2013-10-31 12:00:02 CET
2013-10-31 12:00:07 CET
REGULATED INFORMATION
Nurminen Logistics Oyj - Interim report (Q1 and Q3)
NURMINEN LOGISTICS PLC’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2013
Challenging market situation continued - the company launched a new profit
improvement programme
Nurminen Logistics Plc Interim report 31 October
2013 at 1:00 p.m.
Nurminen Logistics key figures 1 January - 30 September 2013
-- Net sales were EUR 49.4 million (2012: EUR 60.0 million).
-- Reported operating result was EUR 1.1 million (EUR 4.7 million).
-- Operating margin was 2.2% (7.9%).
-- Operating result excluding non-recurring items was EUR 1.5 million (EUR 4.7
million).
-- EBT was EUR -1.2 million (EUR 3.9 million).
-- Net result was EUR -1.9 million (EUR 2.8 million).
-- Earnings per share, undiluted: EUR -0.17 (EUR 0.08).
-- Earnings per share, diluted: EUR -0.17 (EUR 0.08).
Third quarter 1 July - 30 September 2013
-- Net sales were EUR 16.7 million (2012: EUR 20.5 million).
-- Reported operating result was EUR -0.3 million (EUR 2.0 million).
-- Operating margin was -2.1% (9.9%).
-- Operating result excluding non-recurring items was EUR -0.2 million (EUR
2.0 million).
-- EBT was EUR -1.0 million (EUR 1.9 million).
-- Net result was EUR -1.1 million (EUR 1.5 million).
-- Earnings per share, undiluted: EUR -0.09 (EUR 0.07).
-- Earnings per share, diluted: EUR -0.09 (EUR 0.07).
Topi Saarenhovi, President and CEO:
“The market situation in all of our main market areas continued to be more
challenging than last year, which is reflected in the unsatisfactory
profitability of our business operations. The only exception was the Forwarding
and Value Added Services unit that improved its profitability. The sustained
weak market situation and demand in Russia and its neighbouring areas had a
particular impact on the net sales and profitability of Finnish rail exports
and transit logistics in the Baltic countries. However, the Russian railway
logistics market showed signs of the slowdown bottoming out and even improving
slightly towards the end of the review period. We are confident that markets
in Russia and its neighbouring countries will develop positively in the coming
years and we will continue the implementation of our strategic future
development projects, such as investments in rolling stock.
Due to the prolonged weakened market situation and structural changes in the
Finnish market, we launched a profit improvement programme in order to improve
our profitability, competitiveness and operational requirements. The profit
improvement programme will take place in 2013-2014 and it aims at annual
savings of EUR 2 million in fixed expenses as of 2014. As part of the profit
improvement programme, we began co-determination negotiations in our Finnish
units. In addition to the efficiency improvement measures, we are focusing on
business development in each of our units in order to improve profitability.
The profitability of our Finnish operations is currently at an unsatisfactory
level, and in addition to the efficiency improvement measures we are seeking
structural solutions to improve the profitability of our Finnish business
operations.
The third quarter of the year also saw the company announce positive news
related to service sales. We signed a significant contract with the paper and
pulp company Sappi to handle paper products at our terminal at Vuosaari
Harbour. Sappi will consolidate all of its shipping through the Port of
Helsinki to our terminal in Vuosaari. We also signed a two-year extension
contract with Metsä Board for handling paper and cardboard at Vuosaari Harbour.
The combined annual sales from the two contracts will be in excess of EUR 5
million. In addition, the mechanical engineering group Andritz chose Nurminen
Logistics to handle the transport logistics of delivering pulp mill machinery
to Svetlogorsk in Belarus. Nurminen Logistics' project delivery is the largest
project in Belarus carried out by a Finnish logistics company to date, with a
logistics value in excess of EUR 2 million.
MARKET SITUATION IN THE REVIEW PERIOD
The Russian and CIS area market, which is of high importance to Nurminen
Logistics' operations, remained largely unchanged from the previous quarter.
The market situation and demand in Finland weakened slightly from the previous
quarter, although there were differences between business segments and
services.
