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Borgestad ASA Interim / Quarterly Report 2010

Nov 5, 2010

3561_rns_2010-11-05_5dd96fcb-1b7d-477d-9036-803e47bc36d3.pdf

Interim / Quarterly Report

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B

BORGESTAD INDUSTRIES

REPORT FOR 3RD QUARTER 2010 AND THE FIRST NINE MONTHS 2010

HIGHLIGHTS

  • Net operating income in the 3rd quarter amounted to NOK 82,6 mill. compared to NOK 88,4 mill. same period last year.
  • The operating result in the 3rd quarter amounted to NOK 1,1 mill. compared to NOK 1,2 mill. during the same period last year.
  • Profit before taxes in the 3rd quarter amounted to NOK 2,1 mill. compared to NOK 2,0 mill. during the same period last year.
  • Equity ratio was 48 percent as of 30.09.10 compared to 43 percent as of 31.12.09.
  • Profit before taxes in the first nine months was NOK 8,5 mill. compared to NOK 6,1 mill. in 2009.
  • The order intake during the first nine months has increased by 23% compared to same period last year and the order book as of 30th of September 2010 is 20% higher than 30th September last year.

OPERATIONS

The 3rd quarter is normally the weakest quarter of the year. Sales were reduced with 7% compared to last year, but the operating result was on the same level as 2009.

The gross margin during the 3rd quarter is 22,1%, improved from 19,6% same period last year. The main reason for the improvement is related to cost control and positive development in productivity.

During the period a new sales company, Höganäs Bjuf Italia S.r.L, has been established to strengthen the marketing activities in the Italian market specially focusing the cement industry.

The strengthening of the Swedish krona towards the euro continued to have a negative impact on the result since most of the export business is in euro.

Key figures (NOK mill.)

| Q3
2010 | Q3
2009 | | 01.01-30.09
2010 | 01.01-30.09
2009 |
| --- | --- | --- | --- | --- |
| 82,6 | 88,4 | Net operating income | 293,9 | 314,2 |
| -64,4 | -71,1 | Cost of goods sold | -234,3 | -252,1 |
| -17,1 | -16,1 | Marketing and admin.cost | -51,1 | -53,1 |
| 1,1 | 1,2 | Operating result | 8,5 | 9,0 |
| 1,0 | 0,8 | Net fin items | 0,0 | -2,9 |
| 2,1 | 2,0 | Profit before taxes | 8,5 | 6,1 |


The accumulated cash flow during the first nine months of 2010 was negative with NOK 25,7 mill. (positive with NOK 18,1 mill. in 2009). The negative cash flow development is mainly related to seasonal fluctuations in short term receivables and liabilities. The liquidity reserves at the end of the period were NOK 62,9 mill.

The Company has since the 30th of June 2009 acquired treasury shares and has at the moment 21 557 shares.

INFORMATION ABOUT SEGMENTS

The Group’s gross revenue was distributed into segments as follows (NOK mill.):

| | Q3
2010 | Q3
2009 | 01.01-30.09
2010 | 01.01.-30.09
2009 |
| --- | --- | --- | --- | --- |
| Cement | 24,9 | 32,8 | 119,6 | 158,2 |
| Steel | 10,9 | 7,7 | 36,8 | 25,7 |
| Brilliant Business | 36,5 | 34,0 | 97,3 | 95,2 |
| Installation | 10,3 | 13,9 | 40,2 | 35,1 |
| Total | 82,6 | 88,4 | 293,9 | 314,2 |

For development in result, see note 3.

CEMENT

The decrease in sales to the cement industry compared to last year is mainly related to lack of project deliveries this year. Deliveries to the Heidelberger Cement Group project in Poland, (NOK 24 mill.), will start in the fourth quarter and final delivery will take place in beginning of 2011.

STEEL

Sales during the first nine months to the Nordic steel industry has increased by 43% compared to same period 2009, but still the steel production and the demand for refractory materials are lower than normal.

BRILLIANT BUSINESS

Sales in Brilliant Business was at the same level as last year even though sales to the aluminium industry is still significantly reduced due to low utilisation of production capacity and high stock of refractory materials at many customers’ sites.

INSTALLATION

The sales during the first nine months from our installation services company, GL Contracting, has increased by 15% compared to same period last year.

OUTLOOK 2010

The order book as of 30th of September is 20% higher than last year. The Board of Directors expectation for profit is corresponding to the level achieved in 2009.

