 million (2013: EUR 16.7 million).
-- Reported operating result was EUR 0.2 million (EUR -0.3 million).
-- Operating margin was 1.9% (-2.1%).
-- Operating result excluding non-recurring items was EUR 0.2 million (EUR
-0.2 million).
-- EBT was EUR -0.4 million (EUR -1.0 million).
-- Net result was EUR -0.4 million (EUR -1.1 million).
-- Earnings per share, undiluted: EUR -0.04 (EUR -0.09).
-- Earnings per share, diluted: EUR -0.04 (EUR -0.09).
As of 1 January 2014, Nurminen Logistics reports on three business units:
Railway Logistics, Special Transports and Projects, and Forwarding and Value
Added Services. In 2013, the company reported on four business units. At the
end of 2013, the Transit Logistics business unit was merged into the Forwarding
and Value Added Services unit.
The company's internal reporting and segment breakdown of external reporting
have been amended as stated in the stock exchange release published on 7 August
2014. The Luumäki railway terminal and the Finnish railway forwarding
operations were transferred from the Railway Logistics business unit to the
Forwarding and Value Added Services business unit. Business operations are
reported according to the new business unit structure as of the second quarter
of the financial period 1 January 2014 - 31 December 2014.
OLLI POHJANVIRTA, PRESIDENT AND CEO:
“Our operating ability remained good in all business units during the review
period. Positive development in our Forwarding and Value Added Services
business unit continued, and we succeeded in increasing our market share in
export and import services in Finland, despite the declining overall market. As
a result of strict cost control, the Special Transports and Projects business
unit clearly improved its result during the review period. However,
postponements of customers' project deliveries into the future had a negative
impact on the unit's net sales and result in the third quarter. In the railway
logistics business, volumes of cross-border transport between Finland and
Russia remained unchanged from the previous quarter. The volume of domestic
transport in Russia increased compared with the first part of the year. In the
third quarter, the company continued to implement efficiency measures to
improve the cost structure. Despite the declining overall market, we succeeded
in improving our result in the third quarter, both year-on-year and compared
with the first part of 2014,” says Olli Pohjanvirta, President and CEO.
MARKET SITUATION IN THE REVIEW PERIOD
Market conditions continued to be challenging, due to the tense international
political situation around Russia.
The company believes that the decrease of volumes in railway logistics is over,
but traffic from Finland to Russia will remain at a particularly low level.
Ukrainian traffic is still at a standstill. In the Russian internal market, the
company's volumes increased in the third quarter of the year. The lower prices
and faster delivery times of road transports have resulted in transports
shifting from rail to road.
In the special transport and project market, the uncertainty in the world
economy and the tightening of financial markets were reflected in demand, which
remained weak. The volumes of international project deliveries by the
engineering industry continue to be low. Depreciation of the Russian rouble and
the crisis in Ukraine affected the demand for transports in Russia and the CIS
towards the end of the review period. Competition remained intense and price
levels in the market fluctuated considerably.
The continuing decrease in total exports and imports in Finland caused
increasingly intensive price competition, but the Forwarding and Value Added
Services business unit succeeded in improving its net sales and operating
result. Despite the challenging market conditions, the results of the unit's
new customer acquisition improved.
NET SALES AND FINANCIAL PERFORMANCE 1 JANUARY - 30 SEPTEMBER 2014
Net sales for the review period amounted to EUR 40.8 million (2013: EUR 49.4
million), down by 17% compared with 2013. Reported operating result was EUR
-115 (1,108) thousand. The operating result includes non-recurring items of EUR
-174 (-391) thousand. Therefore, the comparative operating result was EUR 59
(1,499) thousand. The operating result of the comparison period was improved by
gains from sales of used rolling stock.
The non-recurring items in the review and comparison periods were related to
reductions in personnel.
The depreciation of the Russian rouble during the review period increased the
company's financing costs by EUR 0.3 million. This exchange rate loss had no
cash flow impact.
Railway Logistics
The Railway Logistics business unit's net sales for the review period amounted
to EUR 14,124 (2013: 22,823) thousand and operating result was EUR 972 (3,934)
thousand. The operating result includes non-recurring items of EUR -85 (-170)
thousand. Therefore, the comparative operating result was EUR 1,057 (4,103)
thousand. The operating result of the comparison period was improved by gains
from sales of used rolling stock.
Net sales and operating result of Railway Logistics declined during the three
first quarters of 2014 compared with the corresponding period in 2013. This is
due to a significant decrease in transport volumes in traffic between Finland
and Russia and the stopping of deliveries to Ukraine. We succeeded in securing
new direct clients in internal transports in Russia, but Russia's internal
traffic does not compensate for the decrease in transport volumes from Finland
to Russia for the time being.
