2008-10-30 11:30:00 CET
2008-10-30 11:30:01 CET
REGULATED INFORMATION
Tamfelt Oyj Abp - Interim report (Q1 and Q3)
TAMFELT CORP. INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2008
TAMFELT CORP. INTERIM REPORT October 30, 2008 at 12:30 p.m. TAMFELT CORP. INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2008 - Net sales were 127.0 million euros (1-9/07: 125.6 million) - Operating profit was 16.8 million euros, or 13.2% of net sales (1-9/07: 18.6 million and 14.8%) - Profit before taxes was 15.5 million euros (1-9/07: 18.5 million) - Earnings per share were 0.41 euros (1-9/07: 0.51) - Equity to assets ratio was 58.5% (9/07: 61.1%) - Return on net assets was 16.3% (1-9/07: 20.8%) - Return on equity was 13.9% (1-9/07: 17.8%) ”Weakening economic situation, tough price competition and increasing competition on market shares weaken the outlook for the whole business, including Tamfelt. In the long term decreasing profitability can lead to reduced inputs in R&D. Increasing environmental awareness and tightening environmental standards worldwide will increase demand for filter fabrics and offer new opportunities for growth in sales,” says Mr. Jyrki Nuutila, President and CEO for Tamfelt Corp. BUSINESS ENVIRONMENT AND PRODUCT DEMAND Tamfelt is a world-leading supplier of technical textiles. The Group's main products are fabrics for the paper and pulp, mining and chemical industries. Tamfelt's biggest customer segment is the paper and pulp industry. The Group operates two business segments: paper machine clothing (Tamfelt PMC) and filter fabrics (Tamfelt Filtration). Tamfelt PMC has production facilities at Tampere and Juankoski in Finland and at Tianjin in China. Tamfelt Filtration has production at Tampere in Finland, Ovar in Portugal, Belo Horizonte in Brazil, Lódz in Poland and Shanghai in China. Paper machine clothing In the report period, the demand for paper and board increased only slightly. In Europe and North America there was no growth at all, and in Asia and Latin America the growth was very slow. Paper prices have improved a little, except for newsprint. Board prices have remained at a good level, but decreased some at the end of the report period. Pulp price continued to rise during the period but turned into a decline at the end of the period. In the long term, evolution in the clothing market follows the trend of the paper market. Clothing consumption, however, will grow slower than paper production volumes. This is because improved clothing types are being developed to enhance the papermaking process. The new clothing types are also more durable than the old ones, thus providing longer running lives. The specific consumption of clothing (consumption per ton of paper produced) also keeps going down as a result of the technical development, as new paper machines are being built and old, less efficient ones, closed down. Most of the new investments in paper and board manufacturing capacity are still made in China. A number of major projects are under way in Europe, as well, but on the other hand, unprofitable overcapacity is being closed down. During the report period, the demand for paper machine clothing continued to grow strongly in Asia. In Europe the demand stayed at the level of 2007 and in North America it weakened. The tough competitive situation reflects in the profitability of the business. Some major clothing suppliers have already encountered financial difficulties during the year. Filter fabrics During the report period, the demand for filter fabrics for the pulp and paper industry continued at a good level and increased significantly from last year. The demand for wet filtration media in the mining and chemical industries remained at a good level and improved from the previous year. Increased energy consumption leads to increased use of coal and alternative sources of energy. To reduce emissions from the use of coal, the plants use both wet and dry filtration. The growing production of biofuels also requires filtration products. The generally tightening environmental standards have increased the demand for filter fabrics, and this trend will continue in the near future. Good growth in sales continued for ironer felts. For dry filtration products, the demand is weaker than a year ago because customer industries have reduced their production volumes, and because tighter competition in the field. INCOMING ORDERS AND ORDER BACKLOG The Group's order backlog is lower than at the beginning of the year. The volumes vary for the different products. In the report period, Tamfelt PMC maintained its position on wide and fast paper machines with its spearhead products. The volume of orders grew from Western Europe and North America. In Finland, Tamfelt PMC's order backlog declined towards the end of the period due to unfinished corporate agreement negotiations. Tamfelt Filtration's order backlog at the end of September was good and only slightly lower than at the beginning of 2008. NET SALES The net sales of Tamfelt Group increased 1.1% from the same period last year, amounting now to 127.0 million euros. The good market situation of Tamfelt Filtration