Borgestad, the 4th of November 2010

Board of Directors in Borgestad Industries ASA


BORGESTAD INDUSTRIES ASA

KONSOLIDERT RESULTATREGNSKAP CONSOLIDATED INCOME STATEMENT BORGESTAD INDUSTRIES
KRS
(NOK 1.000) (NOK 1.000) NOTER 2010 2009 2010 2009 2009
Q3 Q3 Q1 - Q3 Q1 -Q3 Hélár / Full year
DRIFTSINNTEKTER OG DRIFTSKOSTNADER OPERATING INCOME AND OPERATING EXPENSES
Salgsinntekter Gross revenue 82 122 87 718 290 144 312 969 411 096
Andre inntekter Other income 477 857 3 796 1 242 1 570
Netto driftsinntekter Net operating income (3) 82 599 88 375 293 940 314 231 412 668
Selgte varers kost Cost of goods sold -64 357 -71 089 -234 271 -252 082 -325 958
Bruttefortjeneste Gross profit 18 242 22,1% 17 306 19,6% 59 669 20,3%
Salgs- og distribusjerekostnader Selling- and distribution costs -11 348 -10 315 -32 767 -33 212 -44 743
Administrasjerekostnader Administration costs -5 763 -5 818 -18 353 -19 957 -26 065
Sum driftskostnader Total operating costs -17 111 -16 134 -51 120 -53 119 -71 709
Driftspersultat (EBIT) Operating profit (EBIT) 1 131 1 172 8 549 9 030 15 001
Finansposter Financial items
Finansinntekter Financial income 1 682 1 808 2 082 1 517 1 744
Finanskostnader Financial expenses -747 -964 -2 124 -4 428 -5 098
Netto finansposter Net financial items 935 844 -62 -2 911 -4 154
Ordinært resultat før skattekostnad Profit before tax (3) 2 066 2 016 8 487 6 119 10 847
Skattekostnad Tax -586 -660 -2 379 -1 713 -2 415
Periodens resultat Profit for the period 1 480 1 136 6 108 4 406 8 432
Minestretsinteresser Non-controlling interests 237 291 1 234 393 775
Majeritetsinteresser Attributable to owners of the parent company 1 243 845 4 874 4 013 7 657
Resultat per aksje (= utvannet res. per aksje) Earnings per share (= diluted earnings per share) 0,52 0,35 2,03 1,67 3,19
Avskrivninger inkludert med: Depreciation included: -1 707 -1 623 -5 444 -5 271 -7 224
EBITDA EBITDA 2 838 3,4% 2 795 3,2% 13 063 4,8%
EBIT EBIT 1 131 1,4% 1 172 1,3% 8 549 2,9%

BORGESTAD INDUSTRIES ASA

OPPSTILLING OVER TOTALRESULTAT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BORGESTAD INDUSTRIES IFRS
2010 2009 2010 2009 2009
(NOK 1 000) (NOK 1 000) Q3 Q3 Q1 - Q3 Q1 - Q3 Heläri / Fait year
Periodens resultat Profit for the period 1 490 1 136 6 108 4 406 8 432
Vurderingsforskjeller Valuation changes 0 -3 360 0 0 0
Valutasmreagring Translation difference 1 390 2 577 3 752 -3 828 -4 254
Sum totalresultat / perioden Total comprehensive income for the period 2 860 353 9 860 578 4 178
Minoritetsinteresser Non-controlling interests 237 291 1 234 393 775
Majoritetsinteresser Attributable to owners of the parent company 2 523 62 8 526 185 3 403

BORGESTAD INDUSTRIES ASA

| KONSOLIDERT BALANSE
(NOK 1 000) | CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(NOK 1 000) | BORGESTAD INDUSTRIES
IFRS | |
| --- | --- | --- | --- |
| | | 30.09.10 | 31.12.09 |
| EIENDELER | ASSETS | | |
| ANLEGGSMIDLER | NON-CURRENT ASSETS | | |
| Immaterielle eiendeler | Intangible fixed assets | | |
| Utsatt skatt eiendel | Deferred tax asset | 4 386 | 4 119 |
| Goodwill og andre immaterielle eiendeler | Goodwill and other intangible assets | 46 074 | 46 074 |
| Varige driftsmidler | Tangible fixed assets | | |
| Bygninger | Property and plant | 4 442 | 4 354 |
| Driftslosøre | Fixtures, machinery and vehicles | 49 086 | 44 539 |
| Finansielle anleggsmidler | Financial fixed assets | | |
| Finansielle fordringer | Financial receivables | 3 949 | 18 |
| Andre aksjer | Other shares | 21 011 | 21 011 |
| Pensionsmidler | Pension assets | 2 752 | 2 752 |
| SUM ANLEGGSMIDLER | TOTAL NON-CURRENT ASSETS | 131 700 | 122 867 |
| OMLØPSMIDLER | CURRENT ASSETS | | |
| Varebeholdning | Inventories | 80 496 | 87 400 |
| Fordringer | Debtors | | |
| Kundefordringer | Trade receivables | 65 188 | 65 699 |
| Andre fordringer | Other receivables | 6 019 | 4 884 |
| Bankinnskudd, kontanter og lignende | Cash and cash equivalents | 23 973 | 46 095 |
| SUM OMLØPSMIDLER | TOTAL CURRENT ASSETS | 175 676 | 204 078 |
| SUM EIENDELER | TOTAL ASSETS | 307 376 | 326 945 |


