Lemminkäinen and YIT will complete the merger
- Stock Exchange Releases
- 5/10/2007
LEMMINKÄINEN'S INTERIM FINANCIAL REVIEW 1.1.-31.3.2007: GROUP'S ORDER BOOK AT ALL-TIME HIGH
LEMMINKÄINEN CORPORATION 10.5.2007 Net sales were EUR 328.0 million (303.5) International operations accounted for EUR 68.9 million (90.9) of net sales Operating profit was EUR 0.3 million (-6.8) and operating margin 0.1 % (-2.3) The result before taxes was EUR -3.0 million (-9.1) Earnings per share were EUR -0.22 (-0.49)
LEMMINKÄINEN CORPORATION
10.5.2007
Net sales were EUR 328.0 million (303.5)
International operations accounted for EUR 68.9 million (90.9) of net sales
Operating profit was EUR 0.3 million (-6.8) and operating margin 0.1 % (-2.3)
The result before taxes was EUR -3.0 million (-9.1)
Earnings per share were EUR -0.22 (-0.49)
The equity ratio was 27.3 % (25.4) and net gearing 147.8 % (171.8)
The Company's order book at the end of the first quarter was EUR 1,439.7 million
(1,155,7)
International orders accounted for EUR 355.2 million (349.8) of the order book
MARKED IMPROVEMENT IN THE FIRST QUARTER PROFITABILITY
Lemminkäinen's net sales grew and the customary loss stemming from the seasonal
nature of its operations was significantly smaller than in previous years. The
order book rose by a quarter to reach an all-time high. A number of the Group's
business sectors posted better results than in Q1 last year.
The favourable development in the review period was influenced by the earlier
start of this year's work season, the good performance of Palmberg - the Group's
building contractor, and the sustained activity of Lemcon's rock engineering
business.
GOOD OUTLOOK FOR 2007
The Group's large order book and the positive outlook for construction create
good prerequisites for the favourable development of Lemminkäinen's business
operations in 2007.
FINANCIAL REPORTING IN 2007
Lemminkäinen will publish its next interim financial reviews on August 9 and
November 8, 2007.
Presentation material concerning the first-quarter figures is available on the
Company's website at www.lemminkainen.com.
LEMMINKÄINEN CORPORATION
Juhani Sormaala
Managing Director
Additional information:
Juhani Sormaala, Managing Director, tel. +358 2071 53302
Jukka Ovaska, Finance Director, tel. +358 2071 53334
Katri Sundström, Investor Relations Manager, tel. +358 2071 54813
APPENDICES:
Interim Financial Review 1.1.-31.3.2007
Tabulated Section of the Interim Financial Review
DISTRIBUTION:
Helsinki Stock Exchange
Key media
www.lemminkainen.com
Lemminkäinen Group operates in all areas of the construction sector. Its main
business areas are building contracting, infrastructure construction, the
building materials industry and technical building services. Net sales in 2006
were EUR 1 795.9 million, of which international operations accounted for about
a third. The Group employs some 8 500 people. Lemminkäinen's main market area is
the Baltic Rim region, where the Group has established a presence by setting up
local subsidiaries. In specialist areas of construction the Group serves
customers all over the world. Lemminkäinen's share is listed on Helsinki Stock
Exchange.
INTERIM FINANCIAL REVIEW 1.1.-31.3.2007
CONSTRUCTION MARKET
According to an economic forecast published in April by the Confederation of
Finnish Construction Industries, the total volume of construction will grow 3.5
% this year and 3 % next year. Especially commercial and office construction
will grow, but increased activity is also anticipated in industrial
construction. The outlook for infrastructure construction remains good due to
major on-going projects. Lack of capacity will slow down housing construction
somewhat. Refurbishment contracting will continue to grow steadily.
The development of international markets important to Lemminkäinen is expected
to remain favourable. The economic outlook in other Nordic countries is still
positive, and the total volume of construction is forecast to grow. Especially
in Sweden, the rock engineering market will remain good. In the Baltic states
GDP growth will be faster than in the Nordic countries, and the road
construction market is expected to remain active thanks to EU funding. Finnish
industry has many on-going projects in Russia, China and India. Central Eastern
Europe, and especially Rumania, have become even more attractive as targets for
foreign investments.
GROUP'S NET SALES, EARNINGS AND BALANCE SHEET
The Q1 net sales of Lemminkäinen Group rose 8.1 % to EUR 328.0 million (303.5).
The Group generated 79 % (70) of its net sales in Finland, 12 % (8) in other
Nordic countries, 4 % (17) in Eastern Europe and the Baltic states, and 5 % (5)
in other countries.
--------------------------------------------------------------------------------
| Net sales by business | 1-3/2007 | 1-3/2006 | Change, % |
--------------------------------------------------------------------------------
| sector, EUR million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral Aggregates | 41.9 | 23.9 | 75.3 |
| Division | | | |
--------------------------------------------------------------------------------
| Building Materials Division | 18.5 | 11.6 | 59.5 |
--------------------------------------------------------------------------------
| Lemcon Ltd | 76.2 | 100.9 | -24.5 |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab | 155.3 | 129.7 | 19.7 |
--------------------------------------------------------------------------------
| Tekmanni Oy | 46.2 | 42.9 | 7.7 |
--------------------------------------------------------------------------------
| Other operations and | | | |
--------------------------------------------------------------------------------
| Group eliminations | -10.1 | -5.6 | -80.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group total | 328.0 | 303.5 | 8.1 |
--------------------------------------------------------------------------------
The Q1 operating profit was EUR 0.3 million (-6.8) and the result before taxes
EUR -3.0 million (-9,1). The result for the accounting period was EUR -1.8
million (-7.3), of which EUR -3.7 million (-8.3) was attributable to
shareholders of the parent company. Earnings per share were EUR -0.22 (-0.49).
The Q1 loss stems from the seasonal nature of the Company's business, especially
asphalt paving.
