| 21.12.2004 |
LÄNNEN TEHTAAT PLC'S FINANCIAL INFORMATION IN 2005
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT December 21, 2004
LÄNNEN TEHTAAT PLC'S FINANCIAL INFORMATION IN 2005
Lännen Tehtaat plc will publish during the year 2005 the following financial
reports:
Financial statement bulletin 2004 February 24, 2005
Annual Report 2004 in week 12, 2005
Interim report for January-March May 3, 2005
Interim report for January-June August 11, 2005
Interim report for January-September November 1, 2005
The financial reports are also published in English.
The Annual General Meeting of Lännen Tehtaat plc is scheduled for Thursday, March
31, 2005. The Supervisory Board 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 2 8397 4920
Distribution:
Helsinki Exchanges
Main media
|
| 02.11.2004 |
ELECTION OF THE BOARD OF DIRECTORS
LÄNNEN TEHTAAT PLC Stock exchange release Nov. 2, 2004 at 3.10 p.m.
ELECTION OF THE BOARD OF DIRECTORS
The Supervisory Board of Lännen Tehtaat plc has elected Aappo Kontu,
M. Sc. (Eng.), President of Empower Oy as a new member to the Board of
Directors.
After the election, the Board of Directors of Lännen Tehtaat plc
consists of Tom v. Weymarn as Chairman, Hannu Simula as Deputy
Chairman and Harri Eela, Aappo Kontu, Matti Lappalainen, Erkki Lepistö
and Soili Suonoja as members.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: President & CEO Erkki Lepistö, tel. +358 2 8397 4001
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 02.11.2004 |
INTERIM REPORT for January 1 - September 30, 2004
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE November 2, 2004 9;00 a.m.
INTERIM REPORT for January 1 - September 30, 2004
Lännen Tehtaats net turnover for January-September 2004 was EUR 361.4
million (Jan-Sep 2003: EUR 362.8 million). Consolidated operating
profit amounted to EUR 3.5 million (EUR 8.4 million) and profit before
extraordinary items was EUR 2.4 million (EUR 6.0 million). Without the
Machinium Division and the related costs of its exit, the operating
profit would have been EUR 8.2 million and profit before extraordinary
items EUR 7.1 million. Profit after taxes and minority interests was
EUR 1.1 million (EUR 4.7 million). Earnings per share amounted to EUR
0.17 (EUR 0.78).
Net turnover
Lännen Tehtaats net turnover for January-September 2004 was EUR 361.4
million (Jan-Sep 2003: EUR 362.8 million). Net turnover for the Food
Division was EUR 92.8 million (EUR 87.6 million) and for the
Agricultural Division EUR 219.7 million (EUR 209.2 million). Net
turnover for the Machinium Division up to the time of its exit from
the Group in July was EUR 48.9 million (nine-month figure in 2003: EUR
66.0 million). The Machinium Division exited from the Lännen Tehtaat
Group in July.
Financial performance
Profitability in the Groups main operating sectors fell short of the
figures for the same period last year. The nine-month operating profit
for the Food Division was EUR 3.3 million (EUR 4.7 million) and for
the Agricultural Division EUR 4.9 million (EUR 5.6 million).
Consolidated operating profit amounted to EUR 3.5 million (EUR 8.4
million) and profit before extraordinary items was EUR 2.4 million
(EUR 6.0 million). Without the Machinium Division and the related
costs of its exit, the operating profit would have been EUR 8.2
million and profit before extraordinary items EUR 7.1 million.
Profit after taxes and minority interests was EUR 1.1 million (EUR 4.7
million). Earnings per share amounted to EUR 0.17 (EUR 0.78).
Taxes for the period came to EUR 0.9 million (EUR 1.9 million).
Third-quarter net turnover and financial performance
Net turnover for July-September totalled EUR 107.1 million (EUR 113.5
million). Net turnover for the Food Division was EUR 38.3 million (EUR
31.2 million) and for the Agricultural Division EUR 68.8 million (EUR
62.8 million).
Consolidated operating profit came to EUR 4.1 million (EUR 3.8
million) and profit before extraordinary items was EUR 3.6 million
(EUR 2.9 million). The Machinium Divisions exit from the Group
improved the operating result by EUR 1.2 million. The third-quarter
operating profit for the Food Division totalled EUR 1.1 million (EUR
1.7 million) and for the Agricultural Division EUR 1.8 million (EUR
2.6 million).
Financing
The Groups financing position has altered considerably as a
consequence of the exit of Machinium. Consolidated interest-bearing
liabilities at the end of the period amounted to EUR 42.6 million (EUR
72.1 million) and financial assets totalled EUR 8.7 million (EUR 9.3
million). Machiniums interest-bearing liabilities on June 30, 2004
were EUR 17.0 million and its financial assets EUR 3.8 million. The
consolidated balance sheet total on September 30 was EUR 201.1 million
(EUR 246.7 million) and the equity ratio 48% (39%). Commercial papers
were used for short-term financing, and liquidity was secured with
long-term committed credit facilities. No credit facilities were used
during the period. Overall, the Groups financing position remained
good throughout the period, with the exception of the Machinium
Division.
Investment
Investment during the review period totalled EUR 6.3 million (EUR 7.4
million). The most significant investment was the acquisition of a
majority holding in Apetit Kala Oy (earlier Kuopion Kalatukku Oy)
through a share exchange in June. The acquisition price of the shares
was EUR 2.6 million. The Groups other investments were productivity
and replacement investments.
Own shares
The Board of Directors has not yet used the authorization granted by
the AGM to surrender Lännen Tehtaat shares held by the company. The
65,000 Lännen Tehtaat shares in the companys possession represent 1.0
per cent of the share capital and the votes.
Share trading
The volume of stock-exchange trading in Lännen Tehtaat shares during
the period was 1,390,750 shares (138,927), or 22.5% (2.3%) of all
Lännen Tehtaat shares. The highest share price was EUR 14.50 (EUR
9.90) and the lowest EUR 11.00 (EUR 8.20).
Expiry of warrant subscription period
The warrant bond issued to corporate and unit management in May 1997
was repaid on April 30, 2002. The validity of the warrants under the
warrant bond expired on October 31, 2004. No warrants have been used
to subscribe shares.
Transition to IFRS reporting
In 2005, the Lännen Tehtaat Group will begin reporting its financial
statements in accordance with the IAS/IFRS standards. The interim
reports for 2005 will be produced in accordance with the IFRS
reporting standards.
IFRS reporting will be based on the consolidated balance sheet at
January 1, 2004, including the adjustments required for the IFRS
standards. The main impact on the consolidated balance sheet concerns
the entry of financial leasing agreements and the capitalization of
fixed costs of goods acquisition and manufacture under valuation of
inventories. The adjustments will increase the balance sheet total by
almost 10%. There will be no significant change in shareholders
equity.
In the transition to IFRS reporting, the main change affecting profit
concerns the amortization of goodwill within the Group. Under the IFRS
standards, the present value of cash flows generated via impairment
testing in the different units will exceed the book value of asset
items that are subject to testing, including goodwill. As a
consequence, the goodwill amortization made under the current
accounting rules in 2004 will be eliminated in the IFRS accounting,
thus improving the profit level. Goodwill amortization in January-
September was EUR 2.1 million. Based on present information, the
profit effect of the other IFRS changes will be smaller than that of
eliminating goodwill amortization.
BUSINESS DIVISIONS
Food Division
Net turnover for the Food Division in January-September was EUR 92.8
million (EUR 87.6 million). The increase on last years figure was
almost entirely from the addition of Apetit Kala to the Division in
June. Sales to industry and the hotel, restaurant and catering sector
were below the level achieved in the same period last year. Following
the Baltic States accession to the European Union in May and their
subsequent export of sugar to the Finnish retail market, sales of
Finnish-produced sugar since June have fallen considerably on last
years figures.
Operating profit for the Food Division was EUR 3.3 million (EUR 4.7
million). The decrease compared with last years figure was due
particularly to the drop of EUR 1.0 million in the profit contribution
of Lännen Tehtaats associated company Sucros Ltd. Apetits
profitability fell short of last years performance on account of
lower sales prices and higher raw-material costs.
Agricultural Division
Net turnover for the Agricultural Division in January-September was
EUR 219.7 million (EUR 209.2 million). Net turnover in the animal
feeds business was slightly short of the target and was below last
years level. Grain trade net turnover for Avena Nordic Grain was at
the targeted level and exceeded last years figure. Other operations
in the Agricultural Division accounted for only a small proportion of
the Divisions net turnover.