Special Transports and Projects
The Special Transports and Projects business unit's net sales for the review
period amounted to EUR 6,234 (2013: 7,036) thousand, and operating result was
EUR 143 (53) thousand. The operating result doesn't include non-recurring items
(2013: EUR -25 thousand). Therefore, the comparative operating result was EUR
143 (78) thousand.
Net sales of the Special Transports and Projects business unit decreased
year-on-year. This was due to decreased volumes in project business. Despite
decreased net sales, the result improved clearly, thanks to strict cost
control. The company has intensified its customer acquisition efforts in
project business in Russia through means such as opening an office in Moscow.
This will be reflected in the company's order books in the near future. The
company's market share in special transports increased, and it succeeded in
securing new clients in Finland.
Forwarding and Value Added Services
The Forwarding and Value Added Services business unit posted net sales of EUR
20,918 (2013: 19,925) thousand in the review period, and its operating result
was EUR -1,230 (-2,879) thousand. The operating result includes non-recurring
items of EUR -89 (-196) thousand. Therefore, the comparative operating result
was EUR -1,141 (2,684) thousand.
The Forwarding and Value Added Services business unit continuously improved the
efficiency of its operations during the period under review. The business
unit's net sales increased and the operating result showed a significant
year-on-year improvement. At the Vuosaari terminal, volumes in the pulp, paper
and forest industry increased, while substantial fluctuation was seen in
volumes of the engineering and metal industries. Demand for services of the
Baltic companies increased, and their results improved significantly
year-on-year. In the final quarter of the year, volumes in the Forwarding and
Value Added Services unit are expected to continue developing slightly better
year-on-year. The operational development measures and cost-savings carried out
in the unit in the first part of the year are expected to further strengthen
the business unit's performance. The operational loss of the Vuosaari logistics
centre was EUR -0.9 (-1.5) million in the period under review. The high rental
level of the Vuosaari logistics centre has a significant negative effect on the
otherwise good operating result.
NET SALES BY UNIT 1-9/2014 1-9/2013 1-12/2013
------------------------------------------------------------------
EUR 1,000
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Railway Logistics 14,124 22,823 29,405
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Special Transports and Projects 6,234 7,036 8,874
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Forwarding and Value Added Services 20,918 19,925 26,095
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Eliminations -453 -377 -530
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Total 40,823 49,408 63,844
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OPERATING RESULT BY UNIT 1-9/2014 1-9/2013 1-12/2013
------------------------------------------------------------------
EUR 1,000
------------------------------------------------------------------
Railway Logistics 972 3,934 5,276
------------------------------------------------------------------
Special Transports and Projects 143 53 -143
------------------------------------------------------------------
Forwarding and Value Added Services -1,230 -2,879 -4,917
------------------------------------------------------------------
Total -115 1,108 216
------------------------------------------------------------------
NET SALES AND FINANCIAL PERFORMANCE 1 JULY - 30 SEPTEMBER 2014
Net sales for the third quarter amounted to EUR 12.6 million (2013: EUR 16.7
million), down by 25% compared with 2013. Reported operating result was EUR 234
(-346) thousand. The operating result doesn't include non-recurring items
(2013: EUR -189 thousand). Therefore, the comparative operating result was EUR
234 (-157) thousand. The operating result of the comparison period was improved
by gains from sales of used rolling stock.
The depreciation of the Russian rouble during the review period decreased the
company's income before extraordinary items by EUR 0.2 million. This exchange
rate loss had no cash flow impact.
In the third quarter, net sales and result of Railway Logistics decreased
significantly year-on-year. Loading volumes in the Russian internal traffic and
Finland-Russia traffic remained low, partly due to seasonal variation. The
situation improved slightly in September. Competition is fierce in railway
transport between Finland and Russia. Railway operators compete with each other
and with road transport. The decreased loading volumes in Finland were to some
extent compensated for by loading volumes in Russian internal markets. However,
due to lower prices in the Russian international markets, this was not enough
to improve the business unit's result. The operating result of the comparison
period was improved by gains from sales of used rolling stock.
Net sales of the Special Transports and Projects business unit decreased
slightly year-on-year. This was due to the slowing down of project business and
postponed project start-ups. Despite decreased net sales, the unit's result
improved clearly, thanks to strict cost control.
In Forwarding and Value Added Services, net sales increased in the third
quarter year-on-year, and the operating result improved. Considering the
general economic situation, the profit development of the unit was good during
the period under review. Operational loss of the Vuosaari logistics centre was
EUR -0.3 (2013: -0.6) million in the third quarter. The high rental level in
Vuosaari has a significant negative effect on the centre's operating result.
The utilisation rates and results of the company's other terminals have
developed according to plan.
