Uponor Financial Statements 1-12/2008
Uponor failed to reach targets as markets contracted
• Full year net sales and operating profit declined as building markets
contracted
• Q4 2008: decline in net sales and operating profit steepened towards year-end
• Net sales* Jan-Dec: EUR 949.2m (2007: 1,047.4m), a change of -9.4%
• Operating profit Jan-Dec: EUR 51.2m (135.7m), down by 62.3%
• The company's earnings per share were at EUR 0.99 (EUR 1.39)
• In 2009, net sales is expected to remain below the 2008 level and profit for
the year 2009 is expected to be positive
• The Board's dividend proposal at EUR 0.85/share
(* Unless otherwise specified, the figures refer to continuing operations.)
President and CEO Jyri Luomakoski comments on the performance:
• Market developments in 2008 will make a permanent mark in history due to the
associated, exceptionally wide and strong decline in demand. Uponor's financial
performance lagged far behind our targets, but thanks to cost savings and their
careful management, we succeeded in preserving a moderate level of
profitability.
• Our operating profit remained at 8% of net sales, if we exclude non-recurring
items, a level which is fairly satisfactory in the current market environment.
• Towards the latter part of the year, we focussed largely on managing our net
working capital, and were successful in keeping the cash flow at a good level.
At the end of the year, our inventories and receivables were at a record low.
• We will continue focussing on strategic growth initiatives much as before. We
made good progress in the high-rise segment, and our new cooling offering has a
fine tail wind. Our customers' interest in these is mounting as various
environmental regulations provide them with competitive support.
Dividend proposal
The Board of Directors of Uponor Corporation propose to the Annual General
Meeting that the company pay a dividend of EUR 0.85 per share, totalling EUR
62.1 million or 85.7 per cent of the earnings in 2008. With the proposed
dividend, it is estimated that the company's gearing in 2009 will remain within
a spread of 30 to 70, as defined in the company's long-term targets. Last year,
Uponor paid out EUR 1.40 as a dividend per share.
Presentation material and the webcast:
Following the release of this report, the presentation material for the results
briefing will be available at www.uponor.com > Investors > IR material.
The webcast of the results briefing will be broadcast in English today at
2:00pm EET (London 12:00noon, New York 7:00am). The link to the webcast can be
found at www.uponor.com. Questions are invited to ir@uponor.com. A recording of
the webcast will be made available after 18:00pm EET at the latest, at
www.uponor.com.