Unilever Records $911 Million Net Profit for Third Quarter.NEW YORK--(BUSINESS WIRE)--Nov. 5, 1999-- Unilever Unilever Either of two linked companies, Unilever PLC (based in London) and Unilever NV (based in Rotterdam). They are the holding companies for more than 500 firms worldwide that manufacture and sell soaps, foods, and other products. today reported net profit of U.S. $911 million on sales up 2 percent to U.S. $11,708 million for the third quarter 1999 at constant exchange rates. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before exceptional items rose 3 percent but net profit, on the same basis, declined 3 percent as a result of lower interest income following the payment of the special dividend in June June: see month. 1999. Largely due to the exceptional profit on the disposal of Plant Breeding plant breeding, science of altering the genetic pattern of plants in order to increase their value. Increased crop yield is the primary aim of most plant-breeding programs; advantages of the hybrids and new varieties developed include adaptation to new agricultural International Cambridge Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. in the third quarter 1998, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta profit and net profit after exceptional items is 19 percent below last year. Highlights in the quarter to end September September: see month. included a further improvement in volume and margins in western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , although Europe's overall results were held back by continuing difficult markets in Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). and Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. . Asia and Pacific forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. ahead with a 10 percent growth in sales across the region and a strong improvement in margins. For the nine months, Unilever sales were U.S. $34,355 million, a 1 percent improvement over 1998. Operating profit before exceptional items improved by 6 percent to U.S. $3,866 million. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profit was 7 percent lower due to the impact of lower interest income following payment of the special dividend, and exceptional items.
THIRD QUARTER NINE MONTHS
$ millions $ millions
1999 1998 1999 1998
11,708 11,480 +2% Turnover 34,355 33,855 +1%
1,469 1,746 -16% Operating Profit 3,674 3,886 -5%
1,548 1,506 +3% -before exceptional 3,866 3,638 +6%
items-
1,440 1,783 -19% Pre-Tax Profit 3,746 4,041 -7%
Net Profit
911 1,122 -19% at constant
exchange rates 2,385 2,560 -7%
966 996 -3% -before exceptional 2,517 2,421 +4%
items
891 1,119 -20% at current exchange 2,292 2,544 -10%
rates
Earnings per share
$0.87 $1.00 -13% per Fl 1.12 (1998: $2.14 $2.27 -6%
Fl 1)
ord share(NYSE:UN)
$0.53 $0.60 -13% per 5.60p (1998: $1.29 $1.36 -6%
5.00p)
ord share (NYSE:UL)
Interim Dividend: per Fl.1 ordinary Fl 0.88 9%
N.V. share
BUSINESS PERFORMANCE: Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). : Overall sales flat although western European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. volumes well ahead: home and personal care businesses achieved excellent growth. Ice cream and tea also performed strongly. Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. and Eastern European markets continued to be difficult. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. : Good growth in most home and personal care categories, notably personal wash, deodorants and hair; offset by declines in some food categories and in prestige. Margins and profits again improved. Africa and Middle East: Sales up 5 percent; compared to strong quarter last year profits in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. fell due to rephasing of promotional activity. Improved results elsewhere almost compensated. Asia & Pacific: Sales up 10 percent across region, due in part to economic recovery in East Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. . Particularly good performances in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. , Japan, Vietnam Vietnam (vēĕt`näm), officially Socialist Republic of Vietnam, republic (v), 128,400 sq mi (332,642 sq km), Southeast Asia. Occupying the eastern coastline of the Southeast Asian peninsula, Vietnam is bounded by China on the north, by Laos . Margins and profits rose strongly despite higher marketing investment. Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. : Sales rose 4 percent despite difficult economic conditions. Ice cream and personal care performed well. Continued investment to defend strong market positions, particularly laundry Laundry can be:
Before industrialization ; margin and profit development reflects commitment. NET FUNDS At closing rates of exchange, Net Funds were $0.66 billion compared to $6.8 billion at the end of 1998. The decrease is mainly due to payment of the special dividend of $7 billion, and the normal part of the final dividend 1998. UNILEVER BACKGROUND: Unilever is one of the world's largest consumer products companies with sales close to $50 billion. It produces and markets a wide range of foods, home and personal care products. Unilever operates in 88 countries around the globe and employs 267,000 people. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Unilever sales exceeded $8 billion in 1998. It employs 21,000 people and has 66 offices and manufacturing sites in 23 states. Two of Unilever's 12 global Business Groups are headquartered in the United States. Some of their major products are: Foods - North America: Lipton For people named Lipton, see . Lipton is one of the world's best-known and best-selling brands of both hot leaf and ready-to-drink tea. It forms part of the Unilever portfolio. teas, soups, recipe products and side dishes side dish n. A dish served as an accompaniment to the main course. Noun 1. side dish - a dish that is served with, but is subordinate to, a main course entremets, side order ; Wish- Bone salad dressings; Lawry's Lawry's The Prime Rib is a well-known restaurant on Restaurant Row on La Cienega Boulevard in Beverly Hills, California. Founded by Lawrence L. Frank and Walter Van de Kamp, it opened in 1938 and for many years was unique among restaurants in having but a single entrée (Or 'main seasonings and specialty sauces; Imperial, Promise, Country Crock crock - [American scatologism "crock of shit"] 1. An awkward feature or programming technique that ought to be made cleaner. For example, using small integers to represent error codes without the program interpreting them to the user (as in, for example, Unix "make(1)", which , "I Can't Believe It's Not Butter This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. !", Brummel & Brown spreads and sprays; Ragu RAGU Restate Answer Give Support Use Details (method of answering short responses/extended response) pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. and pizza sauces; Five Brothers premium pasta sauces; Klondike Klondike (klŏn`dīk), region of Yukon Territory, NW Canada, just E of the Alaska border. It lies around Klondike River, a small stream that enters the Yukon River from the east at Dawson. , GoodHumor, Popsicle and Breyers ice cream products, and Gorton's frozen seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. products. Unilever Home and Personal Care North America: Wisk WISK and WISK-FM ("Best Country Around") are a pair of radio stations licensed to Americus, Georgia and owned by Sumter Broadcasting. Two frequencies use the call sign as of January 2005, 98. , all and Surf laundry detergents; Snuggle and Final Touch fabric softeners Fabric softener (also called Fabric Conditioner) is used to prevent static cling and make fabric softer. Popular brand names include Lenor, Lenor/Downy, Snuggle, and Comfort. ; Sunlight dish detergents; Lever lever, simple machine consisting of a bar supported at some stationary point along its length and used to overcome resistance at a second point by application of force at a third point. The stationary point of a lever is known as its fulcrum. 2000, Caress, Dove and Shield bar soaps; Pond's and Vaseline Vas·e·line A trademark for a brand of petroleum jelly. Vaseline trademark for white petrolatum (USP), petroleum jelly. skin care products; Q-tips cotton swabs "Q-Tip" redirects here. For the rapper, see Q-Tip (rapper). For the band, see Q-Tips (band). Cotton swabs (British English: cotton buds) are used in first aid, cosmetics application, and a variety of other uses. and cotton balls; Mentadent Mentadent is a brand name for a line of dental products manufactured by Unilever everywhere but United States and Canada, where it was acquired by the Church & Dwight Company in 2003. , Aim, Close-up close-up n. 1. A photograph or a film or television shot in which the subject is tightly framed and shown at a relatively large scale. 2. An intimate view or description. and Pepsodent Pepsodent is a brand of toothpaste. It was formerly owned by Unilever but, since 2003, by Church and Dwight, . It was advertised for its purported properties fighting tooth decay, attributed in advertisements to the supposed ingredient "Irium". oral care products; Degree, Suave suave adj. suav·er, suav·est Smoothly agreeable and courteous. [French, agreeable, from Old French, from Latin su and Brut Brut, Brute (both: br  t), or Brutus (br deodorant/toiletry
products; Finesse, Salon Selectives Salon Selectives is a line of hair care products, ranging from shampoos and conditioners to mousses, sprays, gels, and oils. Salon Selectives was introduced as a level-based brand line to consumers by Helene Curtis, which it was acquired by Unilever in 1986, and has grown since; , Suave, ThermaSilk, Aqua Net and