--------------------------------------------------------------------------------
| Operating profit by business | 1-3/2007 | 1-3/2006 | Change, % |
--------------------------------------------------------------------------------
| sector, EUR million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral Aggregates | -16.4 | -19.2 | 14.6 |
| Division | | | |
--------------------------------------------------------------------------------
| Building Materials Division | -1.3 | -1.8 | 27.8 |
--------------------------------------------------------------------------------
| Lemcon Ltd | 4.5 | 4.1 | 9.8 |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab | 13.9 | 7.5 | 85.3 |
--------------------------------------------------------------------------------
| Tekmanni Oy | 1.3 | 2.2 | -40.9 |
--------------------------------------------------------------------------------
| Others | -1.8 | 0.3 | over 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group total | 0.3 | -6.8 | over 100 |
--------------------------------------------------------------------------------
The Company's cash funds at the end of the review period were EUR 55.8 million
(38.5) and the net interest-bearing debt EUR 348.1 million (322.4). The equity
ratio was 27.3 % (25.4) and net gearing 147.8 % (171.8).
The Group's order book grew 24.6 % and at the end of the review period was EUR
1,439.7 million (1,155.7). The market breakdown of the order book was Finland 75
% (70), other Nordic countries 13 % (13), Eastern Europe and the Baltic states 9
% (12), and other countries 3 % (5).
BUSINESS SECTORS
Paving and Mineral Aggregates Division
The Q1 net sales of the Paving and Mineral Aggregates Division rose 75.3 % to
EUR 41.9 million (23.9). The Division generated 51 % (56) of its net sales in
Finland, 35 %(23) in other Nordic countries, and 14 % (21) in the Baltic states
and Eastern Europe.
The Division's operating profit was EUR -16.4 million (-19.2). The Q1 loss stems
from the seasonal nature of asphalt paving operations. The order book grew 9 %
and at the end of the review period was EUR 278.4 million (255.3), of which
operations abroad accounted for EUR 154.7 million (131.9).
In the first quarter the Division's asphalt paving and stone crushing operations
developed favourably as expected, and the volume of ready-mix concrete
production exceeded expectations. The contracting season started earlier than in
the previous year. The level of activity in Lemminkäinen's asphalt paving
business in Denmark was a record high.
In Finland the total volume of asphalt paving is expected to stay unchanged at
the previous year's level and competition to remain intense. In Norway, road
maintenance appropriations are expected to grow. In the Baltic states the number
of road projects is likely to increase thanks to EU funding, although
bureaucracy will slow down the start-up of projects somewhat. Demand for
crushing contracting and ready-mix concrete is expected to remain good,
supported by on-going infrastructure projects and sustained activity in building
construction.
In Sweden, Lemminkäinen withdrew from its unprofitable asphalt paving business
and sold its share in Kvalitetsasfalt i Mellansverige AB to the Swedish firm
Peab Asfalt AB. A letter of intent concerning the sale of the company was signed
on 17.4.2007. In 2006 Kvalitetsasfalt I Mellansverige AB generated net sales of
EUR 20.4 million.
On 24 April 2007 Forssan Betoni Oy and Areva NP agreed to amend the contract
originally signed in July 2004 concerning the delivery of ready-mix concrete for
the entire Olkiluoto nuclear power plant construction project. According to the
terms of the new agreement, Forssan Betoni will discontinue deliveries of
concrete for the power plant's reactor building complex against receipt of
separate compensation. The purpose of the new agreement is to clarify the
responsibilities of the parties involved in the nuclear power plant construction
project.
Building Materials Division
The Q1 net sales of the Building Materials Division rose 59.5 % to EUR 18.5
million (11.6). The Division derived 8 % (8) of its net sales from abroad,
mainly from Sweden, Estonia and Eastern Europe.
The Division's operating profit was EUR -1.3 million (-1.8). The order book rose
60.6 % and at the end of the review period was EUR 37.9 million (23.6).
The work season started earlier than normal and demand for prefabricated
concrete elements in particular was significantly higher than in the previous
year. The Division's order book was at an all-time high. Exports of roofing
materials primarily to Eastern Europe have grown faster than expected.
The full-year outlook for the Building Materials Division is favourable. Demand
for roofing contracting and precast concrete staircase units has remained good,
and urban environment contracting is expected to be brisker than last year.
During the first quarter Lemminkäinen Betonituote Oy acquired full ownership of
KM Repo Oy, a Repo Group company that manufactures and sells precast concrete
elements. In 2006 the company's net sales were EUR 13.5 million. KM Repo Oy will
continue its operations renamed as Elemento Oy Savonlinna.
Lemcon Ltd
Lemcon's Q1 net sales declined to EUR 76.2 million (100.9). The company derived
57 % (33) of its net sales from Finland, 12 % (8) from other Nordic countries, 7
% (44) from Eastern Europe and the Baltic states, 14 % (11) from North and South
America, and 10 % (4) from other countries.
The company's operating profit was EUR 4.5 million (4.1) and the result before
taxes was EUR 4.1 million (4.4). The order book at the end of the review period
was EUR 360.0 million (368.3), of which operations abroad contributed EUR 167.9
million (192.1).
In the beginning of the year Lemcon won significant railway tunnel construction
contract on the Ådalsbana line, and strengthened its position as a rock
engineering contractor in Sweden. After the review period the company won
another construction contract on the same line. The combined value of the
on-going contracts is approx. EUR 100 million, and they will be completed in
2009 and 2010.
Demand for Lemcon's project management services in Finland is expected to remain
good thanks to brisk commercial and office construction. Abroad, the emphasis is
on industrial construction and the company is actively involved in Finnish
industry's plant-building products. In Russia, demand for residential and office
buildings is still quite strong. There are also a number of on-going arena
projects.
There were no significant changes in Lemcon Networks' business during the first
quarter. The Indonesian telecommunications market is expected to grow
considerably in the near future.
Legal proceedings arising from IKEA's termination of the construction contract
for the MEGA shopping centre in St. Petersburg have started at the court of
arbitration in Stockholm.
Oy Alfred A. Palmberg Ab
Palmberg's Q1 net sales grew by a fifth and were EUR 155.3 million (129.7).
Business in Sweden accounted for 8 % (8) of net sales.
The company's operating profit almost doubled and was EUR 13.9 million (7.5).
The result before taxes was EUR 13.0 million (6.9). The order book grew 53 % to
EUR 674.5 million (441.5), of which international operations accounted for EUR
25.4 million (21.5).
In the beginning of the this year company made 184 new private-sector housing
starts, which is considerably fewer than in the beginning of year 2006, when 575
new starts were made. The decline in the number of new starts is mainly due to
random factors, but also to the commitment of resources to other production, the
prolongation of permit processes, and local demand factors. Palmberg's housing
starts for 2007 as a whole are forecast at about 1 200 units, compared with 1
558 units in 2006.
