TOMRA - Summary 4th quarter report 2001
- Revenues from continuing operations up 9%
-- Europe 285 MNOK (+20%)
-- North America (continuing) 307 MNOK (-23%)
-- South America 105 MNOK (new)
- Operating charges of 345 MNOK in North America and 45 MNOK related to Germany
- Currency gains of 29 MNOK in 4Q01
- Cash flow from operations of 301 MNOK in 4Q01
No conclusion in Germany - continued decrease of the refillable quota confirmed .
In 1991 Germany implemented a Packaging Ordinance requiring industry to maintain a minimum 72% quota of refillable containers, in order to avoid deposit to be introduced for non-refillable containers. The latest data from Germany show that only 60% of all drink containers were refillable in 2001 and estimates for 2002 indicate further reductions. Despite the decision to write-down investments tied to the German deposit start-up, TOMRA will remain organizationally prepared until the German situation has been clarified. The preparedness measures will cost approximately 12 MNOK in the first quarter 2002.
Europe - Denmark
The Danish government announced on January 23, 2002 that it would open the market for non-refillable containers for carbonated drinks with immediate effect. The retailers are expected to place orders to the different RVM suppliers through DRS during February 2002. TOMRA expects deliveries to start early March 2002.
Europe-Netherland
The Netherlands postponed the potential start-up of deposit for non-refillable containers to 2004.
North America-California
The initial restructuring of the West Coast operations was completed by year-end and the additional restructuring in California, announced early January 2002, stabilized the financial performance. TOMRA is expecting continued losses in California for the first quarter, and break-even on a monthly basis during second quarter.
North America - Hawaii
With the exception of Hawaii, all discontinued operations were closed or sold by the end of 2001. Hawaii will be maintained for the first half-year 2002 awaiting a final conclusion on the deposit discussions.
North America - Wise
By the end of 2001 the remaining loan between Wise Recycling LLC and their bank group was reduced to a level where it can be served by the cash flow from operations. TOMRA will be in charge of selling the remaining WR activities, and based on the current status it was decided to reverse the guarantee reserve of 15 MNOK at year-end 2001.
South America
The Brazilian Congress created in 2001 a special commission to review the fifty-seven different law proposals that deal with packaging and solid waste. The proposals were consolidated into one new law that may be proposed to Congress during 2002.
The draft bill introduces producer responsibility by stating that importers, producers, fillers and retailers will be jointly responsible for creating a collection system with a consumer and recycler incentive. The retail stores are proposed as one of the points-of-return for empty beverage containers. The required return rate of empty containers will be in the range of 70% with financial penalties to producers that fail to comply. The new legislation may create business opportunities for TOMRA as the only local operator in Brazil with technology, infrastructure and experience to implement such program.
Attachments:
Key Figures 1995 - 2001
Presentation of 4th quarter 2001