| 20.12.2005 |
LÄNNEN TEHTAAT ADJUSTS ITS DIVIDEND DISTRIBUTION POLICY
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE DECEMBER 20, 2005, 10;00 a.m
LÄNNEN TEHTAAT ADJUSTS ITS DIVIDEND DISTRIBUTION POLICY
At its meeting on December 19, 2005, the Board of Directors of Lännen Tehtaat plc
made an adjustment to the company's dividend distribution policy. The adjustment
was made because of changes affecting the profit calculation as a result of the
transfer to IFRS accounting. The adjustment is not aimed at altering the level of
dividend.
Under the new dividend distribution policy the company will distribute a dividend
of no less than 40% of the proportion of the profit for the financial year that
is assigned to parent company shareholders.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More information: Matti Karppinen, CEO, tel. +358 10 402 00
Distribution:
Helsinki Stock Exchange
Principal media
www.lannen.fi
|
| 13.12.2005 |
LÄNNEN TEHTAAT PLC'S FINANCIAL INFORMATION IN 2006
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT December 13, 2005, 10.00 am
LÄNNEN TEHTAAT PLC'S FINANCIAL INFORMATION IN 2006
Lännen Tehtaat plc will publish during the year 2006 the following financial
reports:
Financial statement bulletin 2005 February 21, 2006
Annual Report 2005 in week 12, 2006
Interim report for January-March May 9, 2006
Interim report for January-June August 10, 2006
Interim report for January-September November 1, 2006
The financial reports are also published in English.
The Annual General Meeting of Lännen Tehtaat plc is scheduled for Wednesday,
March 29, 2006. The Board of Directors of the company will decide on the
summoning of the meeting at a later date.
The financial information is also available on the company web pages at
www.lannen.fi.
LÄNNEN TEHTAAT PLC
Riitta Jaakkola
Director of Finance
For additional information:
Lännen Tehtaat plc, Riitta Jaakkola, tel +358 10 402 00
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 09.12.2005 |
SALES CONTRACT BETWEEN LÄNNEN TEHTAAT AND SUCROS ENDS
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE DECEMBER 9, 2005, 11.00 a.m
SALES CONTRACT BETWEEN LÄNNEN TEHTAAT AND SUCROS ENDS
Lännen Tehtaat plc's associated company Sucros Ltd has cancelled its contract
with Lännen Tehtaat concerning the sale of Dansukker consumer products. The
contract will expire on December 31, 2005. As of January 1, 2006, the sale of
Dansukker consumer products will be carried out by Sucros Ltd directly. This will
reduce the turnover of the Food Division, and thus the Lännen Tehtaat Group, by
about EUR 45 million, and the operating profit by about EUR 2 million, as of
2006. In recompense for the termination of the contract, Lännen Tehtaat plc will
receive compensation over the next six years amounting to a total net present
value of about EUR 7 million. This total sum will be entered in the present year,
thus affecting the 2005 results. The new arrangements will raise the 2005
earnings per share by about EUR 0.70 and reduce the earnings per share in the
coming years by about EUR 0.10.
This operating model will improve the cost-effectiveness of the Finnish sugar
production chain and streamline the processes serving customers.
Sucros Ltd is owned by the Danish company Danisco (80%) and Lännen Tehtaat plc
(20%). It produces sugar at the Säkylä and Salo sugar beet factories and the
Kantvik sugar refinery, and also produces isoglucose and glucose syrups at its
factory in Jokioinen. The restructuring arrangement will have no effect on Lännen
Tehtaat's ownership in Sucros Ltd.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More information: Matti Karppinen, CEO, tel. +358 10 402 00
Distribution:
Helsinki Stock Exchange
Principal media
www.lannen.fi
|
| 11.11.2005 |
HSE: LIQUIDITY PROVIDING IN THE SHARE OF LÄNNEN TEHTAAT PLC
EXCHANGE NOTICE 486/2005, 11 November 2005 SHARES
LIQUIDITY PROVIDING IN THE SHARE OF LÄNNEN TEHTAAT PLC
The market making agreement between Lännen Tehtaat plc
and FIM Securities Ltd meets the requirements set for the
liquidity providing at Helsinki Stock Exchange. The
requirements entered into force on April 20, 2004.
The liquidity providing relates to the share of
Lännen Tehtaat plc as of 14 November 2005.
Company: Lännen Tehtaat plc
Trading code: LTE1S
ISIN-code: FI0009003503
Orderbook id: 24300
Liquidity Provider (LP): FIM Securities Ltd
Liquidity Providing starts: 14 November 2005
HELSINKI STOCK EXCHANGE
Pekka Peiponen
Senior Vice President
|
| 10.11.2005 |
LIQUIDITY PROVIDING FOR LÄNNEN TEHTAAT PLC'S SHARE
LÄNNEN TEHTAAT PLC Stock Exchange Release November 10, 2005 10.00 a.m.
LIQUIDITY PROVIDING FOR LÄNNEN TEHTAAT PLC'S SHARE
Lännen Tehtaat plc and FIM Securities Ltd have signed a market making agreement
that meets the requirements of Liquidity Providing (LP) on the Helsinki Stock
Exchange.
According to the agreement FIM Securities Ltd will quote bids and offers
for Lännen Tehtaat plc's share so that the spread of the bid and offer prices is
a maximum of 3 per cent calculated on the bid price. The bids and offers quoted
by the liquidity provider must be for at least 500 shares, which represents ten
trading lots.
FIM Securities Ltd shall quote bids and offers for Lännen Tehtaat plc's share in
the trading system of the Helsinki Stock Exchange on the main list on each
trading day for at least 85 per cent of the Continuous Trading period and also in
the daily opening and closing procedures applicable to the security.
Market making in accordance with the LP agreement will commence on November 14,
2005. The agreement will be in force initially for a fixed term of 6 months and
thereafter under further notice, and agreement's period of notice is one month.
Lännen Tehtaat plc
Matti Karppinen
CEO
More details: Matti Karppinen, tel. +358 10 402 00
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 02.11.2005 |
SIMO PALOKANGAS ELECTED MEMBER OF THE BOARD OF LÄNNEN TEHTAAT PLC
LÄNNEN TEHTAAT PLC Stock Exchange Release November 2, 2005 at 8;30 a.m.
SIMO PALOKANGAS ELECTED MEMBER OF THE BOARD OF LÄNNEN TEHTAAT PLC
The Supervisory Board of Lännen Tehtaat plc elected Simo Palokangas as Member of
the Board of Directors as from April 1, 2006.
Present Board Members are Harri Eela, Aappo Kontu, Matti Lappalainen, Hannu
Simula, Soili Suonoja and Tom v. Weymarn as Chairman.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 01.11.2005 |
INTERIM REPORT January 1 - September 30, 2005
Lännen Tehtaat plc Stock exchange release November 1, 2005 at 8;30 a.m.
INTERIM REPORT January 1 - September 30, 2005
THIRD QUARTER
. The net turnover for the Group in July-September came to EUR 109.0
million (2004: EUR 107.0 million).
. The operating profit before non-recurring items came to EUR 3.6 million
(EUR 3.2 million).
. The operating profit after non-recurring items came to EUR 3.6 million
(EUR 5.4 million).
. The profit before taxes for all Group operations in the third quarter was
EUR 3.3 million (EUR 5.1 million).
. The earnings per share were EUR 0.38 (EUR 0.69).
. Matti Karppinen took up the post of CEO on September 1, 2005.
. In August, Lännen Tehtaat and Ravintoraisio founded a 50/50 owned joint
venture, Scandic Feed, for the Russian market.
This interim report has been drawn up in line with IFRS bookkeeping and valuation
principles. The data in this report have not been audited.
Key figures illustrating performance, EUR million
Continuing Discontinued
Group total operations operations
7-9/2005 7-9/2004 7-9/2005 7-9/2004 7-9/2005 7-9/2004
Net turnover 109.0 107.0 109.0 107.0 - 0.0
Operating profit before
non-recurring items 3.6 3.2 3.6 3.2 - 0.0
Operating profit after
non-recurring items 3.6 5.4 3.6 3.2 - 2.2
Profit before taxes 3.3 5.1 3.3 2.9 - 2.2
Profit after taxes 2.4 5.2 2.4 3.0 - 2.2
Earnings per share, EUR 0.38 0.69 0.38 0.46
The net turnover for the Food segment in the third quarter was EUR 39.9 million
(EUR 38.2 million), the Feed segment EUR 52.2 million (EUR 48.9 million), the
Grain Trading segment EUR 16.0 million (EUR 18.5 million) and the Other
Operations segment EUR 0.9 million (EUR 1.4 million).
