Tänase börsipäeva tähtsaim sündmus on kahtlemata USA Föderaalreservi õhtune istung, kus arutlusel intressimäärade tõstmise küsimus. Mainitud istungilt turuosalised küll intressimäärade tõstmist veel ei oota, küll aga vihjeid tuleviku suhtes: millal on intressimäärade tõstmine tõenäoline ja mida arvab Föderaalreserv USA majanduse arengust lähemal ajal?
Tänased olulisemad sündmused Euroopa turgudel:
Tallinna Börsil avaldab tulemused Hansapank (HPA1T), täna hommikuse aktsiaraamatu seisu alusel fikseeriti ka dividendide ja fondiemissioonist laekuva 3 täiendava aktsia saajad. Nii dividendid kui täiendavad aktsiad kantakse plaani kohaselt aktsionäride kontodele 11. mail. Tulemuste eel kütab täiendavalt kirgi üles eile õhtul avaldatud börsiteade, mille kohaselt lahkub Hansapanga juhatusest Eesti eraisikute panganduse juht Andres Liinat.
Stockholmi Börsil avaldab tulemused Hansapanga suuromanik FöreningsSparbanken (FSPAA), väljaspool Rootsit enam tuntud Swedbank nime all.
Helsingi Börsil avaldab tulemused LHV investeerimisideena 5 kuu jooksul ca 32% tootlust pakkunud Raisio Group (RAIVV) - võimalik, et tulemuste järel peab idee autor Rene õigeks positsioon lõplikult sulgeda.
OLULISEMAD SÜNDMUSED: - Puhaskasum 42,8 mln eurot, aastane kasv 24%; - Tulud - aastane kasv 14%; - Tegevuskulud - aastane kasv 6%; - Tegevuskasum enne makse 44,9 mln eurot - aastane kasv 25%; - EVA 25,6 mln eurot, aastane kasv 50%; - Puhas intressimarginaal 3,40%, kvartaalne langus 0,05% ja aastane langus 0,46%; - Omakapitali tootlus 24,6%, varade tootlus 2,6%, kasum aktsia kohta 2,16 eurot; - Kulu-tulu suhe 45,7%;
Venemaa ja Ukraina autotehaste tellimuste jдtkuva vдhenemise tхttu on vдhenenud AS Norma tootmismahud. Seoses tootmise vдhenemisega esitas AS Norma juhatus taotluse Tццinspektsioonile tццlepingute kollektiivseks lхpetamiseks 32 tццkoha ulatuses.Tццinspektsioon andis loa/kooskхlastuse lхpetada tццlepingud 32 tццtajaga. Kavandatav tццkohtade vдhendamine moodustab 4% tццkohtade ьldarvust. Tццkohtade vдhendamise eesmдrgiks on kulude optimiseerimine ja tootmisvхimsuste vastavusse viimine Venemaa ja Ukraina autotццstuse tellimustega. Tццkohtade arvu vдhendamist ei toimu Autolivi-le toodangut valmistavas divisionis.
Raisio tulemused näitavad selget paranemist võrreldes eelmise aastaga, samuti lubas ettevõte jääda kindlalt kasumisse käesoleval aastal. Kemikaaliüksuse müük loodetakse lõpetada 2Q või 3Q, pärast seda saab kasutama hakata ka müügist saadud raha. Raha kasutusest hetkel ei räägitud veel midagi.
RAISIO GROUP INTERIM REPORT 1 JANUARY-31 MARCH 2004
Raisio Group's Financial Performance Improved
- Raisio Group's turnover for the first quarter was up by 2.3 per cent and totalled EUR 205.6 million (EUR 201.0 million in the first quarter of 2003). - Operating result moved into the black, showing a profit of EUR 0.7 million (EUR -6.7 million). - Cash flow from business operations improved significantly compared to the first quarter of 2003. - The divestment of Raisio Chemicals is progressing as planned. - The Group's operative result before taxes for the whole year is expected to show a profit.