BORGESTAD INDUSTRIES ASA

| KONSOLIDERT BALANSE
(NOK 1 000) | CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(NOK 1 000) | BORGESTAD INDUSTRIES
IFRS | |
| --- | --- | --- | --- |
| | | 30.09.10 | 31.12.09 |
| EGENKAPITAL OG GJELD | EQUITY AND LIABILITIES | | |
| EGENKAPITAL | EQUITY | | |
| Aksjekapital (2 398 118 aksjer) | Share capital (2 398 118 shares) | 11 991 | 5 712 |
| Egne aksjer | Treasury shares | -107 | -41 |
| Overkursfond | Share premium reserve | 23 894 | 30 173 |
| Sum innskutt egenkapital | Total paid in capital | 35 778 | 35 844 |
| Fond for verdiendringer | Reserve for valuation changes | 13 761 | 13 761 |
| Omregningsdifferanser | Translation difference | 3 038 | -714 |
| Annen egenkapital | Other equity | 86 585 | 85 382 |
| Sum opptjent egenkapital | Retained earnings | 103 384 | 98 429 |
| Minoritetsinteresser | Non-controlling interests | 7 481 | 6 607 |
| SUM EGENKAPITAL | TOTAL EQUITY | 146 643 | 140 880 |
| LANGSIKTIG GJELD | NON-CURRENT LIABILITIES | | |
| Pensjonsforpliktelser | Pension provision | 4 960 | 6 109 |
| Pantegjeld langsiktig | Mortgage debt | 46 886 | 48 592 |
| Annen langsiktig gjeld | Other long-term liabilities | 4 886 | 4 756 |
| SUM LANGSIKTIG GJELD | TOTAL NON-CURRENT LIABILITIES | 56 732 | 59 457 |
| KORTSIKTIG GJELD | CURRENT LIABILITIES | | |
| Kassekreditt | Bank overdraft | 21 610 | 18 074 |
| Leverandørgjeld | Trade payables | 46 317 | 71 208 |
| Betalbar skatt | Current tax payable | 2 453 | 1 410 |
| Annen kortsiktig gjeld | Other current liabilities | 33 621 | 35 916 |
| SUM KORTSIKTIG GJELD | TOTAL CURRENT LIABILITIES | 104 001 | 126 608 |
| SUM EGENKAPITAL OG GJELD | TOTAL EQUITY AND LIABILITIES | 307 376 | 326 945 |

Borgestad, 30. september 2010
4. november 2010

Christen Knudsen
Styrets leder

Hedda Foss Five

Reidar Huglen

Mona Møller

Göran Sigfridsson

Egil Friestad
Administerende direktør


BORGESTAD INDUSTRIES ASA

| KONSOLIDERT KONTANTSTRØMOPPSTILLING
(NOK 1 000) | CONSOLIDATED CASH FLOW STATEMENT
(NOK 1 000) | BORGESTAD INDUSTRIES
IFRS | | |
| --- | --- | --- | --- | --- |
| | | 2010
Q1 - Q3 | 2009
Q1 - Q3 | 2009
Helår / Full year |
| Kontantstrøm fra operasjonelle aktiviteter | Cash flow from operating activities | -7 085 | 26 952 | 44 222 |
| Kontantstrøm fra invest.aktiviteter | Cash flow investment activities | -9 842 | -876 | -2 844 |
| Kontantstrøm fra finansielle aktiviteter | Cash flow from financial activities | -8 731 | -7 994 | -12 539 |
| Kontantstrøm | Net cash flow | -25 658 | 18 082 | 28 839 |
| Likviditetsbeholdning 01.01 | Cash position January 1st | 28 021 | -818 | -818 |
| Likviditetsbeholdning periodeslutt | Cash position end of period | 2 363 | 17 264 | 28 021 |
| Bank og kassebeholdning | Bank and cash deposits | 23 973 | 38 744 | 46 095 |
| Trukket kassekreditt | Bank overdraft | -21 610 | -21 480 | -18 074 |
| Likviditetsbeholdning periodeslutt | Cash position end of period | 2 363 | 17 264 | 28 021 |
| Disponible trekkrettigheter | Disposable observing rights | 60 496 | 57 939 | 56 506 |
| Disponibel likviditet periodeslutt | Liquidity reserves end of period | 62 859 | 75 103 | 84 527 |