Rave hair care products; and Calvin Klein Noun 1. Calvin Klein - United States fashion designer noted for understated fashions (born in 1942)Calvin Richard Klein, Klein and Elizabeth Arden Elizabeth Arden (December 31, 1878 - October 19, 1966) was a Canadian businesswoman who built a cosmetics empire in the United States. Arden was born Florence Nightingale Graham in Woodbridge, Ontario, where she lived until she was twenty-four years old. cosmetic cosmetic /cos·met·ic/ (koz-met´ik) 1. pertaining to cosmesis. 2. a beautifying substance or preparation. cos·met·ic n. and fragrance products. UNILEVER RESULTS Third Quarter 1999 and Interim Dividends The directors of Unilever announce the Group's unaudited consolidated results for the third quarter and first nine months of 1999, and the interim ordinary dividends for 1999. THIRD QUARTER Financial results At constant rates of exchange, sales increased by 2 percent and operating profit before exceptional items rose by 3 percent. Net profit, also before exceptional items, fell 3 percent reflecting lower interest income following payment of the special dividend in June 1999. Largely due to the exceptional profit on the disposal of Plant Breeding International Cambridge in the third quarter 1998, net profit after exceptional items is 19 percent below last year. At current rates of exchange the trends are similar. Business performance The following commentary is based on operating profit before exceptional items, at constant rates of exchange. In Europe, although overall sales were flat, western European volumes were well ahead of last year. This was especially so in our home and personal care businesses which again achieved excellent growth. Ice cream and tea also performed strongly, but other foods categories were somewhat lower than last year. Russian and Eastern European markets continued to be difficult. In North America there was good growth in most home and personal care categories, notably personal wash, deodorants and hair. This was offset by declines in some food categories, mainly spreads and ice cream and also in prestige. Margins and profits again improved. In Africa and Middle East, sales were up 5 percent. Compared to a strong third quarter in 1998 profits in South Africa fell, due to rephasing of promotional activities, but improved results elsewhere in the region largely compensated for this. In Asia and Pacific, sales were up 10 percent across the region, in part due to economic recovery in East Asia. There were particularly good performances in India, Japan and Vietnam. Margins and profits both rose strongly despite a higher level of marketing investments. In Latin America, sales rose 4 percent despite the difficult economic conditions. Our ice cream and personal care categories both performed well. We continue to invest to defend our strong market positions, particularly in laundry, and margin and profit development reflects this commitment. NINE MONTHS At constant rates of exchange, sales increased by 1 percent and operating profit before exceptional items rose by 6 percent. Net profit, also before exceptional items, is up 4 percent. At current rates of exchange, net profit after exceptional items decreased by 8 percent in guilders and sterling and 10 percent in U.S. dollars, influenced by the swing in exceptional items referred to above. Taking account of the share consolidation in June 1999, earnings per share decreased by 4 percent in guilders and sterling and 6 percent in U.S. dollars. INTERIM DIVIDEND In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the interim dividend policy, the interim dividend has been set at 35 percent of last year's total normal dividend per share, based on the stronger of our two reporting currencies Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. over the first nine months, which for this period was the guilder. The interim dividend, to be paid on December December: see month. 17, 1999, is therefore fixed at Fl. 0.88 per Fl. 1.12 ordinary share of Unilever N.V., an increase of 9 percent from last year. The interim dividend per 1.40p ordinary share of Unilever PLC is set at 3.93p, an increase of 33 percent from last year. PLC's interim dividend in respect of 1999 has been calculated without reference to ACT. The Unilever N.V. shares will go ex-dividend Ex-Dividend The trading of shares when a declared dividend belongs to the seller rather than the buyer. Notes: A stock trades ex-dividend on or after the ex-dividend date (ex-date). on November November: see month. 