Key Figures Q1/2004 Q1/2003 2003
Turnover, EUR million 205.6 201.0 860.5 Operating result, EUR million 0.7 -6.7 -14.3 Result before taxes, EUR million -2.3 -9.2 -27.2 Earnings per share, EUR -0.03 -0.06 -0.16 Equity ratio, % 31.3 33.7 32.2 Cash flow from business operations, EUR million 2.3 -15.6 77.0
CEO Rabbe Klemets:
“All business sectors showed positive development in the first quarter. The demand for paper chemicals was slightly higher than a year earlier, but the improvement in Raisio Chemicals' profitability could primarily be attributed to the results of the rationalisation programmes carried out last year. The streamlining of Raisio Nutrition's business activities in spring 2003 and the continuing difficulties with margarine sales in Sweden taxed the sector's turnover. Nevertheless, comparable operating result improved. The input Raisio Life Sciences made last year in the European ingredients markets began to pay off through new customers and new product applications in the last quarter of 2003. The sector was able to almost double its turnover and make an operating profit.
However, what characterised the first quarter most distinctly was the strategy reassessment process, which resulted in the decision to focus the Group's resources on developing the Nutrition and Life Sciences businesses. Therefore, we decided to find a new industrial owner for Raisio Chemicals. Among several potential buyers, Ciba Specialty Chemicals was considered the best alternative from both the financial and the industrial perspective. The enterprise value of EUR 475 million will settle Raisio's debts and will allow it to focus more sharply on its key competence area, well-being.ö
RESULTS AND FINANCING
Raisio Group recorded a turnover of EUR 205.6 million (EUR 201.0 million) in the first quarter. Raisio Life Sciences and Raisio Chemicals were able to increase their turnover, while Raisio Nutrition's turnover decreased slightly.
Using the Q1/2003 exchange rates, turnover was up by 1.8 per cent to EUR 209.3 million. Exchange rate fluctuations did not have a significant impact on the results.
Turnover from outside Finland represented 50.7% (53.0%) of the total, or EUR 104.1 million (EUR 106.5 million).
Operating result for the first quarter was EUR 0.7 million (EUR -6.7 million). The result before taxes was EUR -2.3 million (EUR -9.2 million).
Research and development costs amounted to EUR 5.4 million (EUR 5.8 million).
Net financial expenses in the January to March period totalled EUR 3.0 million (EUR 2.5 million). Exchange rate losses in the amount of EUR 0.1 million were recorded for the period, compared with gains of EUR 0.5 million a year earlier.
Taxes are calculated based on the appropriate tax on the result. The result for the financial period was EUR -4.3 million (EUR -9.3 million). The parent company's tax surplus amounts to EUR 8.4 million.
Cash flow from business operations totalled EUR 2.3 million (EUR -15.6 million) in the first quarter. The Group's gross investments totalled EUR 12.5 million (EUR 8.6 million). The largest single investments involved the construction of paper chemical plants in China. Raisio Nutrition's investments involved launching a margarine factory in Russia and constructing a new production line for the potato processing plant in Vihanti, Finland.
The Group's net interest-bearing liabilities were EUR 287.9 million (EUR 277.8 million on 31 December 2003) at the end of the period. Equity ratio was 31.3% (32.2% on 31 December 2003) and gearing was 135.6% (127.9% on 31 December 2003). Working capital rose slightly from EUR 110.4 million at the year-end to EUR 113.4 million, but was still clearly lower than in the first quarter of 2003 (EUR 179.2 million).
BUSINESS SECTORS
Raisio Chemicals
The turnover for Raisio Chemicals was up by 3.3% to EUR 106.5 million (EUR 103.2 million). A challenging market situation persisted, although there were signs of recovery in the demand for latex binders in Europe. Customer deliveries from the latex and specialty chemicals plants in China started.
Raisio Chemicals Turnover by Business Area, EUR million
The results of the rationalisation and efficiency-boosting measures initiated last year reflected on the profitability of Raisio Chemicals: operating result rose to EUR 1.9 million (EUR - 3.2 million). The latex and starch binder business areas performed well. Meanwhile, the profitability of the specialty chemicals business was on a par with the previous year.
Future Printing Center, an associated company of Raisio Chemicals, launched activities in Raisio at the beginning of 2004.
