FIRST QUARTER REPORT 2001
- Operating revenues of 649 MNOK (up 11%)
· Delayed sales in Germany and Denmark pending new legislation
- Profit before taxes of 98 MNOK (up 13%)
- Acquisition of 70% ownership in a Brazilian can collection and recycling company
- Acquisition of Belgian distributor
- Preferred supplier agreement with FDB, the Danish retail chain
- Several new deposit initiatives
Revenues in first quarter 2001 amounted to 649 MNOK, up from 583 MNOK in 2000 (up 11%). The slow start of the year was expected as a consequence of pending new deposit initiatives in several European Markets. The difficult scrap aluminum market in the U.S. and a step up in expenses in preparation for deposit introduction in Germany have contributed to the lower operating margin in the first quarter.
TOMRA signed in March an agreement to acquire its Belgian distributor, Tomra Systems NV with accounting effect from January 1, 2001.The purchase price was 36 MNOK and included goodwill of 26 MNOK.The Belgian government has drafted a new ECO-tax system that penalizes the non-refillable containers and promote refillables.
Effective March 2001 TOMRA signed the final agreement to acquire 70% ownership in the newly formed Tomra Latasa Reciclagem SA. The purchase price of USD 28 million included USD 22 million of goodwill. Annual revenues for Tomra Latasa are estimated to be in the range of USD 33 million for 2001. The South American activities will be reported as separate Business Unit from second quarter.
Since TOMRA in February communicated the write-off of 43,5 MUSD to cover the total financial exposure against Wise Metals Group, TOMRA and WMG have concentrated on re-establishing the relationship at acceptable terms for both parties. The parties have agreed to sell Wise Recycling LLC and negotiations with potential buyers are progressing. In order to secure future shipments of aluminum to WMG without increasing the credit exposure, TOMRA and WMG are also discussing a supply agreement with acceptable payment guarantees
For 1. quarter 2001 report, follow the enclosed link:
Asker, 19. april 2001 <br>TOMRA SYSTEMS ASA <br> <br>Erik Thorsen <br>CEO <br>(sign)