Agricultural Division operating profit was EUR 4.9 million (EUR 5.6
million). Profitability in the animal feeds business fell short of the
target and was below last years level. This was partly attributable
to the reduction in sales margins in the second and third quarters as
a result of the high raw-material prices. Grain trade profitability
was at the same level as last year.
Machinium Division
The Division accumulated EUR 48.9 million (nine-month figure in 2003:
EUR 66.0 million) in net turnover before its exit.
Delay in the reform of the EU sugar regime
In July, the European Commission published plans for reform of the EU
sugar regime. The proposed reform would lead to a cut in sugar quotas,
a drop in the price of sugar and sugar beet and the abandonment of
country-specific quotas. The aim of the reform is to cut the
overproduction of sugar and achieve a reduction in the price of sugar
within the EU.
In the form proposed, the plan would be a threat to beet cultivation
and the beet sugar industry in peripheral parts of the EU, such as
Finland.
A reduction in the price of sugar as a result of the sugar regime
reform would have a negative effect on the future financial
performance of Lännen Tehtaat and the sugar sector.
The main sugar-producing countries outside the EU have submitted
complaints about the EUs existing sugar export subsidy and about
exceeding export quotas. In mid-October, the WTOs Dispute Settlement
Body issued its decision on the matter. From the EU standpoint this
was a negative ruling, and the EU intends to appeal. The EU is not
likely to issue new sugar regulations during the appeal process, which
will continue into next year. The existing EU sugar regime remains
valid until mid-2006.
Outlook for the rest of the year
Food Division
The Food Division will see a growth in its net turnover, thanks to the
acquisition of Kuopion Kalatukku. Frozen food sales are expected to
follow the general trend in the market. Total sugar consumption will
not grow, and it is expected that sales of Lännen Sugars consumer
products will be significantly lower than in 2003, due to sugar
imports.
Agricultural Division
In the Agricultural Division, net turnover in the animal feeds
business is expected to rise to almost the level of last year. Grain
trade net turnover is expected to exceed the 2003 level.
Lännen Tehtaat Group
Consolidated net turnover for the full year will be lower than in 2003
as a result of the exit of Machinium. Nevertheless, the addition of
Apetit Kala (Kuopion Kalatukku) will have helped to boost net turnover
for the year to a forecast level of about EUR 470 million.
Lännen Tehtaats profit for 2004 is expected to be below the 2003
figure, mainly due to the one-off costs of the exit of Machinium from
the Group. The seasonal variation in Lännen Tehtaats business and the
exclusion of Machiniums losses mean that the final-quarter profit
will be the best of the year and above last years figures.
Lännen Tehtaat has separated from the Machinium Division, which was
outside its core business. The resulting group structure will enable
Lännen Tehtaat to use all its resources for developing its core
sectors.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2004 2003 2004 2003 2003
Net turnover 107.1 113.5 361.4 362.8 492.0
Other operating income 0.3 0.5 2.9 1.3 2.1
Costs and expenses -101.1 -108.7 -353.8 -350.0 -473.8
Depreciation -2.9 -2.8 -8.7 -8.3 -11.8
Share of profits of
associated undertakings 0.7 1.3 1.7 2.6 3.2
Operating profit 4.1 3.8 3.5 8.4 11.7
Financial income and
expenses -0.5 -0.9 -1.1 -2.4 -3.3
Profit before
extraordinary items
and taxes 3.6 2.9 2.4 6.0 8.4
Extraordinary income
Extraordinary expenses
Income taxes 0.3 -0.8 -0.9 -1.9 -2.6
Minority interests -0.9 0.1 -0.4 0.6 0.9
Profit for the
financial period 3.0 2.2 1.1 4.7 6.7
Income tax is based on the taxable profit for the period.
CONSOLIDATED BALANCE SHEET
EUR million
Sep 30, Sep 30, Dec 31,
2004 2003 2003
Assets
Intangible assets 17.7 17.8 21.6
Tangible assets 70.0 71.1 65.6
Investments 22.0 21.2 21.9
Own shares 0.8 0.8 0.8
Stocks 43.5 71.6 80.2
Receivables 38.5 54.9 46.5
Marketable securities 0.5 1.5 1.5
Cash and cash equivalents 8.1 7.8 11.6
Total 201.1 246.7 249.7
Liabilities
Share capital 12.6 12.2 12.2
Other capital and reserves 80.4 80.8 82.8
Minority interests 4.6 5.3 4.9
Provisions 2.3 0.1 2.1
Long-term liabilities 35.0 65.0 48.3
Current liabilities 66.2 83.3 99.4
Total 201.1 246.7 249.7
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-9/ 1-9/ 1-12/
2004 2003 2003
Operations
Cash flow from operations 9.8 12.0 18.8
Change in working capital 27.5 -5.0 -7.6
Net cash flow from
operations (A) 37.3 7.0 11.2
Investments
Investments in non-current
assets -11.5 -7.6 -9.5
Proceeds from sales of
non-current assets 2.3 1.3 1.5
Net cash flow from
investments (B) -9.2 -6.3 -8.0
Financing
Change in loans -30.8 -4.7 -3.0
Share issue 2.3
Dividends paid -3.9 -1.8 -1.8
Other changes in capital and
reserves and in minority
interests -0.1 -1.9 -2.4
Net cash flow from
financing (C) -32.5 -8.4 -7.2
Changes in liquid assets
(A+B+C) -4.4 -7.7 -4.0
Liquid assets on Jan 1 13.0 17.0 17.0
Liquid assets on Sep 30 8.6 9.3 13.0
KEY INDICATORS
Sep 30, Sep 30, Dec 31,
2004 2003 2003
Earnings per share, EUR 0.17 0.78 1.11
Equity per share, EUR 14.76 14.95 15.29
Equity ratio, % 48.4 39.0 39.5
Gross investments, EURm 6.3 7.4 9.5
% of net turnover 1.7 2.0 1.9
BUSINESS SEGMENT INFORMATION
NET TURNOVER
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2004 2003 2004 2003 2003
Food Division 38.3 31.2 92.8 87.6 114.9
Agricultural Division 68.8 62.8 219.7 209.2 282.6
Machinium Division 19.5 48.9 66.0 94.5
Total 107.5 113.5 361.5 362.8 492.0
OPERATING PROFIT
EUR million
Food Division 1.1 1.7 3.3 4.7 6.5
Agricultural Division 1.8 2.6 4.9 5.6 8.3
Machinium Division 1.2 -0.5 -4.7 -1.9 -3.1
Total 4.1 3.8 3.5 8.4 11.7
AVERAGE PERSONNEL
1-9/ 1-9/ 1-12/
2004 2003 2003
Food Division 403 325 331
Agricultural Division 444 440 442
Machinium Division 244 386 388
Total 1091 1151 1161
CONTINGENT LIABILITIES
EUR million Sep 30, Sep 30, Dec 31,
2004 2003 2003
Securities given for debts
Real estate mortgages 35.1 37.6 32.6
Corporate Mortgages 68.4 54.9 76.0
Shares pledged 3.6 43.4 3.6
Other securities given
Pledges 0.0 0.0 0.0
Corporate Mortgages 0.2 8.3 6.9
Leasing liabilities 0.8 2.0 2.1
Contingent liabilities
for own commitments
Guarantees 0.0
Repurchasing commitments 0.2 17.6 19.0
Other commitments 0.5 1.1 2.4
Contingent liabilities on behalf
of associated undertakings
Guarantees 0.1 0.4
Contingent liabilities on behalf of
others
Redemption liability
of leased buildings 2.5 2.6 2.6
Guarantees 1.0
Outstanding derivative instruments
Forward currency contracts
Market value 0.0 0.3 -0.3
Value of underlying instruments 2.6 6.3 9.5
Interest rate swaps
Value of underlying instruments 25.0 25.0 25.0
Commodity derivate contracts
Market value 0.0 0.0 -0.5
Value of underlying instruments 4.0 9.5 10.6
The data in this interim report have not been audited.
LÄNNEN TEHTAAT PLC
Board of Directors
More details: Erkki Lepistö, President & CEO, tel. +358 2 8397 4001
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 02.11.2004 |
INTERIM REPORT for January 1 - September 30, 2004
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE November 2, 2004 9;00 a.m.
