Summarised financial statements 1999

Summarised financial statements 1999 * Consolidated earnings after net financial items totalled SEK 185 million (194). * Continued growth for speciality fats. * Strong cash flow. * Earnings per share amounted to SEK 6.11 (6.80). * A dividend per share of SEK 3.50 per share is proposed, in line with last year. KARLSHAMNS AB (publ) Summarised Financial Statements 1999 MARKET Raw material prices fell in the fourth quarter of 1999, following the stabilisation which took place in the third quarter. Price falls contributed to a decreased need for working capital. Deliveries to Eastern Europe increased by 4 per cent in 1999. Sales volumes of speciality fats continued to grow, now accounting for 33 per cent (28) of total volumes in the Edible Oils Business Area. Russian imports of finished food products remain slow, which affects our sales to the European food industry negatively. Decreased investment requirements have freed resources for intensified activities in prioritised areas or by-back of own shares. The Edible Oils business area's operating income amounted to SEK 155 million, a reduction of 7 million. Sales volumes fell by 2 per cent, mainly due to reduced deliveries to the Western European food industry. Volumes of standard products fell by 6 per cent, formulated fats decreased by 9 per cent whereas speciality fats increased by 16 per cent in 1999. Price competition from Asian producers of simpler speciality fats grew increasingly strong all through 1999. One production line in Holland was closed in December to offset the weakening margins. The business area's reduced profitability is attributable to the plant in England. Operating income in the fourth quarter of 1999 totalled SEK 27 million, compared to SEK 50 million in the fourth quarter of 1998. Volumes increased by 3 per cent in the last quarter of the year over the corresponding period in 1998. The Technical Products business area's operating income totalled SEK 29 million, a reduction of SEK 2 million. The decrease in earnings was attributable to product area Fatty Acids and Glycerol, where volumes decreased by 6 per cent. Operating profits in the fourth quarter improved by SEK 3 million to SEK 10 million. The Feed Materials business area's earnings amounted to SEK 15 million, a decrease of SEK 2 million being the result of lower contribution margins in the first six months of the year. Operating income in the fourth quarter of 1999 totalled SEK 8 million, as compared to SEK 7 million in the same period 1998. THE KARLSHAMNS GROUP Operating income The Group's operating income amounted to SEK 199 million (210). Operating income in the fourth quarter of 1999 totalled SEK 45 million (64). Earnings after financial income and expenses The Group's earnings after financial income and expenses amounted to SEK 185 million (194). Capital expenditure The Group's net investments for the full year 1999 totalled SEK 147 million (159). The major part of the Group's investments were concentrated to the Swedish production unit as part of a project aiming at efficiency improvements and capacity expansion. Working capital The Group's working capital as at December 31, 1999 amounted to SEK 449 million (561). Falling raw material prices and an action programme aiming at a decrease of raw material stocks contributed to the reduction in working capital. As at December 31, 1999 inventories amounted to SEK 369 million (454). Financial position The Group's shareholders equity as at December 31 1999 amounted to SEK 828 million (772). Total assets amounted to SEK 1,626 million (1,638). The equity/assets ratio was 51 per cent (47). The Group's net debt as at December 31, 1999 was SEK 187 million (318). In 1999, a dividend payment amounting to SEK 74 million was paid, attributable to the financial year 1998. Personnel The Group's average number of employees was 782 (787). The number of employees in the Group as at December 31, 1999 was 792 (781). Key ratios Return on equity for the full year 1999 amounted to 16 per cent (19). Return on working capital amounted to 17 per cent (20). Earnings per share decreased to SEK 6.11 (6.80). Equity per share increased to 39.41 (36.77). Proposed dividend The Board of Directors and the President propose an unchanged dividend of SEK 3.50 per share, and that the A.G.M. authorises a buy-back of maximum 10 per cent of the company's own shares, should the required permission be given. * Karlshamns Annual Report for 1999 will be distributed by mail to all registered shareholders at the beginning of April 2000. * The Annual General Meeting will be held in Karlshamn on 26 April at 14.00. * The interim report for the period to 31 March 2000 will be released on 26 April 2000. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/02/16/20000216BIT00810/bit0001.doc The full report http://www.bit.se/bitonline/2000/02/16/20000216BIT00810/bit0002.pdf The full report