NET SALES BY UNIT 7-9/2014 7-9/2013 Change
---------------------------------------------------------------
EUR 1,000
---------------------------------------------------------------
Railway Logistics 4,005 7,544 -3,538
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Special Transports and Projects 1,673 3,050 -1,377
---------------------------------------------------------------
Forwarding and Value Added Services 6,960 6,257 703
---------------------------------------------------------------
Eliminations -71 -140 69
---------------------------------------------------------------
Total 12,567 16,710 -4,143
---------------------------------------------------------------
OPERATING RESULT BY UNIT 7-9/2014 7-9/2013 Change
---------------------------------------------------------------
EUR 1,000
---------------------------------------------------------------
Railway Logistics 468 608 -140
---------------------------------------------------------------
Special Transports and Projects -58 127 -185
---------------------------------------------------------------
Forwarding and Value Added Services -175 -1,081 906
---------------------------------------------------------------
Total 234 -346 580
---------------------------------------------------------------
OUTLOOK
The company's outlook remains unchanged: Nurminen Logistics expects that its
key market of Russia and its neighbouring countries will decrease in 2014 due
to the continuation of the crisis in Ukraine, but that it will again pick up
quickly, especially with regard to rail transport volumes and project transport
business, when the international political situation settles. With regard to
Finnish exports and imports, the company's market outlook is stable in 2014
based on existing customer agreements.
Nurminen Logistics expects that both its operating result and earnings per
share will improve compared to 2013, but that its net sales will fall short of
the level of 2013 due to the decline in volumes in rail transport between
Finland and Russia resulting from the crisis in Ukraine and the sanctions
imposed on Russia.
The company's long-term goal is to grow at a faster rate than the market, on
average by over 15% per year. Going forward, over 50% of net sales will come
from the growth markets of Russia and its neighbouring countries. The company's
further long-term goals are to improve profitability, achieve an operating
profit level of 10 per cent and return on equity of 20 per cent.
SHORT-TERM RISKS AND UNCERTAINTIES
Prolongation of the Ukrainian crisis long into 2015 and subsequent further
tightening of the Russian financial markets would have a negative impact on the
goods flows of the company's Western and Russian customers into Russia, which
in turn would significantly affect the company's performance outlook.
The company has received a total of 32 subsequent levy decisions from the
National Board of Customs' Eastern District Office in Lappeenranta, which state
that the company and VG Cargo Plc, which has filed for bankruptcy, are liable
to pay import taxes from the year 2009. The company's liability for the import
taxes is, at a maximum, EUR 0.5 million. The company does not consider itself
liable for the aforementioned import taxes and has not recorded provisions for
the associated costs. If there is a case for subsequent levy, the company's
view is that the levy should primarily be directed at the bankruptcy estate of
VG Cargo Plc and be paid from its valid customs guarantee. The company has
filed an appeal with the Helsinki District Court against the subsequent levy
decisions made by the National Board of Customs.
FINANCIAL POSITION AND BALANCE SHEET
Cash flow from operations amounted to EUR -1,336 thousand. Cash flow from
investments was EUR 486 thousand. Cash flow from financing activities amounted
to EUR -745 thousand.
At the end of the review period, cash and cash equivalents amounted to EUR
1,915 thousand. Liquidity was satisfactory in the period under review.
The Group's interest-bearing debt totalled EUR 23.1 million and net
interest-bearing debt amounted to EUR 21.2 million.
The balance sheet total was EUR 52.7 million, and the equity ratio was 31.8%.
CAPITAL EXPENDITURE
The Group's gross capital expenditure during the review period amounted to EUR
459 (290) thousand, accounting for 1.1% of net sales. Depreciation totalled EUR
1.9 (2.7) million, or 4.7% of net sales.
GROUP STRUCTURE
Nurminen Logistics Plc's Russian subsidiaries OOO John Nurminen, St. Petersburg
(100%) and ZAO Irtrans (100%) were closed down on 23 September 2014.
The Group comprises the parent company, Nurminen Logistics Plc, as well as the
following subsidiaries and associated companies, owned directly or indirectly
by the parent (ownership, %): RW Logistics Oy (100%), Nurminen Logistics
Services Oy (100%), Nurminen Logistics Heavy Oy (100%), Nurminen Logistics
Finland Oy (100%), Nurminen Maritime Latvia SIA (51%), Pelkolan Terminaali Oy
(20%), OOO Nurminen Logistics (100%), OOO John Nurminen Terminal (100%), ZAO
Terminal Rubesh (100%), Nurminen Logistics LLC (100%), UAB Nurminen Maritime
(51%), Nurminen Maritime Eesti AS (51%), Team Lines Latvia SIA (23%) and Team
Lines Estonia Oü (20.3%).