INTERIM REPORT for January 1 - September 30, 2004
Lännen Tehtaats net turnover for January-September 2004 was EUR 361.4
million (Jan-Sep 2003: EUR 362.8 million). Consolidated operating
profit amounted to EUR 3.5 million (EUR 8.4 million) and profit before
extraordinary items was EUR 2.4 million (EUR 6.0 million). Without the
Machinium Division and the related costs of its exit, the operating
profit would have been EUR 8.2 million and profit before extraordinary
items EUR 7.1 million. Profit after taxes and minority interests was
EUR 1.1 million (EUR 4.7 million). Earnings per share amounted to EUR
0.17 (EUR 0.78).
Net turnover
Lännen Tehtaats net turnover for January-September 2004 was EUR 361.4
million (Jan-Sep 2003: EUR 362.8 million). Net turnover for the Food
Division was EUR 92.8 million (EUR 87.6 million) and for the
Agricultural Division EUR 219.7 million (EUR 209.2 million). Net
turnover for the Machinium Division up to the time of its exit from
the Group in July was EUR 48.9 million (nine-month figure in 2003: EUR
66.0 million). The Machinium Division exited from the Lännen Tehtaat
Group in July.
Financial performance
Profitability in the Groups main operating sectors fell short of the
figures for the same period last year. The nine-month operating profit
for the Food Division was EUR 3.3 million (EUR 4.7 million) and for
the Agricultural Division EUR 4.9 million (EUR 5.6 million).
Consolidated operating profit amounted to EUR 3.5 million (EUR 8.4
million) and profit before extraordinary items was EUR 2.4 million
(EUR 6.0 million). Without the Machinium Division and the related
costs of its exit, the operating profit would have been EUR 8.2
million and profit before extraordinary items EUR 7.1 million.
Profit after taxes and minority interests was EUR 1.1 million (EUR 4.7
million). Earnings per share amounted to EUR 0.17 (EUR 0.78).
Taxes for the period came to EUR 0.9 million (EUR 1.9 million).
Third-quarter net turnover and financial performance
Net turnover for July-September totalled EUR 107.1 million (EUR 113.5
million). Net turnover for the Food Division was EUR 38.3 million (EUR
31.2 million) and for the Agricultural Division EUR 68.8 million (EUR
62.8 million).
Consolidated operating profit came to EUR 4.1 million (EUR 3.8
million) and profit before extraordinary items was EUR 3.6 million
(EUR 2.9 million). The Machinium Divisions exit from the Group
improved the operating result by EUR 1.2 million. The third-quarter
operating profit for the Food Division totalled EUR 1.1 million (EUR
1.7 million) and for the Agricultural Division EUR 1.8 million (EUR
2.6 million).
Financing
The Groups financing position has altered considerably as a
consequence of the exit of Machinium. Consolidated interest-bearing
liabilities at the end of the period amounted to EUR 42.6 million (EUR
72.1 million) and financial assets totalled EUR 8.7 million (EUR 9.3
million). Machiniums interest-bearing liabilities on June 30, 2004
were EUR 17.0 million and its financial assets EUR 3.8 million. The
consolidated balance sheet total on September 30 was EUR 201.1 million
(EUR 246.7 million) and the equity ratio 48% (39%). Commercial papers
were used for short-term financing, and liquidity was secured with
long-term committed credit facilities. No credit facilities were used
during the period. Overall, the Groups financing position remained
good throughout the period, with the exception of the Machinium
Division.
Investment
Investment during the review period totalled EUR 6.3 million (EUR 7.4
million). The most significant investment was the acquisition of a
majority holding in Apetit Kala Oy (earlier Kuopion Kalatukku Oy)
through a share exchange in June. The acquisition price of the shares
was EUR 2.6 million. The Groups other investments were productivity
and replacement investments.
Own shares
The Board of Directors has not yet used the authorization granted by
the AGM to surrender Lännen Tehtaat shares held by the company. The
65,000 Lännen Tehtaat shares in the companys possession represent 1.0
per cent of the share capital and the votes.
Share trading
The volume of stock-exchange trading in Lännen Tehtaat shares during
the period was 1,390,750 shares (138,927), or 22.5% (2.3%) of all
Lännen Tehtaat shares. The highest share price was EUR 14.50 (EUR
9.90) and the lowest EUR 11.00 (EUR 8.20).
Expiry of warrant subscription period
The warrant bond issued to corporate and unit management in May 1997
was repaid on April 30, 2002. The validity of the warrants under the
warrant bond expired on October 31, 2004. No warrants have been used
to subscribe shares.
Transition to IFRS reporting
In 2005, the Lännen Tehtaat Group will begin reporting its financial
statements in accordance with the IAS/IFRS standards. The interim
reports for 2005 will be produced in accordance with the IFRS
reporting standards.
IFRS reporting will be based on the consolidated balance sheet at
January 1, 2004, including the adjustments required for the IFRS
standards. The main impact on the consolidated balance sheet concerns
the entry of financial leasing agreements and the capitalization of
fixed costs of goods acquisition and manufacture under valuation of
inventories. The adjustments will increase the balance sheet total by
almost 10%. There will be no significant change in shareholders
equity.
In the transition to IFRS reporting, the main change affecting profit
concerns the amortization of goodwill within the Group. Under the IFRS
standards, the present value of cash flows generated via impairment
testing in the different units will exceed the book value of asset
items that are subject to testing, including goodwill. As a
consequence, the goodwill amortization made under the current
accounting rules in 2004 will be eliminated in the IFRS accounting,
thus improving the profit level. Goodwill amortization in January-
September was EUR 2.1 million. Based on present information, the
profit effect of the other IFRS changes will be smaller than that of
eliminating goodwill amortization.
BUSINESS DIVISIONS
Food Division
Net turnover for the Food Division in January-September was EUR 92.8
million (EUR 87.6 million). The increase on last years figure was
almost entirely from the addition of Apetit Kala to the Division in
June. Sales to industry and the hotel, restaurant and catering sector
were below the level achieved in the same period last year. Following
the Baltic States accession to the European Union in May and their
subsequent export of sugar to the Finnish retail market, sales of
Finnish-produced sugar since June have fallen considerably on last
years figures.
Operating profit for the Food Division was EUR 3.3 million (EUR 4.7
million). The decrease compared with last years figure was due
particularly to the drop of EUR 1.0 million in the profit contribution
of Lännen Tehtaats associated company Sucros Ltd. Apetits
profitability fell short of last years performance on account of
lower sales prices and higher raw-material costs.
Agricultural Division
Net turnover for the Agricultural Division in January-September was
EUR 219.7 million (EUR 209.2 million). Net turnover in the animal
feeds business was slightly short of the target and was below last
years level. Grain trade net turnover for Avena Nordic Grain was at
the targeted level and exceeded last years figure. Other operations
in the Agricultural Division accounted for only a small proportion of
the Divisions net turnover.
Agricultural Division operating profit was EUR 4.9 million (EUR 5.6
million). Profitability in the animal feeds business fell short of the
target and was below last years level. This was partly attributable
to the reduction in sales margins in the second and third quarters as
a result of the high raw-material prices. Grain trade profitability
was at the same level as last year.
Machinium Division
The Division accumulated EUR 48.9 million (nine-month figure in 2003:
EUR 66.0 million) in net turnover before its exit.
Delay in the reform of the EU sugar regime
In July, the European Commission published plans for reform of the EU
sugar regime. The proposed reform would lead to a cut in sugar quotas,
a drop in the price of sugar and sugar beet and the abandonment of
country-specific quotas. The aim of the reform is to cut the
overproduction of sugar and achieve a reduction in the price of sugar
within the EU.
In the form proposed, the plan would be a threat to beet cultivation
and the beet sugar industry in peripheral parts of the EU, such as
Finland.
A reduction in the price of sugar as a result of the sugar regime
reform would have a negative effect on the future financial
performance of Lännen Tehtaat and the sugar sector.
The main sugar-producing countries outside the EU have submitted
complaints about the EUs existing sugar export subsidy and about
exceeding export quotas. In mid-October, the WTOs Dispute Settlement
Body issued its decision on the matter. From the EU standpoint this
was a negative ruling, and the EU intends to appeal. The EU is not
likely to issue new sugar regulations during the appeal process, which
will continue into next year. The existing EU sugar regime remains
valid until mid-2006.