In railway logistics, demand in the Russian market remained lower year-on-year
and on a par with the previous quarter, but improved slightly towards the end
of the period under review. In Finnish rail exports, the demand for transport
services was slightly weaker than in the previous quarter, except for
deliveries of machinery and equipment, which saw improved demand. Lower
consignment sizes led to the demand for road transport increasing in relation
to rail transport. The demand for import transport of raw wood remained at a
good level during the period under review.
The demand for special transports and projects remained weak. Demand in Russia
and the CIS area was better than in other markets. Price levels in the market
fluctuated considerably and competition remained intense.
In transit logistics, the demand on routes between the Baltic countries and
Russia weakened slightly compared to the previous quarter. The demand for
transport from the Baltic countries to Central Asia declined substantially from
the high level seen in the comparison period, and weakened slightly compared to
the previous quarter.The demand for services at the Kotka and Hamina terminals
declined slightly compared to the second quarter, but remained better than in
the corresponding period last year. Market demand for transit logistics
remained variable and price competition was intense.
The forwarding and value-added services market in Southern Finland and at
Vuosaari Harbor remained challenging, particularly with regard to imports. The
volumes of goods handled fluctuated considerably during the review period.
Among the main customer groups, volumes in the pulp, paper and forest industry
increased, while those of the engineering and metal industries showed a
decline.
NET SALES AND FINANCIAL PERFORMANCE 1 JANUARY - 30 SEPTEMBER 2013
The net sales for the review period amounted to EUR 49.4 million (2012: EUR
60.0 million), which represents a decrease of 17.6% compared to 2012. The
reported operating result was EUR 1,108 (4,737) thousand. The operating result
includes non-recurring items of EUR -391 (69) thousand. The comparative
operating result was therefore EUR 1,499 (4,669) thousand, which is a decrease
of 67.9% compared to 2012. The operating result was improved by the sale of
used rolling stock.
The non-recurring items in the review period were related to restructuring and
reductions in personnel implemented by the company. The non-recurring profit of
the corresponding period in the 2012 financial year resulted from a partial
payment of a receivable written down in the 2010 financial statements.
The depreciation of the Russian rouble during the review period decreased the
company's financial result by EUR 0.9 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 25,667 (2012: 33,274) thousand and the operating result was EUR 3,987
(4,819) thousand. The operating result includes non-recurring items of EUR -252
(69) thousand. The comparative operating result was therefore EUR 4,239 (4,751)
thousand.
The decline in net sales was due to weakened export volumes from Finland to
Russia and a decrease in railway tariffs passed on to customers. The operating
result was weakened by the export volume from Finland to Russia being lower
than in the comparison period, as well as a temporary weakening of demand in
the Russian market, and increased price competition. Traffic problems on
certain Russian railway routes and challenges related to wagon operations were
additional factors that had a negative impact on the operating result. The unit
launched a programme to develop wagon operations and traffic, which began to be
reflected in improved wagon traffic towards the end of the period under review.
As part of the implementation of the Railway Logistics unit's strategy, the
fleet of rolling stock was streamlined by selling certain wagon types. The
proceeds from these sales had a positive effect on the operating result in the
second quarter.
Special Transports and Projects
The Special Transports and Projects business unit's net sales for the review
period amounted to EUR 7,036 (2012: 6,856) thousand and the operating result
was EUR 26 (376) thousand. The operating result includes non-recurring items of
EUR -26 (0) thousand. The comparative operating result was therefore EUR 52
(376) thousand. Net sales increased despite the weakened demand for special
transport, mainly due to project deliveries to Russia and the CIS area. The
price level for orders remained unsatisfactory due to intense competition.
Transit Logistics
The Transit Logistics business unit's net sales for the review period amounted
to EUR 7,604 (2012: 11,148) thousand and the operating result was EUR -530
(2,204) thousand. The operating result includes non-recurring items of EUR -48
(0) thousand. The comparative operating result was therefore EUR -482 (2,204)
thousand.
In transit logistics, the result of the company's units in the Baltic countries
was weakened in particular by changes in the demand for transport to Central
Asia. At the Hamina and Kotka units, new customer relationships, the improved
utilisation rate of terminals, the favourable development in the sale of value
added services and the continued reasonably good demand for export logistics
improved the result compared to the review period and helped balance out the
effect of the weakened transit logistics market.