The operating profit for the third quarter was EUR 0.9 million (EUR 1.5 million)
for Food, EUR 3.1 million (EUR 3.0 million) for Feed, EUR 0.5 million (EUR 0.3
million) for Grain Trading and EUR -0.7 million (EUR -1.7 million) for Other
Operations. The EUR 2.2 million profit under discontinued operations in the
comparative period came from non-recurring items arising from the separation of
Machinium from the Lännen Tehtaat Group.
REPORT PERIOD January 1 - September 30, 2005
Key figures illustrating performance, EUR million
Continuing Discontinued
Group total operations operations
1-9/2005 1-9/2004 1-9/2005 1-9/2004 1- 9/2005 1-9/2004
Net turnover 310.5 361.4 310.5 312.5 - 48.9
Operating profit/loss
before non-recurring items 5.7 6.6 5.7 8.1 - -1.5
Operating profit/loss
after non-recurring items 3.6 4.8 3.6 8.1 - -3.3
Profit before taxes 2.1 3.7 2.1 7.4 - -3.7
Profit after taxes 1.4 2.5 1.4 6.2 - -3,7
Earnings per share, EUR 0.29 0.32 0.29 0.93
Changes in Group structure
The operations of Lännen Plant Systems, formerly part of the Other Operations
segment, were sold at the beginning of April. The deal has no impact on the
financial performance of the Group.
Mildola Oy was merged with the Group's Feed segment at the beginning of May.
In August, Lännen Tehtaat and Ravintoraisio founded a 50/50 owned joint venture,
Scandic Feed, for the Russian market. The new company aims to commence farm feed
production in north-west Russia. Avena Nordic Grain set up a subsidiary, UAB
Avena Nordic Grain, in Lithuania in order to develop its grain trade business in
the Baltic States. The company started operating in August.
Net turnover
The net turnover for Lännen Tehtaat's continuing operations amounted to EUR 310.5
million (EUR 312.5 million) in the period January-September 2005. Mildola Oy,
acquired in May, contributed EUR 11.2 million to the Group turnover. The net
turnover for discontinued operations was EUR 48.9 million in January-September
2004.
The Food segment's net turnover was EUR 110.4 million (EUR 92.8 million). The
increase was due to the merging of Apetit Kala with the Group at the end of June
2004. The net turnover of the fish business grew according to plan. Retail sales
of frozen food products equalled those for the comparative period, on the whole.
Sales of frozen meals and pizzas and frozen potato products were higher than in
the previous year. Sales of frozen vegetables fell, however, particularly own
brand products. Retail sales of jams and marmalades also went down. Sales to the
hotel, restaurant and catering sector and the food industry also fell short of
the comparative period because of higher imports. Imports of sugar consumer
products from the Baltic States increased, and this reduced the net turnover of
Lännen Sugar. However, thanks to a good crop of apples and berries, the fall in
sales of sugar was far less than expected.
The net turnover in the Feed segment in January-September was EUR 145.2 million
(EUR 142.0 million). Comparable net turnover excluding the effects of a corporate
acquisition fell by about 5 per cent on the previous year, as a result of the
impact on sales prices of lower feed raw material prices than in the previous
year.
The net turnover for Grain Trading was EUR 49.9 million (EUR 71.6 million).
Volumes in January-August fell owing to the poor crop in Finland in 2004. The
price level, too, was below that of last year. At the end of the review period,
grain trading with this year's crop started according to plan.
The net turnover of the Other Operations segment in January-September was EUR 5.0
million (EUR 6.1 million). The fall in net turnover is a consequence of the sale
of the operations of Lännen Plant Systems at the beginning of April.
Financial performance
The operating profit for Lännen Tehtaat's continuing business operations before
the deduction of non-recurring items was EUR 5.7 million (EUR 8.1 million) in
January-September. The non-recurring items for the review period came to EUR -2.1
million. This figure includes write-downs of EUR 3.2 million in the first quarter
arising from the decision to close down the Suomen Rehu factory in Vaasa, and the
recording of EUR 1.1 million in negative goodwill as income, which arose through
the acquisition of Mildola Oy in the second quarter. The operating result for
discontinued operations was EUR -3.3 million in the comparative period.
The Food segment's operating result was EUR -0.5 million (EUR 1.9 million). The
profitability of the Food segment fell short of the targeted level and was below
the figure for the comparative period mainly as a result of poor profitability in
the fish product business in the early part of the year. The operating result of
the Apetit unit fell slightly short of the comparative period due to a fall in
net turnover. The operating profit of Lännen Sugar was at the same level as in
the comparative period.
The Feed segment's operating profit before non-recurring items for January-
September was EUR 7.9 million (EUR 7.3 million) and EUR 5.8 million after non-
recurring items. The acquisition of Mildola for the Feed segment improved the
latter's profitability. The comparative operating profit excluding Mildola and
before non-recurring items was close to the comparative period.
The Grain Trading operating profit was EUR 0.9 million (EUR 1.7 million). EUR 0.4
million of the reduction in operating profit was accounted for by changes in the
fair value of derivative contracts recognized in income. Recording the derivative
contracts taken out to protect raw material positions at fair value weakened the
financial performance of the 2005 review period by EUR 0.2 million and improved
the performance for the comparative 2004 period by EUR 0.2 million. From the
beginning of 2005, hedge accounting has been applied to effective hedging of
purchases and sales in accordance with IAS 39 requirements in order to give a
more accurate picture of the Grain Trading performance.
The operating result of the Other Operations segment was EUR -2.5 million (EUR
-2.8 million).
The consolidated profit before taxes was EUR 2.1 million (EUR 3.7 million) and
the profit for the period EUR 1.4 million (EUR 2.5 million).
Financing and cash flow
The Group's financing situation and liquidity was good throughout the review
period. The cash flow from operations after interest and taxes was EUR 11.9
million (EUR 25.8 million). The difference between this year and the comparative
period is mainly due to changes in the working capital. Net cash flow from
investments was EUR -4.7 million (EUR -5.5 million). A dividend of EUR 4.1
million (EUR 3.9 million) was paid.
The Group's interest-bearing liabilities at the end of the period under review
totalled EUR 44.5 million (EUR 42.6 million) and financial assets EUR 7.3 million
(EUR 8.7 million). The consolidated balance sheet total was EUR 215.8 million
(EUR 210.1 million) and the equity ratio 49.0% (48.5%). At the end of the review
period, the commercial papers issued for the Group's short-term financing
totalled EUR 14.0 million (EUR 2.0 million). Liquidity has been secured through
long-term committed credit facilities. No credit facilities were used during the
period under review.
Investment
Consolidated gross investment excluding corporate acquisitions during the period
under review amounted to EUR 3.9 million (EUR 3.7 million). In addition, EUR 4.2
million (EUR 2.6 million) were spent on the acquisition of shares in subsidiaries
and joint ventures.
The most significant investment item was the acquisition of a majority
shareholding in Mildola Oy totalling EUR 4.0 million in a transaction that came
into effect at the beginning of May.
Seasonal nature of operations
The transition to IFRS reporting has had a noticeable impact on the accrual of
Lännen Tehtaat's profits over the financial year.
In accordance with the IAS 2 standard, the historical cost of inventories
includes a systematically allocated portion of the fixed production overheads. In
production that focuses on seasonal crops, raw materials are processed into
finished products chiefly during the year's final quarter, which means that the
inventory volumes and their balance-sheet values are at their highest at the end
of the year. Entering as an expense the fixed production overheads included in
the historical cost is deferred until the time of sale. As a result, most of the
Group's annual profit is accrued in the final quarter.
The seasonal nature of operations features most strongly in the Food segment and
in the associate company Sucros, which is part of that segment. There is also
some seasonal fluctuation in the Feed segment.
Staff and organization
The average number of staff during the review period was 1,030 (1,091).
Matti Karppinen took up his appointment as CEO of Lännen Tehtaat plc on September
1, 2005.
Use of AGM authorizations
So far the Board has not used the authorizations granted by the Annual General
Meeting to raise share capital and to surrender Lännen shares held by the
company. The company owns 65,000 of its own shares, representing 1.0% of the
share capital and votes.