Raisio Nutrition
Raisio Nutrition posted a turnover of EUR 91.1 million (EUR 94.6 million). The ice cream and almond paste businesses sold in the spring of 2003 as well as the discontinuation of industrial margarine production in Sweden taxed the turnover of the food business area. Margarine sales volumes continued to fall in Sweden. Turnover generated by the feeds and malt business areas remained on the Q1/2003 level.
Raisio Nutrition Turnover by Business Area and Business, EUR million
Raisio Nutrition was able to boost its operative results. Disclosed operating result was on a par with Q1/2003 at EUR -1.5 million (EUR -1.4 million). The Q1/2003 result includes a sales profit of EUR 1.2 million from the divestment of the ice cream business. The rationalisation programme launched in 2003 had, so far, only a partial impact on the result.
Favourable development in the margarine business in Finland and in Poland helped improve the operating result, as did the better performance of the milling business. Result for the animal feeds business was hampered by low pressing margins from the oil milling business.
Losses suffered in the Swedish margarine market also strained the sector's financial performance. The strategic and operative reassessment of the Swedish operations is under way. In March, Raisio's last remaining margarine production stage in Sweden was wound up, and the property maintenance services were outsourced. Sales of Raisio's own margarine brands to the Swedish retail trade are now handled through Cerealia Foods' sales network. Further additional decisions will be made by autumn. The Swedish operations carry goodwill of EUR 21.5 million which may include a need for a significant write-down.
Raisio Nutrition's margarine production plant in Istra, near Moscow, came online in January. Besides Poland, Russia represents one of the key future growth areas for Raisio Nutrition. The Istra plant and the Russian sales organisation employ approximately 100 people in total.
Raisio Nutrition and Lännen Tehtaat plan to join sales forces in the catering sector and provide these services through a 50/50 owned sales company, Ateriamestarit Oy. The application is still being processed by the Finnish Competition Authority.
The Finnish Food and Drink Industries' Federation awarded Raisio Nutrition the “Finnish Food Product of the Yearö award in 2004 in the retail trade grain product series for its multigrain cereal and bran mixture with linseed (Sydänystävä Pellavainen Monivilja). The Beneviva Omega3 light margarine also made it to the finals. Thanks to the Camelina oil used in its production, this margarine contains a significant amount of fatty acids that are essential for humans. The success of these products is an indication of Raisio Nutrition's expertise in the grain and vegetable oil segments.
Raisio Life Sciences
The turnover for Raisio Life Sciences grew by 88.7% and amounted to EUR 11.8 million (EUR 6.3 million). In addition to the in April 2003 acquired food diagnostics company Diffchamb, good development in the ingredient business helped fuel the growth of turnover. The determined inputs made in the European ingredients market last year are beginning to bear fruit.
One particularly successful product application is the yoghurt drink sold in small bottles. This product is currently sold in nine European countries. Furthermore, the first quarter saw the launch of milk containing the Benecol ingredient in Spain, a Benecol light spread in Greece and a Benecol yoghurt drink in Finland.
Raisio Life Sciences Turnover by Business Area, EUR million
Operating result rose to EUR 0.6 million (EUR -1.6 million) thanks to increased sales volumes and a tight cost-cutting regime implemented in both business areas.
PERSONNEL AND ADMINISTRATION
Raisio Group employed 2,718 personnel on 31 March 2004 (2,735 on 31 December 2003), 47% of whom worked outside Finland (45% on 31 December 2003). The number of personnel increased as a result of the launch of Raisio Chemicals' new production plants in China, and the launch of Raisio Nutrition's margarine production in Russia. Meanwhile, the rationalisation programmes and the discontinuation of margarine production in Sweden reduced the number of personnel.
At the end of March, Raisio Chemicals employed 1,149 people, Raisio Nutrition 1,329 and Raisio Life Sciences 187.
Mr Vesa Lammela, Chairman of the Supervisory Board, resigned from his position after the Annual General Meeting held on 26 March 2004. Mr Ola Rosendahl, Vice Chairman, assumed his position for the time being.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
Raisio Group plc's Annual General Meeting held on 26 March 2004 approved the financial statements for 2003 and discharged those accountable from liability, and decided that a dividend of EUR 0.01 per share shall be paid. The dividend was paid on 7 April 2004.