Building construction in Finland is expected to remain at a good level this
year. Commercial and office construction will grow and the production of
logistics centres will increase. The Finnish construction industry will probably
make about 33 000 (33 353) new housing starts this year.
Despite the slowdown in housing production, Palmberg's good order book and the
positive outlook for building construction create the prerequisites for
favourable development of the company this year. Production start-up is hampered
primarily by the shortage of skilled labour, especially foremen. Delivery times
for some building products have become longer and prices have risen faster than
usual.
--------------------------------------------------------------------------------
| Palmberg's private-sector | 1-3/2007 | 1-3/2006 | 1-12/2006 |
| housing production, units | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Housing starts | 184 | 575 | 1 558 |
--------------------------------------------------------------------------------
| Housing units sold | 229 | 270 | 1 156 |
--------------------------------------------------------------------------------
| Unsold completed units | 123 | 63 | 83 |
--------------------------------------------------------------------------------
| Completed | 308 | 316 | 1 173 |
--------------------------------------------------------------------------------
| Under construction at 31.3.2007 | 1 574 | 1 572 | 1 698 |
--------------------------------------------------------------------------------
At the end of the review period Palmberg owned a total of 774 000 m2 of unused
building rights, of which about 470 000 m2 were residential building rights. The
company also has conditional co-operation and zoning agreements for a further
458 000 m2, of which about 145 000 m2 are residential building rights. Market
conditions permitting, the company has the possibility to increase its housing
production thanks to the good stock of building plots. At the present rate of
production the company owns enough unused building rights to meet its needs for
over four years.
Tekmanni Oy
Tekmanni's Q1 net sales rose 7.7 % to EUR 46.2 million (42.9). The company
derived 4 % (3) of its net sales from Sweden and Russia.
The company's operating profit was EUR 1.3 million (2.2) and the result before
taxes EUR 1.6 million (2.5). The order book grew by a third to EUR 88.9 million
(67.0), of which international orders contributed EUR 6.4 million (4.2).
Demand for maintenance, upkeep and repair works in the technical services sector
is expected to remain brisk this year. In the near-term future, the most
significant contracts for industrial services will be abroad. In Finland the
number of foreign workers employed in the industry has grown strongly.
GROUP'S ORDER BOOK
The Group's order book rose 25 % compared with Q1 last year to reach an all-time
high. The market breakdown of the order book was Finland 75 % (70), other Nordic
countries 13 % (13), the Baltic states 5 % (5), Eastern Europe 4 % (7), and
other countries 3 % (5).
--------------------------------------------------------------------------------
| Order book by business | 3/2007 | 3/2006 | Change, % |
| sector, EUR million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral Aggregates | 278.4 | 255.3 | 9.0 |
| Division | | | |
--------------------------------------------------------------------------------
| Building Materials Division | 37.9 | 23.6 | 60.6 |
--------------------------------------------------------------------------------
| Lemcon Ltd | 360.0 | 368.3 | -2.3 |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab | 674.5 | 441.5 | 52.8 |
--------------------------------------------------------------------------------
| Tekmanni Oy | 88.9 | 67.0 | 32.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group total, of which | 1 439.7 | 1 155.7 | 24.6 |
--------------------------------------------------------------------------------
| International orders | 355.2 | 349.8 | 1.5 |
--------------------------------------------------------------------------------
Significant orders received during the review period
Lemcon Ltd has won a EUR 43 million contract from Banverket Central Region to
construct a railway tunnel on the Ådalsbana line in Sweden. (Bulletin 10.1.2007)
Lemcon Ltd has signed a project management agreement with Nokia Corporation
concerning the construction of a logistics centre in India. The contract is
worth EUR 17 million. (Bulletin 8.1.2007)
Significant order received after the review period
Lemcon Ltd has signed an agreement with Oy Gustav Paulig Ab concerning the
construction of office, warehousing and production facilities for a new roastery
at Vuosaari Harbour in Helsinki. The project will be carried out as a project
management contract and will be completed in June 2009. (Bulletin 5.4.2007)
Lemminkäinen Corporation and the Finnish Road Administration have signed a
service agreement whereby the Company assumes responsibility for the condition
of the main roads in the Häme, Uusimaa and Turku road districts of Finland for a
period of 12 years. The agreement is worth about EUR 40 million. (Bulletin
19.4.2007).
Lemcon Ltd has been awarded a EUR 54 million contract to build yet another
railway tunnel on the Ådalsbana line in Sweden. The Kroksberg tunnel will be 4.5
kilometres long and will be completed in 2010. (Bulletin 26.4.2007)
FINANCING
According to the source and application of funds statement, the cash flow from
operating activities was EUR -24.2 million (-76.4), the cash flow from investing
activities EUR -12.6 million
(-3.8) and the cash flow from financing activities EUR 32.0 million (76.4). The
cash flow for the review period includes dividends totalling EUR 27.0 million
(18.0) for 2006.
Interest-bearing liabilities at the end of the review period were EUR 403.9
million (360.9) and liquid funds were EUR 55.8 million (38.5). Interest-bearing
net debt was EUR 348.1 million (322.4).
Net financing expenses were EUR 3.2 million (1.9), representing 1.0 % (0.6) of
net sales. The equity ratio was 27.3 % (25.4) and net gearing 147.8 % (171.8).
The changes in cash flows and net debt stem from the larger dividend pay-out,
the growth of business volume, as well as changes in project financing and an
increase in the trade receivables pertaining to them.
SHARES AND SHARE CAPITAL
The listed price of Lemminkäinen Corporation's share was EUR 36.10 (30.50) at
the beginning and EUR 45.50 (34.86) at the end of the review period. The market
capitalisation at the end of the review period was EUR 774.5 million (593.4).
Altogether 2 024 914 shares (1 250 512) worth EUR 83.9 million (43.5) were
traded in the first quarter. At the end of the review period the Company had 3
353 (3 480) shareholders.
The Company´s share capital is EUR 34 042 500 and the
nominal value of the share is EUR 2. The company has one share series and the
total number of issued shares is 17 021 250.