Share trading
During the review period, 3,210,991 (1,390,750) company shares were traded on the
Stock Exchange, which was 50.8% (22.5%) of the total stock. The highest share
price was EUR 17.65 (EUR 14.50) and the lowest EUR 11.71 (EUR 11.00). Share
trading during the period totalled EUR 44.5 million (EUR 17.6 million).
Announcements pursuant to chapter 2, section 10 of the Securities Markets Act
Tapiola General Mutual Insurance Company and Tapiola Mutual Life Assurance
Company announced on February 18, 2005 that the total proportion of their holding
in Lännen Tehtaat plc's share capital and voting rights had fallen to 4.37% on
February 17, 2005.
Raisio plc announced on September 14, 2005 that its holding in Lännen Tehtaat
plc's share capital and voting rights had fallen below 5% on September 14, 2005.
After the change, neither Raisio plc nor any organization or foundation
controlled by Raisio plc owns Lännen Tehtaat plc's shares.
ODIN Forvaltning AS announced on September 15, 2005 that the proportion of its
holding in Lännen Tehtaat plc's share capital and voting rights had risen to
5.18%.
Reform of the EU sugar regime
The EU Commission announced its proposal for the new sugar regime in June,
proposing a reduction of 39 per cent in sugar prices and 42 per cent in sugar
beet prices.
The aim is to cut surplus production and to reduce sugar prices in the EU region.
The proposal includes partial compensation for sugar beet farmers and lump-sum
compensation for the section of the industry giving up or reducing sugar
production. The proposal is also based on a WTO decision regarding the abolition
of export subsidies.
The proposal threatens sugar beet growing and the beet sugar industry in
peripheral areas of the EU, such as Finland. Finland has demanded amendments to
the Commission proposal that take better account of local conditions, including
full compensation for farmers.
The EU sugar regime is likely to be given its final form after negotiations in
November, before the WTO Ministerial Meeting in December. The new regime will
apply to the 2006 crop period.
The proposal as such would put an end to both sugar beet farming and the beet
sugar industry in Finland. The new sugar regime will have a negative impact on
the performance of Lännen Tehtaat in future years.
Prospects for the entire year
The Food segment's net turnover will grow compared with the previous year when
Apetit Kala's entire net turnover for the year is included in the segment's
figures. Sales of frozen foods are estimated to follow the general trend in the
market. The percentage of sales held by private label products is expected to
continue to grow. Sales of jams and marmalades will fall short of last year's
figures. Total consumption of sugar will not rise and the proportion accounted
for by Finnish sugar is expected to fall. According to estimates, sales of Lännen
Sugar consumer products will fall short of the 2004 level as a result of sugar
imports. A programme launched in May to improve efficiency and cut costs is
expected to improve Apetit Kala's profitability in the last quarter of the year.
The performance of the entire Food segment will be well below that of last year
due to the loss shown by Apetit Kala in the early part of the year.
The Feed segment's net turnover will increase as a result of its merging with
Mildola. Feed sales excluding Mildola are expected to fall somewhat short of
2004. The non-recurring expenses caused by the closure of the Vaasa factory will
have a negative effect on the result in the Feed segment in 2005. The benefits of
this arrangement will be realized in full as from 2007. Despite the positive
impact of Mildola, it is predicted that the performance of the Feed segment as a
whole will be slightly weaker than last year.
The net turnover for Grain Trading for the entire year will fall short of targets
and of last year's level due to the poor crop last year and the slow market entry
of this autumn's new crops.
The net turnover for the Lännen Tehtaat Group's continuing business operations
will increase slightly compared with 2004.
Most of the consolidated operating profit will accrue in the last quarter. The
profit for the Group in 2005 is expected to fall somewhat short of the last
year's level. As a result of the non-recurring expenses in the Feed segment, poor
profitability in the fish business, and a fall in the share of profits from
associate companies, both the operating profit and the profit before taxes for
Lännen Tehtaat's continuing operations for the whole of 2005 are expected to fall
short of the 2004 figures.
Future areas of emphasis
The Lännen Tehtaat's vision is to be one of the leading Finnish food companies.
In the future, the emphasis will be on developing the company's Food segment.
Measures to expand the Group's Food segment have already been initiated. The aim
is a considerable expansion in operations in Finland and the northern Baltic Sea
region by the end of next year.
Development of the business operations of the Agricultural Division will continue
in the Division's growth market in the Baltic States and Russia.
A bulletin on the financial statements for 2005 will be issued on February 21,
2006.
CONSOLIDATED INCOME STATEMENT - CONTINUING OPERATIONS
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Net turnover 109.0 107.0 310.5 312.5 424.9
Other operating income 0.5 0.1 2.7 2.6 2.9
Operating expenses -103.7 -101.7 -300.6 -301.0 -405.0
Depreciation and reduction
in value -2.1 -2.2 -9.0 -6.0 -8.1
Operating profit 3.6 3.2 3.6 8.1 14.7
Financial income and expenses -0.4 -0.6 -0.9 -1.0 -1.1
Share of profit of associate
companies 0.1 0.3 -0.7 0.3 2.7
Profit before taxes 3.3 2.9 2.1 7.4 16.3
Income taxes -1.0 0.1 -0.7 -1.2 -2.1
Profit for the financial period 2.4 3.0 1.4 6.2 14.2
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 2.4 2.8 1.8 5.7 14.1
Minority interest 0.0 0.2 -0.4 0.5 0.1
Earnings per share, EUR 0.38 0.46 0.29 0.94 2.30
Diluted earnings per share, EUR 0.38 0.46 0.29 0.94 2.30
CONSOLIDATED INCOME STATEMENT - DISCONTINUED OPERATIONS
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Net turnover 0.0 0.0 0.0 48.9 48.9
Other operating income 0.0 0.0 0.0 1.2 1.2
Operating expenses 0.0 2.2 0.0 -52.8 -52.8
Depreciation and reduction in
value 0.0 0.0 0.0 -0.6 -0.6
Operating profit/loss 0.0 2.2 0.0 -3.3 -3.3
Financial income and expenses 0.0 0.0 0.0 -0.4 -0.4
Share of profit of associate
companies 0.0 0.0
Profit/loss before taxes 0.0 2.2 0.0 -3.7 -3.7
Income taxes 0.0 0.0 0.0 0.0 0.0
Profit/loss for the financial
period 0.0 2.0 0.0 -3.7 -3.7
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 1.4 0.0 -3.7 -3.7
Minority interest 0.8 0.0 0.0 0.0
CONSOLIDATED INCOME STATEMENT - CONTINUING AND DISCONTINUED OPERATIONS
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Net turnover 109.0 107.0 310.5 361.4 473.8
Other operating income 0.5 0.1 2.7 3.8 4.1
Operating expenses -103.7 -99.5 -300.6 -353.8 -457.8
Depreciation and reduction
in value -2.1 -2.2 -9.0 -6.6 -8.7