Forwarding and Value Added Services
The net sales of the Forwarding and Value Added Services business unit for the
review period amounted to EUR 9,478 (2012: 8,977) thousand and the operating
result was EUR -2,375 (-2,662) thousand. The operating result includes
non-recurring items of EUR -65 (0) thousand. The comparative operating result
was therefore EUR -2,310 (-2,662) thousand. The business unit's net sales and
operating result for the review period improved compared to the corresponding
period in 2012. The operating result was improved by an increase in volume at
the Vuosaari terminal, the development of the customer base and efficiency
improvement measures implemented in order to increase profitability. The
operational loss of the Vuosaari logistics centre was EUR 1.5 (1.9) million in
January-September.
NET SALES BY UNIT 1-9/2013 1-9/2012 1-12/2012
------------------------------------------------------------------
EUR 1,000
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Railway Logistics 25,667 33,274 43,620
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Special Transports and Projects 7,036 6,856 9,375
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Transit Logistics 7,604 11,148 13,903
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Forwarding and Value Added Services 9,478 8,977 11,774
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Eliminations -377 -263 -276
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Total 49,408 59,992 78,396
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OPERATING RESULT BY UNIT 1-9/2013 1-9/2012 1-12/2012
------------------------------------------------------------------
EUR 1,000
------------------------------------------------------------------
Railway Logistics 3,987 4,819 6,275
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Special Transports and Projects 26 376 441
------------------------------------------------------------------
Transit Logistics -530 2,204 2,510
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Forwarding and Value Added Services -2,375 -2,662 -3,805
------------------------------------------------------------------
Total 1,108 4,737 5,421
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NET SALES AND FINANCIAL PERFORMANCE 1 JULY - 30 SEPTEMBER 2013
The net sales for the third quarter amounted to EUR 16.7 million (2012: EUR
20.5 million), which represents a decrease of 18.3% compared to 2012. The
reported operating result was EUR -346 (2,035) thousand. The operating result
includes non-recurring items of EUR -189 (0) thousand. The comparative
operating result was therefore EUR -157 (2,035) thousand, which is a decrease
of 107.7% compared to 2012.
The depreciation of the Russian rouble during the review period decreased the
company's financial result by EUR 0.3 million. This exchange rate loss had no
cash flow impact.
The net sales of the Railway Logistics unit increased in the third quarter
compared to the second quarter. However, the unit's net sales and operating
result decreased in the third quarter compared to the corresponding period in
the previous year. This was due to a decrease in transport volumes between
Finland and Russia, the traffic congestion of Russian railways and challenges
related to wagon operations. Supported by measures initiated by the company to
develop operations and traffic, wagon traffic and the profitability of
operations improved towards the end of the review period. Demand for railway
transport in Russia and the CIS area improved slightly near the end of the
review period.
The net sales of the Special Transports and Projects unit grew substantially in
the third quarter of the year compared to the second quarter and the
corresponding period in the previous year. Net sales were boosted by project
deliveries to Belarus, Germany and Russia. The profitability of the unit's
operations improved compared to the previous quarter, but declined
year-on-year.
The net sales and operating result of the Transit Logistics unit weakened in
the third quarter compared to the corresponding period in the previous year,
mainly due to a decrease in container volumes transported via the Baltic
countries. The development of the handling volumes and profitability of the
Kotka and Hamina units also fell short of expectations due to lower market
volumes.
In the Forwarding and Value Added Services business unit, net sales in the
third quarter were slightly lower than in the corresponding period in 2012.
Increased terminal volumes at the Vuosaari logistics centre, the development of
the customer base and measures implemented to improve profitability helped to
improve the unit's operating result compared to the corresponding period last
year. The operational loss of the Vuosaari logistics centre was EUR 0.6 (0.7)
million in the third quarter.