8, 1999, and the Unilever PLC shares will go ex-dividend on November 15, 1999. ADVANCE CORPORATION TAX (ACT) In accordance with the provisions of the U.K. Finance Act 1998, ACT was abolished with effect from April 6, 1999. Therefore, PLC is no longer required to take ACT into account under the terms of the Equalization In communications, techniques used to reduce distortion and compensate for signal loss (attenuation) over long distances. Agreement. BALANCE SHEET AND CASH FLOW The main movements in the balance sheet from the start of this year to the end of the third quarter were in debtors, net funds and trade and other creditors. Debtors were somewhat higher at the end of the third quarter, mainly due to seasonal factors. Net funds at closing rates of exchange were U.S. $0.6 billion, compared to U.S. $6.8 billion at the end of l998. The decrease in funds is mainly due to payment of the special dividend of U.S. $7 billion, and the normal part of the final dividend for l998. These were included in trade and other creditors at the end of l998. Capital and reserves increased by U.S. $2.7 billion reflecting profits in the period, together with the issue of 211 million preference shares, amounting to U.S. $1.5 billion in value, to those shareholders in Unilever N.V. who elected to receive the special dividend in that form. Cash flow from operating activities in the nine months was strong at U.S. $4.1 billion. This was almost U.S. $0.7 billion higher than the corresponding period last year and arises from lower investment in working capital. YEAR 2000 In mid- mid- pref. Middle: midbrain. 1996 Unilever began a comprehensive program to secure business continuity throughout the millennium date change period. All preparatory pre·par·a·to·ry adj. 1. Serving to make ready or prepare; introductory. See Synonyms at preliminary. 2. Relating to or engaged in study or training that serves as preparation for advanced education: phases of the program are complete, covering internal compliance, assessment of supply chain partners and infrastructure providers and preparation of contingency plans A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. . During the remaining weeks prior to the end of the year, we are minimizing changes to systems and exercising continual vigilance VIGILANCE. Proper attention in proper time. 2. The law requires a man who has a claim to enforce it in proper time, while the adverse party has it in his power to defend himself; and if by his neglect to do so, he cannot afterwards establish such claim, the to ensure Y2k compliance is maintained. We have introduced a communication system linking all business units for regular information exchange and to alert key functions and our operating companies operating company A business that engages in transactions with outsiders. where events require urgent action. We have a program of training and rehearsal re·hears·al n. The process of repeating information, such as a name or a list of words, in order to remember it. re·hearse  v. for the
millennium transition period.It remains difficult to assess the impact of any service interruptions from suppliers or public utilities resulting from Year 2000 failures. However, we believe we have taken the necessary actions to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·gation n. the risks of disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. to our business during the date
changeover (programming) changeover - The time when a new system has been tested successfully and replaces the old system. period. A combination of minor failures is now the most
likely source of business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's.2. Interruption of the use of a thing is natural or civil. . Preparation of business continuity plans to address the highest priority concerns are now complete. Cumulatively we have spent U.S. $280 million on this program. The current estimated total expenditure of protecting business continuity throughout the millennium change period is around U.S. $415 million. This includes all external costs, associated depreciation on capital expenditure, and directly related internal costs during the period from 1996 to completion of the program, which will extend beyond 2000. EURO REPORTING We are publishing supplementary results information in euro throughout 1999 and will replace the guilder and sterling with the euro as the reporting currency from the first quarter 2000. Following this change supplementary information will be available in sterling. Supplementary information in euro is given in the attachment to this announcement. -0-
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT
EXCHANGE RATES (unaudited)
In the profit and loss account given below, the results in both
years have been translated at constant exchange rates, being the
annual average exchange rates for 1998. This reporting convention
facilitates comparisons since the impact of exchange rate fluctuations
is eliminated.
Third Quarter U.S.$ Millions Nine Months
1999 1998 Incr./ 1999 1998 Incr./ (Decr.)
(Decr.)