Operating profit 3.6 5.4 3.6 4.8 11.4
Financial income and expenses -0.4 -0.6 -0.9 -1.4 -1.5
Share of profit of associate
companies 0.1 0.3 -0.7 0.3 2.7
Profit before taxes 3.3 5.1 2.1 3.7 12.6
Income taxes -1.0 0.1 -0.7 -1.2 -2.1
Profit for the financial period 2.4 5.2 1.4 2.5 10.5
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 2.4 4.2 1.8 2.0 10.4
Minority interest 0.0 1.0 -0.4 0.5 0.1
Earnings per share, EUR 0.38 0.69 0.29 0.32 1.68
Diluted earnings per share, EUR 0.38 0.69 0.29 0.32 1.68
NET TURNOVER BY BUSINESS SEGMENT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Food segment 39.9 38.2 110.4 92.8 130.6
Feed segment 52.2 48.9 145.2 142.0 194.8
Grain Tradig segment 16.0 18.5 49.9 71.6 91.0
Other operations segment 0.9 1.4 5.0 6.1 8.5
Continuing operations total 109.0 107.0 310.5 312.5 424.9
Discontinued operations 48.9 48.9
Total 109.0 107.0 310.5 361.4 473.8
OPERATING PROFIT/LOSS BY BUSINESS SEGMENT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Food segment 0.9 1.5 -0.5 1.9 4.1
Feed segment 3.1 3.0 5.8 7.3 11.7
Grain Trading segment 0.5 0.3 0.9 1.7 2.3
Other operations segment -0.7 -1.7 -2.5 -2.8 -3.4
Continuing operations total 3.6 3.1 3.6 8.1 14.7
Discontinued operations 2.2 -3.3 -3.3
Total 3.6 5.4 3.6 4.8 11.4
NET TURNOVER BY GEOGRAPHICAL SEGMENT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Finland 99.3 99.1 277.6 283.1 383.2
Other EU member states 7.0 7.1 20.7 52.5 59.6
Other counries 2.7 0.8 12.2 25.8 31.0
Total 109.0 107.0 310.5 361.4 473.8
CONSOLIDATED BALANCE SHEET
EUR million
Sept.30 Sept. 30 Dec. 31
2005 2004 2004
ASSETS
Non-current assets
Tangible assets 71.1 70.7 70.0
Goodwill 17.4 17.4 17.4
Other intangible assets 1.9 2.8 2.5
Investment in associate companies 20.7 21.1 23.5
Available-for-sale financial
assets 3.1 2.5 2.5
Receivables 0.6 0.3 0.3
Deferred tax assets 2.8 2.3 2.2
117.6 117.1 118.4
Current assets
Inventories 52.8 46.1 49.5
Receivables 38.0 38.2 37.2
Financial assets at fair value
through profit or loss 0.5 0.5
Cash and cash equivalents 7.3 8.1 9.7
98.2 93.0 96.9
Total assets 215.8 210.1 215.4
EQUITY AND LIABILITIES
Equity attributable to the
equity holders of the parent 102.5 96.4 104.3
Minority interest 3.2 5.6 2.5
Total equity 105.7 102.0 106.8
Non-current liabilities
Long-term borrowings 19.9 30.5 23.1
Deferred tax liabilities 8.1 7.8 7.5
Non-current provisions 1.0 1.1 1.0
Non-current liabilities total 29.0 39.4 31.6
Current liabilities
Trade payables and other
liabilities 55.6 55.3 52.7
Short-term borrowings 24.5 12.3 23.3
Current provisions 1.0 1.1 1.0
Current liabilities total 81.1 68.7 77.0
Liabilities total 110.2 108.1 108.6
Total equity and liabilities 215.8 210.1 215.4
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-9/2005 1-9/2004 1-12/2004
9 mths 9 mths 12 mths
Cash flows from operating
activities 11.9 25.8 28.8
Cash flows from investing
activities -4.7 -5.5 -10.6
Cash flows from financing
activities
Change in net debt -6.0 -20.8 -17.1
Dividends paid -4.1 -3.9 -3.9
Net increase/decrease in cash
and cash equivalents -2.9 -4.4 -2.8
Cash and cash equivalents
at beginning of the period 10.2 13.1 13.0
Cash and cash equivalents
at end of the period 7.3 8.7 10.2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million
A = Share capital
B = Share premium account
C = Net unrealised gains
D = Other reserves
E = Own shares
F = Translation differences
G = Retained earnings
H = Subordinated loans
I = Equity attributable to equity holders of the parent company
J = Minority interest
K = Shareholders' equity total
A B C D E F G H I J K
Shareholders'
equity at Dec 31,
2003, FAS 12.2 21.4 7.3 0.8 -0.5 52.1 1.7 95.1 4.9 100.0
Transition to
IFRS standars 0.9 -0.8 0.0 2.1 -1.7 0.6 -0.6 0.0
Shareholders'
euity at Jan 1,
2004, IFRS 12.2 21.4 0.9 7.3 0.0 -0.5 54.3 0.0 95.7 4.3 99.9
Available-for-sale
financial assets:
gains/losses
from fair value
measurement 0.3 0.3 0.3
removed from equity
and recognized in
income statement -0.2 -0.2 -0.2
Translation
differences 0.3 0.3 0.3
Dividend
distribution -3.9 -3.9 -3.9
Targeted share
issue 0.4 2.0 2.4 2.4
Changes in
minority interest -0.1 -0.1 0.9 0.8
Other changes 0.0 0.0 0.0
Result of the
period 2.0 2.0 0.5 2.5
Shareholders'
equity at Sept 30,
2004, IFRS 12.6 23.4 1.0 7.3 0.0 -0.2 52.3 0.0 96.4 5.6 102.0
Shareholders'
equity at Jan 1,
2005, IFRS 12.6 23.4 1.1 7.3 0.0 -0.3 60.2 0.0 104.3 2.5 106.8
Available-for-sale
financial assets:
gains/losses
from fair value
measurement 0.4 0.4 0.4
Cash flow hedges:
gains/losses
recorded in
equity 0.0 0.0 0.0
Translation
differences 0.1 0.1 0.1
Dividend
distribution -4.1 -4.1 -0.1 -4.2
Changes in
minority interest 0.0 1.2 1.2
Other changes 0.0 0.0 0.0
Result of the period 1.8 1.8 -0.4 1.4
Shareholders'
equity at Sept 30,
2005, IFRS 12.6 23.4 1.5 7.3 0.0 -0.2 57.8 0.0 102.3 3.2 105.7
RECONCILIATION OF SHAREHOLDERS' EQUITY IN THE COMPARATIVE PERIOD
EUR million
Shareholders' equity at September 30, 2004, FAS 93.1
+ minority interest (IAS 1, difference in presentation) 4.6
IFRS 3 Goodwill 2.6
IAS 2 Inventories 2.7
IAS 12 Deferred tax assets 1.8
IAS 12 Deferred tax liabilities -3.3
IAS 16 Tangible assets 0.4
IAS 19 Pension liability -0.7
IAS 28 Investments in associate companies 0.5
IAS 32 Own shares -0.8
IAS 39 Shares in listed companies 1.4
IAS 39 Derivatives -0.4
Shareholders' equity at September 30, 2004 (IFRS) 102.0
RECONCILIATION OF RESULT IN THE COMPARATIVE PERIOD
EUR million
Profit for the period (FAS) 1.1
+ minority interest (IAS 1, difference in presentation) 0.4
IFRS 3 Reversal of good will amortizations 2.4
IAS 2 Inventories -1.1
IAS 12 Deferred tax assets -0.2
IAS 12 Deferred tax liabilities -0.1
IAS 17 Finance leases 1.0
IAS 19 Pension liability 0.0
IAS 28 Investments in associate companies -1.4
IAS 38 Intangible assets 0.0
IAS 39 Derivatives 0.4
Profit for the period Jan 1 - Sept 30, 2004 (IFRS) 2.5
KEY INDICATORS
Sept. 30 Sept. 30 Dec. 31
2005 2004 2004
Shareholders' equity per
share, EUR 16.91 16.31 17.08
Equity ratio, % 49.0% 48.5% 49.6%
Investments, EUR million 8.1 6.3 11.1
Average number of personnel,
continuing operations 1030 847 890
Average number of personnel,
discontinued operations - 244 182
CONTINGENT LIABILITIES
EUR million
Sept. 30 Sept. 30 Dec. 31
2005 2004 2004
Mortgages given for debts:
Real estate mortgages 40.7 35.1 34.9
Corporate mortgages 51.4 68.4 51.4
Share pledged 3.6 3.6 3.6
Other securities given:
Pledges 0.0 0.0 0.0
Corporate mortgages 0.2 0.2 0.2
Leasing liabilities 0.8 0.6 0.9
Non-cancellable other leases,
minimum lease payments 2.2 2.0 1.9
Contingent liabilities for own
commitments:
Repurchasing commitments 0.1 0.2 0.2
Contingent liabilities on behalf
of the associate companies:
Guarantees 0.1 0.1 0.1
Repurchasing commitments 0.1 0.1 0.1
Other contingent liabilities:
Redemption liability of
leased buildings 2.4 2.5 2.5
OUTSTANDING VALUES OF DERIVATIVE INSTRUMENTS
Forward currency contracts 2.3 2.6 3.3
Commodity derivative instruments 4.9 5.8 5.9
Interest rate swaps 25.0 25.0 25.0
The data in this interim report have not been audited.