NET SALES BY UNIT 7-9/2013 7-9/2012 Change
---------------------------------------------------------------
EUR 1,000
---------------------------------------------------------------
Railway Logistics 8,435 11,064 -2,629
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Special Transports and Projects 3,050 2,220 830
---------------------------------------------------------------
Transit Logistics 2,426 4,290 -1,864
---------------------------------------------------------------
Forwarding and Value Added Services 2,939 3,061 -122
---------------------------------------------------------------
Eliminations -140 -180 40
---------------------------------------------------------------
Total 16,710 20,455 -3,745
---------------------------------------------------------------
OPERATING RESULT BY UNIT 7-9/2013 7-9/2012 Change
---------------------------------------------------------------
EUR 1,000
---------------------------------------------------------------
Railway Logistics 700 1,811 -1,111
---------------------------------------------------------------
Special Transports and Projects 95 173 -78
---------------------------------------------------------------
Transit Logistics -313 993 -1,306
---------------------------------------------------------------
Forwarding and Value Added Services -828 -942 114
---------------------------------------------------------------
Total -346 2,035 -2,381
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OUTLOOK
The company adjusted its outlook in a stock exchange release published on 20
September 2013:
Prolonged lower demand, slowing down of rail traffic in Russia and challenges
in wagon operations will impair the profitability of Nurminen Logistics'
Railway Logistics unit. The company has launched a programme to develop wagon
operations and traffic. Furthermore, the volume of transit traffic via the
Baltic countries will fall short of the previous estimates due to a decrease in
demand. Nurminen Logistics is therefore updating its future outlook. The
company expects both its net sales and operating result to be clearly lower
than 2012 level.
In its previous estimate (Interim Report 1 August 2013), the company expected
both its net sales and operating result to be lower than 2012 level.
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% and return on equity of 20%.
SHORT-TERM RISKS AND UNCERTAINTIES
Uncertainty in the world economy may result in lower industrial production
volumes and, as a consequence, weaker demand for the company's services and the
cancellation of orders. Unfavourable market development in Russia and its
neighbouring countries, in particular, would have a negative effect on the
development of the company's net sales and result.
Overcapacity in Finnish ports keeps price competition intense. The company
operates in Vuosaari, Kotka and Hamina harbours and therefore the variation in
volume development of these ports has an effect on the company's result.
Sudden changes to railway tariffs in different countries may have a significant
effect on the price competitiveness of rail transport and/or the company. Price
competition may also burden the company's profitability in the future.
Structural changes in the Finnish export industry and weaker than expected
development of foreign trade would have a negative impact on the development of
the company's net sales and profitability.
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.
The company has received notification of an adjustment decision pertaining to
the taxation of the pre-demerger John Nurminen Ltd for the financial year 2007.
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. According to the adjustment decision, the tax due is
EUR 0.4 million. The allocation of the tax liability between the new John
Nurminen Ltd and Nurminen Logistics Plc will be determined in arbitration
proceedings.
FINANCIAL POSITION AND BALANCE SHEET
The company's cash flow from operations was EUR 1,400 thousand. Cash flow from
investments was EUR 3,242 thousand. Cash flow from financing activities
amounted to EUR -4,946 thousand.
At the end of the review period, cash and cash equivalents amounted to EUR
4,449 thousand. Liquidity was satisfactory in the period under review.
Financing negotiations related to the company's continuing business operations
are planned to be held in the fourth quarter. The management is confident that
the negotiations will reach a positive outcome.
The Group's interest-bearing debt totalled EUR 27.0 million and net
interest-bearing debt amounted to EUR 22.6 million.
The balance sheet total was EUR 61.0 million and the equity ratio was 38.5%.
CHANGES IN THE TOP MANAGEMENT
On 17 September 2013, the company announced that Risto Miettinen, Senior Vice
President responsible for IT and Quality and member of Nurminen Logistics Plc's
Executive Board, would leave his post on 30 September 2013. Risto Miettinen was
a member of the Executive Board since 2012 and in the service of the company
since 1994. Paula Kupiainen, CFO and member of the Executive Board, has assumed
responsibility for IT in addition to her own duties as of 1 October 2013.
Forwarding Manager Mika Eloranta has assumed responsibility for Nurminen
Logistics' quality and environmental systems in addition to his own duties as
of 1 October 2013. The size of Nurminen Logistics' Executive Board decreased
from six members to five as a result of the change.
As of 1 October 2013, Nurminen Logistics' Executive Board consists of the
following members:
Topi Saarenhovi, President and CEO
Paula Kupiainen, CFO
Fedor Larionov, Senior Vice President, Railway Logistics
Janne Lehtimäki, Senior Vice President, Forwarding and Value Added Services
Hannu Vuorinen, Senior Vice President, Special Transports and Projects.