Outlook for the rest of the year
Food Division
The Food Division will see a growth in its net turnover, thanks to the
acquisition of Kuopion Kalatukku. Frozen food sales are expected to
follow the general trend in the market. Total sugar consumption will
not grow, and it is expected that sales of Lännen Sugars consumer
products will be significantly lower than in 2003, due to sugar
imports.
Agricultural Division
In the Agricultural Division, net turnover in the animal feeds
business is expected to rise to almost the level of last year. Grain
trade net turnover is expected to exceed the 2003 level.
Lännen Tehtaat Group
Consolidated net turnover for the full year will be lower than in 2003
as a result of the exit of Machinium. Nevertheless, the addition of
Apetit Kala (Kuopion Kalatukku) will have helped to boost net turnover
for the year to a forecast level of about EUR 470 million.
Lännen Tehtaats profit for 2004 is expected to be below the 2003
figure, mainly due to the one-off costs of the exit of Machinium from
the Group. The seasonal variation in Lännen Tehtaats business and the
exclusion of Machiniums losses mean that the final-quarter profit
will be the best of the year and above last years figures.
Lännen Tehtaat has separated from the Machinium Division, which was
outside its core business. The resulting group structure will enable
Lännen Tehtaat to use all its resources for developing its core
sectors.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2004 2003 2004 2003 2003
Net turnover 107.1 113.5 361.4 362.8 492.0
Other operating income 0.3 0.5 2.9 1.3 2.1
Costs and expenses -101.1 -108.7 -353.8 -350.0 -473.8
Depreciation -2.9 -2.8 -8.7 -8.3 -11.8
Share of profits of
associated undertakings 0.7 1.3 1.7 2.6 3.2
Operating profit 4.1 3.8 3.5 8.4 11.7
Financial income and
expenses -0.5 -0.9 -1.1 -2.4 -3.3
Profit before
extraordinary items
and taxes 3.6 2.9 2.4 6.0 8.4
Extraordinary income
Extraordinary expenses
Income taxes 0.3 -0.8 -0.9 -1.9 -2.6
Minority interests -0.9 0.1 -0.4 0.6 0.9
Profit for the
financial period 3.0 2.2 1.1 4.7 6.7
Income tax is based on the taxable profit for the period.
CONSOLIDATED BALANCE SHEET
EUR million
Sep 30, Sep 30, Dec 31,
2004 2003 2003
Assets
Intangible assets 17.7 17.8 21.6
Tangible assets 70.0 71.1 65.6
Investments 22.0 21.2 21.9
Own shares 0.8 0.8 0.8
Stocks 43.5 71.6 80.2
Receivables 38.5 54.9 46.5
Marketable securities 0.5 1.5 1.5
Cash and cash equivalents 8.1 7.8 11.6
Total 201.1 246.7 249.7
Liabilities
Share capital 12.6 12.2 12.2
Other capital and reserves 80.4 80.8 82.8
Minority interests 4.6 5.3 4.9
Provisions 2.3 0.1 2.1
Long-term liabilities 35.0 65.0 48.3
Current liabilities 66.2 83.3 99.4
Total 201.1 246.7 249.7
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-9/ 1-9/ 1-12/
2004 2003 2003
Operations
Cash flow from operations 9.8 12.0 18.8
Change in working capital 27.5 -5.0 -7.6
Net cash flow from
operations (A) 37.3 7.0 11.2
Investments
Investments in non-current
assets -11.5 -7.6 -9.5
Proceeds from sales of
non-current assets 2.3 1.3 1.5
Net cash flow from
investments (B) -9.2 -6.3 -8.0
Financing
Change in loans -30.8 -4.7 -3.0
Share issue 2.3
Dividends paid -3.9 -1.8 -1.8
Other changes in capital and
reserves and in minority
interests -0.1 -1.9 -2.4
Net cash flow from
financing (C) -32.5 -8.4 -7.2
Changes in liquid assets
(A+B+C) -4.4 -7.7 -4.0
Liquid assets on Jan 1 13.0 17.0 17.0
Liquid assets on Sep 30 8.6 9.3 13.0
KEY INDICATORS
Sep 30, Sep 30, Dec 31,
2004 2003 2003
Earnings per share, EUR 0.17 0.78 1.11
Equity per share, EUR 14.76 14.95 15.29
Equity ratio, % 48.4 39.0 39.5
Gross investments, EURm 6.3 7.4 9.5
% of net turnover 1.7 2.0 1.9
BUSINESS SEGMENT INFORMATION
NET TURNOVER
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2004 2003 2004 2003 2003
Food Division 38.3 31.2 92.8 87.6 114.9
Agricultural Division 68.8 62.8 219.7 209.2 282.6
Machinium Division 19.5 48.9 66.0 94.5
Total 107.5 113.5 361.5 362.8 492.0
OPERATING PROFIT
EUR million
Food Division 1.1 1.7 3.3 4.7 6.5
Agricultural Division 1.8 2.6 4.9 5.6 8.3
Machinium Division 1.2 -0.5 -4.7 -1.9 -3.1
Total 4.1 3.8 3.5 8.4 11.7
AVERAGE PERSONNEL
1-9/ 1-9/ 1-12/
2004 2003 2003
Food Division 403 325 331
Agricultural Division 444 440 442
Machinium Division 244 386 388
Total 1091 1151 1161
CONTINGENT LIABILITIES
EUR million Sep 30, Sep 30, Dec 31,
2004 2003 2003
Securities given for debts
Real estate mortgages 35.1 37.6 32.6
Corporate Mortgages 68.4 54.9 76.0
Shares pledged 3.6 43.4 3.6
Other securities given
Pledges 0.0 0.0 0.0
Corporate Mortgages 0.2 8.3 6.9
Leasing liabilities 0.8 2.0 2.1
Contingent liabilities
for own commitments
Guarantees 0.0
Repurchasing commitments 0.2 17.6 19.0
Other commitments 0.5 1.1 2.4
Contingent liabilities on behalf
of associated undertakings
Guarantees 0.1 0.4
Contingent liabilities on behalf of
others
Redemption liability
of leased buildings 2.5 2.6 2.6
Guarantees 1.0
Outstanding derivative instruments
Forward currency contracts
Market value 0.0 0.3 -0.3
Value of underlying instruments 2.6 6.3 9.5
Interest rate swaps
Value of underlying instruments 25.0 25.0 25.0
Commodity derivate contracts
Market value 0.0 0.0 -0.5
Value of underlying instruments 4.0 9.5 10.6
The data in this interim report have not been audited.
LÄNNEN TEHTAAT PLC
Board of Directors
More details: Erkki Lepistö, President & CEO, tel. +358 2 8397 4001
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 10.08.2004 |
INTERIM REPORT for January 1 - June 30,
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE August 10, 2004 9;00 a.m.
INTERIM REPORT for January 1 - June 30, 2004
Lännen Tehtaats net turnover for January-June was EUR 254.3 million
(2003: EUR 249.3 million). The operating loss was EUR -0.6 million
(profit EUR 4.6 million) and the loss before extraordinary items EUR
-1.2 million (profit EUR 3.1 million). The losses arise from the
foreseeable realization of Lännen Tehtaats liabilities in Machinium
Ltds and its Swedish subsidiaries bankruptcy. The profit after taxes
and minority interests was EUR -1.9 million (EUR 2.5 million). The
earnings per share were EUR -0.31 (EUR 0.42).
Group restructuring
Kuopion Kalatukku Oy became part of the Food Division in June, when
Lännen Tehtaat plc acquired a majority holding in the company, the
name of which was changed to Apetit Kala Oy. A joint venture company,
Ateriamestarit Oy, which was set up with Raisio Nutrition Ltd, started
its operations in May. The business operations of Lännen Engineering
Oy, which was part of the Machinium Division, were sold in May. In
July, after the period under review, Machinium Ltd and its Swedish
subsidiaries filed for bankruptcy. Because of the commencement of the
bankruptcy proceedings, the Lännen Tehtaat Group disengaged itself
from the Machinium sub-group.
Net turnover
Lännen Tehtaats net turnover for January-June was EUR 254.3 million
(2003: EUR 249.3 million). The net turnover by division was as
follows: Food Division EUR 54.5 million (EUR 56.4 million);
Agricultural Division EUR 150.9 million (EUR 146.4 million); Machinium
Division EUR 48.9 million (EUR 46.5 million).