LÄNNEN TEHTAAT PLC
Board of Directors
More details: Matti Karppinen, CEO, tel. +358 10 402 00
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 21.09.2005 |
CORRECTION TO AN ERRONEOUS NEWS ITEM IN THE MEDIA
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE September 21,2005 3.45pm
CORRECTION TO AN ERRONEOUS NEWS ITEM IN THE MEDIA
On September 21, 2005, the Helsingin Sanomat newspaper featured a news item which
stated that the Norwegian company Orkla had purchased 7.6% of Lännen Tehtaat plc
shares. Lännen Tehtaat plc has no indication, however, that Orkla has purchased
the shares in question. Neither has Orkla issued any notification that it holds
more than 5% of Lännen Tehtaat plc shares, which is a requirement under chapter
2, section 10, of the Securities Markets Act.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information: CEO Matti Karppinen, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 15.09.2005 |
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 10 OF THE SECURITIES MARKETS ACT
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT September 15, 2005 at
11;10
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 10 OF THE SECURITIES MARKETS ACT
Funds managed by ODIN Förvaltning AS has notified on September 15, 2005 that they
have bought 40,000 shares in Lännen Tehtaat plc on September 14, 2005. The
ownership share in Lännen Tehtaat plc has risen above 5% of the company's total
share capital and voting rights.
After the share transaction, funds managed by ODIN Förvaltning own a total of
327,100 shares. This corresponds to 5,18% of Lännen Tehtaat's share capital and
voting rights.
LÄNNEN TEHTAAT PLC
Riitta Jaakkola
Director of Finance
For additional information:
Lännen Tehtaat plc, Riitta Jaakkola, tel +358 10 402 00
Distribution:
Helsinki Stock Exchange
|
| 15.09.2005 |
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 10 OF THE SECURITIES MARKETS ACT
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT September 15, 2005 at
8.20
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 10 OF THE SECURITIES MARKETS ACT
Raisio plc (Business ID 0664032-4) has notified on September 14, 2005 that its
ownership share in Lännen Tehtaat plc has fallen below one-twentieth in Lännen
Tehtaat plc's share capital and voting rights on September 14, 2005.
Raisio owned a total of 477,500 shares in Lännen Tehtaat plc's share capital.
This corresponds to 7.6% of share capital and voting rights. After the change
Raisio plc, or any organization or foundation controlled by Raisio plc does not
own Lännen Tehtaat plc's shares.
LÄNNEN TEHTAAT PLC
Riitta Jaakkola
Director of Finance
For additional information:
Lännen Tehtaat plc, Riitta Jaakkola, tel +358 10 402 00
Distribution:
Helsinki Stock Exchange
|
| 11.08.2005 |
INTERIM REPORT January 1 - June 30, 2005
Lännen Tehtaat plc Stock exchange release August 11, 2005 9;00 a.m.
INTERIM REPORT January 1 - June 30, 2005
· Lännen Tehtaats net turnover for January-June amounted to EUR
201.5 million (2004: EUR 254.4 million). Operating profit was EUR 0.0
million (EUR -0.7 million).
· Net turnover for continuing business operations in January-June
amounted to EUR 201.5 million (EUR 205.4 million) and operating profit
before deduction of non-recurring items was EUR 2.1 million (EUR 4.9
million).
· The non-recurring items weakened the performance by EUR 2.1
million (EUR 4.0 million) in January-June.
· The consolidated result before taxes was EUR -1.2 million (EUR -
1.4 million).
· Mildola Oy was merged with the Group at the beginning of May.
This interim report has been drawn up in line with IFRS bookkeeping
and valuation principles.
Key figures illustrating performance, EUR million
Group total Continuing operations Discontinued operations
4-6/2005 4-6/2004 4-6/2005 4-6/2004 4-6/2005 4-6/2004
Net turnover 107.5 130.4 107.5 102.1 28.3
Operating profit before
non-recurring items 2.5 2.5 2.5 2.5 0.0
Operating profit/loss
after non-recurring items 3.6 -1.5 3.6 2.5 -4.0
Profit/loss before taxes 3.2 -0.8 3.2 3.4 -4.2
Profit/loss after taxes 2.4 -1.9 2.4 2.3 -4.2
Earnings per share, EUR 0.40 -0.32 0.40 0.37
Group total Continuing operations Discontinued operations
1-6/2005 1-6/2004 1-6/2005 1-6/2004 1-6/2005 1-6/2004
Net turnover 201.5 254.4 201.5 205.4 48.9
Operating profit/loss
before non-recurring items 2.1 3.3 2.1 4.9 -1.6
Operating profit/loss
after non-recurring items 0.0 -0.7 0.0 4.9 -5.6
Profit/loss before taxes -1.2 -1.4 -1.2 4.6 -6.0
Profit/loss after taxes -1.0 -2.7 -1.0 3.3 -6.0
Earnings per share, EUR -0.09 -0.37 -0.09 0.49
Net turnover and financial performance in the second quarter
The net turnover for continuing business operations in the April-June
period was EUR 107.5 million (EUR 102.1 million). Operating profit was
EUR 3.6 million (EUR 2.5 million).Non-recurring items improved the
performance by EUR 1.1 million. The consolidated profit before taxes
for the second quarter was EUR 3.2 million (EUR -0.8 million) and the
profit for the period was EUR 2.4 million (EUR -1.9 million).
Net turnover for the Food segment was EUR 38.5 million (EUR 29.4
million), the Feed segment EUR 49.0 million (EUR 46.0 million), the
Grain Trading segment EUR 17.6 million (EUR 23.4 million) and the
Other Operations sgment EUR 2.4 million (EUR 3.3 million). The net
turnover for discontinued operations was EUR 28.3 million in April-
June 2004.
The operating profit/loss for the second quarter was EUR -0.2 million
(EUR 0.3 million) for Food, EUR 4.3 million (EUR 2.2 milion) for Feed,
EUR 0.3 million (EUR 0.4 million) for Grain Trading and EUR -0.9
million (EUR -0.4 million) for Other Operations. The operating loss
for discontinued operations was EUR -4.0 million in April-June 2004.
Review period Jan 1 - Jun 30, 2005
Net turnover
The net turnover for Lännen Tehtaats continuing operations amounted
to EUR 201.5 million in the January-June 2005 period (EUR 205.4
million). The net turnover for discontinued operations was EUR 48.9
million in January-June 2004.
Financial performance
The operating profit for Lännen Tehtaats continuing business
operations before deduction of non-recurring items was EUR 2.1 million
(EUR 4.9 million). The non-recurring items for the review period came
to EUR 2.1 million, including EUR 3.2 million in provisions for
expenses entered in the first quarter as a result of the decision to
close down the Suomen Rehu factory in Vaasa, and the recording of EUR
1.1 million in negative goodwill as income, which arose through the
acquisition of Mildola Oy in the second quarter. The result for
discontinued operations was EUR -5.6 million in the comparative
period.
The consolidated result before taxes was EUR -1.2 million (EUR -1.4
million) and the result for the period EUR -1.0 million (EUR -2.7
million).
Financing
The Groups interest-bearing liabilities at the end of the period
under review totalled EUR 50.0 million (EUR 90.2 million) and
financial assets EUR 10.1 million (EUR 12.4 million). The consolidated
balance sheet total was EUR 210.2 million (EUR 262.6 million) and the
equity ratio 49% (37%). The balance sheet for the comparative period
included the balance sheet for discontinued operations, in which
interest-bearing liabilities including financial leasing came to EUR
35.6 million and financial assets to EUR 3.8 million. At the end of
the review period, the commercial papers issued for the Groups short-
term financing totalled EUR 21.0 million (EUR 9.0 million). Liquidity
has been secured through long-term committed credit facilities. No
credit facilities were used during the period under review. The
Groups financing situation was good throughout the review period.
Investment
Investment during the period under review amounted to EUR 5.7 million
(EUR 5.5 million). The most significant investment item was the
acquisition of a majority shareholding in Mildola Oy totalling EUR 4.0
million, under a deal that came into effect at the beginning of May.
Other consolidated investments were made mostly in productivity and
replacement.
Use of AGM authorizations
So far the Board has not used the authorizations granted by the Annual
General Meeting to raise share capital and to surrender Lännen shares
held by the company. The company owns 65,000 of its own shares,
representing 1.0% of the share capital and votes.
New CEO
On June 3, 2005, the Lännen Tehtaat plc Board appointed Matti
Karppinen Chief Executive Officer as from September 1, 2005. Erkki
Lepistö, who has acted as CEO since 2001, will continue in the company
as director in charge of mergers and acquisitions.
Share trading
During the review period, 1,775,753 (1,317,200) company shares were
traded on the Stock Exchange, which was 28.1% (21.5%) of the total
stock. The highest share price was EUR 13.70 (EUR 14.50) and the
lowest EUR 11.71 (EUR 11.00). Share trading during the period totalled
EUR 23.3 million (EUR 16.7 million).
