Interim Management Statement
Rettig Group today announces the following Interim Management Statement for the period from 1 January to 23 October 2014. Unless otherwise stated, figures refer to nine months ended 30 September 2014 and the corresponding period last year. All figures of this statement are unaudited.
Financial highlights of the review period January-September 2014
- Turnover declined by 2.5% to EUR 704.1 million (722.2)
- EBITDA grew by 2.4% to EUR 98.2 million (95.9)
- EBIT improved by 10.2% to EUR 36.8 million (33.4)
- Net debt reduced by 11.7% to EUR 315.4 million (357.2)
- Free cash flow improved by 16.9% to EUR 28.3 million (24.2)
During July-September 2014 turnover declined by 6.7% to EUR 247.5 million (265.4), EBITDA declined by 9.0% to EUR 35.3 million (38.8), EBIT declined by 26.4% to EUR 13.4 million (18.2) and free cash flow declined by 22.8% to EUR 29.4 million (38.1) compared to the same period last year.
Demand in all three business areas continued generally weak in the first nine months of 2014, but especially in the last three months of the period. However, despite the tough economic environment and declined turnover, year on year EBITDA grew by 2.4 per cent in the first nine months of the year supported by Nordkalk and Bore. EBITDA of Rettig ICC remained unchanged compared to the year before.
Key events since 1 July 2014
In September the Swedish Land and Environment Court of Appeal announced that it had granted a leave to appeal against the ruling of 2 June 2014 by June Swedish Land and Environment Court which confirmed that permit and conditions can be announced for the planned Bunge quarry on Gotland after having been tried in consistence with Natura 2000 and EU's Habitats Directive. The final outcome of the whole legal process is expected by 2016.
In September Nordkalk completed a co-determination process at its Storugns processing plant on Gotland in Sweden. The process was started in accordance with Swedish legal requirements due to the uncertainty relating to the timetable and outcome of the ongoing permit process for the adjacent Klinthagen quarry. The current permit ends on 31 December 2014. A court decision regarding Nordkalk’s application for a renewed permit and expansion is expected in December 2014. Pending the outcome of the permit process up to 53.5 positions are to be reduced.
Nordkalk announced its first commercial contract for delivery of granules of slaked lime to absorb sulphur from maritime exhaust gases. The German shipping company Braren agreed with its Swedish customer Södra Cell to install dry scrubbers onboard two of its vessels. Nordkalk will supply fresh absorbent and recover the used material.
In October Bore announced its plans to concentrate on the RoRo tonnage providing segment in order to improve its profitability and strengthen its position in the RoRo segment. At the same time Bore confirmed the sale of all its six general cargo vessels in the CoA (Contract of Affreightment) segment with delivery by end of 2014. The sale of the four general cargo vessels to Dutch Royal Wagenborg also involved a contract between Nordkalk and the new owners to handle a significant share of Nordkalk’s sea-freights from 2015 to 2017. As a consequence of the planned exit of the CoA segment, Bore started co-operation negotiations with its whole shore organisation to adapt to the RoRo shipping business model.
Bore and P&O Ferries agreed on continued charter of the RoRo-vessels (Roll-on/Roll-off) M/V Norsky, M/V Norstream and M/V Bore Song after current chartering arrangements expire in December 2014. Bore’s M/V Estraden will also serve P&O Ferries as of January 2015.
In October, Christian Ståhlberg (40), LL.M., was appointed General Counsel of Rettig Group as of 1 January 2015 reporting to Hans Sohlström, President and CEO. Christian will also be member of Rettig Group’s management team and will succeed current General Counsel, Berndt Lindberg, who will retire in the summer of 2015.
In July the required second general meeting of Redarnas Ömsesidiga Försäkringsbolag (RÖF) approved the de-mutualisation and merger plan to reorganise RÖF into a limited liability insurance company and to merge RÖF with its wholly owned insurance subsidiary Försäkringsaktiebolaget Alandia. The plan received consent from the Finnish Financial Supervisory Authority and is expected to be completed by the end of 2014.
According to preliminary calculations Bore’s ownership in the merged company will be slightly over 15 per
cent and it is expected to have a positive impact on equity.
Updated outlook for 2014
The business environment remains challenging. Despite weakening demand in the third quarter we expect to improve our profitability and to strengthen our balance sheet.
Financial calendar 2015
Rettig Group will publish its full year report and Annual report for 2014 on 26 February 2015. The January-
March Interim Management Statement will be published on 23 April, January-June interim report on 20
August and January-September Interim Management Statement on 22 October.
For further information please contact:
Josefina Tallqvist, Rettig Group, Director, Corporate Communication and Investor Relations
Tel: +358 40 7455276, email: firstname.lastname@example.org or www.rettig.fi
Rettig Group is a Finnish family business that creates value for generations through sustainable and longterm 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.