05 Apr 2007, Press release
Clear profitability improvement
Dynea results in 2005
Clear profitability improvement -- Dynea results in 2005
• Clearly improved performance in 2005: EBITDA increased to €87.8 million from €65.6 million in 2004. Focus on higher value products and continuous efficiency actions have improved the result from the year 2004.
• Sales increased to €1 179.2 million (€1 078.6 million in 2004), mainly due to high raw material prices especially in the beginning of the year.
• Cash flow from operations improved substantially, amounting to €106.7 million in 2005 compared to €54.9 million in 2004.
• Earnings improvement in all regions in Dynea’s core business.
• Operating expenses include a €2.4 million charge related to share based-payment in 2005 and restructuring charges amounting to €10.2 million in 2005 and €3.6 million in 2004.
• Joint venture Methanor suffered from high feedstock costs and low methanol prices, and operations are ongoing at reduced capacity until closure during 2006. Dynea made a write-down of €38.4 million of its investment in Methanor.
• Dynea refinanced all of its credit facilities on October 31, 2005, which significantly reduces interest expenses and increases financial flexibility.
• The refinancing of existing senior loans and redeeming the High Yield Notes resulted in a €22.8 million loss on the early extinguishment of debt during 2005.
• Plans to invest in a new plant in Western Canada. The construction work is expected to start in the first half of 2006 with a start up scheduled for early 2007.
"The good trend in Dynea continues. We were able to improve our operational result and cash flow significantly from year 2004", says Roger Carlstedt, President and CEO of Dynea. “Furthermore, Dynea is moving forward in implementing its strategy to focus on growth markets in chosen applications. Investments in Asia and Russia are proceeding as planned. Dynea also invests a new resins capacity in Western Canada, where especially the OSB market is growing fast. All this gives us an excellent platform for further improvements in our performance", concludes Roger Carlstedt.
New financing for Dynea
Dynea has entered into a new, eight year, €410 million credit facility with a Nordic group of financial institutions. With this facility and with new shareholder contributions in the form of equity and shareholder loans, Dynea redeemed its €250 million 12.25% bonds and repaid its old senior debt. “As a result of the refinancing operating flexibility will increase substantially. Above all the reduced interest payments and loan amortisations significantly increase the amounts that Dynea can invest for future growth”, says Filip Frankenhaeuser, Executive Vice President and CFO of Dynea.
For more information, please contact:
Filip Frankenhaeuser, Executive Vice President and CFO
Tel. +358 10 585 2011, e-mail: filip.frankenhaeuser@dynea.com
Dynea in brief
Dynea is a global provider of superior adhesion and surfacing solutions. In 2005, Dynea had combined revenues of EUR 1.2 billion. With 52 production units in 26 countries in Europe, the Americas and Asia Pacific, Dynea has some 3,000 employees.
Visit our Internet web sites at http://www.dynea.com to learn more about our operations.