reflected in increased net sales compared to the corresponding period in 2007. The slight decline of Tamfelt PMC's net sales was due to lower prices in the field, mainly a result of the weak US dollar. Foreign operations contributed to 70.1% (69.3%) of consolidated net sales. FINANCIAL PERFORMANCE Tamfelt's operating profit for the report period was 16.8 million euros, or 13.2% of net sales (1-9/07: 18.6 million and 14.8%). In addition to tough price competition, the performance was also affected by the costs incurred by the start-up of the new plant in Tianjin, China. The profit for the period was 11.4 million euros or 0.41 euros per share (0.51). Return on net assets was 16.3% (20.8%), and return on equity 13.9% (17.8%). Tamfelt's net financing costs in January-September were -1.3 million euros (-0.1 million). CASH FLOW AND FINANCING Tamfelt's cash flow from operations was 12.3 million euros (14.9 million). The net working capital was 43.3 million euros (37.4 million). The balance sheet total at the end of September was 183.0 million euros (171.2 million). Equity to assets ratio was 58.5% (61.1%). Interest bearing net debt at the end of September was 39.0 million euros (27.5 million). Gearing was 25.8% (14.6%). BUSINESS SEGMENTS Paper machine clothing (PMC) comprises forming fabrics, press felts and fabrics, shoe press belts, and dryer fabrics for paper machines. Tamfelt PMC is one of the leading suppliers of paper machine clothing to wide and high-speed paper machines in Europe. In this focus area, Tamfelt PMC's market shares are growing also in North America and Asia. Tamfelt Filtration enjoys a strong position in the filter fabric market for the paper and pulp industries. As a filter fabric supplier to the mining industry, Tamfelt Filtration concentrates on certain types of products and has earned a significant share of market. Tamfelt Filtration also makes dry filtration products, and ironer felts for commercial laundries. Tamfelt Filtration is the world market leader in ironer felts. Paper machine clothing (Tamfelt PMC) January 1 - September 30, 2008 - Net sales were 84.7 million euros (1-9/07: 85.1 million) - Operating profit was 11.5 million euros (1-9/07: 14.7 million) - Assets were 120.7 million euros (9/07: 111.6 million) - Liabilities were 26.0 million euros (9/07: 26.0 million) - Investments were 10.8 million euros (1-9/07: 15.3 million) - Depreciation and impairment were 6.1 million euros (1-9/07: 5.4 million) Tamfelt PMC's net sales remained almost unchanged from the corresponding period last year but operating profit was lower. This was due to lower average clothing prices, most of which originated from weaker exchange rate of the US dollar. The cost of starting up the new forming and dryer fabric plant in China also affected the operating profit. The BlackBelt, an extensive development project on shoe press belts utilizing state of the art technology was completed during the report period. The first products have already been delivered to the customers. Filter fabrics (Tamfelt Filtration) January 1 - September 30, 2008 - Net sales were 42.3 million euros (1-9/07: 40.5 million) - Operating profit was 6.9 million euros (1-9/07: 5.4 million) - Assets were 45.2 million euros (9/07: 41.4 million) - Liabilities were 8.5 million euros (9/07: 7.3 million) - Investments were 2.2 million euros (1-9/07: 2.1 million) - Depreciation and impairment were 1.7 million euros (1-9/07: 1.4 million). The net sales and operating profit of Tamfelt Filtration were higher than at the same time in 2007. Higher capacity utilization rate contributed to the improved operating profit. INVESTMENTS Tamfelt's gross investments were 13.7 million euros (1-9/07: 18.1 million). In the period under review, a new dryer and forming fabric plant was commissioned in Tianjin, China. Tamfelt PMC has continued to invest in projects aimed at improving production efficiency and shortening lead times. These investments include the modernization of key machinery and the purchase of new seaming machines. Tamfelt investments in 2008 are expected to fall behind the 2007 record figure. PERSONNEL At the end of September, Tamfelt employed 1,546 people, which is 48 people more than at the end of 2007 (1,498). In January-September, the average employment was 1,531. Tamfelt PMC employs 836 people and Tamfelt Filtration 510 people. Of the personnel, 71% work in Finland and 29% in other countries. On August 15, 2008, Tamfelt announced the change of the company President. Mr. Reima Kerttula, M.Sc. (Eng.) will start as the new President and CEO on January 1, 2009. The current President and CEO, Mr. Jyrki Nuutila will retire at that time according to an earlier agreement. During the report period, Mr. Louis Fanchamps, the President of Fanafel Lda, Tamfelt Filtration's subsidiary in Portugal, retired from his position. Mr. Kimmo Pärssinen, CFO of Tamfelt Corp., assumed the position in addition to his present tasks. SHARE CAPITAL, SHARES AND OPTIONS At the end of September, Tamfelt's share capital amounted to 27,563,964.00 euros. The number of common shares was 10,119,198 and the number of preferred shares 17,444,766. The