Unitor Reports First Quarter 1997 Results.OSLO Oslo (äz`lō, äs`–, Nor.  s`l), city (1995 pop. 482,555), capital of Norway, of Akershus co., and of Oslo co. , Norway--(BUSINESS WIRE)--April 30, 1997--The Unitor Group
today reported net income after tax for the first quarter ended March
31, 1997 of NOK NOKIn currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 21.0 million (US$3.2 million), or NOK 1.07 per share (US$0.16 per ADR ADR - Astra Digital Radio ), versus NOK 38.0 million (US$5.7 million), or NOK 1.94 per share (US$0.29 per ADR), in the first quarter of 1996. 1997 first quarter results include a pretax loss pretax loss A loss reported before tax benefits are considered. of NOK 3 million (US$45,000) on the sale of the Coldstore Contracting Group which was concluded on April 23, 1997. The Coldstore Group, which consists of companies in Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. , Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. and Denmark Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. with total annual sales of approximately NOK 250 million, is being sold to a group of investors consisting of current Coldstore Contracting management, Norsk Vekst and Den norske Bank Den norske Bank or DnB was a Norwegian bank that existed between 1990 and 2003 when it merged with Gjensidige NOR to form the present DnB NOR. The bank's headquarters were in Bergen, Norway. . The decision to sell the unit is in keeping with Unitor's strategy of concentrating on the marine maintenance and newbuilding market. The Company noted that first quarter figures represent a significant improvement over the situation in the second half of 1996 and confirms that the company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). program, which followed manpower reductions, together with full focus on the marine industry, is beginning to show results. Revenues for the first quarter declined 23% to NOK 583 million (US$87.3 million). Discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: activities and the sale of certain operations, including the Coldstore Contracting Group, reduced first quarter sales by NOK 118 million (US$17.7 million), compared with the first quarter of 1996. On February February: see month. 13, 1997, the parts of Unitor's fire and safety business directed toward the industrial sector were sold to Williams Holdings Plc. These included all industrial activities in the Ginge Kerr Kerr , Walter 1913-1996. American playwright, writer, and drama critic for the New York Herald-Tribune (1951-1966) and the New York Times (1983-1996). In 1978 he won a Pulitzer Prize for criticism. Group. The marine parts of Ginge Kerr have been integrated into Unitor. Annual sales of the sold business units were just under NOK 100 million. With adjustments for acquisitions, price increases, and currency fluctuations, this brought first quarter sales for the Network Operation to a level comparable with the first quarter of 1996. Growth in Network volume increased 6% from the fourth quarter of 1996. Due mainly to a relatively lower level of LNG LNG (liquefied natural gas): see under natural gas. activity in the first quarter of 1997, a volume for the Unitor Group in total declined 9% compared with the first quarter of 1996. 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 restructuring and sale of non-core activities was NOK 48 million (US$7.2 million), compared with NOK 54 million (US$8.1 million) in the first quarter of last year. Ordinary operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were reduced from approximately NOK 250 million (US$37.5 million) in the fourth quarter of 1996 to NOK 219 million (US$32.8 million) in the first quarter of 1997. The sale of non-core activities has lowered quarterly operating expenses by approximately NOK 20 million (US$3.0 million). Net interest expenses were NOK 10 million (US$1.5 million), compared with NOK 9 million (US$1.3 million) in the same period of 1996. A lower hedging rate on the positive cash flow in US dollars, compared with the average spot rate, resulted in a currency loss of NOK 4 million (US$599,000) in the first quarter, compared with a gain of NOK 1 million (US$150,000) in 1996. At the end of the first quarter of 1997, the expected cash flow for 1997 of US$95 million is hedged at an average spot rate of NOK 6.56 and a forward rate of NOK 6.48. In addition, an expected positive cash flow of US$25 million for the first quarter of 1998 is hedged at an average forward rate of NOK 6.78. The Unitor Group reported negative cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses during the first quarter of NOK 2 million (US$300,000), mainly due to payments in connection with the restructuring program. The Company experienced negative cash flow from operations of NOK 20 million (US$3.0 million) in the first quarter of 1996. Investments in the first quarter of 1997 were NOK 19 million (US$2.8 million), compared with NOK 17 million (US$2.5 million) in 1996. The 1997 first quarter investment included NOK 3 million (US$449,000) for the purchase of gas cylinders gas cylinder n → bombona de gas gas cylinder gas n → bouteille f de gaz gas cylinder gas n → for rental. Two building projects