BORGESTAD INDUSTRIES ASA

Selskaps-kapital Egne aksjer Overkurs-fond Fond for verdi-vedringer Omnapsnings-differanser Annen egen-kapital Minoritets-interesser Sum egen-kapital
OPPSTILLING OVER ENDRING I EGENKAPITALEN (NOK 1 000) Share capital Treasury shares Share premium reserves Reserve for valuation changes Foreign currency translation Retained earnings Non-controlling interests Total equity
Egenkapital IFRS 01.01.10 Equity as of 01.01.10 5 712 -41 30 173 13 761 -714 85 392 5 507
Totalresultat i perioden Total comprehensive income for the period 0 0 0 0 3 752 4 875 1 234
Fondrevisjon* Capitalization issue 6 279 -45 -6 279 0 0 49 0
Utsjøte Dividend 0 0 0 0 0 -3 570 -390
Kjøp av egne aksjer Purchase of treasury shares 0 -19 0 0 0 -153 0
Egenkapital IFRS 35.09.10 Equity as of 35.09.10 11 991 -107 22 894 13 761 3 038 86 585 7 481
  • Forleysstønn er eksjektet i juli 2019.
Selskaps-kapital Egne aksjer Overkurs-fond Fond for verdi-vedringer Omnapsnings-differanser Annen egen-kapital Minoritets-interesser Sum egen-kapital
OPPSTILLING OVER ENDRING I EGENKAPITALEN (NOK 1 000) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (NOK 1 000) Share capital Treasury shares Share premium reserves Reserve for valuation changes Foreign currency translation Retained earnings Non-controlling interests
Egenkapital IFRS 01.01.09 Equity as of 01.01.09 5 712 0 30 173 13 761 3 540 81 915 6 361
Totalresultat i perioden Total comprehensive income for the period 0 0 0 0 -2 828 4 013 393
Utsjøte Dividend 0 0 0 0 0 -3 597 -529
Kjøp av egne aksjer Purchase of treasury shares 0 -12 0 0 0 -175 0
Egenkapital IFRS 35.09.09 Equity as of 35.09.09 5 712 -12 30 173 13 761 -268 82 156 6 225
Selskaps-kapital Egne aksjer Overkurs-fond Fond for verdi-vedringer Omnapsnings-differanser Annen egen-kapital Minoritets-interesser Sum egen-kapital
--- --- --- --- --- --- --- --- ---
OPPSTILLING OVER ENDRING I EGENKAPITALEN (NOK 1 000) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (NOK 1 000) Share capital Treasury shares Share premium reserves Reserve for valuation changes Foreign currency translation Retained earnings Non-controlling interests
Egenkapital IFRS 01.01.09 Equity as of 01.01.09 5 712 0 30 173 13 761 3 540 81 915 6 361
Totalresultat i perioden Total comprehensive income for the period 0 0 0 0 -4 254 7 657 775
Utsjøte Dividend 0 0 0 0 0 -3 397 -529
Kjøp av egne aksjer Purchase of treasury shares 0 -41 0 0 0 -593 0
Egenkapital IFRS 31.12.09 Equity as of 31.12.09 5 712 -41 30 173 13 761 -714 85 382 6 607
Egne aksjer 30.09.10 Ordinære aksjer Sum aksjer Egne aksjer 30.09.09 Ordinære aksjer Sum aksjer
--- --- --- --- --- --- ---
AKSJEINFORMASJON (NOK 1 000) INFORMATION RE. SHARES (NOK 1 000) Treasury shares Ordinary shares Total shares Treasury shares Ordinary shares
Antall aksjer 01.01 Number of shares 01.01 17 390 3 380 918 3 390 118 0 3 390 118
Kjøp av egne aksjer Own shares acquisition 4 122 -4 122 0 0.390 -0.200
Antall aksjer 30.09 Number of shares 30.09 21 322 2 376 796 2 398 118 0.390 2 392 918

B

BORGESTAD INDUSTRIES ASA

NOTER TIL BORGESTAD INDUSTRIES ASA'S KONSOLIDERTE DELÅRSREGNSKAP

Delårsrapporten for 3. kvartal 2010 for Borgestad Industries ASA ble vedtatt av styret den 4. november 2010.

