12 April 2007, Press release
Dynea’s profitability clearly improved.
Dynea results in 2006.
Dynea's profitability clearly improved.
Dynea results in 2006. Positive performance in Europe and Asia Pacific.
The Finnish adhesive resins producer Dynea today announced its financial result for 2006 *. The result shows a turn to profitability with a profit for the year of €51.6 million (€31.3 million loss in 2005). Profit for the year from continuing operations amounted to €38.7 million (€53.4 million loss in 2005) due to improved earnings both in Europe and Asia Pacific. In 2006, Dynea decided to divest its North American operations and sold the Dutch joint venture Methanor.
Sales increased to €780.0 million (€714.5 million in 2005), both due to improved volumes and higher prices, especially in the second half of the year.
- Profit for the year 2006 from continuing operations totalled €38.7 million, a clear improvement from a €53.4 million loss in 2005.
- EBITDA increased to €54.6 million from €45.3 million in 2005. Continuous efficiency actions and positive impact from improved volumes compensated the effect of lower unit margins, brought about by sharp increases in raw material prices. Earnings improved both in Europe and the Asia Pacific region.
- On November 20, 2006, Dynea agreed to divest its North American operations including 13 production sites and approximately 700 employees in Canada, the United States and Mexico. Sales from the North American operations increased to €474.8 million from €464.7 million in 2005, and profit from these activities totalled €12.9 million in 2006 compared with €22.1 million in 2005.
- The 40%-owned Dutch joint venture Methanor was sold in the fall of 2006, resulting in an €8.0 million gain on the sale.
- Following the refinancing of credit facilities that took place in September 2005, Dynea’s finance costs decreased to €16.7 million in 2006 from €37.9 million in 2005.
- Cash provided by operations decreased to €67.0 million from €106.7 million in 2005, mainly as a consequence of increased working capital needs.
- Capital expenditure grew substantially to €39.2 million from €25.6 million in 2005. The largest individual investment project was the construction start-up of a new production facility in Sexsmith, Canada.
Roger Carlstedt, President and CEO of Dynea:
“Dynea has successfully executed its strategy of achieving market leadership in focused wood adhesion applications. We have expanded operations both in Europe and Asia Pacific to support this, while the market situation in South America was more challenging. We have increased our presence in the growing East European markets by opening a sales office in the Ukraine and continued to expand our operations in Russia through our joint venture MetaDynea. In Asia Pacific we commissioned our second plant in southern Thailand, in Hat Yai, to service the growing wood panel industry. We also strengthened our operations in Vietnam by installing formaldehyde capacity in our existing plant.
Our research and product development efforts have been further focused. This enables us to differentiate and create value through new offerings, especially responding to the growing customer demand of lower emission products.
All this gives us an excellent platform for further improvements in both our market position and performance.”
For more information, please contact:
Filip Frankenhaeuser, Executive Vice President and CFO
Tel. +358 10 585 2011, firstname.lastname@dynea.com
Dynea in brief **
Dynea is an international provider of superior adhesion and surfacing solutions. In 2006, Dynea had revenues of EUR 780 million. With 39 production units in 23 countries in Europe, South America and the Asia Pacific region, Dynea has some 2,200 employees.
Visit our Internet web sites at http://www.dynea.com to learn more about our operations.
*In accordance with IFRS 5, the group’s consolidated figures have been presented without North America, which is accounted for separately in the income statement in both 2005 and 2006, and in the balance sheet in 2006, as discontinuing operations. Consolidated cash flow, however, includes both continuing and discontinuing operations.
**Excluding the North American operations