11,708 11,480 2% TURNOVER 34,335 33,855 1%
1,469 1,746 (16)% OPERATING PROFIT 3,674 3,886 (5)%
1,548 1,506 3% Operating Profit 3,866 3,638 6%
before exceptional
items
15 13 Income from fixed 44 32
investments
(44) 24 Interest (net) 28 123
1,440 1,783 (19)% PROFIT BEFORE 3,746 4,041 (7)%
Taxation
(468) (609) Taxation (1,199) (1,339)
972 1,174 (17)% PROFIT AFTER 2,547 2,702 (6)%
Taxation
(61) (52) Minority Interests (162) (142)
911 1,122 (19)% NET PROFIT AT 2,385 2,560 (7)%
CONSTANT 1998
EXCHANGE RATES
966 996 (3)% Net Profit 2,517 2,421 4%
before exceptional
items
891 1,119 (20)% NET PROFIT AT 2,292 2,544 (10)%
EXCHANGE RATES
CURRENT IN EACH PERIOD
$ $ COMBINED EARNINGS $ $
PER SHARE (a)
0.87 1.00 (13)% -per Fl.1.12 2.14 2.27 (6)%
(1998: Fl.1)
ordinary
share
0.85 0.98 (13)% -per Fl.1.12 2.09 2.22 (6)%
(1998: Fl.1) ordinary
share - diluted
0.53 0.60 (13)% -per 5.60p 1.29 1.36 (6)%
(1998: 5.00p) ordinary
share
0.51 0.59 (13)% -per 5.60p 1.25 1.33 (6)%
(1998: 5.00p) ordinary
share - diluted
(a) See note on `Share Consolidation'
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
(unaudited)
U.S. $ Millions Nine Months
1999 1998
Net profit 2,292 2,544
Currency retranslation (387) 279
Total recognised gains 1,905 2,823
SUMMARY BALANCE SHEET (unaudited)
U.S. $ Millions
As at As at
October 2 December 31
1999 1998
Goodwill 560 333
Fixed assets 9,179 9,793
Stocks 5,286 5,576
Debtors 8,171 7,911
Cash and current investments 6,640 12,196
Trade & other creditors (10,119) (19,280)
19,717 16,529
Borrowings 6,038 5,408
Provisions for liabilities and charges 4,880 5,065
Minority interests 521 479
Capital and reserves 8,278 5,577
19,717 16,529
CASH FLOW STATEMENT (unaudited)
U.S. $ Millions Nine Months
1999 1998
Cash flow from operating activities 4,112 3,398
Returns on investments and servicing
of finance (126) -
Taxation (925) (971)
Capital expenditure and financial
investment (1,097) (1,026)
Acquisitions and disposals (309) 473
Dividends paid on ordinary share capital (7,315) (775)
CASH INFLOW / (OUTFLOW) BEFORE
MANAGEMENT OF LIQUID RESOURCES
AND FINANCING (5,659) 1,099
Management of liquid resources 4,988 (1,459)
Financing 929 652
INCREASE IN CASH IN THE PERIOD 257 292
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS
NET FUNDS AT JANUARY 1 6,787 5,236
INCREASE IN CASH IN THE PERIOD 257 292
Cash flow from (increase)/
decrease in borrowings (922) (642)
Cash flow from increase/(decrease)
in liquid resources (4,988) 1,460
Change in net funds resulting from
cash flows (5,653) 1,110
Borrowings within group companies acquired (1) (28)
Borrowings within group companies sold - 3
Liquid resources within group companies
acquired 2 -
Liquid resources within group companies sold - (2)
Non cash movements (2) 44
Currency retranslation (531) 394
MOVEMENT IN NET FUNDS IN THE PERIOD (6,185) 1,521
NET FUNDS AT PERIOD END 602 6,757
GEOGRAPHICAL ANALYSIS
Third Quarter U.S. $ Millions Nine Months
% Incr./ % Incr./
1999 1998 (Decr.) 1999 1998 (Decr.)
Turnover
5,450 5,474 - % Europe 15,920 16,154 (1)%
2,420 2,417 - % North America 7,033 6,980 1 %
671 639 5 % Africa and 1,958 1,846 6 %
Middle East
1,750 1,594 10 % Asia and Pacific 5,191 4,777 9 %
1,417 1,356 4 % Latin America 4,233 4,098 3 %
11,708 11,480 2 % TURNOVER 34,335 33,855 1 %
Operating profit -
before exceptional items
895 867 3 % Europe 2,033 2,010 1 %
296 283 5 % North America 683 598 14 %
80 83 (4)% Africa and 233 205 14 %
Middle East
201 158 27 % Asia and Pacific 547 422 30 %
76 115 (34)% Latin America(a) 370 403 (8)%
1,548 1,506 3 % Sub-total 3,866 3,638 6 %
(79) 240 Exceptional Items (192) 248
1,469 1,746 (16)% OPERATING PROFIT 3,674 3,886 (5)%
% % Operating margin - % %
before exceptional
items
16.4 15.8 Europe 12.8 12.4
12.2 11.7 North America 9.7 8.6
12.0 13.0 Africa and Middle East 11.9 11.1
11.5 9.9 Asia and Pacific 10.5 8.8
5.3 8.5 Latin America 8.7 9.8
13.2 13.1 OPERATING MARGIN BEI 11.3 10.7
12.5 15.2 OPERATING MARGIN 10.7 11.5
(a) Note: At current rates of exchange for the first nine months
of 1999 operating profit for Latin America reduces by approximately
U.S. $63 million, reflecting the currency devaluations in the region.