PERSONNEL
At the end of the review period, the Group had 237 employees, compared with 261
on 31 December 2013. The number of employees working abroad was 60.
Railway Logistics had 37 employees, Special Transports and Projects 22 and
Forwarding and Value Added Services 162 employees. Management and
administrative staff numbered 16.
In a stock exchange release dated 25 September 2014, the company announced that
it will implement cost saving measures and initiate co-determination
negotiations with the objective of temporarily laying off all of its Finnish
personnel for a maximum of 30 days during the last quarter of 2014 and in 2015.
REMUNERATION
Nurminen Logistics has a new key employee stock option plan. The company has a
weighty financial reason for the issue of stock options, since the stock
options are intended to form part of the incentive and commitment program for
the Group key employees. The purpose of the stock options is to encourage the
key employees to work on a long-term basis to increase shareholder value. The
purpose of the stock options is also to commit the key employees to the
employer. Approximately 10 key employees, including the members of the Group's
Executive Board and other separately named executives, belong to the target
group of the plan. For all key employees, the prerequisite for receiving stock
options is share ownership in the company. This information was published in a
stock exchange release on 14 January 2014.
SHARES AND SHAREHOLDERS
The trading volume of Nurminen Logistics Plc's shares was 218,580 during the
period from 1 January to 30 September 2014. This represented 1.67% of the total
number of shares. The value of the turnover was EUR 326,034. The lowest price
during the review period was EUR 1.36 per share and the highest EUR 2.20 per
share. The closing price for the review period was EUR 1.40 per share and the
market value of the entire share capital was EUR 18,280,839 at the end of the
period.
At the end of the review period the company had 567 shareholders.
In 30 June 2014 the company held 20,275 of its own shares, corresponding to
0.2% of votes.
DECISIONS MADE BY THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
The decisions of the Nurminen Logistics Plc's Annual General Meeting of
Shareholders were published in stock exchange release on 8 April 2014.
DIVIDEND POLICY
The company's Board of Directors has on 14 May 2008 determined the company's
dividend policy, according to which Nurminen Logistics Plc aims to annually
distribute as dividends approximately one third of its net profit, provided
that the company's financial position allows this.
AUTHORISATIONS GIVEN TO THE BOARD
Authorising the Board of Directors to decide on the acquisition of the
company's own shares
Annual Meeting authorised the Board to decide on the acquisition of a maximum
of 100,000 of the company's own shares. The authorisation will be used for the
paying of remuneration of the members of the Board of Directors. The own shares
may be acquired pursuant to the authorisation only by using unrestricted
equity. The price payable for the shares shall be based on the price of the
company's shares in public trading at the time of the acquisition. The own
shares may be acquired in deviation from the proportional shareholdings of the
shareholders (directed repurchase). The authorisation includes the right
whereby the Board of Directors is authorised to decide on all other matters
related to the acquisition of own shares.
The authorisation remains in force until 30 April 2015.
Authorising the Board of Directors to decide on the issuance of shares as well
as the issuance of options and other special rights entitling to shares
Annual General Meeting authorised the Board to decide on issuance of shares
and/or special rights entitling to shares pursuant to chapter 10 section 1 of
the Finnish Companies Act.
Based on the aforesaid authorisation the Board of Directors is entitled to
release or assign, either by one or several resolutions, shares and/or special
rights up to a maximum equivalent of 20,000,000 new shares so that aforesaid
shares and/or special rights can be used, e.g., for the financing of company
and business acquisitions corporate and business trading or for other business
arrangements and investments, for the expansion of owner structure, paying of
remuneration of the Board members and/or for the creating incentives for, or
encouraging commitment in, personnel.
The authorisation gives the Board the right to decide on share issue with or
without payment. The authorisation for deciding on a share issue without
payment also includes the right to decide on the issue for the company itself,
so that the authorisation may be used in such a way that in total no more than
one tenth (1/10) of all shares in the company may from time to time be in the
possession of the company and its subsidiaries.
The authorisation includes the right whereby the Board of Directors is entitled
to decide of all other issues of shares and special rights. Furthermore, the
Board of Directors is entitled to decide on share issues, option rights and
other special rights, in every way, as the same as General Meeting could
decide. The authorisation also includes right to decide on directed issues of
shares and/or special rights.
The authorisation remains in force until 30 April 2015.
OTHER EVENTS DURING THE REVIEW PERIOD
Nurminen Logistics Plc arranges a share issue to the personnel
Nurminen Logistics announced on 14 January 2014 that the Board of Directors of
Nurminen Logistics Plc has decided on 14 January 2014 to arrange a share issue
directed to the personnel. In the share issue, new shares in the company will
be offered for subscription to all Group employees. In the share issue, a
maximum total of 200,000 new shares in the company will, in deviation from the
shareholders' pre-emptive right, be offered for subscription to the Group
personnel. The company has a weighty financial reason for the deviation from
the shareholders' pre-emptive right, since the purpose of the share issue is to
encourage the personnel to acquire and own the company´s shares.