market capitalization of Tamfelt's shares on September 30,2008 was 194.6 million euros (318,6). On the NASDAQ OMX list in Helsinki, trading in Tamfelt's preferred shares in January-September amounted to 7.7 million euros (13.9) and in common shares to 0.7 million euros (2.3). The turnover of preferred shares was 5% of their total number. The corresponding percentage of common shares was 0.6. At the end of September, the price of the preferred share was 6.45 euros and that of the common share 7.99 euros. From the beginning of the year, the price of the preferred share fell 41.9% and that of the common share 33.4%. The highest quotation for the preferred share in January-September was 11.30 euros and lowest 6.45 euros. The highest quotation for the common share was 12.00 euros and lowest 7.13 euros. The company does not hold its own shares. The Board of Directors has no current mandate to decide on the acquisition or conveyance of the company's own shares. Tamfelt Corp's Annual General Meeting held on March 10, 2005 decided to grant options to the company's key executives. The 2005 option scheme entitles the option holders to subscribe for a total of 437,000 preferred shares, which corresponds to a maximum of 1.6% of Tamfelt's share capital and 0.2% of the voting power. The maximum increase of the share capital with the 2005 stock options is 437,000.00 euros. The subscription for shares under the E option rights began on November 1, 2007, and under the F option rights it begins on November 1, 2009. The current subscription price under the E and F option rights is 7.64 euros. SHORT-TERM BUSINESS RISKS The major risks involved in Tamfelt's activities relate to the maintenance of market shares, and the quality, availability and price of raw materials. The overall economic instability increases risks related to management of exchange rates and the customers' liquidity. Customers make clothing suppliers compete for contracts and keep consolidating their purchases on an ever-smaller number of suppliers. This, together with a declining specific consumption of clothing and more expensive raw materials, leads to a pressure in prices and a higher business risk. In certain materials, the Group is dependent on just a few suppliers. To prepare for the risk in prices, Tamfelt strives to improve productivity, capital efficiency and the quality of operations. The paper and board industries are growing fastest in China and in the rest of Asia. The mining industry is growing especially in South America. Tamfelt's customers are increasingly relocating production capacity to these areas. Clothing suppliers, too, are shifting operations to countries where cost levels are lower. In an effort to stay competitive, Tamfelt continues to improve its performance, cost structure and productivity. Tamfelt is increasinly operating in South America and in Southeast Asia and China where the risk of credit loss is higher than in other markets. Any delays of investments in the customer industries will also create a risk for the development of Tamfelt sales. Tamfelt takes out insuraces to cover the risk of damage involved in its activities, as far as this is deemed motivated, financially or otherwise. The coverage includes insurance against credit loss, material damage and business interruption as well as product liability and completed operations liability coverage. Tamfelt focuses on identifying and reducing risks and risk-related damages. However, Tamfelt's business environment involves risks that cannot be covered by insurances or eliminated by other means. SHORT-TERM OUTLOOK The global financial crisis and the resulting economic uncertainty will slow down the growth of the world economy already in the second half of 2008. The fast economic growth of the developing countries will also significantly slow down and the investment activity will decline. The demand for paper and the production volumes of the forest industry are estimated to grow slower than the long-term average rate. In Tamfelt's focus area, however, the output volumes of the paper industry are expected to diminish less than average and the demand for clothing for high-speed paper and board machines is expected to remain at a satisfactory level. Weakening economic situation, tough price competition and increasing competition on market shares weaken the outlook for the whole business, including Tamfelt. In the long term decreasing profitability can lead to reduced inputs in R&D. The prices of metals have fallen which will decrease volumes in the mining industry, thus affecting the demand for filter fabrics. On the other hand, increasing environmental consciousness and tightening environmental standards worldwide will increase filter fabric demand and offer new opportunities to increase filter fabric sales. The significant investments in the past few years have improved Tamfelt's delivery ability, productivity, and cost competitiveness. Postponed investments and weaker liquidity in the customer industries, however, pose a significant risk for Tamfelt's business as long as the present uncertainty and lack of confidence continues in the international