INVESTMENTS
Investments in the accounting period amounted to EUR 21.9 million (9.4). The
investments were mainly purchases of paving, crushing and excavation equipment,
production plant for building materials, and building construction equipment.
The investments also include acquisitions of businesses and enterprises.
PERSONNEL
The average number of employees in the Group over the review period was 7 875 (7
187). Approx. 72 % (74) of the employees were working in Finland, 10 % (9) in
other Nordic countries, 11 % (9) in the Baltic states, and 7 % (8) in other
countries.
--------------------------------------------------------------------------------
| Personnel, average | 1-3/2007 | 1-3/2006 | Change, % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Hourly paid employees | 4 879 | 4 340 | 12.4 |
--------------------------------------------------------------------------------
| Salaried staff | 2 996 | 2 847 | 5.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, total, of whom | 7 875 | 7 187 | 9.6 |
--------------------------------------------------------------------------------
| working abroad | 2 178 | 1 846 | 18.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at the end | | | |
--------------------------------------------------------------------------------
| of the review period | 8 101 | 7 354 | 10.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages, salaries and other | | | |
--------------------------------------------------------------------------------
| remuneration, EUR million | 64.3 | 55.8 | 15.2 |
--------------------------------------------------------------------------------
FCA's ALLEGATIONS CONCERNING THE ASPHALT PAVING AND BITUMINOUS ROOFING
INDUSTRIES
In March 2004 the Finnish Competition Authority (FCA) proposed to the Market
Court that a sanction of EUR 68 million should be imposed on Lemminkäinen in
connection with the operation of an alleged cartel in the asphalt paving
industry. In its rejoinder submitted to the Market Court, Lemminkäinen denied
the FCA's allegations as being unfounded in all respects and called for the
Market Court to dismiss the FCA's sanction proposal in its entirety. The Market
Court has announced to give its decision after the summer holiday season 2007.
The parties will have an opportunity to appeal the Market Court's decision to
the Supreme Administrative Court.
The FCA closed its investigation of the alleged prohibited exchanges of
information in the bituminous roofing industry during the years 1996-2002. On 16
February 2007 the FCA announced its decision to close the case without proposing
any sanctions against companies in the industry, Lemminkäinen included.
(Bulletin 16.2.2007)
RISKS AND UNCERTAINTIES
Lemminkäinen's business risks are divided into six categories: market risks,
project risks, financing risks, credit loss risks, environmental risks, and
accidents and damage. Lemminkäinen has specified the measures necessary to
control its most significant known risks.
Lemminkäinen's most significant risks and their management are described in
greater detail in the 2006 year-end financial statements, the 2006 Annual Report
and on the Company's website. During the review period Lemminkäinen's management
did not identify any new risks or uncertainties that, if realised, would have a
significant bearing on the Group's business.
ENVIRONMENT
Lemminkäinen Group takes account of life cycle and environmental perspective
when developing its operations, products and services.
The Group performs risk assessments on the environmental effects of its
activities. The risks relate mainly to oil storage and handling, waste
management and production plant emissions. The life time and environmental
impacts of concrete and bitumen-based products are assessed in studies which
clarify the environmental impacts of the products over their entire life cycles.
During the review period Lemminkäinen Corporation made a donation of EUR 100,000
to John Nurminen Foundation's Clean Baltic Sea project. Additionally, Lemcon Ltd
will contribute by making its project management skills available to the
project. The aim of the project is to start-up the chemical removal of
phosphorous at St. Petersburg's largest wastewater treatment plants, and thus to
reduce eutrophication of the Baltic Sea perceptibly, quickly and
cost-effectively. (Bulletin 1.2.2007).
ADMINISTRATION AND DECISIONS OF THE ANNUAL GENERAL MEETING
On 16 March 2007 Lemminkäinen Corporation's Annual General Meeting adopted the
Company's final accounts for 2006 and granted the Managing Director and the
members of the Board of Directors freedom from responsibility. The Annual
General Meeting decided in accordance with the Board of Directors' proposal to
pay a dividend of EUR 1.50 per share, i.e. a total dividend pay-out of EUR
25 531 875.00. The dividend's record date was 21 March 2007 and the payment date
was 28 March 2007.
Messrs. Berndt Brunow, Heikki Pentti, Teppo Taberman and Sakari Tamminen were
re-elected to serve as members of the Board of Directors. Ms. Kristina Pentti,
M.Sc. (Econ.) was newly elected to serve as a board member. The Board of
Directors elected Heikki Pentti to serve as Chairman of the Board and Teppo
Taberman to serve as Vice-chairman. PricewaterhouseCoopers Oy, a firm of
authorised public accountants, was re-elected to serve as the Company's auditor,
with Jan Holmberg APA acting as the chief auditor.
FAVOURABLE OUTLOOK FOR 2007
The Group's large order book and the positive outlook for construction create
good prerequisites for the favourable development of Lemminkäinen's business
operations in 2007.
Helsinki, 9 May 2007
LEMMINKÄINEN CORPORATION
Board of Directors
The information contained in the interim financial review has not been audited.
TABULATED SECTION OF THE INTERIM FINANCIAL REVIEW
ACCOUNTING PRINCIPLES
This interim financial review has been prepared in accordance with IFRS
measurement and recognition principles, but not all the requirements of IAS 34
Interim Financial Reporting have been observed.
From 1.1.2007 the Group has adopted the following standards or amendments:
- IAS 1 (Amendment), Presentation of Financial Statements - Capital Disclosures
- IFRS 7 Financial Instruments: Disclosures. Management believes that adoption
of the standard affects mainly the Notes to the Financial Statements.
- IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in
Hyperinflationary Economies
- IFRIC 8 Scope of IFRS 2
- IFRIC 9 Reassessment of Embedded Derivatives
- IFRIC 10 Interim Financial Reporting and Impairment
The adoption of these revised standards and interpretations has not had any
significant impact on the Group's Interim Financial Review.