OPERATIONAL ANALYSIS
Third Quarter U.S. $ Millions Nine Months
% Incr. % Incr.
1999 1998. /(Decr.) 1999 1998 /(Decr.)
TURNOVER
5,931 5,953 - % Foods 17,504 17,858 (2)%
2,012 2,147 (6)% Oil and dairy 6,000 6,279 (4)%
based foods and
bakery
2,240 2,065 8 % Ice cream and 6,126 6,036 1 %
beverages
1,679 1,741 (4)% Culinary and frozen 5,378 5,543 (3)%
products
2,583 2,467 5 % Home Care and 7,741 7,344 5 %
Professional Cleaning
3,037 2,906 4 % Personal Care 8,638 8,190 5 %
157 154 2 % Other Operations 452 463 (2)%
11,708 11,480 2 % TURNOVER 34,335 33,855 1 %
OPERATING PROFIT - before exceptional items
761 732 4 % Foods 1,780 1,745 2 %
212 244 (13)% Oil and dairy 589 586 1 %
based foods and
bakery
365 318 15 % Ice cream and 686 653 5 %
beverages
184 170 8 % Culinary and frozen 505 506 - %
products
222 304 (27)% Home Care and 751 772 (3)%
Professional Cleaning
547 454 20 % Personal Care 1,265 1,031 23 %
18 16 11 % Other Operations 70 90 (22)%
1,548 1,506 3 % Subtotal 3,866 3,638 6 %
(79) 240 Exceptional items (192) 248
1,469 1,746 (16)% OPERATING PROFIT 3,674 3,886 (5)%
%. % OPERATING MARGIN - % %
before exceptional items
12.8 12.3 Foods 10.2 9.8
10.6 11.4 Oil and dairy based 9.8 9.3
foods and bakery
16.3 15.4 Ice cream and 11.2 10.8
beverages
10.9 9.8 Culinary and frozen 9.4 9.1
products
8.6 12.3 Home Care and 9.7 10.5
Professional Cleaning.
18.0 15.6 Personal Care 14.6 12.6
11.0 10.1 Other Operations 15.4 19.4
13.2 13.1 OPERATING MARGIN BEI 11.3 10.7
12.5 15.2 OPERATING MARGIN 10.7 11.5
NOTES
Acquisitions
In the first nine months of 1999 the effect on turnover and
operating profit of acquisitions made in the period was U.S. $74
million and a U.S. $1 million loss, respectively.
Exchange Rates
The results for 1999 and the comparative figures for 1998 have
been translated at constant average rates of exchange, being the
annual average rates for 1998. For our reporting currencies these were
(pounds)1 = Fl. 3.29 = US $1.66. In addition, the results, earnings
per share and cash flow statement have been translated at rates
current in each period. For our reporting currencies these were:
Third Quarter
1999 (pounds)1 = Fl.3.36 = U.S.$1.61
1998 (pounds)1 = Fl.3.29 = U.S.$1.65
Nine Months
(pounds)1 = Fl. 3.31 = U.S. $1.61
(pounds)1 = Fl. 3.33 = U.S. $1.65
The balance sheet figures have been translated at period-end
rates of exchange. For our reporting currencies these were (pounds)1 =
Fl. 3.41 = U.S. $1.66 at the end of the first nine months (December 31
1998: (pounds)1 = Fl. 3.12 = U.S. $1.66).
Change in Accounting Standards
Following the adoption of United Kingdom Financial Reporting
Standard 14 `Earnings per share', dividends paid on own shares held
internally to meet Employee Share Option plans have been excluded both
from the results for the period and from dividends. 1998 figures have
been restated on the same basis.
Share consolidation
On June 9, 1999 the 1.25p ordinary shares of PLC were
consolidated, so that every 112 1.25p ordinary shares was replaced by
100 1.40p ordinary shares and every 112 5p American Share of PLC was
replaced by 100 5.60p American Shares. The Fl. 1 ordinary shares of
N.V. were consolidated, so that every 112 Fl. 1 share was replaced by
100 Fl. 1.12 ordinary shares. This consolidation was associated with
the payment of a special dividend of 66.13p per 1.25p share (U.S.