economy. The result of 2008 will remain at a lower level than the record result in 2007. Helsinki, October 30, 2008 Tamfelt Corp. Board of Directors Hanna Koskela Communications Officer -------------------------------------------------------------------------------- | CONSOLIDATED | | | | | | | | | STATEMENT OF | | | | | | | | | INCOME, IFRS | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Million euros | 7-9 | 7-9 | Chang | 1-9 | 1-9 | Change | 1-12 | | | 2008 | 2007 | e % | 2008 | 2007 | % | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 42.6 | 40.6 | 5.0 | 127.0 | 125.6 | 1.1 | 167.5 | -------------------------------------------------------------------------------- | Operating profit | 6.3 | 6.9 | -9.0 | 16.8 | 18.6 | -9.8 | 25.9 | -------------------------------------------------------------------------------- | Financial income | -0.6 | -0.2 | 242.7 | -1.3 | -0.1 | 1175.0 | 0.3 | | and expenses | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit before | 5.7 | 6.8 | -15.8 | 15.5 | 18.5 | -16.2 | 26.2 | | taxes | | | | | | | | -------------------------------------------------------------------------------- | Income taxes | -1.5 | -1.3 | 17.1 | -4.2 | -4.3 | -1.9 | -5.4 | -------------------------------------------------------------------------------- | Profit for the | 4.2 | 5.5 | -22.4 | 11.4 | 14.2 | -20.0 | 20.8 | | period | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | | | | -------------------------------------------------------------------------------- | Equity holders of | 4.2 | 5.5 | | 11.4 | 14.2 | | 20.9 | | the parent | | | | | | | | -------------------------------------------------------------------------------- | Minority interest | -0.1 | 0.0 | | -0.1 | -0.1 | | 0.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share calculated on profit attributable to equity holders of | | the parent (euros) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Basic | 0.15 | 0.20 | | 0.41 | 0.51 | | 0.76 | -------------------------------------------------------------------------------- | Diluted | 0.15 | 0.20 | | 0.41 | 0.51 | | 0.75 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE | | | | | | | | SHEET, IFRS | | | | | | | -------------------------------------------------------------------------------- | Million euros | 9/2008 | % | 9/2007 | % | 12/2007 | % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | | | | -------------------------------------------------------------------------------- | Property, plant and | 94.8 | | 86.2 | | 88.5 | | | equipment | | | | | | | -------------------------------------------------------------------------------- | Goodwill | 0.3 | | 0.3 | | 0.3 | | -------------------------------------------------------------------------------- | Other intangible assets | 4.2 | | 4.4 | | 4.3 | | -------------------------------------------------------------------------------- | Other financial assets | 1.3 | | 1.4 | | 1.4 | | -------------------------------------------------------------------------------- | Deferred tax assets | 0.9 | | 0.7 | | 0.9 | | -------------------------------------------------------------------------------- | | 101.4 | 55 | 93.0 | 54 | 95.4 | 54 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | | | | -------------------------------------------------------------------------------- | Inventories | 34.8 | | 31.7 | | 33.0 | | -------------------------------------------------------------------------------- | Trade and other | 35.3 | | 34.0 | | 30.3 | | | receivables | | | | | | | -------------------------------------------------------------------------------- | Financial assets at fair | 1.3 | | 2.1 | | 1.9 | | | value through profit or | | | | | | | | loss | | | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | 10.3 | | 10.4 | | 4.4 | | -------------------------------------------------------------------------------- | | 81.5 | 45 | 78.2 | 46 | 69.7 | 46 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total assets | 183.0 | 100 | 171.2 | 100 | 165.1 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity and liabilities | | | | | | | -------------------------------------------------------------------------------- | Issued capital and | | | | | | | | reserves attributable to | | | | | | | | equity holders of the | | | | | | | | parent | | | | | | | -------------------------------------------------------------------------------- | Share capital | 27.6 | | 27.6 | | 27.6 | | -------------------------------------------------------------------------------- | Share premium | 1.0 | | 1.0 | | 1.0 | | -------------------------------------------------------------------------------- | Translation differences | -1.2 | | -1.5 | | -1.6 | | -------------------------------------------------------------------------------- | Fair value reserve | 0.0 | | 0.2 | | 0.1 | | -------------------------------------------------------------------------------- | Retained earnings | 79.1 | | 76.6 | | 82.3 | | -------------------------------------------------------------------------------- | | 106.5 | | 103.9 | | 109.4 | | -------------------------------------------------------------------------------- | Minority