PR Newswire/Les Echos/
PRESS RELEASE (29 April 2009)
RESULTS FOR THE 2008 FINANCIAL YEAR
THE ECONOMIC ENVIRONMENT IN 2008
The corrugated board market lost 4.8% in tonnage in 2008. This downturn was
already perceptible in the first half, down 3.5% from the year before. The
decline in volumes became worse in the second half. This general European trend
in demand generates surplus stocks of paper for corrugated board and therefore
lower prices in the European market.
In 2008, the average corrugated board price was up 4%. This positive trend
conceals contrasting performances. The steady increase in the first half of
2008, in line with 2007 results, was followed by declining prices in the second
half, reflecting the lower cost of raw materials.
THE OTOR GROUP IN 2008
Consolidated income statement in EUR 000 (IFRS)
31/12/08 31/12/07
(restated IFRS 5)*
Sales 363,810 365,654
Other income from operations 1,830 2,912
Cost of goods sold (123,896) (134,483)
Personnel charges (including employee profit
sharing and incentive bonus) (89,651) (88,385)
Other purchases and external changes (91,673) (86,641)
Taxes (9,166) (8,755)
Inventory charge (480) (51)
Other operating charges (307) (907)
EBITDA 50,467 49,344
Amortisation charge (18,424) (18,557)
Depreciation charge (fixed assets - impairment tests) (26,991) 0
Writebacks from provisions for fixed as sets - Tests
impairment tests 899
EBIT 5,052 31,686
Other operating income 817 781
Other operating charges (1,525) (1,665)
Net operating profit (loss) 4,344 30,802
Cash and cash equivalent revenue 147 126
Gross cost of debt (9,657) (12,296)
Net borrowing cost (9,510) (12,1 70)
Financial cost of pension liabilities (310) (555)
Cost for early loan repayment (1,145)
Other financial income (2,453) 4,420
Other financial charges (1,434) (1,493)
Profit (loss) before taxes, equity affiliates and
discontinued activities or activities being sold (5,602) 21,004
Tax burden or income (2,669) (3,544)
Share in net profit (loss) of equity affiliates
Net profit (loss) before
taxes of discontinued
activities or activities being sold (8,271) 17,460
Net profit (loss) after tax of discontinued
activities or activities being sold in 2007 2,063
Net profit (loss) after tax of discontinued
activities in 2008 22,671 6,766
Net profit (loss) 14,400 26,289
. Group share 14,399 26,288
. Minority interests 1 1
EPS (EUR) 0.65 1.19
Diluted EPS (EUR) 0.65 1.19
* on a like-for-like consolidation structure
ACTIVITY IN 2008
Sales
Sales were slightly down from 2007 on a like-for-like basis, due to slowing down
activity (especially in the second half) and declining sales prices.
EBITDA
EBITDA came to EUR50.4 m, up 2.3% from 2007 (EUR49.3 m). This increase was
mainly due to efficiency gains in the Group's operating charges.
EBIT
EBIT came to EUR5.05 m, down 84% from EUR26.6 m in 2007, primarily due to asset
depreciation (EUR27 m) linked to the conversion of the Group's three paper mills
into subsidiaries. 2008 EBIT includes a total amortisation and depreciation
charge of EUR 45.4 m, including EUR27 m for depreciation of papermill assets
(versus a total of EUR18.6 m in 2007).
Net profit (loss)
The net profit for 2008 was EUR14.4 m, versus EUR26.3 m in 2007.
Net debt net
The Group reduced its debt from EUR154 m to EUR84 m in 2008.
HIGHLIGHTS IN 2008
In the first half, the Group sold the subsidiaries Otor Papeterie de Rouen and
Otor Cartonnerie de Rouen to Europac, a Spanish paper group.
A dividend of EUR11.1 m was paid out in the second half.
In the second half, two subsidiaries repaid loans before maturity, i.e. Otor
Lease, which repaid a loan of EUR11.9 m, and Otor SA, which repaid EUR10 m on
its medium term loan.
Three paper mills, previously entities of our subsidiaries, were themselves
converted into subsidiaries:
- Otor Papeterie de Nantes, formerly a unit of Otor Normandie,
- Otor Papeterie de Saint Michel, formerly a unit of Otor Dauphiné,
- Otor Papeterie du Doubs, formerly a unit of Otor Velin.
HIGHLIGHTS SINCE 31/12/2008
No important event has occurred since 31 December 2008.
OUTLOOK FOR THE CURRENT YEAR
The Group's objective for 2009 is to maintain its financial performance and to
continue the debt reduction process. This objective calls for:
- measures to maintain volumes in a particularly weak economic environment. Otor
is a major food packaging supplier, limiting exposure to the economic crisis.
- constant efforts to keep innovating and developing new products and services
with value added for customers.
- close attention to our pricing strategy in order to optimise waste paper,
paper and packaging cycles, which are not always entirely synchronised.
- ongoing efforts to maintain cost reduction programmes and to invest
accordingly.
- close attention to the performance of the Group's paper mills in order to cope
with paper market trends and sudden growth peaks.
OTOR - 8, terrasse Bellini - 92800 Puteaux - France
Tel.: +33 (0)1 42 12 80 00 - Fax: +33 (0)1 42 27 96 48 - finances@otor.com -
www.otor.com
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