The company issued a stock exchange release on 27 July 2013 to announce that
Fedor Larionov, 42, has been appointed the new Senior Vice President of
Nurminen Logistics' Railway Logistics business unit as well as a member of the
Group's Executive Board. Larionov is based in St. Petersburg and reports to
Topi Saarenhovi, President and CEO. Before joining Nurminen Logistics, Larionov
had been the Director of the St. Petersburg branch of Daher CIS since 2011.
Larionov joined Nurminen Logistics on 29 July 2013.
Artur Poltavtsev, the previous Senior Vice President of Railway Logistics and
member of the Executive Board, decided to leave the company on June 30, 2013.
Railway Logistics business unit reported directly to CEO Topi Saarenhovi until
28 July 2013.
CAPITAL EXPENDITURE
The Group's gross capital expenditure during the review period amounted to EUR
290 (585) thousand, accounting for 0.6% of net sales. Depreciation totalled EUR
2.7 (3.0) million, or 5.6% of net sales.
GROUP STRUCTURE
The company turned its operations in Finland into independent companies at the
end of 2012. In the transformation, Nurminen Logistics Plc's Forwarding and
Value Added Services, Railway Logistics and Transit Logistics business units
formed one independent company, named Nurminen Logistics Services Oy, and the
Special Transports and Projects business unit was transformed into another
independent company, named Nurminen Logistics Heavy Oy. The new Finnish
companies started operating under the new structure on 1 January 2013. The
companies responsible for the Estonian and Lithuanian operations of Nurminen
Logistics Plc were transferred directly under the parent company in 2012. The
Russian operations will continue as a separate company directly under the
parent company. These implemented structural changes have no impact on Group
reporting.
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%), OOO John Nurminen, St. Petersburg (100%), Nurminen Maritime
Latvia SIA (51%), Pelkolan Terminaali Oy (20%), ZAO Irtrans (100%), 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's number of personnel stood at 297,
compared to 341 on 31 December 2012. The number of employees working abroad was
66.
The Railway Logistics unit's personnel stood at 106, Special Transports and
Projects 26, Transit Logistics 89 and Forwarding and Value Added Services at
51. Management and administrative staff numbered 25.
The company issued a stock exchange release on 20 September 2013 to announce
that the company is launching a profit improvement programme in order to
improve its profitability, competitiveness and operational requirements in a
challenging business environment. As part of the programme, the company started
co-determination negotiations in its Finnish units. The co-determination
negotiations concern all employees in Finland. According to preliminary
estimates, the need for personnel cuts is estimated to be maximum 40 employees.
The measures and the impacts on personnel will be specified in the negotiations
with the employees.
The company issued a stock exchange release on 12 June 2013 to announce that it
will commence co-determination negotiations pertaining to terminal and
forwarding personnel in Nurminen Logistics Services Oy's Railway Logistics
business unit. The reasons for starting co-determination negotiations were to
adjust costs and operations to match the prevailing market and competitive
conditions. On 25 June 2013, the company announced that the negotiations have
come to a close and as a result, the terminal and forwarding personnel of the
Railway Logistics business unit will be laid off for a maximum of 90 days. The
layoffs will take effect before the end of the second quarter of 2014. In
addition, the company is looking into other options for the reorganisation of
work, which may lead to the dismissal of a maximum of 10 persons. The measures
agreed on in the negotiations affect a total of 67 employees. The cost savings
associated with the adjustments implemented as a result of the co-determination
negotiations are estimated at approximately EUR 200,000 in 2013.
The company issued a stock exchange release on 22 April 2013 to announce that
Nurminen Logistics Services Oy and Transval Handling Oy have signed an
agreement for the outsourcing of goods handling at Nurminen Logistics' Vuosaari
terminal. The agreement took effect on 1 May 2013, with 20 employees previously
employed by Nurminen Logistics Services Oy transferring to Transval Handling Oy
on the same date. The change did not involve any reductions in personnel and
the employees transferred to the new employer as existing employees.