interest | 0.2 | | 0.5 | | 0.2 | | -------------------------------------------------------------------------------- | Total equity | 106.7 | 58 | 104.4 | 61 | 109.6 | 70 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 10.5 | | 10.9 | | 10.6 | | -------------------------------------------------------------------------------- | Interest-bearing | 28.9 | | 14.6 | | 11.7 | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | | 39.4 | | 25.5 | | 22.3 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | | | | -------------------------------------------------------------------------------- | Trade and other payables | 26.8 | | 28.3 | | 27.4 | | -------------------------------------------------------------------------------- | Provisions | | | 0.0 | | | | -------------------------------------------------------------------------------- | Current interest-bearing | 10.1 | | 12.9 | | 5.8 | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | | 36.9 | | 41.2 | | 33.2 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 76.3 | 42 | 66.8 | 39 | 55.5 | 30 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and | 183.0 | 100 | 171.2 | 100 | 165.1 | 100 | | liabilities | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF | | | | | | | CASH FLOWS | | | | | | -------------------------------------------------------------------------------- | | 1-9 | | 1-9 | | 1-12 | -------------------------------------------------------------------------------- | Million euros | 2008 | | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from operating | | | | | | | activities | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 11.3 | | 14.1 | | 20.8 | -------------------------------------------------------------------------------- | Adjustments to profit | 13.9 | | 11.6 | | 15.4 | -------------------------------------------------------------------------------- | Change in working capital: | | | | | | -------------------------------------------------------------------------------- | Change in trade and other | -5.1 | | -4.7 | | -0.6 | | receivables | | | | | | -------------------------------------------------------------------------------- | Change in inventories | -1.7 | | 0.3 | | -1.0 | -------------------------------------------------------------------------------- | Change in trade and other | -0.5 | | -1.5 | | -2.4 | | payables | | | | | | -------------------------------------------------------------------------------- | Change in provisions | | | | | | -------------------------------------------------------------------------------- | Interest received | 0.1 | | 0.2 | | 0.4 | -------------------------------------------------------------------------------- | Interest paid | -1.0 | | -0.6 | | -1.0 | -------------------------------------------------------------------------------- | Other financial items, net | -0.1 | | 0.4 | | 0.9 | -------------------------------------------------------------------------------- | Taxes paid | -4.6 | | -4.9 | | -7.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net cash flow from operating | 12.3 | | 14.9 | | 25.3 | | activities | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from investing | | | | | | | activities | | | | | | -------------------------------------------------------------------------------- | Investment in property, | -13.7 | | -18.1 | | -23.1 | | plant and equipment | | | | | | -------------------------------------------------------------------------------- | Investment in intangible | | | | | -1.2 | | assets | | | | | | -------------------------------------------------------------------------------- | Other investment | | | | | -0.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net cash flow from investing | -13.7 | | -18.1 | | -24.5 | | activities | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing | | | | | | | activities | | | | | | -------------------------------------------------------------------------------- | Withdrawal of loans | 26.2 | | 24.8 | | 16.7 | -------------------------------------------------------------------------------- | Repayment of loans | -4.7 | | -2.3 | | -4.3 | -------------------------------------------------------------------------------- | Dividends paid | -14.7 | | -16.6 | | -16.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net cash flow from financing | 6.8 | | 5.9 | | -4.2 | | activities | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in cash and cash | 5.4 | | 2.7 | | -3.4 | | equivalents | | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at | 6.4 | | 9.8 | | 9.8 | | the beginning of period | | | | | | -------------------------------------------------------------------------------- | Effect of exchange rate | 0.2 | | 0.1 | | 0.1 | | changes | | | | | | -------------------------------------------------------------------------------- | Effect of changes in the | -0.4 | | -0.1 | | -0.1 | | fair value of investment | | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at | 11.6 | | 12.5 | | 6.4 | | the end of the period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN CONSOLIDATED EQUITY -------------------------------------------------------------------------------- | | Equity