Financial performance
The operating loss for the period under review was EUR -0.6 million
(profit EUR 4.6 million) and the loss before extraordinary items EUR
-1.2 million (profit EUR 3.1 million). Lännen Tehtaats financial
performance for the period under review was poorer compared with both
the same period in 2003 and the target. The performance was weakened
by a provision of EUR 4.0 million recorded under other operating
charges for the foreseeable realization of Lännen Tehtaats
liabilities and other losses in Machinium Ltds bankruptcy. Without
these, the operating profit would have been EUR 3.4 million and the
profit before extraordinary items EUR 2.8 million.
The loss after taxes and minority interests was EUR -1.9 million (EUR
2.5 million). The earnings per share were EUR -0.31 (EUR 0.42).
Taxes for the period under review amounted to EUR 1.2 million (EUR 1.1
million).
Net turnover and financial performance for second quarter
The net turnover for April-June was EUR 130.4 million (EUR 135.8
million). The turnover by division was as follows: Food Division EUR
29.4 million (EUR 31.7 million); Agricultural Division EUR 72.8
million (EUR 79.6 million); Machinium Division EUR 28.2 million (EUR
24.5 million).
The financial performance was poorer in the second quarter compared
with the same period in the previous year. The operating loss was EUR
-1.1 million (profit EUR 4.5 million) and the loss before
extraordinary items was EUR -0.9 million (profit EUR 4.2 million).
Without the non-recurring expenses caused by Machiniums bankruptcy
the operating profit would have been EUR 2.9 million (EUR 4.5 million)
and the profit before extraordinary items EUR 3.1 million (EUR 4.2
million).
The Food Divisions operating profit for the second quarter was EUR
1.4 million (EUR 2.2 million) and the Agricultural Divisions EUR 1.7
million (EUR 2.8 million). The Machinium Divisions operating profit
was EUR -4.2 million (EUR -0.5 million). Without the losses and other
non-recurring items incurred by Lännen Tehtaat because of Machiniums
bankruptcy, the Machinium Divisions operating loss would have been
EUR -1,3 million (EUR -0.5 million).
Financing
The Groups interest-bearing liabilities at the end of the period
under review totalled EUR 66.0 million (EUR 80.8 million) and the
financial assets EUR 13.0 million (EUR 18.7 million). The consolidated
balance sheet total was EUR 234.8 million (EUR 242.5 million) and the
equity ratio 41% (40%). Commercial papers were used for short-term
financing and liquidity was secured with long-term committed credit
facilities. No credit facilities were used in the period under review.
The Groups financing position was good throughout the entire period
under review with the exception of Machinium Ltd and its Swedish
subsidiaries.
Investment, corporate acquisitions and disinvestments
Investment during the period under review amounted to EUR 5.5 million
(EUR 5.4 million). The most significant investment was the acquisition
of a majority holding in Kuopion Kalatukku Oy in accordance with a
share exchange agreement made in May. The share exchange was carried
out in June after approval by the Office of Free Competition. Lännen
Tehtaat plc launched 195,000 new shares and received in exchange about
51% of the shares in Kuopion Kalatukku Oy. Lännen Tehtaat plcs
balance sheet shows EUR 2.6 million as the acquisition cost of the
shares. Lännen Tehtaat plc sold the share capital of its subsidiary
Tresko Fish Ltd to Kuopion Kalatukku Oy as part of the arrangement.
Other Group investment comprised mainly replacement and maintenance.
In May Lännen Engineering Oy, which was part of the Machinium
Division, sold its business operations to Lännen Tractors Oy, a
company outside the Group.
Increase in share capital
In June the Board of Directors exercised the authorization given by
the Annual General Meeting to increase the share capital. The increase
was implemented in the form of a targeted share issue in which Antti
Räsänen subscribed for 195,000 shares in Lännen Tehtaat plc against
property given in exchange. The increase was registered in the Trade
Register on June 22, 2004. The new number of total shares is 6,317,576
and the new total share capital amounts to EUR 12,635,152. Trading in
the new shares began on the Helsinki Exchanges on June 23, 2004.
The Board of Directors has not as yet exercised the authorization
given by the Annual General Meeting to surrender company shares. The
company owns 65,000 of its own shares, which represents 1.1 per cent
of the companys share capital and voting rights.
Share trading
The volume of stock exchange trading in the companys shares during
the period under review was 1,317,200 shares (59,200), which was 21.5%
of the total number of shares (1.0%). The highest price for the shares
was EUR 14.50 (EUR 9.90) and lowest EUR 11.00 (EUR 8.20).
Sampo Life Insurance Company announced on May 28, 2004 that its
shareholding had fallen to 4.4 per cent (13.2.2004: 8.0%) of Lännen
Tehtaat plcs share capital and voting rights. Tapiola General Mutual
Insurance Company and Tapiola Mutual Life Insurance Company announced
on June 24, 2004 that their combined shareholding had been reduced to
8.6 per cent (13.2.2004: 13.2%).
BUSINESS DIVISIONS
Food Division
The Food Divisions net turnover for the period January-June was EUR
54.5 million (EUR 56.4 million). Sales by the Apetit Group were almost
at the level of the previous year. Sales of fish products and frozen
foods went up. Sales of frozen vegetables and jams and marmalades did
not reach the level of the previous year. Sales of sugar fell
considerably short of last years level in June, when the start of the
berry-picking season was delayed by cold, rainy weather. Imports of
sugar from Estonia into the retail trade that came with EU membership
also contributed to the drop in the sales of domestically produced
sugar.
The Food Divisions operating profit was EUR 2.2 million (EUR 3.0
million). Apetits profitability was poorer than in the corresponding
period of the previous year because of reduced sales prices and
increased raw-material costs. The fall in the contribution to the
profit from the associated company Sucros also made the operating
profit smaller.
Kuopion Kalatukku Oy became part of the Group and Food Division on
June 30, 2004. The companys new name, Apetit Kala Oy, was registered
in the Trade Register on July 21, 2004. The company engages in the
fish wholesale and retail trade and in processing fish and fish
products. It operates in Kuopio and Kerava. It carries on the fish
retail trade under the Kalatori registered trademark. Altogether the
company has more than 50 retail outlets of its own and Kalatori
franchising outlets, and they operate on the shop-in-shop principle in
major retail outlets for daily consumer goods, mainly in southern
Finland.
Agricultural Division
The Agricultural Divisions net turnover for January-June was EUR
150.9 million (EUR 146.4 million). Animal feeds net turnover was
slightly below what had been planned and the corresponding figure in
the previous year. The net turnover for Avena Nordic Grains grain
trade fell short of the targeted level, but it was higher than in the
same period in 2003. Other operations in the Agricultural Division
accounted for only a small proportion of the Divisions net turnover.
The Agricultural Divisions operating profit was EUR 3.1 million (EUR
3.0 million) The profitability of the animal feed business did not
reach the targeted figure, but it was almost the same as the figure
for the corresponding figure for the previous year. The profitability
of the grain trade was better than targeted, but slightly less than a
year ago.
Machinium Division
The Machinium Divisions net turnover during the period under review
was EUR 48.9 million (EUR 46.5 million). The net turnover fell short
of its target but was higher than a year previously. Sales of
earthmoving machinery went up in Finland but were smaller than a year
ago in Sweden. Sales in the Baltic States were at the same level as
twelve months previously. Sales of materials handling machinery did
not reach the target and were slightly down on the previous years
figure.
The Machinium Divisions operating loss was EUR -5.9 million (EUR -1.4
million), which includes non-recurring costs estimated at EUR 4.0
million. The profitability of the earthmoving machinery operations was
much worse than a year ago in Sweden. The Baltic operations were in
the black and almost at last years level. The basic activities in
Finland achieved a profit, although smaller than in the same period in
2003. The profitability of materials handling machinery was slightly
better than at the same time last year but still short of the target.
Machinium Ltd and its Swedish subsidiaries filed for bankruptcy on
July 28, 2004. The reason for doing so was mainly the long-term loss-
making by the Swedish companies and Machinium Ltd no longer being able
to take responsibility for its commitments to companies in Sweden. The
profit-making Suomen Rakennuskone Oy and its Baltic subsidiaries will
continue their operations.
Plan for changing EUs sugar regime
The EUs present sugar regime has come in for criticism from the World
Trade Organization. The regime has also been opened up by allowing
quota imports of sugar from the least developed countries onto the EU
market on the basis of the EBA agreement, which deals with the gradual
liberalization of trade between the EU and these countries. The EU has
also granted considerable concessions to imports by the Balkan
countries.