Nurminen Logistics announced on 10 March 2014 that the Board of Directors has
decided to update the share subscription price of the new shares to be offered
in the personnel share issue. The new share subscription price is EUR 1.41 per
share. The share subscription price is based on the trade volume weighted
average quotation of the company's share on NASDAQ OMX Helsinki Ltd between 1
February 2014 and 28 February 2014, and on a discount of 10 per cent calculated
from such price. The trade volume weighted average quotation of the company's
share during the above period is EUR 1.57 per share. The share subscription
period will be 10 March - 20 March 2014.
Nurminen Logistics announced on 25 March 2014 that the Board of Directors of
Nurminen Logistics Plc approved subscriptions for 45,005 new shares subscribed
in the personnel share issue, corresponding to a total of EUR 63,457.05. The
share subscription price was EUR 1.41 per share. The share subscription period
ended on 20 March 2014.
Change in Nurminen Logistics' own shares
A total of 10,030 shares granted as share-based incentives have been returned
to Nurminen Logistics on February 6, 2014 in accordance with the terms of the
incentive plan as the employment ended. Nurminen Logistics holds now a total of
20,275 its own shares. The number of own shares corresponds to 0.2% of all
Nurminen Logistics shares. This information was published in a stock exchange
release on 6 February 2014.
Nurminen Logistics will centralise its railway terminal operations to Luumäki
Nurminen Logistics announced on 20 January 2014 its plans to reduce its
terminal capacity and transfer terminal operations from the Niirala terminal to
the Luumäki terminal. Due to the personnel impact of the planned changes,
Nurminen Logistics launched co-determination negotiations concerning the
terminal and forwarding personnel of the Niirala location. The co-determination
negotiations were concluded on 11 February 2014, and the company has decided to
shut down the Niirala terminal and centralise its railway terminal operations
to Luumäki. Project deliveries through the Niirala project field will be
continued. As a result of the negotiations, Nurminen Logistics will permanently
lay off a maximum of nine people in Niirala. The lay-offs will be carried out
without delay. The company will support those being laid off to find new
employment. According to preliminary estimates, Nurminen Logistics will record
approximately EUR 0.2 million of expenses related to the arrangement to the
first quarter of 2014. The arrangement will save EUR 0.4 million annually from
2015 onwards.
Nurminen Logistics has agreed on working capital financing in Finland
The company announced on 3 March 2014 that it had signed a 12-month financing
agreement relating to its continuing business operations with its financing
banks. Under the terms of the financing agreement, Nurminen Logistics may not
distribute a dividend or repayment of equity to its shareholders, or redeem or
purchase its own shares, without prior consent from the financiers.
Disclosure notification under chapter 2, section 9 of the Securities Market Act
The company announced in a stock exchange release on 14 April 2014 that it has
received the following disclosure notifications of changes in portions of
holdings on 14 April 2014, pursuant to the Securities Markets Act:Mr. Olli
Pohjanvirta has announced to Nurminen Logistics Plc that his personal and
controlled companies' portion of Nurminen Logistics Plc's total number of
shares and voting rights has risen above 5 per cent (1/20). A company
controlled by Olli Pohjanvirta, VGK Invest Oy, bought 648,000 of Nurminen
Logistics Plc's shares (4.98% of shares and votes) on 11 April 2014. In
addition, Olli Pohjanvirta controls directly or indirectly Nurminen Logistics
Plc's shares and votes as follows: Olli Pohjanvirta owns directly 141,184
shares (1.08% of shares and votes) and through the companies controlled by him:
Etl Holding Oy 158,000 shares (1.21% of shares and votes), Etl Invest Oy
181,818 shares (1.40% shares and votes), and through Russian Capital Management
Oy 25,000 shares (0.19% of shares and votes). Olli Pohjanvirta's share capital
now comprises 1,154,002 Nurminen Logistics Plc's shares which are equivalent to
8.87% of Nurminen Logistics Plc's share capital and voting rights. Nurminen
Logistics Plc's share capital comprises 13,012,737 shares and votes.
