TOMRA - Third Quarter results 2005

Please find a short version of the quarterly report below. For more detailed information, please find links to the complete quarterly report and presentation at the end of the summary.

Revenues of  701 MNOK (+5 percent relative to third quarter 2004)
Operating profit of  79 MNOK before restructuring charges (83 MNOK last year)
Operating profit of 73 MNOK including 6 MNOK in restructuring charges (76 MNOK last year)
RVM Technology
Revenues in RVM Technology amounted to 299 MNOK in the third quarter 2005 vs 303 MNOK in 2004, a decrease of  1 percent. Year-to-date revenues are down 10 percent due to currency effects and lower sales in first half  2005.
Revenues in Europe equaled 201 MNOK in the third quarter 2005--a decrease of 4 percent vs 2004. Revenues increased by 2 percent adjusted for currency fluctuations. The increase is driven by new store openings in Denmark and orders in Holland related to the introduction of new deposit legislation in January next year.
In August, TOMRA received an order from GLOBUS worth between 4.1 and 6.5 MEUR. TOMRA will deliver ~100 reverse vending systems to GLOBUS' hypermarkets in Germany. On 4 October, TOMRA received its largest single order in the company's history. The German retailer Aldi Süd ordered 1,200 reverse vending machines for non-refillable containers with an option for up to 500 additional machines.
US East & Canada
Revenues measured in NOK increased by 4 percent to 98 MNOK. Increased volumes through existing installations and continued progress in new installations are the main reasons for this increase.
Tomra Production AS
As a consequence of increased activity level in TOMRA caused by the implementation of a nationwide deposit system in Germany, TOMRA has decided to postpone a potential change of strategic ownership of Tomra Production AS.
Collection & Materials handling
Revenues within Collection & Materials Handling increased by 4 percent to 247 MNOK. The increase in revenues was mainly driven by growth in the collection operations (US West/California). Margins also improved in the third quarter 2005 compared to 2004 due to improved performance in both California and the US East materials handling operations.
Recycling Technology
Operations within TiTech and Orwak Group are continuing to improve after a weak first quarter. Operating profit margin for the third quarter 2005 equaled 16% on revenues of 95 MNOK.
Other non-deposit activities
Revenues in the third quarter 2005 decreased by 41 percent to 60 MNOK due to the sale of TOMRA's Brazilian operations to Aleris International Inc. on 31 August 2005. The transaction involved a cash payment of 122 MNOK.
The prerequisites for a successful business model in Japan are in place. Together with Sumitomo, TOMRA has created a strong platform for implementing an RVM-based collection infrastructure in Tokyo. However, most likely we will not see significant volumes from Japan before 2007/2008.
TRC pilot in the UK
TOMRA installed an additional two TRC's, bringing the total to five centers. Investments in the project during third quarter 2005 equaled 4.5 MNOK, down from 6.5 MNOK last year. The business model depends on high collected volumes in order to finance investments in technology. However, current collection volumes at the centers are below the targeted volumes. Various incentive schemes have been implemented to generate higher return rates.
For presentation of  3rd quarter 2005 please use the following link:
For full report with tables of  3rd quarter 2005, please use the following link:
To view the web cast live on internet, please use the following link:
A record of the broadcast will be available as soon as the live broadcast has ended.