In July the EU Commission announced a plan for changing the sugar
regime. The proposed changes would lead to a cut in sugar quotas, a
reduction in the price of sugar beet and an end to quotas on a country-
by-country basis. The objective of the plan is to reduce
overproduction in sugar and lower the price of sugar in the EU region.
In the form proposed the plan is a threat to beet farming and the beet
sugar industry on the outer edges of the EU e.g. in Finland. The
present regime is effective until the end of June 2006. According to
the proposal, however, the new regime would come into effect during
2005.
If, as a result of the reform of the sugar regime, the production of
beet sugar is reduced considerably in Finland, it will have negative
effects on Lännen Tehtaats financial performance in the years to
come.
Outlook for the rest of the year
Food Division
The Food Divisions net turnover will rise as a result of Apetit Kala
Oy becoming part of the Division. Sales of frozen food are expected to
follow the general market trend. The overall consumption of sugar will
not go up. Sales of Lännen Sugars consumer products are forecast to
be slightly below the level for 2003.
Agricultural Division
In the Agricultural Division the net turnover for the animal feeds
business is expected to stay at the 2003 level. The grain trades net
turnover depends on the amount and quality of the harvest in the main
market area in the coming period. It is thought, however, that the net
turnover will exceed last years level.
Group
With the removal of the Machinium Division the Group will be able to
concentrate on developing the business operations in its main sectors.
Lännen Tehtaats consolidated net turnover for the whole year will go
down in the absence of the Machinium Division. It is, however,
expected to go up to almost EUR 500 million in 2004 as a result of the
increase brought by Apetit Kala.
The financial performance of the Groups main sectors is expected to
be at last years level. The loss by the Machinium Division in the
second half of 2003 amounted to EUR 1.8 million. In 2004 no additional
losses are expected further to the non-recurring costs caused by the
bankruptcy. However, the financial performance of the Lännen Tehtaat
Group will not be as good as in 2003.
The next interim report, which will cover the period January 1 to
September 30, 2004, will be published on November 2, 2004.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2004 2003 2004 2003 2003
Net turnover 130.4 135.8 254.3 249.3 492.0
Other operating income 1.9 0.3 2.6 0.8 2.1
Costs and expenses -131.0 -130.0 -252.7 -241.3 -473.8
Depreciation -2.9 -2.7 -5.8 -5.5 -11.8
Share of profits of
associated undertakings 0.5 1.1 1.0 1.3 3.2
Operating profit/loss -1.1 4.5 -0.6 4.6 11.7
Financial income and
expenses 0.2 -0.3 -0.6 -1.5 -3.3
Profit/loss before
extraordinary items
and taxes -0.9 4.2 -1.2 3.1 8.4
Extraordinary income
Extraordinary expenses
Income taxes -0.9 -1.2 -1.2 -1.1 -2.6
Minority interests -0.1 0.0 0.5 0.5 0.9
Profit/loss for the
financial period -1.9 3.0 -1.9 2.5 6.7
The tax corresponding to the profit for the period has been taken into
account as tax shown in the profit and loss statement.
CONSOLIDATED BALANCE SHEET
EUR million
June 30, June 30, Dec 31,
2004 2003 2003
Assets
Intangible assets 19.6 18.7 21.6
Tangible assets 71.4 70.9 65.6
Investments 22.8 21.8 21.9
Own shares 0.8 0.8 0.8
Stocks 57.8 61.7 80.2
Receivables 49.5 49.9 46.5
Marketable securities 0.5 9.6 1.5
Cash and cash equivalents 12.4 9.1 11.6
Total 234.8 242.5 249.7
Liabilities
Share capital 12.6 12.2 12.2
Other capital and reserves 79.3 78.7 82.8
Minority interests 5.4 5.5 4.9
Provisions 5.9 0.1 2.1
Long-term liabilities 46.0 64.7 48.3
Current liabilities 85.6 81.3 99.4
Total 234.8 242.5 249.7
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-6/ 1-6/ 1-12/
2004 2003 2003
Operations
Cash flow from operations 6.9 6.5 18.8
Change in working capital 5.0 7.9 7.4
Net cash flow from
operations (A) 11.9 14.4 26.2
Investments
Investments in non-current
assets -10.3 -5.5 -9.5
Proceeds from sales of
non-current assets 0.6 1.3 1.5
Net cash flow from
investments (B) -9.7 -4.2 -8.0
Financing
Change in loans -1.5 -5.0 -18.0
Share issue 2.3
Dividends paid -3.9 -1.8 -1.8
Other changes in capital and
reserves and in minority
interests 0.8 -1.7 -2.4
Net cash flow from
financing (C) -2.3 -8.5 -22.2
Changes in liquid assets
(A+B+C) -0.1 1.7 -4.0
Liquid assets on Jan 1 13.1 17.0 17.0
Liquid assets on June 30 13.0 18.7 13.0
KEY INDICATORS
June 30, June 30, Dec 31,
2004 2003 2003
Earnings per share, EUR -0.31 0.42 1.11
Equity per share, EUR 14.30 14.60 15.29
Equity ratio, % 40.6 39.6 39.5
Gross investments, EURm 5.5 5.4 9.5
% of net turnover 2.1 2.2 1.9
BUSINESS SEGMENT INFORMATION
NET TURNOVER
EUR million
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2004 2003 2004 2003 2003
Food Division 29.4 31.7 54.5 56.4 114.9
Agricultural Division 72.8 79.6 150.9 146.4 282.6
Machinium Division 28.2 24.5 48.9 46.5 94.5
Total 130.4 135.8 254.3 249.3 492.0
OPERATING PROFIT/LOSS
EUR million
Food Division 1.4 2.2 2.2 3.0 6.5
Agricultural Division 1.7 2.8 3.1 3.0 8.3
Machinium Division -4.2 -0.5 -5.9 -1.4 -3.1
Total -1.1 4.5 -0.6 4.6 11.7
AVERAGE PERSONNEL
1-6/ 1-6/ 1-12/
2004 2003 2003
Food Division 307 310 331
Agricultural Division 439 436 442
Machinium Division 365 380 388
Total 1111 1126 1161
CONTINGENT LIABILITIES
EUR million June 30, June 30, Dec 31,
2004 2003 2003
Securities given for debts
Real estate mortgages 35.1 37.6 32.6
Corporate Mortgages 77.3 54.7 76.0
Shares pledged 3.6 43.4 3.6
Other securities given
Pledges 0.3 0.0 0.0
Corporate Mortgages 5.2 8.2 6.9
Leasing liabilities 1.8 2.1 2.1
Contingent liabilities
for own commitments
Guarantees 0.0
Repurchasing commitments 18.0 17.9 19.0
Other commitments 2.8 1.0 2.4
Contingent liabilities on behalf
of associated undertakings
Guarantees 0.1 0.4
Other contingent liabilities
Redemption liability
of leased buildings 2.5 2.7 2.6
Outstanding derivative instruments
Forward currency contracts
Market value -0.1 -0.3 -0.3
Value of underlying instruments 2.2 5.0 9.5
Interest rate swaps
Value of underlying instruments 5.0 25.0 25.0
Commodity derivate contracts
Market value 0.0 -0.1 -0.5
Value of underlying instruments 0.2 6.6 10.6
The data in this interim report have not been audited.
LÄNNEN TEHTAAT PLC
Board of Directors
More details: Erkki Lepistö, President & CEO, tel. +358 2 8397 4001
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 28.07.2004 |
MACHINIUM LTD AND ITS SWEDISH SUBSIDIARI
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE July 28, 2004 at 10;10 a.m.
MACHINIUM LTD AND ITS SWEDISH SUBSIDIARIES FILING FOR BANKRUPTCY,
SECOND QUARTER PROFITS OF LÄNNEN TEHTAAT DOWN BY EUR 4 MILLION
Machinium Ltd, the parent company of the earthmoving and materials
handling division, and its Swedish subsidiaries SMA Construction AB
and SM Maskin AB, and SMA Maskinuthyrning AB, a subsidiary of SMA
Maskin AB, have today filed for bankruptcy. Suomen Rakennuskone Oy,
which is owned by Machinium Ltd, and its Baltic subsidiaries will
continue their operations and every effort will be made to find a new
owner for the companies as soon as possible.