The Board of Directors was authorised, for one year from the Annual General Meeting, to make a decision to increase the share capital. The maximum number of new shares to be subscribed under the authorisation is 20,000,000; however, the maximum number of restricted shares to be subscribed shall be 5,000,000. So far, the Board has not used its authorisation.
A decision was also made to reduce the number of Supervisory Board members to 25, effective as of the beginning of 2005. The following members due to resign were re-elected to the Supervisory Board from 2005 to 2007: Juhani Enkovaara, Erkki S. Koskinen, Hans Langh, Johan Laurén, Asko Leinonen and Yrjö Ojaniemi.
Johan Kronberg and Mika Kaarisalo, authorised public accountants, were elected regular auditors for the financial year 2005. The accounting firm of PricewaterhouseCoopers Oy and Kalle Laaksonen, authorised public accountant, were elected deputy auditors.
SHARES AND SHAREHOLDERS
The trading volume of Raisio Group plc's free shares grew significantly in the first quarter. The number of free shares traded on the Helsinki Exchanges between January and March totalled 46.6 million (11.6 million in Q1/2003). The value of share trading was EUR 65.9 million and the average share price was EUR 1.42. The closing price on 31 March 2004 was EUR 1.54. The price of the Series V share rose by 22% from the beginning of the year.
A total of 456,621 restricted shares were traded in the January to March period (63,886). The value of share trading was EUR 683,524 and the average share price was EUR 1.50. The closing price on 31 March 2004 was EUR 1.52. The price of the Series K share rose by 23% from the beginning of the year.
On 31 March 2004, Raisio Group had 45,996 registered shareholders. Of all shares, 7.7% was in foreign holding (5.8% on 31 December 2003) with the corresponding value for free shares being 9.7% (7.4% on 31 December 2003).
The subscription period for the 1998-2003 option programme ended on 30 January 2004. No shares were subscribed under this programme.
ADOPTION OF THE IFRS ACCOUNTING STANDARDS
Preparation for the adoption of the IFRS standard compliant accounting system has progressed as planned. Raisio Group will adopt IFRS compliant accounting methods in 2005. IFRS compliant figures for 2004 will be published in the spring of 2005.
THE DIVESTMENT OF RAISIO CHEMICALS
In March 2004, Raisio Group and the Swiss Ciba Specialty Chemicals signed an agreement regarding the sale of Raisio Chemicals.
The enterprise value of the sale is EUR 475 million. The sale price consists of a cash payment and the transfer of debts. The sale price will generate approximately EUR 200 million in pre-tax sales profit. The sale of Raisio Chemicals will raise Raisio Group's equity ratio to approximately 80%, assuming all interest- bearing debt would be repaid. Finalising the deal requires the approval of the competition and merger control authorities. All the necessary filing has been made. The final closing date depends on the length of the regulatory review, but it is currently expected to take place in the second or the third quarter of 2004
STRATEGY PROCESS
The new Group strategy will be built on special expertise in well- being, which is at the heart of Raisio's activities in the food and the functional food ingredients, animal feeds and food diagnostics.
One of the cornerstones of the strategy, which is currently being prepared, is to accelerate organic growth. Measures taken to pursue organic growth include stronger focus on research and development, which will allow Raisio to renew the product portfolio. By expediting research and development, Raisio can expand the range of plant-based products and launch new, tasty and healthy foods and animal feeds, as well as functional food ingredients. For the fast growing food diagnostics markets rapid testing methods will be developed.
To support its objective to bolster R&D activities, Raisio has decided to set up research centres in order to promote food and food diagnostics development. Raisio's new strategic nutrition research unit will be located at the Viikki campus in Helsinki. Strong focus will be placed on product development and quality assurance in the production locations. A food diagnostics research centre will start its operations in Turku Sciences Park in May.
Russia and Poland provide interesting growth potential, and networking with other players in the field is already under way in the Baltic Sea region. Ingredient and diagnostic businesses are expected to drive Raisio's global expansion and rapid growth.
The strategy will be published during the summer.
OUTLOOK
The implemented rationalisation and efficiency-boosting measures will help trim costs, thereby allowing both Raisio Chemicals and Raisio Nutrition to improve their financial performance despite the challenging business environment. Raisio Life Sciences is expected to sustain good growth and improve its profitability also in the following quarters. Raisio Group's operative result before taxes for the whole year is expected to show a profit.
