LÄNNEN TEHTAAT'S CONSOLIDATED OPERATING PROFIT
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 16 December 2008 at 9.00 a.m.
LÄNNEN TEHTAAT'S CONSOLIDATED OPERATING PROFIT OF THE CONTINUING OPERATIONS FOR
THE WHOLE YEAR WITHOUT NON-RECURRING ITEMS LOWER THAN EXPECTED - THE OVERALL
PROFIT FOR THE FINANCIAL YEAR SUBSTANTIALLY BETTER THAN IN THE COMPARISON PERIOD
In its previous releases Lännen Tehtaat estimated that the operating profit of
the continuing operations excluding non-recurring items would be better than in
the comparison year thanks to a good performance by Grain Trading and improved
profitability in the Fish Products Business.
Because of a poorer than expected performance in the final months of the year,
Lännen Tehtaat expects the operating profit of the continuing operations for the
whole year without non-recurring items to be, at best, at the comparison year's
level.
Expectations have fallen in the Fish Products and the Vegetable Oils businesses.
Prospects for the Frozen Foods business, Grain Trading and Other Operations
remain unchanged.
Sales in the Fish Products business in Finland in the final months of the year
have been below their targets with the focus on less-processed products.
Profitability in the Fish Products business in Sweden and Norway in the final
months of the year has been affected negatively by a rise in the price of the
main raw material, which was caused by a marked deterioration in the exchange
rates of the Swedish and Norwegian currencies. The financial performance of the
Fish Products business excluding non-recurring items is expected to produce a
loss and be worse than in the comparison year, contrary to what was said
earlier.
The contraction in a pre-agreed major export transaction because of the
customer's financial difficulties and plummeting oil prices have contributed to
the poorer than expected financial performance by the Vegetable Oils business at
the end of the year. Contrary to what was said before, its financial performance
for the whole year excluding non-recurring items is expected to turn into a
loss.
The overall profit for the financial year will be much better than in the
comparison period. The positive non-recurring items in the associated company
Sucros Oy, the profit on the sale of the jams business and the profit on the
sale of the minority shareholding in Suomen Rehu will have a positive effect on
the financial performance.
A bulletin about Lännen Tehtaat's financial statements will be released on 19
February 2009.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information is available from CEO Matti Karppinen, tel + 358 10 402 4001
Distribution:
NASDAQ OMX Helsinki Ltd
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www.lannen.fi