The ownership of Machinium Ltd is divided between Lännen Tehtaat plc
(about 60%), Forenvia Venture I Ky and SFK 99-Fund Ky (between them,
30%), and other minority shareholders(10%). Net turnover of the
companies filing for bankruptcy came to EUR 48 million in the year
ending at December 31, 2003. On June 30, 2004, the companies had debts
amounting to EUR 39 million, of which EUR 6 million were intra-company
subordinated loans. At the same time, the companies employed a staff
numbering 197, 195 in Sweden and 2 in Finland.
During the past two years, Lännen Tehtaat has been actively in its
search for an ownership basis for Machinium that would have enabled
the group to continue operations. However, despite considerable
efforts, it has proved impossible to find a solution.
The Finnish and Baltic companies of the Machinium Division have been
constantly in the black. The sale of the business operation of the
profitable Suomen Rakennuskone and its three Baltic subsidiaries had
already been launched before the bankruptcy and the aim is to have the
sales process concluded as quickly as possible despite the bankruptcy
of the parent company. The business operations of Lännen Engineering
Oy, a Loimaa-based company of the Machinium group were sold to Lännen
Tractors Oy in May 2004.
The Machinium Division was set up in 1999 by incorporating the
earthmoving machinery division of Lännen Tehtaat and SMA Maskin, a
Swedish company acquired by Machinium, into one group. The
profitability of the Swedish companies has been weak and despite a
number of restructuring and cost-cutting rounds, the companies have
remained in the red. SMA Construction AB, in particular, has seen its
losses grow during 2004. The combined loss of the Swedish companies in
the period January 1 June 30, 2004 totalled EUR 2.5 million (1.8).
The liabilities resulting from the bankruptcy of Machinium will cause
Lännen Tehtaat an estimated loss of EUR 4.0 million, which has been
entered into the results of the second quarter. As a consequence of
the bankruptcy, the Lännen Tehtaat Group will see its consolidated
balance sheet shrink by EUR 30 million. The exit from Machinium is
estimated to increase the equity ratio by 4 per cent, while at the
same time the annual consolidated net turnover of Lännen Tehtaat will
be cut by EUR 90 million.
The Machinium group has accumulated losses of about EUR 13 million
between 1999 and 2004. After the minority share has been deducted from
the total, the share of Lännen Tehtaat is about EUR 7 million.
The principal operating sector of Lännen Tehtaat is the food industry.
In 2003, consolidated net turnover amounted to EUR 492 million, and
the Group made a profit of EUR 6.7 million. At the end of the year,
Lännen Tehtaat had capital and reserves totalling EUR 95 million.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 22.06.2004 |
*DIRECTED ISSUE OF LÄNNEN TEHTAAT OYJ
HEX HELSINKI CASH MARKET RELEASE 251/2004
SHARES 22 June 2004
DIRECTED ISSUE OF LÄNNEN TEHTAAT OYJ
In the directed issue subscribed a total of 195 000
shares of Lännen Tehtaat Oyj will be traded on the
Helsinki Exchanges as old shares as of 23 June 2004.
Identifiers of Lännen Tehtaat Oyjs share:
Trading code: LTE1S
ISIN-code: FI0009003503
Number of shares: 6 317 576
HELSINKI EXCHANGES
Mikko Timonen
|
| 22.06.2004 |
INCREASE IN LÄNNEN TEHTAAT PLC'S SHARE C
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT June 22, 2004,at
10.30 am
INCREASE IN LÄNNEN TEHTAAT PLC'S SHARE CAPITAL AND ADMITTANCE OF THE
NEW SHARES TO THE STOCK EXCHANGE LIST
An increase in the share capital of Lännen Tehtaat plc has been
entered in the Trade Register today, June 22, 2004. The share
capital was increased by EUR 390,000 and 195,000 new shares. After
the increase the registered share capital of the company is a total
of EUR 12,635,152 and the number of the shares 6,317,576.
The increase in share capital was carried out in connection with the
acquisition of about 51% of the share capital of Kuopion Kalatukku
Oy. The company has announced Stock Exchange Releases regarding the
transaction on May 13, 2004 and June 10, 2004.
The new shares now registered will be subject to trading along with
the old shares at the Helsinki Stock Exchange from June 23, 2004.
The new shares will entitle their holders to a dividend for the
financial year 2004. Other shareholder rights will commence from the
date of registration, June 22, 2004.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 17.06.2004 |
ORGANIZATION OF THE SUPERVISORY BOARD AN
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE June 17, 2004 at 8;45 a.m.
ORGANIZATION OF THE SUPERVISORY BOARD AND ELECTION OF THE BOARD OF
DIRECTORS
The Supervisory Board of Lännen Tehtaat plc on June 16, 2004 re-elected Tom
Liljeström as Chairman of the Supervisory Board and Juha Nevavuori as Vice
Chairman of the Supervisory Board.
Matti Lappalainen, Erkki Lepistö, Hannu Simula, Soili Suonoja and Tom v.
Weymarn were re-elected as members of the Board of Directors. Harri Eela
was elected as a new member to the Board. At the same time Eela resigned
from his position as a member of the Supervisory Board. 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
President & CEO
More details: President Erkki Lepistö, tel. +358 2 8397 4001
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 10.06.2004 |
SUBSCRIPTION OF LÄNNEN TEHTAAT PLC?S SHA
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE June 10, 2004, at 5;00 pm
SUBSCRIPTION OF LÄNNEN TEHTAAT PLCS SHARES AND PURCHASE OF SHARES IN
KUOPION KALATUKKU OY
Lännen Tehtaat plc and Antti Räsänen entered into an agreement in May
concerning the acquisition by Lännen Tehtaat plc of the majority of
the shares in Kuopion Kalatukku Oy from Antti Räsänen. The acquisition
was agreed to be carried out as a share exchange by issuing 195,000
new shares of Lännen Tehtaat plc as purchase price for subscription by
Antti Räsänen. As part of the transaction it was agreed that all the
shares of Tresko Fish Ltd, a subsidiary of Lännen Tehtaat plc, shall
be transferred to Kuopion Kalatukku Oy and Tresko Fish Ltd will be
later on merged into Kuopion Kalatukku Oy. In the agreements the
approval of the competition authorities was set as a precondition for
the completion of the transaction. Specific information regarding the
transaction was given in a Stock Exchange Release on May 13, 2004.
The competition authorities have approved the transaction. The
transaction was completed today when Antti Räsänen subscribed for the
abovementioned 195,000 shares in Lännen Tehtaat plc and 50.9% of
shares in Kuopion Kalatukku Oy were transferred to Lännen Tehtaat
along with the shares of Tresko Fish Ltd being transferred to Kuopion
Kalatukku Oy. As a result of the transaction Antti Räsänens holding
in Lännen Tehtaat plc will account for 3.09% of the outstanding share
capital and voting rights of the company.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 03.06.2004 |
CANCELLATION OF DEAL INVOLVING SUOMEN RA
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE June 3, 2004, 5;00 pm
CANCELLATION OF DEAL INVOLVING SUOMEN RAKENNUSKONE OY SHARES
The deal between Lännen Tehtaat plc and Machinium Ltd concerning the
shares of Suomen Rakennuskone Oy has been cancelled following
opposition to it by a minority shareholder in Machinium Ltd.
The public sale of Suomen Rakennuskone Oy will continue in accordance
with the planned timetable despite the cancellation of the share deal.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 02.06.2004 |
HANNU PELTTARI WILL RESIGN FROM HIS POSI
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE June 2, 2004, 11.00 am
HANNU PELTTARI WILL RESIGN FROM HIS POSITION AS SENIOR EXECUTIVE VICE
PRESIDENT OF LÄNNEN TEHTAAT
Hannu Pelttari, Senior Executive Vice President of Lännen Tehtaat
since 2002 will resign at the end of June 2004. Prior to this Pelttari
was President of Avena Oy and was appointed Senior Executive Vice
President of Lännen Tehtaat in connection with the Avena aquisition in
2002. Pelttari concentrated in strategic development of the Lännen
Tehtaat Group, restructuring of the Machinium Group and integration
process of Lännen Tehtaat, Avena and Suomen Rehu.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 25.05.2004 |
MACHINIUM RESTRUCTURING CONTINUES WITH T
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE May 25, 2004, 3.15 pm
MACHINIUM RESTRUCTURING CONTINUES WITH THE SALE OF THE BACKHOE LOADER
MANUFACTURING BUSINESS
Agreement has been reached between the Machinium Ltd subsidiary Lännen
Engineering Oy, on the one hand, and AVS-Yhtiöt Oy, AVS-Yhtiöt
Managing Director Antero Parma and Timo Huttunen, on the other, on the
sale of the business operations of Lännen Engineering Oy, which
manufactures medium-sized backhoe loaders. The deal means that Lännen
Engineering Oys business operations will be transferred to a new
company, Lännen Tractors Oy, on May 25, 2004. The proceeds from the
sale will be used to strengthen the capital structure of the companies
in Lännen Tehtaat plcs Machinium Division.