Business segments
Food
The Food segments net turnover for January-June was EUR 70.5 million
(EUR 54.3 million). The increase was due to the merging of Apetit Kala
with the Group at the end of June 2004. Retail sales of Apetit frozen
food products equalled those for the comparative period, but retail
sales of jams and marmalades fell. Sales to the hotel, restaurant and
catering sector and the food industry also fell short of the
comparative period. Sales of sugar were distinctly lower than in the
comparative period, primarily due to imports from the Baltic States.
The Food segments operating result was EUR -1.4 million (EUR 0.4
million). The profitability of the Food segment fell short of the
targeted level and was below the figure for the comparitive period as
a result of poor profitability in the fish product business. The
integration of the Kalatori and Kesäpöytä brands under a single Apetit
brand caused some non-recurring expenses. Increase in production
capacity of the Kerava plant increased production costs at the start-
up stage, and profitability was further weakened by a steep increase
in raw material costs and tighter price competition. In other
respects, the profitability of the Food segment was at the same level
as in the comparative period.
Feed
Net turnover for January-June in the Feed segment was EUR 93.0 million
(EUR 93.1 million). Mildola was merged with the segment at the beginning
of May, which raised net turnover to the level of the comparative
period. The volumes of feed produced increased somewhat in the early
part of the year, but comparable net turnover went down slightly as a
result of the impact on sales prices of lower feed raw material prices
than in the previous year. Excluding the non-recurring expenses of EUR
3.2 million related to the closing down of the Vaasa factory and the EUR
1.1 million non-recurring income entry arising from the Mildola
acquisition, profitability was better than in the comparative period.
Operating profit was EUR 4.8 million before non-recurring items and EUR
2.7 million after non-recurring items (EUR 4.4 million).
At the beginning of May, Lännen Tehtaat and Raisio decided to set up
an equal-ownership joint venture in charge of starting up production
of farm feeds in Northwest Russia. The company is currently analysing
potential acquisitions.
Grain Trading
The net turnover for Grain Trading in January-June was EUR 33.9 million
(EUR 53.1 million). Volumes fell due to the autumn crop, which was lower
than expected and the smallest for five years in Finland. Net turnover
was significantly below that of the comparative period, during which the
number of export consignments was exceptionally great and the price
level considerably higher. The lower sales also affected the financial
performance of the segment.
The Grain Trading operating profit was EUR 0.4 million (EUR 1.4
million). EUR 0.5 million of the reduction in operating profit was
accounted for by timing differentials, mostly arising in the first
quarter, caused by the adoption of the IFRS. Recording the derivative
contracts taken out to protect raw material positions at fair value
weakened the review periods financial performance by EUR 0.2 million
and improved the performance for the comparative 2004 period by EUR 0.3
million. Reporting on derivative contracts made after the beginning of
2005 has been arranged so that hedge accounting can be applied to the
contracts, which will reduce fluctuation in the Grain Trading
performance.
Avena Nordic Grain set up a subsidiary, UAB Avena Nordic Grain, in
Lithuania in order to develop its grain trade business in the Baltic
States. The company will start operating in August.
Other Operations
In January-June, the net turnover of the Other Operations segment was
EUR 4.1 million (EUR 4.9 million) and the operating profit was EUR -
1.8 million (EUR -1.3 million). Lännen Plant Systems operations, which
had been part of Other Operations, were sold at the beginning of
April. The deal has no impact on the financial performance of the
review period.
Reform of the EU sugar regime
The EU Commission announced its proposal for the new sugar regime in
June, proposing a reduction of 39 per cent in sugar prices and 42 per
cent in sugar beet prices in order to cut surplus production and to
reduce sugar prices in the EU area. The proposal includes partial
compensation to sugar beet farmers and a one-time compensation to the
section of the industry giving up or reducing sugar production. The
proposal is also based on a WTO decision regarding the abolition of
export subsidies.
The proposal threatens sugar beet growing and the beet sugar industry
in peripheral areas of the EU, such as Finland. Together with other
Member States situated in peripheral areas, Finland is going to demand
amendments to the Commission proposal that take better account of
local conditions and full compensation to farmers.
The EU sugar regime is likely to be given its final form after
negotiations late in the autumn, before the WTO Ministerial Meeting in
December. The new regime will apply to the 2006 crop period.
The proposal as such would cause considerable reductions in both sugar
beet farming and in the beet sugar industry and would reduce
profitability in Finland. It includes compensation to be paid for
discontinuation. Compensation equivalent to Lännen Tehtaats ownership
share roughly equals the value of Sucros Ltd shares in the Lännen
Tehtaat consolidated balance sheet. The reform would have a negative
impact on the performance of Lännen Tehtaat in future years.
Prospects for the entire year
The Food segments net turnover will grow when Apetit Kalas net
turnover for a full year is included in the segments figures. Sales
of frozen foods are estimated to follow the general trend in the
market. Total consumption of sugar is not expected to grow and the
proportion accounted for by domestic sugar is estimated to fall.
Sales of Lännen Sugar consumer products are estimated to fall short
of the 2004 level as a result of imports of sugar. A programme
launched in May to improve efficiency and cut costs is expected to
improve Apetit Kalas profitability in the second half of the year.
The Feed segments net turnover will increase as a result of its
merging with Mildola. Feed sales excluding Mildola are expected to
be at the same level as in 2004. The non-recurring expenses caused
by the closing of the Vaasa factory will weaken profitability in the
Feed segment in 2005. The benefits of this arrangement will be
realized in full as from 2007.
The net turnover for Grain Trading will depend on the volumes and
quality of crops in the main market areas in the coming season.
Finlands crop prospects are good. Net turnover for the rest of the
year is expected to make up for some of the lag in the early part of
the year. Net turnover for the entire year is estimated to be close
to the 2004 level.
Net turnover for Lännen Tehtaat Groups continuing business
operations will increase on the 2004 level.
Most of the consolidated operating profit will accrue in the last
quarter. The profits for Lännen Tehtaat in the whole of 2005 are
expected to be close to the 2004 level. As a result of the non-
recurring expenses in the Feed segment and poor profitability in the
fish business, both the operating profit and the profit before taxes
for Lännens continuing operations for the whole of 2005 are
expected to fall short of the 2004 figures.
The next interim report, for the period January 1 - September 30,
2005, will be issued on November 1, 2005.
