Tikkurila Oyj
Stock Exchange Release
November 7, 2013 at 9:00 a.m. (CET+1)
July-September 2013 highlights
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Revenue decreased by one percent to EUR 189.6 million (7-9/2012: EUR 191.3 million).
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Operating profit (EBIT) excluding non-recurring items was EUR 33.3 (32.1) million, i.e. 17.6 (16.8) percent of revenue.
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Operating profit (EBIT) was EUR 33.1 (31.4) million, i.e. 17.4 (16.4) percent of revenue.
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EPS was EUR 0.55 (0.51).
January-September 2013 highlights
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Revenue decreased by 2.3 percent to EUR 536.3 million (1-9/2012: EUR 549.0 million).
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Operating profit (EBIT) excluding non-recurring items was EUR 76.8 (76.9) million, i.e. 14.3 (14.0) percent of revenue.
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Operating profit (EBIT) was EUR 76.7 (70.4) million, i.e. 14.3 (12.8) percent of revenue.
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EPS was EUR 1.25 (1.02).
Outlook for 2013
| Key figures | | | | | | | |
| (EUR million) | 7-9/2013 | 7-9/2012 | Change % | 1-9/2013 | 1-9/2012 | Change % | 1-12/2012 |
| Income statement | | | | | | | |
| Revenue | 189.6 | 191.3 | -0.9% | 536.3 | 549.0 | -2.3% | 670.4 |
| Operating profit (EBIT), excluding non-recurring items | 33.3 | 32.1 | 3.8% | 76.8 | 76.9 | -0.1% | 73.7 |
| Operating profit (EBIT) margin, excluding non-recurring items, % | 17.6% | 16.8% | | 14.3% | 14.0% | | 11.0% |
| Operating profit (EBIT) | 33.1 | 31.4 | 5.4% | 76.7 | 70.4 | 8.9% | 66.3 |
| Operating profit (EBIT) margin, % | 17.4% | 16.4% | | 14.3% | 12.8% | | 9.9% |
| Profit before taxes | 31.6 | 30.4 | 3.8% | 73.1 | 63.5 | 15.2% | 59.3 |
| Net profit | 24.4 | 22.6 | 8.0% | 54.9 | 45.2 | 21.5% | 40.7 |
| Other key indicators | | | | | | | |
| EPS, EUR | 0.55 | 0.51 | 8.0% | 1.25 | 1.02 | 21.5% | 0.92 |
| ROCE, %, rolling | | | | 23.7% | 20.9% | | 21.0% |
| Cash flow after capital expenditure | 64.9 | 64.1 | 1.2% | 55.5 | 40.5 | 37.2% | 50.3 |
| Net interest-bearing debt at period-end | | | | 60.1 | 89.2 | -32.7% | 80.8 |
| Gearing, % | | | | 28.0% | 43.6% | | 40.6% |
| Equity ratio, % | | | | 46.4% | 42.0% | | 45.9% |
| Personnel at period-end | | | | 3,253 | 3,355 | -3.0% | 3,223 |
Comments by Erkki Järvinen, President and CEO:
"Our revenue remained nearly at the comparison period level in the third quarter of the year, although the clear decline of the ruble reduced SBU East`s euro-denominated revenue. The situation in retail and construction continued to be difficult in our operating area. Demand was weak and our sales volumes declined in all our largest markets, with the exception of Russia. Our sales mix developed favorably, but total demand in the paint market showed signs of slowing down in all our main markets. Marketing measures supported our good development. In addition, the sales price increase implemented in Russia at the beginning of October had a positive impact on September order volumes.
Our profitability was at a record-high level in the third quarter. Operating profit and relative profitability improved considerably in Finland and in the Central Eastern Europe segment, where the business operations developed well in Poland and the Baltic area, in particular. The improved profitability was due to the continuous improvement efforts and the expense level which was lower than in the comparison period. SBU East`s profitability was weakened by marketing investments and the weakening of the ruble.
We maintain our earlier guidance; in other words, we estimate that our revenue and operating profit, excluding non-recurring items, will remain at last year`s level."
Outlook for 2013
Tikkurila reiterates its guidance for 2013.
Economic development in Europe is expected to be weak in 2013. The overall uncertainty and increasing unemployment are expected to have a negative impact on consumers` willingness to purchase and on the demand for Tikkurila`s products. The outlook of the economic development of Russia, which is one of the key markets of Tikkurila, has weakened in comparison to the publishing date of Tikkurila`s Financial Statement Release. The average GDP growth of Russia, Sweden, Finland, and Poland, is estimated to be slightly over one percent in 2013. Raw material prices are estimated to remain stable or to decrease slightly.
Tikkurila expects its revenue and EBIT in euro excluding non-recurring items for the financial year 2013 to remain on 2012 level.
Disclosing procedures of financial reviews
Tikkurila Oyj follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority, and discloses relevant information (i.e. information likely to have a material effect on the value of Tikkurila`s share price) related to its Interim Report with this Stock Exchange Release. Tikkurila`s Interim Report for January-September 2013 is attached to this release and is also available on company`s website at www.tikkurilagroup.com.
Press Conference
Tikkurila will hold a press conference regarding its January-September 2013 Interim Report for the media and analysts today on November 7, 2013, at 12:00 noon (CET+1) in the Akseli Gallén-Kallela Cabinet at the Hotel Kämp (address Pohjoisesplanadi 29, 00100 Helsinki). The conference will be held in Finnish language. Attendees will be served lunch at the conference premises starting at 11:30 a.m. (CET+1). The Interim Report will be presented by Erkki Järvinen, President and CEO, and Jukka Havia, CFO.
The stock exchange release and presentation materials will be available before the event at www.tikkurilagroup.com/investors.
Tikkurila Oyj
Erkki Järvinen, President and CEO
For further information, please contact:
Erkki Järvinen, President and CEO
Mobile +358 400 455 913, erkki.jarvinen@tikkurila.com
Jukka Havia, CFO
Mobile +358 50 355 3757, jukka.havia@tikkurila.com
Minna Avellan, Manager, Investor Relations
Mobile +358 40 533 7932, minna.avellan@tikkurila.com
For 150 years already, Tikkurila has provided consumers and professionals with user-friendly and sustainable solutions for surface protection and decoration. Tikkurila wants to be the leading paint company in the Nordic area as well as in Russia and other selected Eastern European countries. - Tikkurila inspires you to color your life.
www.tikkurilagroup.com
Tikkurila Interim Report Q3/2013
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Source: Tikkurila Oyj via Thomson Reuters ONE
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