A positive arbitrage for Nurminen Logistics in a tax responsibility matter
The company announced on 14 April 2014 that an arbitral tribunal has given a
positive arbitrage for Nurminen Logistics in the matter related to the taxation
of the old John Nurminen Ltd of year 2007. The arbitration clarified the
division of tax responsibility between the new John Nurminen Ltd and Nurminen
Logistics Plc pertaining to the adjustment decision of the pre-demerger John
Nurminen Ltd for the financial year 2007. According to the arbitrage, the new
John Nurminen Ltd is responsible for the EUR 0.4 million tax responsibility.The
former John Nurminen Ltd was demerged on 1 January 2008 according to a demerger
plan dated 7 September 2007, with the two receiving companies being the new
John Nurminen and Kasola Plc. Kasola Plc subsequently changed its name to
Nurminen Logistics Plc.
New shares in Nurminen Logistics Plc entered into the trade register
A total of 45,005 new shares subscribed in the personnel share issue of
Nurminen Logistic Plc were entered into the Trade Register on 28 April 2014.
The shareholder rights of the new shares arise as from the date of the Trade
Register entry, 28 April 2014. After the Trade Register entry of the new
shares, the total number of shares in Nurminen Logistics Plc is 13,057,742. The
shares entered into the Trade Register will be publicly traded as of 29 April
2014. This information was published in a stock exchange release on 28 April
2014.
EVENTS AFTER THE REVIEW PERIOD
Nurminen Logistics Plc's co-determination negotiations have been concluded
Nurminen Logistics announced on 25 September 2014 its plans to implement cost
savings by temporarily laying off all of its Finnish personnel for a maximum of
30 days during the last quarter of 2014 and in 2015. The negotiations have been
concluded, and the company has decided to temporarily lay off all of its
Finnish personnel for two weeks during the last quarter of 2014 and the first
half of 2015. The company estimates that this will achieve cost savings of
approximately EUR 0.5 million. In addition, the company has the opportunity to
temporarily lay off the Finnish personnel for another two weeks during 2015 so
that the duration of the temporary lay-offs will be a maximum of 30 calendar
days. The Management Team of Nurminen Logistics has decided to take part in the
savings programme and will give up two weeks' salary during the last quarter of
2014. Correspondingly, the Board of Directors of Nurminen Logistics will give
up 20% of their remuneration for 2014. This information was published in a
stock exchange release on 22 October 2014.
Change in Nurminen Logistics' Management Team
The company announced in a stock exchange release on 24 October 2014, that the
member of the Nurminen Logistics' Management Team, Senior Vice President Fedor
Larionov, has resigned from his position at his own request. He left his
position on 27 October 2014. President and CEO Olli Pohjanvirta will assume
responsibility for Railway Logistics' Senior Vice President's duties as of 27
October 2014 in addition to other his duties. The Head of Nurminen Logistics'
Moscow office Kauko Tanninen will act as operative director of all Nurminen
Logistics' operations in Russia as of 27 October 2014.
Disclaimer
Certain statements in this bulletin are forward-looking and are based on the
management's current views. Due to their nature, they involve risks and
uncertainties and are susceptible to changes in the general economic or
industry conditions.
Nurminen Logistics Plc
Board of Directors
For more information, please contact: Olli Pohjanvirta, President and CEO, tel.
+358 10 545 2431
DISTRIBUTION
Nasdaq Helsinki
Major media
www.nurminenlogistics.com
Nurminen Logistics is a listed company established in 1886 that offers
logistics services. The company provides high-quality railway transports,
project transport services, special transports and forwarding and cargo
handling services to its customers. The main market areas of Nurminen Logistics
are Finland, Russia and its neighbouring countries.
TABLES
Tables concerning business units are presented in the verbal part of the
interim report.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-9/201 1-9/201 1-12/20
4 3 13
------------------------------------------------------
EUR 1,000
NET SALES 40 823 49 408 63 844
Other operating income 401 1 777 1 834
Materials and services -19 393 -22 986 -29 189
Employee benefit expenses -8 413 -10 517 -14 606
Depreciation, amortisation and impairment losses -1 903 -2 749 -3 538
Other operating expenses -11 629 -13 826 -18 129
OPERATING RESULT -115 1 108 216
Financial income 77 52 55
Financial expenses -1 657 -2 458 -3 444