FINANCIAL STATEMENTS AND OTHER TABULATED INFORMATION
1) Consolidated income statement
2) Consolidated income statement, quarterly
3) Net sales by business sector
4) Net sales by business sector, quarterly
5) Operating profit by business sector
6) Operating profit/loss by business sector, quarterly
7) Consolidated balance sheet
8) Statement of changes in equity
9) Statement of source and application of funds
10) Economic trends and financial indicators
11) Share-specific indicators
12) Guarantees and contingent liabilities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | |
--------------------------------------------------------------------------------
| EUR mill. | | 03/200 | 03/200 | Change | Change, | 12/2006 | |
| | | 7 | 6 | | | | |
--------------------------------------------------------------------------------
| | | | | | % | | |
--------------------------------------------------------------------------------
| Net sales | 328.0 | 303.5 | 24.5 | 8.1 | 1 795.9 | |
--------------------------------------------------------------------------------
| Operating income | | | | | | |
--------------------------------------------------------------------------------
| and expenses | -322.8 | -305.3 | -17.5 | -5.7 | -1 652.9 | |
--------------------------------------------------------------------------------
| Depreciation | -4.9 | -5.0 | 0.1 | 2.0 | -35.0 | |
--------------------------------------------------------------------------------
| Operating profit/loss | 0.3 | -6.8 | 7.1 | over 100 | 108.1 | |
--------------------------------------------------------------------------------
| Financial expenses | -4.1 | -2.7 | -1.4 | -51.9 | -18.2 | |
--------------------------------------------------------------------------------
| Financial income | 1.0 | 0.8 | 0.2 | 25.0 | 3.3 | |
--------------------------------------------------------------------------------
| Share of the results | | | | | | |
| of | | | | | | |
--------------------------------------------------------------------------------
| affiliated companies | -0.1 | -0.3 | 0.2 | 66.7 | 1.1 | |
--------------------------------------------------------------------------------
| Result before taxes | -3.0 | -9.1 | 6.1 | 67.0 | 94.2 | |
--------------------------------------------------------------------------------
| Income taxes | 1.1 | 1.7 | -0.6 | -35.3 | -21.3 | |
--------------------------------------------------------------------------------
| Result for the | | | | | | |
--------------------------------------------------------------------------------
| accounting period | -1.8 | -7.3 | 5.5 | 75.3 | 72.9 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the result for the accounting period | | |
--------------------------------------------------------------------------------
| To shareholders of | | | | | | |
--------------------------------------------------------------------------------
| the parent company | -3.7 | -8.3 | 4.6 | 55.4 | 65.8 | |
--------------------------------------------------------------------------------
| To minority interests | 1.9 | 1.0 | 0.9 | 90.0 | 7.1 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from result attributable to | |
| parent company shareholders | |
--------------------------------------------------------------------------------
| Earnings per share, | -0.22 | -0.49 | | | 3.87 | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | | |
--------------------------------------------------------------------------------
| EUR, diluted | -0.22 | -0.49 | | | 3.87 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, QUARTERLY | |
--------------------------------------------------------------------------------
| | 7-9/ | 10-12/ | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-3/ |
--------------------------------------------------------------------------------
| EUR mill. | 2005 | 2005 | 2006 | 2006 | 2006 | 2006 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 516.7 | 429.5 | 303.5 | 427.8 | 573.9 | 490.8 | 328.0 |
--------------------------------------------------------------------------------
| Operating | | | | | | | |
--------------------------------------------------------------------------------
| income | | | | | | | |
--------------------------------------------------------------------------------
| and | -454.4 | -406.8 | -305.3 | -392.8 | -505.4 | -449.4 | -322.8 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Depreciatio | -12.7 | -7.4 | -5.0 | -9.2 | -12.8 | -8.0 | -4.9 |
| n | | | | | | | |
--------------------------------------------------------------------------------
| Operating | | | | | | | |
--------------------------------------------------------------------------------
| profit/loss | 49.6 | 15.3 | -6.8 | 25.8 | 55.7 | 33.4 | 0.3 |
--------------------------------------------------------------------------------
| Financial | | | | | | | |
--------------------------------------------------------------------------------
| expenses | -2.7 | -2.7 | -2.7 | -5.2 | -4.6 | -5.7 | -4.1 |
--------------------------------------------------------------------------------
| Financial | | | | | | | |
--------------------------------------------------------------------------------
| income | 0.9 | 0.9 | 0.8 | 0,0 | 0.4 | 2.1 | 1.0 |
--------------------------------------------------------------------------------
| Share of the results | | | | | | |
--------------------------------------------------------------------------------
| of affiliated | | | | | | |
--------------------------------------------------------------------------------
| companies | 0.8 | 0,0 | -0.3 | 0.2 | 0.8 | 0.5 | -0.1 |
--------------------------------------------------------------------------------
| Result | | | | | | | |
--------------------------------------------------------------------------------
| before | 48.7 | 13.5 | -9.1 | 20.7 | 52.3 | 30.3 | -3.0 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Income | -13.0 | -3.4 | 1.7 | -4.8 | -12.1 | -6.1 | 1.1 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | | |
--------------------------------------------------------------------------------
| the accounting | | | | | | |
--------------------------------------------------------------------------------
| period | 35.7 | 10.1 | -7.3 | 15.9 | 40.1 | 24.2 | -1.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the result for the accounting period | | |
--------------------------------------------------------------------------------
| To shareholders | | | | | | |
--------------------------------------------------------------------------------
| of the parent | | | | | | |
--------------------------------------------------------------------------------
| company | 34.1 | 9.2 | -8.3 | 13.6 | 38.4 | 22.1 | -3.7 |
--------------------------------------------------------------------------------
| To minority | | | | | | | |
--------------------------------------------------------------------------------
| interests | 1.6 | 0.9 | 1.0 | 2.4 | 1.7 | 2.1 | 1.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from result attributable to | | | |
--------------------------------------------------------------------------------
| parent company shareholders | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | | |
--------------------------------------------------------------------------------
| EUR | 2.00 | 0.54 | -0.49 | 0.80 | 2.26 | 1.30 | -0.22 |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | | |
--------------------------------------------------------------------------------
| EUR diluted | 2.00 | 0.54 | -0.49 | 0.80 | 2.26 | 1.30 | -0.22 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY BUSINESS SECTOR | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. | | | 03/200 | 03/200 | Change | Change, | 12/2006 |
| | | | 7 | 6 | | | |
--------------------------------------------------------------------------------
| | | | | | | % | |
--------------------------------------------------------------------------------
| Paving and Mineral | | | | | |