Lännen Engineering Oys net turnover in 2003 was EUR 16 million, and
its profit before extraordinary items EUR 0.9 million. Following the
deal, the companys 130 employees at its Loimaa plant will be employed
by Lännen Tractors Oy.
Suomen Rakennuskone Group and SMA Construction AB will continue to
distribute Lännen backhoe loaders in Finland, Sweden and the Baltic
States.
AVS-Yhtiöt manufactures and supplies pneumatic and hydraulic equipment
and industrial valves for industrial customers in Finland and for
export. AVS-Yhtiöts net turnover in 2003 was approximately EUR 50
million and it employed about 250 people.
Timo Huttunen, Managing Director of both Machinium Ltd and Lännen
Engineering Oy, will take up the position of Managing Director of
Lännen Tractors Oy.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 18.05.2004 |
LÄNNEN TEHTAAT PLC?S EXIT FROM MACHINIUM
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE May 18, 2004 4;05 pm
LÄNNEN TEHTAAT PLCS EXIT FROM MACHINIUM BEGINS WITH GROUP
RESTRUCTURING
Lännen Tehtaat plc and Machinium Ltd have today agreed on the sale of
Suomen Rakennuskone Oy shares. As part of Lännen Tehtaats ownership
rearrangements with the Machinium Group, Lännen Tehtaat plc has
acquired the entire share capital of Suomen Rakennuskone Oy from
Machinium Ltd and is now looking for an outside buyer for the Suomen
Rakennuskone shares by offering them for public sale. The assets
obtained from the sale will be used to strengthen the capital
structure of the companies in Machinium Division and to reduce their
liabilities.
In connection with the restructuring process, Timo Huttunen is
resigning from his duties as Managing Director of Machinium Ltd and of
Lännen Engineering Oy. In his place, Kimmo Korhonen was appointed
Managing Director of Lännen Engineering Oy and acting Managing
Director of Machinium Ltd on May 18, 2004. Mr Korhonen has had a long
career with Metso Corporation, both in Finland and abroad. Kari
Kokkonen will continue as Managing Director of Suomen Rakennuskone Oy.
The Machinium Division consists of three business areas; manufacture
of backhoe loaders, sales and maintenance of earthmoving and utility
machinery, and supply of materials handling machines. Lännen
Engineering Oy manufactures backhoe loaders, Suomen Rakennuskone Group
is responsible for sales and maintenance of earthmoving and utility
machinery in Finland and the Baltic States, and SMA Construction AB in
Sweden. SMA Maskin AB and its subsidiaries supply materials handling
machines in Sweden.
Consolidated net turnover of Suomen Rakennuskone Oy, subsidiary of
Lännen Tehtaat plc, was EUR 44 million in 2003 and profit before
extraordinary items EUR 1.2 million. Suomen Rakennuskone Group
consists of Suomen Rakennuskone Oy in Finland, AS Balti Ehitusmasin-
Baltem in Estonia, SIA BCM Baltijas Celtniecibas Masina in Latvia and
UAB Baltijos Statybinès Masinos in Lithuania.
Suomen Rakennuskone Group will continue to distribute Lännen backhoe
loaders and Komatsu earthmoving machinery in Finland and the Baltic
States.
Lännen Tehtaat mainly operates in the food industry. The aim is to
withdraw from Machinium ownership during 2004. Lännen Tehtaats
consolidated net turnover for 2003 was EUR 492 million, and profit for
the financial year EUR 6.7 million. Lännen Tehtaats capital and
reserves on March 31, 2004 were EUR 95 million. The consolidated
financial statements include a restructuring provision of EUR 1.9
million for Machinium. Lännen Tehtaats liabilities and commitments
concerning the Machinium Division amounted to EUR 7.3 million on March
31,2004.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
| 13.05.2004 |
LÄNNEN TEHTAAT PLC TO ACQUIRE A MAJORITY
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE May 13, 2004, 9.00 am
LÄNNEN TEHTAAT PLC TO ACQUIRE A MAJORITY HOLDING IN KUOPION KALATUKKU
OY
Lännen Tehtaat plc is to acquire a majority holding in Kuopion
Kalatukku Oy, owned by Antti Räsänen. This will strengthen Lännen
Tehtaatss Food Division and increase the proportion of fish-based
products in Lännen Tehtaats product range. The deal is subject to
approval from the competition authorities.
Kuopion Kalatukku Oy, established in 1992, processes fish and fish
products and engages in the wholesale and retail fish trade, operating
throughout the country. Kuopion Kalatukkus retail trade is conducted
through its chain of Kalatori outlets. The company currently employs
250 people, and in 2003 its net turnover amounted to EUR 40.3 million.
Following the acquisition, Tresko Fish Ltd, Lännen Tehtaats
subsidiary manufacturing fish products, will be merged with Kuopion
Kalatukku Oy. Tresko Fish Ltds net turnover in 2003 was EUR 5.7
million and it employed 24 people.
With the acquisition, Lännen Tehtaat plc will own 51% of Kuopion
Kalatukku Oy shares. The remaining 49% of the shares will be owned by
the companys founder, present owner and managing director, Antti
Räsänen. The deal will be arranged as a share exchange, and Antti
Räsänen will subscribe 195,000 new Lännen Tehtaat plc shares in a
targeted issue. These shares account for 3.09% of Lännen Tehtaats
share capital and are worth approximately EUR 2.3 million. Kuopion
Kalatukkus net interest-bearing liabilities are about EUR 3.8
million.
For the 12-month period to the end of February 2004, Kuopion Kalatukku
Oys net turnover was EUR 40.3 million, its operating profit EUR 1.6
million and its net profit for the period EUR 0.9 million. In the
years 1999-2003, Kuopion Kalatukkus average growth in net turnover
was more than 20%. Its net turnover growth in 2004 is expected to be
lower than the recent average, however. Lännen Tehtaats subsidiary
Tresko Fish Ltd is to be merged with Kuopion Kalatukku Oy and the new
company will be named Apetit Kala Oy.
Comprised of Lännen Tehtaats fish-products business and Kuopion
Kalatukku Oy, Apetit Kala Oy will aim to be a leading national
producer of branded, consumer-packaged fresh fish products. The
company will be looking to expand in the retail trade and in the
hotel, restaurant and catering sector. In the wholesale trade, the aim
is to achieve a strong position in all the commercial chains. Apetit
Kalas pro-forma net turnover for 2003 was EUR 46 million and its
operating profit EUR 1.9 million. It will employ more than 270 people.
It is expected that the positive effect of the acquisition on Lännen
Tehtaats consolidated operating profit and earnings per share will
already be felt in 2004.
Under the agreement made, Lännen Tehtaat plc has the right, and also
the obligation if so required by the seller, to purchase the remaining
Apetit Kala Oy shares (49%) after August 2007. The pricing of this
purchase option will be based on developments in Apetit Kala Oys
business, but will be no less than EUR 1.5 million and no more than
EUR 4.2 million.
Kuopion Kalatukku Oys operations comprise fish processing,
wholesaling of fresh fish and the Kalatori business. Kalatori manages
Kuopion Kalatukkus retail business, which consists of 52 shop-in-shop
Kalatori outlets. At the end of February 2004, 16 of the shop-in-shop
outlets were operating as franchises.
The Lännen Tehtaat Group consists of the Food Division, Agricultural
Division and Machinium Division. Consolidated net turnover in 2003 was
about EUR 492 million, operating profit EUR 11.7 million and net
profit for the year EUR 6.7 million. The Group employed an average of
1,161 people. Net turnover for the Food Division was EUR 115 million
and operating profit EUR 6.5 million, and the Division employed an
average of 331 people.
LÄNNEN TEHTAAT PLC
Erkki Lepistö
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.
Distribution:
Helsinki Exchanges
Main media
www.lannen.fi
|