NOTE 1 PRINSIPPNOTE

Konsernregnskapet for 3. kvartal 2010 er utarbeidet i samsvar IAS 34 delårsrapportering. Delårsrapporten inkluderer ikke all informasjon som kreves i en årsrapport og bør leses i samband med konsernregnskapet. Konsernregnskapet for 2009 ble utarbeidet i samsvar med regnskapslovens regler og internasjonale standarder for finansiell rapportering slik de er vedtatt av EU. Regnskapsprinsipper som er brukt i delårsrapporten er de samme prinsipper som er brukt i konsernregnskapet.

Borgestad Industries ble stiftet 27. mars 2008. Selskapets adresse er Gunnar Knudsensvei 144, 3712 Skien, Norge. Borgestad Industries ASA ble 1. oktober 2008 opptatt på Oslo Axess.

Det konsoliderte delårsregnskapet presenteres i norske kroner (NOK) og alle verdier er i NOK 1000 om ikke annet er skrevet.

Det konsoliderte delårsregnskapet er utarbeidet basert på videre drift og bokførte verdier som presentert i Borgestad Industries ASA's konsoliderte regnskap.

NOTE 2 DATTERSELSKAP

Datterselskap 100 % eid: Deleide datterselskap:
Hóganäs Bjuf AB GL Contracting AS 60 %
Borgestad Fabrikker AS
J. H. Bjørklund AS
Hóganäs Bjuf Fastighets AB
Hóganäs Bjuf Asia Pacific SDN.BHD
Hóganäs Bjuf France SARL
Hóganäs Bjuf Germany GMBH
Hóganäs Bjuf Middle East Ltd.
Hóganäs Bjuf Italia S.r.L.

BORGESTAD INDUSTRIES ASA

NOTE 3 SEGMENT RAPPORTERING NOTE 3 SEGMENT REPORTING
2010 2009 2010 2009 2009
Sement Cement Q3 Q3 Q1 - Q3 Q1 - Q3 Helår / Full year
Salg eksternt External revenue 24 899 32 777 119 619 158 200 199 935
Segment resultat Segment result 488 3 746 12 323 23 503 28 714
Stål Steel
Salg eksternt External revenue 10 925 7 662 36 791 25 685 34 147
Segment resultat Segment result 55 113 526 290 358
Brilliant Business Brilliant Business
Salg eksternt External revenue 36 514 34 006 97 309 95 246 125 253
Segment resultat Segment result 5 177 4 270 12 852 12 448 16 392
Installasjon Installation
Salg eksternt External revenue 10 261 13 930 40 221 35 100 53 333
Segment resultat Segment result 1 676 1 907 6 899 5 160 8 110
Elimineringer og justeringer Eliminations and adjustments
Kostnader ikke allokert til segment Expenses not allocated to segment -5 330 -8 020 -24 113 -35 282 -42 727
Total Total
Salg eksternt External revenue 82 599 88 375 293 940 314 231 412 668
Ordinært resultat før skattekostnad Profit before taxes 2 066 2 016 8 487 6 119 10 847

B

BORGESTAD INDUSTRIES ASA

NOTE 4 SPESIELLE HENDELSER I REGNSKAPSPERIODEN

I Q3 opprettet konsernet et nytt salgsselskap, Hóganás Bjuf Italia S.r.L.

NOTE 5 RENTEBÆRENDE LÅN OG TREKKFASILITETER

Konsernet har kortsiktige trekkfasiliteter på SEK 66,6 mill. og NOK 12,0 mill. samt langsiktig pantegjeld på SEK 48,5 mill. og NOK 4,8 mill.
Konsernet har også en ramme knyttet til rente- og valutasikring på NOK 7,0 mill.

Per 30. september har konsernet bankinnskudd på NOK 24,0 mill. og ubrukte trekkfasiliteter på NOK 38,9 mill., det vil si total disponibel likviditet på NOK 62,9 mill.

I 2010 er det blitt betalt avdrag med NOK 4,8 mill.

NOTE 6 NÆRSTÅENDE PARTER

Det er ingen spesielle transaksjoner internt i konsernet eller med nærtstående parter.

NOTE 7 HENDELSER ETTER BALANSEDAGEN

Det har ikke vært noen vesentlige hendelser etter regnskapsperiodens utgang.