The company issued a stock exchange release on 19 March 2013 announcing the
conclusion of co-determination negotiations held during the review period. As a
result of the negotiations, the company decided to reorganise and improve the
efficiency of processes, streamline its management structure and consolidate
operations. This requires a reduction in personnel of approximately 23
employees and the cost savings are estimated at roughly EUR 700 thousand in
2013 and approximately EUR 1,100 thousand from 2014 onwards. The non-recurring
costs associated with this, approximately EUR 200 thousand, were lower than
expected and recorded in the first quarter of the year.
SHARES AND SHAREHOLDERS
The trading volume of Nurminen Logistics Plc's shares was 190,092 during the
period from 1 January to 30 September 2013. This represented 1.45% of the total
number of shares. The value of the turnover was EUR 369,328. The lowest price
during the review period was EUR 1.79 per share and the highest EUR 2.20 per
share. The closing price for the period was EUR 1.86 per share and the market
value of the entire share capital was EUR 24,203,691 at the end of the period.
At the end of the review period the company had 539 shareholders.
On 13 May 2013, the Board of Directors of Nurminen Logistics Plc decided on a
directed share issue without consideration by authorisation of the company's
Annual General Meeting of Shareholders held on 15 April 2013. A total of
124,339 shares were issued in the directed share issue without consideration,
comprising 16,330 in own shares held by the company and 108,009 in new shares.
The issued shares were used for reward payments associated with Nurminen
Logistics Group's Share-based Incentive Plan 2011-2012 for key personnel
according to the achievement of targets established for the earnings criteria
approved by the Board of Directors as well as for the Board's remuneration
payments for the term ending at the 2014 Annual General Meeting.
The newly issued shares, numbering 108,009, were entered in the Trade Register
on 12 June 2013. The shares give their holder the right to dividends and other
shareholder rights as of the date of registration.
After the registration of the new shares, the total number of Nurminen
Logistics Plc's shares stood at 13,012,737. The shares entered in the Trade
Register were subject to public trading as of 13 June 2013.
Stock exchange releases on the matter were published on 14 May and 12 June 2013.
After the share issue without consideration announced by Nurminen Logistics on
14 May 2013, the company did not hold any of its own shares. The company issued
a stock exchange release on 27 June 2013 to announce changes in its Executive
Board. As a result of the changes, the number of shares paid as incentives to
key personnel decreased from 80,005 to 69,760.
After the return of the shares, the company holds 10,245 of its own shares,
corresponding to 0.079% of votes.
In accordance with the decision of the Board of Directors, the company
distributed on 31 May 2012 as repayment of equity EUR 0.08 per share from the
reserves for invested unrestricted equity.
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 15 April 2013.
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 repurchase of the company's
own shares
Annual General Meeting authorised the Board to decide on the repurchasing a
maximum of 50,000 of the company's shares. The authorisation will be used for
the paying of remuneration of the Board members. The own shares may be
repurchased 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. The own shares may be repurchased in deviation from
the proportional shareholdings of the shareholders (directed repurchase). The
authorisation includes the right whereby the Board is authorised to decide on
all other matters related to the acquisition of own shares.
The authorisation remains in force until 30 April 2014.
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 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 is entitled to decide of
all other issues of shares and special rights. Furthermore, the Board is
entitled to decide on share issues, option rights and other special rights in
every way similarly as the Annual General Meeting could decide on these. The
authorisation also includes right to decide on directed issues of shares and/or
special rights.
The authorisation remains in force until 30 April 2014.
OTHER EVENTS DURING THE REVIEW PERIOD
Nurminen Logistics Plc issued a stock exchange release on 20 September 2013 to
announce that the company is launching a profit improvement programme in order
to improve its profitability, competitiveness and operational requirements in a
challenging business environment. As part of the programme, the company started
co-determination negotiations in its Finnish units. The profit improvement
programme will take place in 2013 - 2014. The programme aims at annual savings
of EUR 2 million in fixed expenses as of 2014. The programme may include
restructuring and other efficiency measures in order to improve profitability.
The co-determination negotiations concern all employees in Finland. According
to preliminary estimates, the need for personnel cuts is estimated to be
approximately 40 employees. The measures and the impacts on personnel will be
specified in the negotiations with the employees.The non-recurring expenses
arising from the need for personnel reduction amount to approximately EUR 600
thousand, which will be recognised for the last quarter of 2013. Nurminen
Logistics had a total of 246 employees in Finland on 30 June 2013. The
efficiency programme will have no impact on the company's business or service
portfolio.