The divestment of Raisio Chemicals should be finalised in the second or third quarter. The sale price of EUR 475 million will make Raisio a debt-free company. The sales profit will increase the operating profit by some EUR 200 million and profit after taxes by some EUR 140 million.
Raisio, 4 May 2004
Raisio Group plc Board of Directors
Further information: Taru Narvanmaa, Executive Vice President, Communications and Investor Relations, tel. +358 50 590 9398 Antti Salminen, Chief Financial Officer, tel. +358 40 535 1216
Raisio Group plc, P.O.Box 101, FI-21201 Raisio, Finland tel. +358 2 443 2111, www.raisiogroup.com
Press- and analyst meetings will be held on 4 May 2004 at 11.30 in Raisio and at 15.00 in Helsinki. English conference call will be held at 16.30 Finnish time.
The figures in this interim report are not audited.
CONSOLIDATED INCOME STATEMENT (EURm) 1-3/2004 1-3/2003 2003
Turnover 205.6 201.0 860.5
Income and expenses from business operations -192.2 -194.5 -814.5 Depreciation of goodwill -1.3 -1.2 -5.1 Other depreciation and write-downs -11.1 -11.9 -54.8 Share of associated companies' results -0.2 -0.1 -0.3 Operating result 0.7 -6.7 -14.3 % of turnover 0.3 -3.3 -1.7
Financial income 0.8 1.6 4.1 Financial expenses -3.8 -4.1 -17.0
Result before extraordinary items and taxes -2.3 -9.2 -27.2 % of turnover -1.1 -4.6 -3.2
Extraordinary items 0.0 0.0 0.0
Result before taxes -2.3 -9.2 -27.2 % of turnover -1.1 -4.6 -3.2
Income taxes -2.0 0.0 1.4 Minority interest 0.0 -0.1 -0.9
Consolidated result for the period -4.3 -9.3 -26.7 % of turnover -2.1 -4.6 -3.1
**A total of USD 154 million had been withdrawn under the Group's syndicated loan facility by 31 March 2004. The total credit limit is USD 190 million, and the key covenant is an equity ratio of at least 30%.
CONSOLIDATED SOURCE AND APPLICATION OF FUNDS (EURm) 1-3/2004 1-3/2003 31.12.2003
Cash flow before change in working capital 13.6 6.4 44.4 Change in working capital -5.9 -18.3 50.7 Financial items and taxes -5.3 -3.7 -18.2 Cash flow from business operations 2.3 -15.6 77.0
Investments -12.2 -9.5 -65.8 Proceeds from sales of fixed assets 0.5 1.9 3.6 Cash flow from investments -11.6 -7.6 -62.2
Change in non-current loans 1.0 -0.7 -18.1 Change in current liabilities 3.4 4.3 -1.0 Change in loan receivables -0.1 0.0 0.1 Dividend paid -0.2 0.0 -3.5 Cash flow from financial operations 4.2 3.7 -22.6
Unallocated items 0.6 0.2 0.3
Change in liquid funds -4.6 -19.4 -7.5
Liquid funds at beginning of period 34.6 42.2 42.2 Liquid funds at end of period 30.1 22.8 34.6
Assets given as security For the company Mortgages on real estate 72.6 61.4 72.4 Securities pledged 4.1 0.0 4.0 Corporate mortgages 46.9 49.0 53.1
Contingent off-balance-sheet liabilities Leasing liabilities Amounts outstanding on leasing contracts Falling due during 2004 4.1 3.4 4.7 Falling due later 7.9 6.7 4.9 Contingent liabilities for the Group companies Guarantees 1.0 6.0 1.0 Contingent liabilities for the Company 4.8 13.3 7.0 Contingent liabilities for associated companies Guarantees 0.0 15.5 0.0 Contingent liabilities for others Guarantees 1.1 1.1 0.4 Other liabilities 5.0 0.0 5.0 Liabilities arising from derivative contracts Raw material futures: market value -1.0 -0.3 -0.5 Raw material futures: value of underlying instruments 14.0 13.0 11.3 Forward electricity contracts: market value 0.2 0.0 Forward electricity contracts: value of underlying instruments 4.1 2.6 Currency forward contracts: market value 1.5 -0.1 2.1 Currency forward contracts: value of underlying instruments*) 61.9 18.6 53.0 Interest-rate swaps: market value -1.7 0.2 -1.5 Interest-rate swaps: value of underlying instruments 80.0 60.0 80.0
*) Some equity hedging of foreign subsidiaries was adopted during the review period, resulting in an appreciable increase in the total value of underlying instrument for currency forward contracts.