CONSOLIDATED INCOME STATEMENT CONTINUING OPERATIONS
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths6 mths6 mths12 mths
Net turnover 107.5 102.1 201.5 205.4 424.9
Other operating income 1.6 1.0 2.2 2.5 2.9
Operating expenses -103.5 -98.7-196.9-199.2 -405.0
Depreciation and reduction
in value -2.0 -1.9 -6.8 -3.8 -8.1
Operating profit/loss 3.6 2.5 0.0 4.9 14.7
Financial income and expenses -0.2 0.8 -0.5 -0.3 -1.1
Share of profit of associate
companies -0.2 0.1 -0.7 0.0 2.7
Profit/loss before taxes 3.2 3.4 -1.2 4.6 16.3
Income taxes -0.8 -1.1 0.2 -1.3 -2.1
Profit/loss for the financial
period 2.4 2.3 -1.0 3.3 14.2
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 2.5 2.2 -0.6 3.0 14.1
Minority interest -0.1 0.1 -0.4 0.3 0.1
Earnings per share, EUR 0.40 0.37 -0.09 0.49 2.30
Diluted earnings per share, EUR0.40 0.37 -0.09 0.49 2.30
CONSOLIDATED INCOME STATEMENT DISCONTINUED OPERATIONS
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths6 mths6 mths12 mths
Net turnover 0.0 28.3 0.0 49.0 48.9
Other operating income 0.0 1.1 0.0 1.2 1.2
Operating expenses 0.0 -33.1 0.0 -55.2 -52.8
Depreciation and reduction
in value 0.0 -0.3 0.0 -0.6 -0.6
Operating profit/loss 0.0 -4.0 0.0 -5.6 -3.3
Financial income and expenses 0.0 -0.2 0.0 -0.4 -0.4
Share of profit of associate
companies 0.0 0.0
Profit/loss before taxes 0.0 -4.2 0.0 -6.0 -3.7
Income taxes 0.0 0.0 0.0 0.0 0.0
Profit/loss for the financial
period 0.0 -4.2 0.0 -6.0 -3.7
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent -4.1 0.0 -5.2 -3.7
Minority interest -0.1 0.0 -0.8 0.0
CONSOLIDATED INCOME STATEMENT CONTINUING AND DISCONTINUED OPERATIONS
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths6 mths6 mths12 mths
Net turnover 107.5 130.4 201.5 254.4 473.8
Other operating income 1.6 2.1 2.2 3.7 4.1
Operating expenses -103.5-131.8-196.9-254.4 -457.8
Depreciation and reduction
in value -2.0 -2.2 -6.8 -4.4 -8.7
Operating profit/loss 3.6 -1.5 0.0 -0.7 11.4
Financial income and expenses -0.2 0.6 -0.5 -0.7 -1.5
Share of profit of associate
companies -0.2 0.1 -0.7 0.0 2.7
Profit/loss before taxes 3.2 -0.8 -1.2 -1.4 12.6
Income taxes -0.8 -1.1 0.2 -1.3 -2.1
Profit/loss for the financial
period 2.4 -1.9 -1.0 -2.7 10.5
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 2.5 -1.9 -0.6 -2.2 10.4
Minority interest -0.1 0.0 -0.4 -0.5 0.1
Earnings per share, EUR 0.40 -0.32 -0.09 -0.37 1.68
Diluted earnings per share, EUR0.40 -0.32 -0.09 -0.37 1.68
NET TURNOVER BY BUSINESS SEGMENT
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths6 mths6 mths12 mths
Food Division 38.5 29.4 70.5 54.3 130.6
Feed Division 49.0 46.0 93.0 93.1 194.8
Grain Trading Division 17.6 23.4 33.9 53.1 91.0
Other operations 2.4 3.3 4.1 4.9 8.5
Continuing operations total 107.5 102.1 201.5 205.4 424.9
Discontinued operations 28.3 48.9 48.9
Total 107.5 130.4 201.5 254.3 473.8
OPERATING PROFIT/LOSS BY BUSINESS SEGMENT
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths6 mths6 mths12 mths
Food Division -0.2 0.3 -1.4 0.4 4.1
Feed Division 4.3 2.2 2.7 4.4 11.7
Grain Trading Division 0.3 0.4 0.4 1.4 2.3
Other operations -0.9 -0.4 -1.8 -1.3 -3.4
Continuing operations total 3.6 2.5 0.0 4.9 14.7
Discontinued operations -4.0 -5.6 -3.3
Total 3.6 -1.5 0.0 -0.7 11.4
NET TURNOVER BY GEOGRAPHICAL SEGMENT
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths6 mths6 mths12 mths
Finland 95.1 98.2 178.3 184.0 383.2
Other EU member states 6.1 24.5 13.7 45.3 59.6
Other countries 6.3 7.7 9.5 25.0 31.0
Total 107.5 130.4 201.5 254.3 473.8
CONSOLIDATED BALANCE SHEET
EUR million
June 30, 2005June 30, 2004Dec. 31, 2004
ASSETS
Non-current assets
Tangible assets 71.1 91.6 70.1
Goodwill 17.4 17.7 17.4
Other intangible assets 2.1 3.6 2.5
Investment in associate
companies 21.7 22.3 23.5
Available-for-sale financial
assets 2.8 3.1 2.8
Receivables 0.6 0.3 0.3
Deferred tax assets 3.3 2.6 2.2
119.0 141.2 118.8
Current assets
Inventories 45.3 60.0 49.5
Receivables 35.8 48.4 36.9
Financial assets at fair value
through profit or loss 0.0 0.5 0.5
Cash and cash equivalents 10.1 12.4 9.7
91.2 121.3 96.6
Total assets 210.2 262.5 215.4
EQUITY AND LIABILITIES
Equity attributable to the
equity holders of the parent 99.7 92.1 104.3
Minority interest 3.2 5.9 2.5
Total equity 102.9 98.0 106.8
Non-current liabilities
Long-term borrowings 18.6 64.1 23.1
Deferred tax liabilities 7.7 7.5 7.5
Non-current provisions 1.0 1.0 1.0
Non-current liabilities total 27.3 72.6 31.6
Current liabilities
Trade payables and other
liabilities 47.6 61.0 52.7
Short-term borrowings 31.4 26.0 23.3
Current provisions 1.0 4.9 1.0
Current liabilities total 80.0 91.9 77.0
Liabilities total 107.3 164.5 108.6
Total equity and liabilities 210.2 262.5 215.4
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-6/ 1-6/ 1-12/
2005 2004 2004
6 mths 6 mths 12 mths
Cash flows from operating activities 6.9 16.6 28.8
Cash flows from investing activities -2.8 0.6 -10.6
Cash flows from financing activities -4.3 -17.3 -21.0
Net increase/decrease in cash
and cash equivalents -0.1 -0.1 -2.8
Cash and cash equivalents
at beginning of the period 10.2 13.1 13.0
Cash and cash equivalents
at the end of the period 10.1 13.0 10.3
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million
A = Share capital
B = Share issue premium
C = Net unrealised reserves
D = Other reserves
E = Own shares
F = Translation differences
G = Retained earnings
H = Subordinated loans
I = Equity attributable to equity holders of the parent company
J = Minority interest
K = Shareholders equity total
A B C D E F G H I J
K
Shareholders
equity Dec 31,2003
FAS 12.2 21.4 7.3 0.8 -0.5 52.1 1.7 95.1 4.9 100.0
Transition to
IFRS standards 0.9 -0.8 0.0 2.1 -1.7 0.6 -0.6 0.0
Shareholders
equity Jan 1,2004
IFRS 12.2 21.4 0.9 7.3 0.0 -0.5 54.3 0.0 95.7 4.3 99.9
Available-for-sale
financial assets:
gains/losses
from fair value
measurement 0.2 0.2 0.2
removed from equity
and recognized in the
income statement -0.2 -0.2 -0.2
Translation differences 0.0 0.0
Dividend distribution -4.0 -4.0 -4.0
Targeted share
issue 0.4 2.0 2.4 2.4
Changes in minority
interest 0.4 0.4 2.0 2.4
Other changes 0.0 0.0 0.0
Result of the period -2.2 -2.2 -0.5 -2.7
Shareholders
equity Jun 30, 2004
IFRS 12.6 23.4 0.9 7.3 0.0 -0.5 48.4 0.0 92.1 5.9 98.0
Shareholders
equity Jan 1,2005
IFRS 12.6 23.4 1.1 7.3 0.0 -0.3 60.2 0.0104.3 2.5 106.8
Available-for-sale
financial assets:
gains/losses
from fair value
measurement 0.2 0.2 0.2
Cash flow hedges:
hedge result
deferred -0.2 -0.2 -0.2
Translation
differences 0.1 0.1 0.1
Dividend distribution -4.2 -4.2 -0.2 -4.4
Changes in minority
interest 0.0 1.3 1.3
Other changes 0.0 0.0 1.0
Result of the period -0.6 -0.6 -0.4 -1.0
Shareholders
equity Jun 30,2005
IFRS 12.6 23.4 1.1 7.3 0.0 -0.2 55.6 0.0 99.7 3.2 102.9
RECONCILIATION OF SHAREHOLDERS EQUITY IN THE COMPARATIVE PERIOD
EUR million
Shareholders equity at June 30, 2004, FAS 91.9
+ minority interest
(IAS 1, difference in presentation) 5.4
IFRS 3 Goodwill 1.8
IAS 1 Subordinated loan -1.7
IAS 2 Inventories 2.2
IAS 12 Deferred tax assets 1.8
IAS 12 Deferred tax liabilities -3.0
IAS 16 Tangible assets 0.4
IAS 17 Finance leases -1.7
IAS 19 Pension liability -0.7
IAS 28 Investments in associate companies0.9
IAS 32 Own shares -0.8
IAS 39 Shares in listed companies 1.3
IAS 39 Derivatives 0.2
Shareholders equity at June 30, 2004 (IFRS) 98.0
RECONCILIATION OF result IN THE COMPARATIVE PERIOD
EUR million
Profit/loss for the period (FAS) -1.9
+ minority interest -0.5
(IAS 1, difference in presentation)
IFRS 3 Reversal of good will amortizations 1.6
IAS 2 Inventories -1.7
IAS 12 Deferred tax assets -0.2
IAS 12 Deferred tax liabilities 0.1
IAS 17 Finance leases 0.0
IAS 19 Pension liability 0.0
IAS 28 Investments in associate companies-1.1
IAS 38 Intangible assets 0.0
IAS 39 Derivatives 1.0
Profit/loss for the period (IFRS) -2.7
KEY INDICATORS
June 30, 2005June 30, 2004Dec. 31, 2004
Shareholders equity
per share, EUR 16.28 15.67 17.08
Equity ratio, % 49.0 37.3 49.6
Investments, EUR million 5.7 5.5 11.1
Average number of personnel,
continuing operations 1006 746 890
Average number of personnel,
discontinued operations - 365 182
CONTINGENT LIABILITIES
EUR million
June 30, 2005June 30, 2004Dec. 31, 2004
Mortgages given for debts:
Real estate mortgages 40.7 35.1 34.9
Corporate mortgages 51.4 77.3 51.4
Shares pledged 3.6 3.6 3.6
Other securities given:
Pledges 0.0 0.3 0.0
Corporate mortgages 0.2 5.2 0.2
Leasing liabilities 0.9 1.6 0.9
Non-cancellable other leases,
minimum lease payments 2.3 0.3 1.9
Contingent liabilities for own
commitments:
Repurchasing commitments 0.2 0.2
Other commitments 0.0 2.3 0.5
Contingent liabilities on behalf
of the associated companies:
Guarantees 0.2 0.1 0.2
Other contingent liabilities:
Redemption liability of leased
buildings 2.5 2.5
OUTSTANDING VALUES OF DERIVATIVE INSTRUMENTS
Forward currency contracts 2.0 2.2 3.3
Commodity derivative instruments3.4 1.7 5.9
Interest rate swaps 25.0 25.0 25.0
The data in this interim report have not been audited.