The company issued a stock exchange release on 17 January 2013 announcing the
end of market making on 18 February 2013 in accordance with the liquidity
providing agreement between Nurminen Logistics Plc and Evli Bank Plc for the
share of Nurminen Logistics Plc.
EVENTS AFTER THE REVIEW PERIOD
There are no important events after the review period.
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: Topi Saarenhovi, President and CEO, tel.
+358 10 545 2431.
DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.nurminenlogistics.com
Nurminen Logistics provides high-quality logistics services, such as railway
transport, terminal services, forwarding, special and heavy transport and
value-added services. The company has gathered logistics know-how from three
centuries, starting in 1886. Nurminen Logistics' main market areas are Finland,
the Baltic Sea region, Russia and other Eastern European countries. The
company's share is listed on NASDAQ OMX Helsinki.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-9/20 1-9/20 1-12/2
13 12 012
EUR 1,000
NET SALES 49 408 59 992 78 396
Other operating income 1 777 504 721
Materials and services -22 -26 -33
986 076 801
Employee benefit expenses -10 -11 -15
517 883 900
Depreciation, amortisation and impairment losses -2 749 -3 028 -4 004
Other operating expenses -13 -14 -19
826 771 991
OPERATING RESULT 1 108 4 737 5 421
Financial income 52 453 478
Financial expenses -2 458 -1 416 -2 040
Share of profit in equity-accounted investees 80 128 185
RESULT BEFORE TAX -1 218 3 902 4 044
Income taxes -707 -1 066 -1 360
PROFIT / LOSS FOR THE PERIOD -1 926 2 836 2 684
Other comprehensive income
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Translation differences -1 566 1 025 867
Other comprehensive income for the period after tax -1 566 1 025 867
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -3 492 3 861 3 552
Result attributable to
Equity holders of the parent company -2 232 1 022 682
Non-controlling interest 307 1 814 2 002
Total comprehensive income attributable to
Equity holders of the parent company -3 799 2 047 1 550
Non-controlling interest 307 1 814 2 002
EPS undiluted -0,17 0,08 0,05
EPS diluted -0,17 0,08 0,05
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 7-9/20 7-9/20 Change
13 12
EUR 1,000
NET SALES 16 710 20 455 -3 745
Other operating income 49 142 -93
Materials and services -8 683 -8 716 33
Employee benefit expenses -3 270 -4 020 751
Depreciation, amortisation and impairment losses -847 -1 006 159
Other operating expenses -4 305 -4 819 515
OPERATING RESULT -346 2 035 -2 381
Financial income 4 258 -254
Financial expenses -722 -450 -272
Share of profit in equity-accounted investees 42 61 -19
RESULT BEFORE TAX -1 022 1 904 -2 925
Income taxes -102 -386 285
PROFIT / LOSS FOR THE PERIOD -1 123 1 517 -2 641
Other comprehensive income:
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Translation differences -307 816 -1 123
Other comprehensive income for the period after tax -307 816 -1 123
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -1 430 2 333 -3 764
Result attributable to
Equity holders of the parent company -1 132 930 -2 062
Non-controlling interest 9 587 -579
Total comprehensive income attributable to
Equity holders of the parent company -1 439 1 746 -3 185
Non-controlling interest 9 587 -579
EPS undiluted -0,09 0,07 -0,16
EPS diluted -0,09 0,07 -0,16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.9.2013 30.9.2012 31.12.2012
EUR 1,000
ASSETS
Non-current assets
Property, plant and equipment 33 015 39 324 38 737
Goodwill 9 516 9 516 9 516
Other intangible assets 569 810 813
Investments in equity-accounted investees 250 333 389
Receivables 35 35 35
Deferred tax assets 935 1 042 1 068
NON-CURRENT ASSETS 44 320 51 060 50 558
Current assets
Trade and other receivables 12 154 15 353 14 157