attributable to shareholders of the | | | | | parent | | | -------------------------------------------------------------------------------- | Million | Shar | Share | Tran | Fair | Retain | Total | Minor | Total | | euros | e | premi | slat | value | ed | | ity | equit | | | capi | um | ion | reser | earnin | | inter | y | | | tal | reser | diff | ve | gs | | est | | | | | ve | eren | and | | | | | | | | | ces | other | | | | | | | | | | reser | | | | | | | | | | ves | | | | | -------------------------------------------------------------------------------- | Equity | 27.6 | 1.0 | -0.5 | 0.5 | 79.0 | 107.6 | 0.2 | 107.8 | | 31.12.2006 | | | | | | | | | -------------------------------------------------------------------------------- | Translation | | | -0.4 | | | -0.4 | 0.3 | -0.1 | | differences | | | | | | | | | -------------------------------------------------------------------------------- | Change of | | | | -0.2 | | -0.2 | | -0.2 | | fair value, | | | | | | | | | | financial | | | | | | | | | | assets | | | | | | | | | | available | | | | | | | | | | for sale | | | | | | | | | -------------------------------------------------------------------------------- | Tax on | | | | 0.1 | | 0.1 | | 0.1 | | equity items | | | | | | | | | -------------------------------------------------------------------------------- | Counter-entr | | | | | 0.0 | 0.0 | | 0.0 | | y of | | | | | | | | | | share-based | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | 8.7 | 8.7 | 0.0 | 8.7 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | -0.4 | -0.1 | 8.7 | 8.2 | 0.3 | 8.5 | | recognized | | | | | | | | | | income and | | | | | | | | | | expenses for | | | | | | | | | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | -16.6 | -16.6 | | -16.6 | -------------------------------------------------------------------------------- | Equity | 27.6 | 1.0 | -1.5 | 0.2 | 76.6 | 103.9 | 0.5 | 104.4 | | 30.9.2007 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | 27.6 | 1.0 | -1.7 | 0.1 | 82.3 | 109.4 | 0.2 | 109.6 | | 31.12.2007 | | | | | | | | | -------------------------------------------------------------------------------- | Translation | | | 0.4 | | | 0.4 | 0.1 | 0.5 | | differences | | | | | | | | | -------------------------------------------------------------------------------- | Change of | | | | | | 0.0 | | 0.0 | | accounting | | | | | | | | | | estimates | | | | | | | | | -------------------------------------------------------------------------------- | Change of | | | | -0.1 | | -0.1 | | -0.1 | | fair value, | | | | | | | | | | financial | | | | | | | | | | assets | | | | | | | | | | available | | | | | | | | | | for sale | | | | | | | | | -------------------------------------------------------------------------------- | Tax on | | | | 0.0 | | 0.0 | | 0.0 | | equity items | | | | | | | | | -------------------------------------------------------------------------------- | Counter-entr | | | | | 0.1 | 0.1 | | 0.1 | | y of | | | | | | | | | | share-based | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | 11.4 | 11.4 | -0.1 | 11.3 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | 0.4 | -0.1 | 11.5 | 11.8 | 0.0 | 11.8 | | recognized | | | | | | | | | | income and | | | | | | | | | | expenses for | | | | | | | | | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | -14.7 | -14.7 | | -14.7 | -------------------------------------------------------------------------------- | Equity | 27.6 | 1.0 | -1.3 | 0.0 | 79.1 | 106.4 | 0.2 | 106.7 | | 30.9.2008 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SEGMENT INFORMATION - Business segments | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Million euros | | | | | -------------------------------------------------------------------------------- | 7-9/08 | Tamfelt | Tamfelt | Other | Consolidate | | | PMC | Filtration | activities | d | -------------------------------------------------------------------------------- | Income | | | | | -------------------------------------------------------------------------------- | External turnover | 28.5 | 15.0 | 0.0 | 42.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | | | | | -------------------------------------------------------------------------------- | Operating profit | 4.2 | 2.7 | -0.6 | 6.3 | -------------------------------------------------------------------------------- | Financing items | | | -0.6 | -0.6 | -------------------------------------------------------------------------------- | Taxes | | | -1.5 | -1.5 | -------------------------------------------------------------------------------- | Profit for the period | | | | 4.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 3,1 | 0,4 | 0,1 | 3,6 | -------------------------------------------------------------------------------- | Depreciation and | 2,2 | 0,8 | 0,0 | 3,0 | | impairment | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 7-9/07 | Tamfelt | Tamfelt | Other | Consolidate | | | PMC | Filtration | activities | d | -------------------------------------------------------------------------------- | Income | | | | | -------------------------------------------------------------------------------- | External turnover | 27.7 | 12.9 | 0.0 | 40.