CONSOLIDATED TURNOVER BY BUSINESS SECTORS (EURm) 1-3/2004 1-3/2003 2003
-USA turud peaksid avanema kerges plussis. Nasdaqi futuurid on 2 punkti ning S&P 1,2 punkti plussis. Tänane tähtsündmus on siis Föderaalreservi Nõukogu istung. Kell 21.15 on oodata avaldust. Intressimäär peaks siiski jääma muutmata.
-Föderaalreservi Nõukogu istungilt oodatakse sõnumit intressimäära tõusu alguasja suhtes. Turg on aktsia hindadesse sisse arvestanud augustikuus toimuva intressimäära tõstmise, kuid spekuleeritakse juba ka juunikuu tõstmisega.
-Tööstuskonglomeraat Tyco International (TYC) avaldas oodatust tunduvalt kõrgemad kvartalikasumi numbrid. Firma tõstis kogu aasta kasumiprognoosi. Eelturul aktsia 3,6% plussis.
-Priceline.com (PCLN) teatas, et teenis eelmises kvartalis 5,1 miljonit dollarit ehk 13 senti aktsia kohta. Firma käive kasvas 12% 224,1 miljonile dollarile. Tulemused olid oodatust tunduvalt paremad. Aktsia eelturul siiski 0,5% miinuses.
Rev Shark:
Prepare for a test. The FOMC interest rate decision this afternoon at 2:15 p.m. EDT will test how sensitive this market is to the prospect of increasing rates. Although no one expects any change in rates at this time, the accompanying policy statement will be carefully scrutinized. If recent language about staying patient is modified or if there are other hints that action will be coming sooner rather than later, we are likely to see a strong reaction.
The optimistic bulls will tell us that this market has already priced in increased rates to some extent. Furthermore, strong economic growth should more than offset the impact of increased interest rates. So we shouldn't worry too much.
Perhaps, but the problem here is one of uncertainty. The market loathes uncertainty and there is still plenty of it when it comes to the interest rate issue. Although nearly everyone is expecting a rate increase at some point, there is little agreement about when exactly it may occur and how far the Fed will go once it begins to tighten.
The uncertainty about timing and degree and not the fact of potential rate hikes is what has been troubling this market lately. It is likely the FOMC will help clarify the situation to some extent today, but the market might not like what it hears if it appears the day of reckoning is sooner rather than later.
The market is on hold until the news is out this afternoon, and what makes things even more difficult is that the technical picture is precarious, at best. We had a little short-covering/dead-cat bounce yesterday but we didn't have the sort of breadth, volume or intensity to indicate that market participants were anxious to load up after last week's very nasty action.
All of the major indices face substantial technical overhead resistance now. So often throughout the rally since October 2002, we saw quick V-shaped recoveries from a pullback. That certainly can happen again. But this time -- with the interest rate issues, seasonality, a nearly 100% move in the Nasdaq and a lack of positive catalysts -- it is likely to be much more difficult to cut through the overhead resistance.
My trading style is to avoid being overly anticipatory. I don't want to try to pick turning points or bet on news events. I prefer to watch for trends to emerge and then run with them as they pick up momentum. Right now the trend to the downside is building. The FOMC could turn it back up but it's not going to be easy.
At the moment we have a slightly positive open shaping up. Overseas there finally was a bit of a bounce in Asian markets following a pounding on concerns about tightening in China. Europe was mixed with the UK on the upside and most other major markets in the red. Gold was bouncing a bit this morning and the dollar was pulling back some. Those markets will likely see a good bit of volatility on the FOMC interest rate decision.
Get ready to wait. The fireworks start at 2:15 pm EDT.