Interim Management Statement
Rettig Group today announces the following Interim Management Statement for the period from 1 January to 24 April 2014. Unless otherwise stated, figures refer to three months ended 31 March 2014 and the corresponding period last year. All figures of this statement are unaudited.
- Turnover declined by 1.2% to EUR 224.5 million (227.2)
- EBITDA grew by 15.9% to EUR 29.9 million (25.8)
- EBIT improved by 116.7% to EUR 10.4 million (4.8)
- Net debt reduced by 15.3% to EUR 329.8 million (389.6)
Key events of the period
Demand in all three business areas remained generally weak in the first quarter of 2014. Turnover of both Nordkalk and Bore declined due to the loss of two customers of Nordkalk at the end of 2013, contributing to a reduction of total group turnover of 1.2 percent in the first quarter of 2014. EBITDA improved compared to the year before thanks to lower fixed costs and improved efficiency in Rettig ICC and Nordkalk. The improvement in EBIT was supported by lower depreciation in all three business areas. As a result of normal business seasonality free cash flow was negative, EUR -17.8 million, but improved by EUR 17.4 million compared to last year. Net debt reduced by EUR 60 million to EUR 329.8 million.
In the end of March, Hewing GmbH, part of Rettig ICC, opened its new logistics center in Germany. The purpose of the investment is to reduce costs and transport time by bringing warehousing and logistics inhouse.
Nordkalk announced in February the closure of two lime kilns in Lappeenranta in Finland due to weak market conditions. A possible closure was part of the codetermination negotiations that ended on 28 October 2013, but the final decision regarding a possible closure was left to the beginning of 2014. The kilns will be closed by the end of May 2014. In March the case of Bunge on Gotland was heard in the Swedish Land and Environment Court. A ruling is expected in early June 2014. The final outcome of the whole legal process is expected by 2016.
In January, Bore and P&O Ferries reached agreement regarding continued charter of M/V Norsky, M/V Norstream and M/V Bore Song throughout 2014. As a result the charter of the entire fleet of Bore was secured to the end of 2014. Bore continued to pursue divestments of its older vessels.
Outlook for 2014 remains unchanged
The business environment will remain challenging in 2014 as economic growth in Europe is forecasted to be low. Continuous focus on strategy implementation means further efforts to improve our profitability and strengthen our balance sheet to enable profitable growth.
Financial calendar 2014
Rettig Group will publish the financial report for January to June on 21 August 2014 and the Interim Management Statement for January to September 2014 on 23 October 2014.
For further information please contact:
Josefina Tallqvist, Rettig Group, Investor Relations Manager
Tel: +358 40 7455276, email: email@example.com or www.rettig.fi
Rettig Group is a Finnish family business that creates value for generations through sustainable and long-term growth. In all our businesses we focus on leading market positions and more customer value with less environmental impact. Rettig Group owns Rettig ICC – Europe's leading supplier of heat emitters and indoor climate comfort; Nordkalk – northern Europe’s leading supplier of limestone-based products for industry, agriculture and environmental care; and Bore – the industrial shipping service provider. In 2013, Rettig Group’s turnover was EUR 974 million and the group had about 4300 employees in 25 countries.