Share of profit in equity-accounted investees -65 80 126
RESULT BEFORE TAX -1 760 -1 218 -3 048
Income taxes -255 -707 -899
PROFIT / LOSS FOR THE PERIOD -2 015 -1 926 -3 947
Other comprehensive income
Other comprehensive income to be reclassified to
profit or loss in subsequent periods:
Translation differences -2 041 -1 566 -2 287
Other comprehensive income for the period after tax -2 041 -1 566 -2 287
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -4 056 -3 492 -6 234
Result attributable to
Equity holders of the parent company -2 326 -2 232 -4 149
Non-controlling interest 311 307 202
Total comprehensive income attributable to
Equity holders of the parent company -3 799 -3 799 -6 439
Non-controlling interest 307 307 202
EPS undiluted -0,18 -0,17 -0,32
EPS diluted -0,18 -0,17 -0,32
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 7-9/20 7-9/20 Change
14 13
---------------------------------------------------------
EUR 1,000
NET SALES 12 567 16 710 -4 143
Other operating income 153 49 104
Materials and services -5 822 -8 683 2 862
Employee benefit expenses -2 691 -3 270 579
Depreciation, amortisation and impairment losses -618 -847 229
Other operating expenses -3 356 -4 305 949
OPERATING RESULT 234 -346 580
Financial income 70 4 66
Financial expenses -656 -722 66
Share of profit in equity-accounted investees -18 42 -60
RESULT BEFORE TAX -370 -1 022 652
Income taxes -33 -102 69
PROFIT / LOSS FOR THE PERIOD -403 -1 123 721
Other comprehensive income:
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Translation differences -1 563 -307 -1 256
Other comprehensive income for the period after tax -1 563 -307 -1 256
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -1 966 -1 430 -535
Result attributable to
Equity holders of the parent company -495 -1 132 636
Non-controlling interest 93 9 84
Total comprehensive income attributable to
Equity holders of the parent company -2 058 -1 439 -619
Non-controlling interest 93 9 84
EPS undiluted -0,04 -0,09 0,05
EPS diluted -0,04 -0,09 0,05
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.9.2014 30.9.2013 31.12.2013
---------------------------------------------
EUR 1,000
ASSETS
Non-current assets
Property, plant and equipment 27 987 33 015 31 492
Goodwill 9 516 9 516 9 516
Other intangible assets 388 569 530
Investments in equity-accounted investees 165 250 295
Receivables 35 35 35
Deferred tax assets 894 935 926
NON-CURRENT ASSETS 38 985 44 320 42 795
Current assets
Trade and other receivables 11 722 12 154 11 045
Current tax receivables 67 122 93
Cash and cash equivalents 1 916 4 449 3 553
CURRENT ASSETS 13 704 16 725 14 691
ASSETS TOTAL 52 689 61 045 57 486
EQUITY AND LIABILITIES
Share capital 4 215 4 215 4 215
Other reserves 19 655 19 591 19 591
Translation difference -5 034 -3 862 -4 193
Retained earnings -2 746 2 941 720
Non-controlling interest 691 602 558
EQUITY, TOTAL 16 781 23 486 20 891
Non-current liabilities
Deferred tax liability 383 428 350
Other liabilities 515 595 561
Interest-bearing finance liabilities 13 448 18 203 14 849
NON-CURRENT LIABILITIES 14 347 19 225 15 760
Current liabilities
Current tax liabilities 98 157 88
Interest-bearing finance liabilities 9 629 8 847 8 902
Trade payables and other liabilities 11 834 9 330 11 846
CURRENT LIABILITIES 21 561 18 333 20 835
TOTAL LIABILITIES 35 908 37 559 36 595
TOTAL EQUITY AND LIABILITIES 52 689 61 045 57 486
CONDENSED CONSOLIDATED CASH FLOW STATEMENT 1-9/20 1-9/20 1-12/2
14 13 013
---------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Profit/Loss for the period -2 015 -1 926 -3 947
Gains and losses on disposals of property, plant and -205 -1 687 -1 685
equipment and other non-current assets
Depreciation, amortisation and impairment losses 1 903 2 749 3 538
Unrealised foreign exchange gains and losses 364 907 1 071
Other adjustments 1 298 1 812 2 629
Paid and received interest -954 -1 049 -1 400
Taxes paid -241 -907 -1 244
Changes in working capital -1 488 1 500 4 848
Cash flow from operating activities -1 336 1 400 3 808
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment and 923 3 541 3 531
intangible assets
Investments in property, plant and equipment and -437 -299 -446
intangible assets
Cash flow from investing activities 486 3 242 3 087
CASH FLOW FROM FINANCING ACTIVITIES
Investment by non-controlling interest 63 0 0
Acquisition of own shares 0 0 0
Changes in liabilities -631 -2 059 -5 360
Dividends paid / repayments of equity -178 -2 887 -2 762
Cash flow from financing activities -745 -4 946 -8 122
CHANGE IN CASH AND CASH EQUIVALENTS -1 638 -452 -1 349
Cash and cash equivalents at beginning of period 3 553 4 901 4 901
Cash and cash equivalents at end of period 1 915 4 449 3 553
A= Share capital
B= Share premium reserve