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | | | | | -------------------------------------------------------------------------------- | Operating profit | 5.6 | 1.7 | -0.4 | 6.9 | -------------------------------------------------------------------------------- | Financing items | | | -0.2 | -0.2 | -------------------------------------------------------------------------------- | Taxes | | | -1.3 | -1.3 | -------------------------------------------------------------------------------- | Profit for the period | | | | 5.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 6.2 | 0.7 | 0.4 | 7.3 | -------------------------------------------------------------------------------- | Depreciation and | 1.8 | 0.5 | 0.0 | 2.3 | | impairment | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1-9/08 | Tamfelt | Tamfelt | Other | Consolidate | | | PMC | Filtration | activities | d | -------------------------------------------------------------------------------- | Income | | | | | -------------------------------------------------------------------------------- | External turnover | 84.7 | 42.3 | | 127.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | | | | | -------------------------------------------------------------------------------- | Operating profit | 11.5 | 6.9 | -1.6 | 16.8 | -------------------------------------------------------------------------------- | Financing items | | | -1.3 | -1.3 | -------------------------------------------------------------------------------- | Taxes | | | -4.2 | -4.2 | -------------------------------------------------------------------------------- | Profit for the period | | | | 11.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 10.8 | 2.2 | 0.7 | 13.7 | -------------------------------------------------------------------------------- | Depreciation and | 6.1 | 1.7 | 0.1 | 7.9 | | impairment | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other data | | | | | -------------------------------------------------------------------------------- | Segment assets | 120.7 | 45.2 | 17.1 | 183.0 | -------------------------------------------------------------------------------- | Segment liabilities | 26.0 | 8.5 | 41.8 | 76.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1-9/07 | Tamfelt | Tamfelt | Other | Consolidate | | | PMC | Filtration | activities | d | -------------------------------------------------------------------------------- | Income | | | | | -------------------------------------------------------------------------------- | External turnover | 85.1 | 40.5 | | 125.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | | | | | -------------------------------------------------------------------------------- | Operating profit | 14.7 | 5.4 | -1.5 | 18.6 | -------------------------------------------------------------------------------- | Financing items | | | -0.1 | -0.1 | -------------------------------------------------------------------------------- | Taxes | | | -4.3 | -4.3 | -------------------------------------------------------------------------------- | Profit for the period | | | | 14.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 15.3 | 2.1 | 0.7 | 18.1 | -------------------------------------------------------------------------------- | Depreciation and | 5.4 | 1.4 | 0.1 | 6.9 | | impairment | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other data | | | | | -------------------------------------------------------------------------------- | Segment assets | 111.6 | 41.4 | 18.2 | 171.2 | -------------------------------------------------------------------------------- | Segment liabilities | 26.0 | 7.3 | 33.5 | 66.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SEGMENT INFORMATION - Geographical segments | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 1-9 | | 1-9 | | 1-12 | -------------------------------------------------------------------------------- | Million euros | 2008 | | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | | | | | | -------------------------------------------------------------------------------- | Finland | 42.6 | | 43.1 | | 57.6 | -------------------------------------------------------------------------------- | Rest of Europe | 57.9 | | 54.2 | | 68.2 | -------------------------------------------------------------------------------- | Other countries | 45.8 | | 47.1 | | 59.0 | -------------------------------------------------------------------------------- | Elimination | -19.4 | | -18.9 | | -17.2 | -------------------------------------------------------------------------------- | Consolidated | 127.0 | | 125.6 | | 167.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INVESTMENTS | | | | | | -------------------------------------------------------------------------------- | Finland | 7.5 | | 13.2 | | 14.2 | -------------------------------------------------------------------------------- | Rest of Europe | 0.2 | | 0.7 | | 1.1 | -------------------------------------------------------------------------------- | Other countries | 6.0 | | 4.2 | | 9.1 | -------------------------------------------------------------------------------- | Consolidated | 13.7 | | 18.1 | | 24.