--------------------------------------------------------------------------------
| Aggregates Division | 41.9 | 23.9 | 18.0 | 75.3 | 559.0 |
--------------------------------------------------------------------------------
| Building Materials Division | 18.5 | 11.6 | 6.9 | 59.5 | 104.4 |
--------------------------------------------------------------------------------
| Lemcon Ltd | 76.2 | 100.9 | -24.7 | -24.5 | 344.0 |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab | 155.3 | 129.7 | 25.6 | 19.7 | 637.5 |
--------------------------------------------------------------------------------
| Tekmanni Oy | 46.2 | 42.9 | 3.3 | 7.7 | 191.7 |
--------------------------------------------------------------------------------
| Others | -10.1 | -5.6 | -4.5 | -80.4 | -40.7 |
--------------------------------------------------------------------------------
| Group total | 328.0 | 303.5 | 24.5 | 8.1 | 1 795.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY BUSINESS SECTOR, QUARTERLY | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 7-9/ | 10-12/ | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-3/ |
--------------------------------------------------------------------------------
| EUR mill. | 2005 | 2005 | 2006 | 2006 | 2006 | 2006 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral | | | | | | |
--------------------------------------------------------------------------------
| Aggregates | | | | | | | |
--------------------------------------------------------------------------------
| Division | 223.8 | 128.8 | 23.9 | 147.8 | 249.6 | 137.7 | 41.9 |
--------------------------------------------------------------------------------
| Building Materials | | | | | | |
--------------------------------------------------------------------------------
| Division | 38.7 | 19.4 | 11.6 | 29.8 | 37.2 | 25.8 | 18.5 |
--------------------------------------------------------------------------------
| Lemcon Ltd | 82.6 | 96.9 | 100.9 | 71.8 | 98.8 | 72.5 | 76.2 |
--------------------------------------------------------------------------------
| Oy Alfred | | | | | | | |
| A. | | | | | | | |
--------------------------------------------------------------------------------
| Palmberg Ab | 140.0 | 142.2 | 129.7 | 141.7 | 155.2 | 211.0 | 155.3 |
--------------------------------------------------------------------------------
| Tekmanni Oy | 46.8 | 51.4 | 42.9 | 44.8 | 47.6 | 56.3 | 46.2 |
--------------------------------------------------------------------------------
| Others | -15.0 | -9.2 | -5.6 | -8.2 | -14.5 | -12.4 | -10.1 |
--------------------------------------------------------------------------------
| Group total | 516.7 | 429.5 | 303.5 | 427.8 | 573.9 | 490.8 | 328.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS BY BUSINESS SECTOR | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. | | | 03/200 | 03/200 | Change | Change, | 12/2006 |
| | | | 7 | 6 | | | |
--------------------------------------------------------------------------------
| | | | | | | % | |
--------------------------------------------------------------------------------
| Paving and Mineral | | | | | |
--------------------------------------------------------------------------------
| Aggregates Division | -16.4 | -19.2 | 2.8 | 14.6 | 35.5 |
--------------------------------------------------------------------------------
| Building Materials Division | -1.3 | -1.8 | 0.5 | 27.8 | 5.0 |
--------------------------------------------------------------------------------
| Lemcon Ltd | 4.5 | 4.1 | 0.4 | 9.8 | 12.5 |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab | 13.9 | 7.5 | 6.4 | 85.3 | 52.4 |
--------------------------------------------------------------------------------
| Tekmanni Oy | 1.3 | 2.2 | -0.9 | -40.9 | 6.9 |
--------------------------------------------------------------------------------
| Others | -1.8 | 0.3 | -2.1 | over 100 | -4.3 |
--------------------------------------------------------------------------------
| Group total | 0.3 | -6.8 | 7.1 | over 100 | 108.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS BY BUSINESS SECTOR, QUARTERLY | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 7-9/ | 10-12 | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-3/ |
| | | / | | | | | |
--------------------------------------------------------------------------------
| EUR mill. | 2005 | 2005 | 2006 | 2006 | 2006 | 2006 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral | | | | | | |
--------------------------------------------------------------------------------
| Aggregates | | | | | | | |
--------------------------------------------------------------------------------
| Division | 29.6 | 5.3 | -19.2 | 7.6 | 33.7 | 13.3 | -16.4 |
--------------------------------------------------------------------------------
| Building Materials | | | | | | |
--------------------------------------------------------------------------------
| Division | 3.9 | -1.3 | -1.8 | 1.9 | 4.6 | 0.3 | -1.3 |
--------------------------------------------------------------------------------
| Lemcon Ltd | 5.4 | 5.2 | 4.1 | 3.1 | 4.3 | 1.0 | 4.5 |
--------------------------------------------------------------------------------
| Oy Alfred | | | | | | | |
| A. | | | | | | | |
--------------------------------------------------------------------------------
| Palmberg Ab | 9.5 | 5.7 | 7.5 | 14.3 | 10.8 | 19.8 | 13.9 |
--------------------------------------------------------------------------------
| Tekmanni Oy | 2.5 | 1.1 | 2.2 | 0.1 | 3.4 | 1.1 | 1.3 |
--------------------------------------------------------------------------------
| Others | -1.3 | -0.7 | 0.3 | -1.3 | -1.2 | -2.2 | -1.8 |
--------------------------------------------------------------------------------
| Group total | 49.6 | 15.3 | -6.8 | 25.8 | 55.7 | 33.4 | 0.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. | | | | 03/200 | 03/2006 | | 12/2006 |
| | | | | 7 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Tangible assets | 174.6 | 167.8 | | 169.4 |
--------------------------------------------------------------------------------
| Goodwill | 75.1 | 63.7 | | 68.2 |
--------------------------------------------------------------------------------
| Other intangible assets | 2.3 | 2.5 | | 2.5 |
--------------------------------------------------------------------------------
| Investments | 9.3 | 8.6 | | 9.4 |
--------------------------------------------------------------------------------
| Deferred tax asset | 7.6 | 9.3 | | 4.3 |
--------------------------------------------------------------------------------
| Other non-current receivables | 2.4 | 1.6 | | 2.2 |
--------------------------------------------------------------------------------
| Total | 271.3 | 253.5 | | 255.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 294.7 | 240.0 | | 281.9 |
--------------------------------------------------------------------------------
| Trade and other receivables | 335.8 | 298.3 | | 340.7 |
--------------------------------------------------------------------------------
| Cash funds | 55.8 | 38.5 | | 60.6 |
--------------------------------------------------------------------------------
| Total | 686.3 | 576.8 | | 683.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets, total | 957.6 | 830.3 | | 939.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to shareholders of the parent company |
--------------------------------------------------------------------------------
| Share capital | 34.0 | 34.0 | | 34.0 |
--------------------------------------------------------------------------------
| Shareholders' equity | | | | |
--------------------------------------------------------------------------------
| before minority interest | 184.7 | 140.2 | | 214.0 |
--------------------------------------------------------------------------------
| Minority interest | 16.7 | 13.3 | | 19.7 |
--------------------------------------------------------------------------------
