4th QUARTER 1998
HIGHLIGHTS 4th QUARTER
- Operating revenues of 487 MNOK (up 39%).
- Profit before tax of 70 MNOK (up 35%).
- Mobile acquisition signed.
- Two major machine orders in Norway.
- Sale of building in Asker, gain 42.8 MNOK.
- Write-down of goodwill, 43.1 MNOK.
Operating revenues for 1998 amounted to 1 728 MNOK, up from 1 201 MNOK in 1997 (up 44%). In addition, a 43 MNOK gain from sale of the building in Asker was recorded in the fourth quarter. The operating profit increased to 291 MNOK after write-down of goodwill of 43 MNOK, from 206 MNOK in 1997 (up 41%). Profit before tax increased from 192 MNOK to 265 MNOK. Net financial expenses consist of net interest expenses of 8.0 MNOK, net currency exchange losses of 16.5 MNOK and profit from affiliated companies of 7.5 MNOK.
Earnings per share increased by 30% in 1998, from NOK 3.38 to NOK 4.40. The tax rate increased from 31.6% to 32.2%. Total assets increased by 30% during the year and amounted 1 834 MNOK. The liquidity remains good and the equity ratio stands at 69.5%.
The combined production and office building in Asker was sold in December at a price of 107 MNOK, giving a gain of 43 MNOK. The building has been leased back for a 10-year period with a right to renew for another 10 years. TOMRA has an option to buy back the building at today's market price by the end of the initial lease period.
A major restructuring of the TOMRA and Halton product program during the second half of 1998 has led to a write-down of intangibles related to products that are no longer in production. Some minor goodwill items in the US have been written off in addition. The total write-down amounted to 43.1 MNOK.
For full report, follow the enclosed link.
The Board of Directors of <br>TOMRA SYSTEMS ASA <br> <br>Jan Chr. Opsahl, Chairman <br>Erik Thorsen, Group President & CEO <br>