$4.228 per 5p share) and Fl. 14.50 ($6.950769) per Fl.1 share, so that
the economic impact was that of a share buy back at fair value and
therefore, in accordance with UK Accounting Standard FRS14, earnings
per share for prior periods have not been restated.
Combined earnings per share
The average combined number of share units used
to calculate EPS are:
1.40p Basic Diluted
Cumulative Q3 7,086,800,207 7,269,424,755
End of Q3 6,609,998,704 6,792,623,253
Fl. 1.12 Basic Diluted
Cumulative Q3 1,063,020,030 1,090,413,713
End of Q3 991,499,805 1,018,893,488
The combined earnings per share calculations are based on the
average number of share units representing the combined ordinary
shares of N.V. and PLC in issue during the year, less the average
number of shares held to meet options granted under various employee
share plans.
The number of combined share units is calculated from the
underlying N.V. and PLC shares using the exchange rate of oe1 = Fl.
12, in accordance with the Equalization Agreement, taking into account
the share consolidation of June 9, 1999.
The diluted earnings per share is based on the basic average
number of share units, plus all shares under option together, with
those PLC shares which will be issued in 2038 under the arrangements
for the variation of the Leverhulme Trust. This is reduced, in
accordance with FRS 14, by the number of shares that could be
purchased with the expected proceeds from the exercise of options by
employees.
INTERIM DIVIDENDS
The Boards today declared interim dividends in respect of 1999 on
the ordinary shares at the following rates which are equivalent in
value at the rate of exchange applied under the terms of the
Equalisation Agreement between the two companies:
N.V.
Per ordinary share Fl. 0.88 (1998: Fl. 0.81)
PLC
Per ordinary share 3.93p (1998: 2.95p)
The N.V. interim dividend will be payable as from December 17,
1999, to shareholders registered at close of business on November 5,
1999.
The PLC interim dividend will be paid on December 17, 1999, to
shareholders registered at close of business on November 19, 1999.
In previous years Advance Corporation Tax (`ACT') in respect of
any dividend paid by PLC was treated as part of the dividend for the
purpose of equalising N.V.'s and PLC's dividends under the
Equalization Agreement. In line with this, PLC's 1998 interim dividend
was calculated by reference to the then rate of ACT
(twenty/eightieths). ACT was abolished with effect from April 6, 1999
and therefore PLC's 1999 interim dividend has been calculated without
reference to ACT.
DIVIDEND ON NEW YORK SHARES OF N.V.
The N.V. interim dividend, when converted at today's
Guilder/Dollar rate of exchange current in Amsterdam, represents
U.S.$0.415624 per New York Share of Fl. 1.12 (1998: U.S.$0.432762)
before deduction of Netherlands withholding tax. U.S. dollar checks
for the interim dividend, after deduction of Netherlands withholding
tax at the appropriate rate, will be mailed on December 16, 1999, to
holders of record of New York shares at the close of business on
November 15, 1999.
DIVIDEND ON AMERICAN SHARES OF PLC
Each American share of PLC represents four 1.4p Ordinary shares
of PLC. The PLC interim dividend will therefore be 15.72p per American
Share. At the same time that ACT was abolished in the U.K., tax
credits available to shareholders were also reduced. As a result, U.S.
shareholders will not be entitled to receive any cash amount in
addition to the interim dividend. If converted at yesterday's Bank of
England closing sterling/dollar rate of exchange, the interim dividend
for holders resident in the U.S. would therefore be U.S.$0.2577 per
American Share. (1998: U.S.$0.2099 actual payment, after deduction of
15 percent withholding tax on the aggregate of the declared dividend
and the related tax credit).
U.S. dollar checks for the interim dividend converted at the
Sterling/Dollar rate of exchange current in London on December 17,
1999 will be mailed on December 28, 1999 to holders of record of
American shares at the close of business on November 19, 1999.
Dates
The provisional results for the fourth quarter and for the year
1999 and the proposed final dividends for 1999 will be published on
Tuesday, February 22, 2000.
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