| Shareholders' equity, total | 235.5 | 187.6 | | 267.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 15.8 | 16.1 | | 14.6 |
--------------------------------------------------------------------------------
| Pension liabilities | 1.2 | 0.4 | | 1.1 |
--------------------------------------------------------------------------------
| Provisions | 1.9 | 3.4 | | 1.7 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 101.6 | 99.5 | | 91.2 |
--------------------------------------------------------------------------------
| Other liabilities | 1.7 | 3.0 | | 1.7 |
--------------------------------------------------------------------------------
| Total | 122.1 | 122.4 | | 110.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 292.3 | 256.2 | | 303.0 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | 5.4 | 2.7 | | 5.7 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 302.4 | 261.4 | | 252.5 |
--------------------------------------------------------------------------------
| Total | 600.0 | 520.3 | | 561.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and | | | | |
--------------------------------------------------------------------------------
| liabilities, total | 957.6 | 830.3 | | 939.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN EQUITY | |
--------------------------------------------------------------------------------
| | | | | | | | Share- |
--------------------------------------------------------------------------------
| | | Share | Trans- | Revalu- | | holders' |
--------------------------------------------------------------------------------
| EUR mill. | Shar | premiu | lation | ation | Retaine | Minorit | equity |
| | e | m | | | d | y | |
--------------------------------------------------------------------------------
| capital | accoun | differen | reserve | earning | interes | total |
| | t | ce | | s | t | |
--------------------------------------------------------------------------------
| Shareholders' | | | | | | |
--------------------------------------------------------------------------------
| equity, | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2006 | 34.0 | 5.8 | 0.4 | 1.5 | 159.2 | 14.6 | 215.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | | | | | | |
--------------------------------------------------------------------------------
| difference | | -0.5 | | | | -0.5 |
--------------------------------------------------------------------------------
| Hedging of net | | | | | | |
--------------------------------------------------------------------------------
| investment in | | | | | | |
--------------------------------------------------------------------------------
| foreign | | | | | | |
--------------------------------------------------------------------------------
| subsidiary | | 0.3 | | | | 0.3 |
--------------------------------------------------------------------------------
| Change in | | | | | | |
--------------------------------------------------------------------------------
| fair value | | | 0.1 | | | 0.1 |
--------------------------------------------------------------------------------
| Effect of | | | | | | |
--------------------------------------------------------------------------------
| sold shares | | | -1.5 | | | -1.5 |
--------------------------------------------------------------------------------
| Reversal of | | | | | | |
--------------------------------------------------------------------------------
| dividend | | | | | | |
--------------------------------------------------------------------------------
| liability | | | | 0,0 | | 0,0 |
--------------------------------------------------------------------------------
| Dividend | | | | | | |
--------------------------------------------------------------------------------
| distribution | | | | -17.0 | | -17.0 |
--------------------------------------------------------------------------------
| Result for the | | | | | | |
--------------------------------------------------------------------------------
| accounting | | | | | | |
--------------------------------------------------------------------------------
| period | | | | 65.8 | 7.1 | 72.9 |
--------------------------------------------------------------------------------
| Change in | | | | | | |
--------------------------------------------------------------------------------
| minority | | | | | | |
--------------------------------------------------------------------------------
| interest | | | | | -2.0 | -2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholde | | | | | | | |
| rs' | | | | | | | |
--------------------------------------------------------------------------------
| equity, | | | | | | | |
--------------------------------------------------------------------------------
| 31.12.2006 | 34.0 | 5.8 | 0.1 | 0.1 | 208.0 | 19.7 | 267.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | | | | | | |
--------------------------------------------------------------------------------
| difference | | 0.2 | | | | 0.2 |
--------------------------------------------------------------------------------
| Hedging of net | | | | | | |
--------------------------------------------------------------------------------
| investment in | | | | | | |
--------------------------------------------------------------------------------
| foreign | | | | | | |
--------------------------------------------------------------------------------
| subsidiary | | -0.2 | | | | -0.2 |
--------------------------------------------------------------------------------
| Change in | | | | | | |
--------------------------------------------------------------------------------
| fair value | | | 0.0 | | | 0.0 |
--------------------------------------------------------------------------------
| Dividend | | | | | | |
--------------------------------------------------------------------------------
| distribution | | | | -25.5 | | -25.5 |
--------------------------------------------------------------------------------
| Result for the | | | | | | |
--------------------------------------------------------------------------------
| accounting | | | | | | |
--------------------------------------------------------------------------------
| period | | | | -3.7 | 1.9 | -1.8 |
--------------------------------------------------------------------------------
| Change in | | | | | | |
--------------------------------------------------------------------------------
| minority | | | | | | |
--------------------------------------------------------------------------------
| interest | | | | | -4.9 | -4.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | | | | | | |
--------------------------------------------------------------------------------
| equity, | | | | | | |
--------------------------------------------------------------------------------
| 31.3.2007 | 34.0 | 5.8 | 0.1 | 0.1 | 178.8 | 16.7 | 235.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF SOURCE AND APPLICATION OF FUNDS | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. | | | | 03/2007 | 03/2006 | | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before extraordinary items | -3.0 | -9.1 | | 94.2 |
--------------------------------------------------------------------------------
| Depreciation according to plan | 4.9 | 5.0 | | 35.0 |
--------------------------------------------------------------------------------
| Other adjustments | -3.7 | -2.0 | | 4.1 |
--------------------------------------------------------------------------------
| Cash flow before change | | | | |
--------------------------------------------------------------------------------
| in working capital | -1.8 | -6.0 | | 133.3 |
--------------------------------------------------------------------------------
| Change in working capital | -14.8 | -63.0 | | -109.3 |
--------------------------------------------------------------------------------
| Financial items | -2.7 | -1.1 | | -11.9 |
--------------------------------------------------------------------------------