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | | -------------------------------------------------------------------------------- | Finland | 154.3 | | 132.2 | | 136.2 | -------------------------------------------------------------------------------- | Rest of Europe | 23.1 | | 21.5 | | 15.3 | -------------------------------------------------------------------------------- | Other countries | 17.9 | | 25.2 | | 26.0 | -------------------------------------------------------------------------------- | Elimination | -12.3 | | -7.7 | | -12.4 | -------------------------------------------------------------------------------- | Consolidated | 183.0 | | 171.2 | | 165.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 | -------------------------------------------------------------------------------- | | 2008 | 2007 | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 42.6 | 40.6 | 127.0 | 125.6 | 167.5 | -------------------------------------------------------------------------------- | Operating profit | 6.3 | 6.9 | 16.8 | 18.6 | 25.9 | -------------------------------------------------------------------------------- | % of net sales | 14.8 | 17.1 | 13.2 | 14.8 | 15.5 | -------------------------------------------------------------------------------- | Profit before taxes and | 5.7 | 6.8 | 15.5 | 18.5 | 26.2 | | minority interest | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 4.2 | 5.5 | 11.4 | 14.2 | 20.8 | -------------------------------------------------------------------------------- | Return on equity, % | 15.4 | 20.7 | 13.9 | 17.8 | 19.2 | -------------------------------------------------------------------------------- | Return on net assets, % | 18.0 | 23.0 | 16.3 | 20.8 | 22.7 | -------------------------------------------------------------------------------- | Equity/Assets ratio at the | 58.5 | 61.1 | 58.5 | 61.1 | 66.5 | | end of the period, % | | | | | | -------------------------------------------------------------------------------- | Gearing at the end of the | 25.8 | 14.6 | 25.8 | 14.6 | 10.3 | | period % | | | | | | -------------------------------------------------------------------------------- | Gross investments | 6.6 | 7.3 | 13.7 | 18.1 | 24.5 | -------------------------------------------------------------------------------- | % of net sales | 15.5 | 18.0 | 10.8 | 14.4 | 14.6 | -------------------------------------------------------------------------------- | Average employment during | 1 531 | 1 459 | 1 531 | 1 459 | 1 469 | | the period | | | | | | -------------------------------------------------------------------------------- | Earnings/share, diluted, | 0.15 | 0.20 | 0.41 | 0.51 | 0.76 | | euros | | | | | | -------------------------------------------------------------------------------- | Equity/share, diluted, euros | 3.86 | 3.77 | 3.86 | 3.77 | 3.95 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | COLLATERALS AND CONTINGENT | | | | | | | LIABILITIES | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Million euros | 1-9 | 1-9 | 1-12 | | | -------------------------------------------------------------------------------- | | 2008 | 2007 | 2007 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Contingent liabilities | 0.6 | 0.3 | 0.7 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | DERIVATIVE FINANCIAL | | | | | | | INSTRUMENTS | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Million euros | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Forward exchange contracts, | | | | | | | not under hedge accounting | | | | | | -------------------------------------------------------------------------------- | Fair value | 1.7 | 2.1 | 2.7 | | | -------------------------------------------------------------------------------- | Value of underlying assets | 1.7 | 2.2 | 2.7 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Electricity derivatives | | | | | | -------------------------------------------------------------------------------- | Fair value | 2.4 | 2.0 | 2.1 | | | -------------------------------------------------------------------------------- | Trading value | 2.0 | 1.8 | 1.7 | | | -------------------------------------------------------------------------------- This unaudited Interim Report has been prepared in accordance with the basis of measurement provided by IAS 34 (Interim Financial Reporting) and the accounting policies presented in Tamfelt's Annual Report 2007. The figures are rounded off. FOR MORE INFORMATION October 30, 2008 at 13:00 - 14:00 Finnish time: Mr. Jyrki Nuutila, President and CEO of Tamfelt Corp., tel. +358 400 625 030, and Mr. Seppo Holkko, President of Tamfelt PMC Corp., tel. +358 40 509 3319. DISTRIBUTION NASDAQ OMX Helsinki Ltd Main media www.tamfelt.com Tamfelt is a world-leading supplier of technical textiles. The company's main products are clothing products for the paper and pulp as well as mining and chemical industries. The Group employs about 1,500 people and its net sales in 2007 were 167.5 million euro. Founded in 1797, the company is one of the pioneers of Finnish industry.
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