C= Legal reserve
D= Reserve for invested unrestricted equity
E= Translation differences
F= Retained earnings
G= Non-controlling interest
H= Total
STATEMENT OF CHANGES IN EQUITY A B C D E F G H
1-9/2014 EUR 1,000
-------------------------------
Equity 1.1.2014 4215 86 2378 17127 -4193 720 558 20891
Result for the period 0 0 0 0 0 -2326 311 -2015
Total comprehensive income for 0 0 0 0 -841 -1200 0 -2041
the period / translation
differences
Other changes 0 0 0 63 0 60 0 123
Dividends / repayments of 0 0 0 0 0 0 -178 -178
equity
Equity 30.9.2014 4215 86 2378 17190 -5034 -2746 691 16781
STATEMENT OF CHANGES IN A B C D E F G H
EQUITY 1-9/2013 EUR 1,000
------------------------------
Equity 1.1.2013 4215 86 2378 18158 -3276 5799 2437 29797
Result for the period 0 0 0 0 0 -2232 307 -1926
Total comprehensive income 0 0 0 0 -586 -980 0 -1566
for the period / translation
differences
Other changes 0 0 0 0 0 68 0 68
Dividends / repayments of 0 0 0 -1031 0 0 -1856 -2887
equity
Equity 30.9.2013 4215 86 2378 17127 -3862 2654 888 23486
MOVEMENTS IN FIXED ASSETS
Movements in fixed assets Tangible Intangible Total
-------------------------------------------------
EUR 1,000
Book value 1.1.2014 31 492 10 046 41 539
Additions 417 18 434
Disposals -748 0 -748
Depreciation, amortisation and impairment losses -1 690 -160 -1 850
Exchange rate differences -1 484 0 -1 484
Book value 30.6.2014 27 987 9 904 37 891
Movements in fixed assets Tangible Intangible Total
-------------------------------------------------
EUR 1,000
Book value 1.1.2013 38 737 10 329 49 066
Additions 276 14 290
Disposals -1 763 0 -1 763
Depreciation, amortisation and impairment losses -2 413 -257 -2 670
Exchange rate differences -1 821 0 -1 821
Book value 30.6.2013 33 016 10 085 43 101
RELATED PARTY TRANSACTIONS
The related parties comprise the members of the Board of Directors and
Executive Board of Nurminen Logistics and companies in which these members have
control. Related parties are also deemed to include shareholders with direct or
indirect control or substantial influence.
Related party transactions 1-9/2014
---------------------------
EUR 1,000
Sales 6
Purchases 155
Current liabilities 123
KEY FIGURES
KEY FIGURES 1-9/2014 1-9/2013 1-12/2013
-------------------------------------
Gross capital expenditure, EUR 1,000 459 290 429
Personnel 244 297 277
Operating margin % -0,3 % 2,2 % 0,3 %
Share price development
Share price at beginning of period 1,60 1,88 1,88
Share price at end of period 1,40 1,86 1,60
Highest for the period 1,72 2,20 2,20
Lowest for the period 1,36 1,79 1,52
Eguity/share EUR 1,23 1,74 1,56
Earnings/share (EPS) EUR, undiluted -0,18 -0,17 -0,32
Earnings/share (EPS) EUR, diluted -0,18 -0,17 -0,32
Equity ratio % 31,85 38,47 36,42
Gearing % 126,1 96,2 96,7
OTHER LIABILITIES AND COMMITMENTS
Contingencies and commitments, EUR 1,000 30.9.201 30.9.201 31.12.201
4 3 4
--------------------------------------------------
Mortgages given 11 000 11 000 11 000
Book value of pledged subsidiary shares and -loan 52 434 39 662 46 516
receivables
Other contingent liabilities 12 056 14 580 15 568
Rental obligations 62 357 68 834 67 194
ACCOUNTING POLICIES
The interim financial information has been prepared in accordance with IAS 34
'Interim Financial Reporting'. The IFRS recognition and measurement principles
as described in the annual financial statements for 2013 have also been applied
in the preparation of the interim financial information, with the changes
mentioned below. Other adopted new and amended IFRS-standards and
interpretations have not had significant impact on reported figures.
The Group has applied the following revised and amended standards as of 1
January 2014:
IFRS 10 Consolidated Financial Statements
IFRS 12 Disclosures of Interests in Other Entities
Annual Improvements to IFRSs
All figures have been rounded and consequently the sum of individual figures
can deviate from the presented sum figure. Key figures have been calculated
using exact figures. This interim report is unaudited.
Calculation of Key Figures
Equity ratio (%) =
Equity
______________________________________ X 100
Balance sheet total - advances received
Earnings per share (EUR) =
Result attributable to equity holders of the parent company
_________________________________________________________
Weighted average number of ordinary shares outstanding
Equity per share (EUR) =
Equity attributable to equity holders of the parent Company
________________________________________
Undiluted number of shares outstanding at the end of the financial year
Gearing (%) =
Interest-bearing liabilities - cash and cash equivalents
____________________________________________ X 100
Equity
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