| Direct taxes paid | -5.0 | -6.3 | | -19.2 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | -24.2 | -76.4 | | -7.2 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -12.6 | -3.8 | | -14.4 |
--------------------------------------------------------------------------------
| Change in loans | 59.0 | 94.4 | | 58.9 |
--------------------------------------------------------------------------------
| Dividends paid | -27.0 | -18.0 | | -18.5 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | 32.0 | 76.4 | | 40.4 |
--------------------------------------------------------------------------------
| Change in cash funds | -4.8 | -3.8 | | 18.8 |
--------------------------------------------------------------------------------
| Cash funds at beginning of period | 60.6 | 42.4 | | 42.4 |
--------------------------------------------------------------------------------
| Translation difference of | 0.0 | -0.1 | | -0.6 |
| cash funds | | | | |
--------------------------------------------------------------------------------
| Cash funds at end of period | 55.8 | 38.5 | | 60.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ECONOMIC TRENDS AND | | | | |
--------------------------------------------------------------------------------
| FINANCIAL INDICATORS | 03/2007 | 03/2006 | | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | -0.7 | -3.6 | | 30.2 |
--------------------------------------------------------------------------------
| Return on investment, % | 0.2 | -1.2 | | 20.6 |
--------------------------------------------------------------------------------
| Operating profit, % of net sales | 0.1 | -2.3 | | 6.0 |
--------------------------------------------------------------------------------
| Equity ratio, % | 27.3 | 25.4 | | 31.2 |
--------------------------------------------------------------------------------
| Gearing, % | 147.8 | 171.8 | | 105.7 |
--------------------------------------------------------------------------------
| Interest-bearing net debt, | 348.1 | 322.4 | | 283.0 |
| EUR million | | | | |
--------------------------------------------------------------------------------
| Gross investments, EUR million | | | | |
--------------------------------------------------------------------------------
| (incl. leasing purchases) | 21.9 | 9.4 | | 48.7 |
--------------------------------------------------------------------------------
| Order book, EUR mill. | 1 439.7 | 1 155.7 | | 1 326.7 |
--------------------------------------------------------------------------------
| - of which foreign orders, | 355.2 | 349.8 | | 331.8 |
| EUR mill. | | | | |
--------------------------------------------------------------------------------
| Average number of employees | 7 875 | 7 187 | | 8 418 |
--------------------------------------------------------------------------------
| Employees at end of period | 8 101 | 7 354 | | 8 087 |
--------------------------------------------------------------------------------
| Net sales, EUR mill. | 328.0 | 303.5 | | 1 795.9 |
--------------------------------------------------------------------------------
| - of which operations abroad, | 68.9 | 90.9 | | 530.3 |
| EUR mill. | | | | |
--------------------------------------------------------------------------------
| % of net sales | 21.0 | 30.0 | | 29.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE-SPECIFIC INDICATORS | 03/2007 | 03/2006 | | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.22 | -0.49 | | 3.87 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 12.85 | 10.24 | | 14.57 |
--------------------------------------------------------------------------------
| Dividend per share, EUR | | | | 1.50 |
--------------------------------------------------------------------------------
| Dividend to earnings ratio, % | | | | 38.8 |
--------------------------------------------------------------------------------
| Market capitalisation, EUR mill. | 774.5 | 593.4 | | 614.5 |
--------------------------------------------------------------------------------
| Share price at end of period, EUR | 45.50 | 34.86 | | 36.10 |
--------------------------------------------------------------------------------
| Trading volume during period, | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 2 025 | 1 251 | | 4 114 |
--------------------------------------------------------------------------------
| Number of issued shares, 1,000 | 17 021 | 17 021 | | 17 021 |
| shares | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GUARANTEES AND CONTINGENT LIABILITIES | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. | | | | 03/2007 | 03/2006 | | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Securities for own commitments | | | | |
--------------------------------------------------------------------------------
| Property mortgages | 1.6 | 2.5 | | 2.4 |
--------------------------------------------------------------------------------
| Business mortgages | 99.5 | 98.7 | | 100.1 |
--------------------------------------------------------------------------------
| Bonds pledged as security | 0.8 | 0.6 | | 0.8 |
--------------------------------------------------------------------------------
| Total | 101.9 | 101.8 | | 103.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Guarantees | | | | |
--------------------------------------------------------------------------------
| On behalf of affiliated companies | 0.8 | 0.5 | | 0.8 |
--------------------------------------------------------------------------------
| On behalf of others | 3.8 | 0.9 | | 5.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities | 45.4 | 26.0 | | 44.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase commitments of investments | 2.2 | | | 2.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative contracts | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Forward foreign exchange contracts | | | | |
--------------------------------------------------------------------------------
| Nominal value | 38.1 | 13.3 | | 11.2 |
--------------------------------------------------------------------------------
| Fair value | 0.0 | 0.0 | | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency options, calls purchased | | | | |
--------------------------------------------------------------------------------
| Nominal value | 0,0 | 1.7 | | 0,0 |
--------------------------------------------------------------------------------
| Fair value | 0,0 | 0.0 | | 0,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency options, puts written | | | | |
--------------------------------------------------------------------------------
| Nominal value | 0,0 | 0.8 | | 0,0 |
--------------------------------------------------------------------------------
| Fair value | 0,0 | 0.0 | | 0,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate options, calls purchased | | | |
--------------------------------------------------------------------------------
| Nominal value | 34.5 | 36.4 | | 34.5 |
--------------------------------------------------------------------------------
| Fair value | 0,0 | 0.0 | | 0,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate options, puts written | | | | |
--------------------------------------------------------------------------------
| Nominal value | 5.1 | 7.0 | | 5.0 |
--------------------------------------------------------------------------------
| Fair value | -0.1 | -0.4 | | -0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate swap contracts | | | | |
--------------------------------------------------------------------------------
| Nominal value | 30.2 | 12.1 | | 30.2 |
--------------------------------------------------------------------------------
| Fair value | -1.6 | -0.1 | | -2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The fair value of contracts is the gain or loss arising from closure |
--------------------------------------------------------------------------------
| of the contract based on the market price on the accounting date. |
--------------------------------------------------------------------------------