related to administration and warehousing in Greece Greece, Gr. Hellas or Ellas, republic (2005 est. pop. 10,668,000), 50,944 sq mi (131,945 sq km), SE Europe. It occupies the southernmost part of the Balkan Peninsula and borders on the Ionian Sea in the west, on the Mediterranean Sea in the south, on and the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. have been approved. Building is expected to commence in the second quarter of 1997. The purpose of the building projects is to consolidate company operations in these countries to increase efficiency and reduce future operating expenses. Total investment is projected to be in the range of NOK 110 million (US$16.5 million). Net interest-bearing debt declined to NOK 372 million (US$55.7 million) from NOK 380 million (US$56.9 million) at December 31, 1996. The equity at March 31, 1997, was NOK 905 million (US$135.6 million), an increase of NOK 38 million (US$5.7 million) from December 31, 1996. In addition to first quarter profit, equity increased by NOK 17 million (US$2.5 million) as a result of a share issue in early January when management options were exercised. The equity ratio has increased to 46% from 42% as of December 31, 1996. The sale of non-core activities reduced total capital by approximately NOK 110 million (US$16.5 million). Outlook Commenting on general market and business conditions, Mr. Karsten Houm, managing director of Unitor, said "Most commentators are 'reluctantly optimistic' regarding rate development in 1997. The downward trend in the dry bulk sector during 1996 reversed at the end of the year. Despite a high number of newbuildings New Buildings (officially written as Newbuildings) is a large village in County Londonderry, Northern Ireland. It lies about 1 km (0.6 mi) from the shores of the River Foyle and 5 km (3 mi) south of the city of Derry/Londonderry. and most scrapping, trade was lively in the first three months of the year and the freight rates Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper" freightage, freight ended above the level in January, 1996. The Pacific market has been instrumental in maintaining a firmer overall tone. The specter of overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. is currently the main source of uncertainty in the bulker market. In the tanker market, business picked up in the first quarter; however, volatility within each market segment caused weekly rate fluctuations. Sales within the traditional Unitor product groups followed general developments in the market, confirming that rate variances influence short term sales of Unitor products." "On April 14, 1997, the first phase of our hardware concept was marked by the launch of a standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. range of 1,100 hand tools, all selected specially for the marine market," continued Mr. Houm. "Sales expectations during the first year are relatively modest, but the three year goal is to be a leading supplier of tools." -0-
THE UNITOR GROUP
Consolidated Statement of Operations
Three Months Ended Three Months Ended
March 31, 1997 March 31, 1996
US$m NOKm US$m NOKm % Change
Operating revenues 87.3 583.0 113.0 754.0 (23)
Cost of goods 43.6 291.0 65.5 437.0 (33)
Gross profit 43.7 292.0 47.5 317.0 (8)
Depreciation 3.7 25.0 3.4 23.0 9
Other operating expenses 32.8 219.0 36.0 240.0 (9)
Operating result before
restructuring 7.2 48.0 8.1 54.0 (11)
Restructuring expenses
(income) 0.4 3.0 (1.5) (10.0) (130)
Operating income 6.8 45.0 9.6 64.0 (30)
Net interest and other
financial expenses
(income) 2.1 14.0 1.2 8.0 75
Income before taxes 4.7 31.0 8.4 56.0 (45)
Income taxes 1.5 10.0 2.7 18.0 (44)
Net income 3.2 21.0 5.7 38.0 (45)
===== ===== ===== =====
Earnings per share NOK 1.07 NOK 1.94
Earnings per ADR US$0.16 US$0.29
Weighted average number
of shares outstanding
(millions) 19.5 19.3
The U.S. dollar equivalents for both periods have been converted at
$1.00 = NOK 6.6745.
Restructuring expenses for 1997 relate to the loss from the sale of
Coldstore Contracting Group. First quarter figures are consequently
presented without these entities.
THE UNITOR GROUP
Balance Sheet
March 31, 1997 Dec. 31, 1996
US$m NOKm US$m NOKm
Cash and bank deposits 21.0 140.0 23.7 158.0
Accounts receivable 92.9 620.0 98.3 656.0
Other short term
receivables 16.8 112.0 10.3 69.0
Inventories 61.3 409.0 66.4 443.0
Goodwill 25.5 170.0 27.9 186.0
Other long term assets 75.4 503.0 79.9 533.0
Total assets 292.8 1,954.0 306.4 2,045.0
Short term interest
bearing liabilities 6.3 42.0 9.0 60.0
Other short term
liabilities 76.0 507.0 91.4 610.0
Long term interest
bearing liabilities 70.4 470.0 71.6 478.0
Other long term
liabilities 4.5 30.0 4.5 30.0
Total liabilities 157.2 1,049.0 176.5 1,178.0
Total equity 135.6 905.0 129.9 867.0
Total liabilities
and equity 292.8 1,954.0 306.4 2,045.0
The U.S. dollar equivalents for both periods have been converted at $1.00 = NOK 6.6745. Restructuring expenses for 1997 relate to the loss from the sale of Coldstore Contracting Group. First quarter figures are consequently presented without these entities. CONTACT: Claudia Gatlin, 212/830-9080 or Marit Johansson, 011-47-22-13-14-15 |
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