Current tax receivables 122 96 156
Cash and cash equivalents 4 449 3 804 4 901
CURRENT ASSETS 16 725 19 253 19 214
ASSETS TOTAL 61 045 70 313 69 772
EQUITY AND LIABILITIES
Share capital 4 215 4 215 4 215
Other reserves 15 729 18 323 17 346
Retained earnings 2 654 6 623 5 799
Non-controlling interest 888 1 921 2 437
EQUITY, TOTAL 23 486 31 080 29 797
Non-current liabilities
Deferred tax liability 428 402 431
Other liabilities 595 639 656
Interest-bearing finance liabilities 18 203 17 624 17 571
NON-CURRENT LIABILITIES 19 225 18 665 18 658
Current liabilities
Current tax liabilities 157 340 283
Interest-bearing finance liabilities 8 847 9 107 11 536
Trade payables and other liabilities 9 330 11 121 9 497
CURRENT LIABILITIES 18 333 20 568 21 317
TOTAL LIABILITIES 37 559 39 233 39 975
TOTAL EQUITY AND LIABILITIES 61 045 70 313 69 772
CONDENSED CONSOLIDATED CASH FLOW STATEMENT 1-9/20 1-9/20 1-12/2
13 12 012
CASH FLOW FROM OPERATING ACTIVITIES
Profit/Loss for the period -1 926 2 836 2 684
Gains and losses on disposals of property, plant and -1 687 -366 -559
equipment and other non-current assets
Depreciation, amortisation and impairment losses 2 749 3 028 4 004
Unrealised foreign exchange gains and losses 907 -361 -322
Other adjustments 1 812 2 053 2 603
Paid and received interest -1 049 -980 -1 300
Taxes paid -907 -813 -1 160
Changes in working capital 1 500 -1 073 -1 578
Cash flow from operating activities 1 400 4 324 4 372
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment and 3 541 404 639
intangible assets
Investments in property, plant and equipment and -299 -585 -1 151
intangible assets
Cash flow from investing activities 3 242 -181 -512
CASH FLOW FROM FINANCING ACTIVITIES
Investment by non-controlling interest 0 0 63
Acquisition of own shares 0 -70 -70
Changes in liabilities -2 059 -1 840 66
Dividends paid / repayments of equity -2 887 -958 -1 532
Cash flow from financing activities -4 946 -2 868 -1 474
CHANGE IN CASH AND CASH EQUIVALENTS -452 1 314 2 411
Cash and cash equivalents at beginning of period 4 901 2 490 2 490
Cash and cash equivalents at end of period 4 449 3 804 4 901
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
1-9/2012 EUR 1,000
Equity 1.1.2012 4215 86 2378 19131 -3699 4673 1064 27848
Result for the period 0 0 0 0 0 1022 1814 2836
Total comprehensive income for 0 0 0 0 496 529 0 1025
the period / translation
differences
Other changes 0 0 0 -70 0 399 0 329
Dividends / repayments of 0 0 0 0 0 0 -958 -958
equity
Equity 30.9.2012 4215 86 2378 19061 -3203 6623 1920 31080
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
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 1-9/2013
EUR 1,000
Sales 3
Purchases 144
Interest expenses 8
Current liabilities 17
KEY FIGURES
KEY FIGURES 1-9/2013 1-9/2012 1-12/2012
Gross capital expenditure, EUR 1,000 290 585 1 145
Personnel 297 344 341
Operating margin % 2,2 % 7,9 % 6,9 %
Share price development
Share price at beginning of period 1,88 1,78 1,78
Share price at end of period 1,86 1,97 1,88
Highest for the period 2,20 2,34 2,34
Lowest for the period 1,79 1,78 1,78
Eguity/share EUR 1,74 2,41 2,12
Earnings/share (EPS) EUR, undiluted -0,17 0,08 0,05
Earnings/share (EPS) EUR, diluted -0,17 0,08 0,05
Equity ratio % 38,47 44,20 42,71
Gearing % 96,2 73,8 81,2
OTHER LIABILITIES AND COMMITMENTS
Contingencies and commitments, EUR 1,000 30.9.2013 30.9.2012 31.12.2012
Mortgages given 11 000 7 000 11 000
Other contingent liabilities 14 580 11 458 14 580
Rent liabilities 68 834 73 915 73 954
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 2012 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 2013:
Amendments to IAS 1 Presentation of financial statements
Amendments to IFRS 7 Financial Instruments: Disclosures
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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