LÄNNEN TEHTAAT PLC
Board of Directors
More details: Erkki Lepistö, CEO, tel. +358 10 402 00
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 17.06.2005 |
ORGANIZATION OF THE SUPERVISORY BOARD AND ELECTION OF THE BOARD OF DIRECTORS
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE June 17, 2005 at 9;00 a.m.
ORGANIZATION OF THE SUPERVISORY BOARD AND ELECTION OF THE BOARD OF DIRECTORS
The Supervisory Board of Lännen Tehtaat plc on June 16, 2005 re-elected Tom
Liljeström as Chairman of the Supervisory Board and Juha Nevavuori as Vice
Chairman of the Supervisory Board.
Harri Eela, Aappo Kontu, Matti Lappalainen, Hannu Simula, Soili Suonoja and Tom
v. Weymarn were re-elected as members of the Board of Directors. Tom v. Weymarn
was re-elected as Chairman of the Board and Hannu Simula as Vice Chairman of the
Board.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
CEO
More details: Erkki Lepistö, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 03.06.2005 |
Matti Karppinen appointed President at Lännen Tehtaat
Lännen Tehtaat plc Stock Exchange Release June 3, 2005 2;00 p.m.
Matti Karppinen appointed President at Lännen Tehtaat
The Lännen Tehtaat plc Board of Directors has appointed Matti Karppinen as the
company's President. He will take up his duties on September 1, 2005.
Aged 46, Karppinen has considerable expertise in strategic issues in the food
business and valuable experience in consumer product marketing both in Finland
and the other Nordic countries. Matti Karppinen has been Managing Director of
Lithells AB, the Swedish subsidiary of Atria Oyj, since January 1, 2002. Under
his leadership, Lithells's turnover in 2004 amounted to about EUR 310 million.
His previous posts include marketing director at Saarioinen Oy and unit director
at Nokian Renkaat plc. Matti Karppinen will continue in his present position with
Atria until the end of August.
The Lännen Tehtaat Group consists of two divisions: the Food Division and the
Agricultural Division. In 2004, the Group's net turnover totalled EUR 474
million, its operating profit was EUR 11.4 million and its profit for the
financial year EUR 10.5 million. The Group has a total of approximately 1,000
employees.
LÄNNEN TEHTAAT PLC
Tom v. Weymarn
Chairman of the Board of Directors
More details: Tom v. Weymarn, Chairman of the Board, tel +358 400 212 386
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
|
| 18.05.2005 |
CORRECTION TO LÄNNEN TEHTAAT'S IFRS COMPARISON DATA FOR THE FINANCIAL YEAR 2004
Lännen Tehtaat plc Stock Exchange Release May 18, 2005 at 03;30 p.m.
CORRECTION TO LÄNNEN TEHTAAT'S IFRS COMPARISON DATA FOR THE FINANCIAL YEAR 2004
The IFRS comparison data published by Lännen Tehtaat on April 27, 2005 included a
misstatement in the Q4/2004 and 2004 full year operating results of the Grain
Trading Division and the Other operations business segment. The misstatement in
the IFRS transition release causes a correction also to the 2004 full year
operating results by the business segments presented in the Q1 2005 interim
report as comparative information. The correction has no effect to the other
figures of the IFRS transition release nor the figures of the interim period for
Q1 2005.
The operating results by the business segments of the IFRS transition release and
the interim report for Q1 2005 have been presented in their corrected forms in
the following tables.
OPERATING RESULT BY BUSINESS SEGMENT / IFRS transition release
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q4 Q1-Q4 Q4 Q4
2004 2004 2004 2004
Food Division 4.1 3.9 0.2 2.2 1.4 0.8
Feed Division 11.7 8.4 3.3 4.6 3.5 1.1
Grain Trading
Division 2.3 1.9 0.4 0.6 0.4 0.2
Other operations -3.4 -3.8 0.4 -0.8 -0.7 -0.1
Discontinued
operations -3.3 -4.2 0.9 0.0 0.0 0.0
Share of profits
of associate
companies (FAS) 2.5 0.8
Total 11.4 8.7 2.7 6.7 5.2 1.5
OPERATING RESULT BY BUSINESS SEGMENT / Q1 2005 interim report
1-3/2005 1-3/2004 1-12/2004
3 mths 3 mths 12 mths
Food Division -1.1 0.1 4.1
Feed Division -1.5*) 2.2 11.7
Grain Trading Division 0.1 1.0 2.3
Other operations -1.0 -0.9 -3.4
Continuing operations total -3.6 2.3 14.7
Discontinued operations -1.5 -3.3
Total -3.6 0.8 11.4
*) The operating profit was EUR 1.7 million excluding non-recurring expenses of
EUR 3.2 million.
The full versions of the IFRS transition release 2004 and the interim report for
Q1 2005 are available on Lännen Tehtaat's web pages at
www.lannen.fi/en/investor_information/financial_information.
LÄNNEN TEHTAAT PLC
Riitta Jaakkola
Director of Finance
For additional information: Riitta Jaakkola. tel +358 10 402 4020
Distribution:
Helsinki Stock Exchange
www.lannen.fi
|
| 16.05.2005 |
New CEO for Lännen Tehtaat plc
Lännen Tehtaat plc Stock Exchange Release May 16, 2005 at 12.00
New CEO for Lännen Tehtaat plc
A new CEO is to be appointed at Lännen Tehtaat plc. Erkki Lepistö has been Lännen
Tehtaat's CEO since 2001 and will continue to exercise his full authority as CEO
until a replacement has been appointed and taken up the duties of the post.
Since 2001, Lännen Tehtaat has focused its operations on the Finnish food
industry by withdrawing from business areas not forming part of its core
activities. At the same time Lännen has expanded through corporate acquisitions
and is now one of the leading Finnish food industry corporations. The Group's net
turnover has doubled since 2001, reaching EUR 470 million in the financial year
ending December 31, 2004. The Group's equity ratio was 50% and its operating
profit before taxes EUR 12.6 million.
The vision outlined for Lännen Tehtaat in 2001 has, in most respects, been
achieved and the Group is now looking for new opportunities to grow. In order to
design and implement the future strategy effectively, different expertise and new
leadership will be needed. The Board of Directors and CEO Erkki Lepistö are
united in their view of the need for this change. Erkki Lepistö will continue in
the service of Lännen Tehtaat Group after the new CEO has been appointed. His
future duties will be clarified once the new CEO has taken up the post.
The application process for the new CEO has already begun.
LÄNNEN TEHTAAT PLC
Board of Directors
More information:
Tom v. Weymarn, Chairman of the Board, tel +358 400 212 386
Erkki Lepistö, CEO, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Principal media
www.lannen.fi
|
