OREANDA-NEWS. October 20, 2009.
Sales and Revenues
In the third quarter of 2009, consolidated net sales of AS Norma totalled 189 MEEK (12.1 MEUR).This constitutes a 45% (156 MEEK, 10.0 MEUR) decrease compared to Q3 in 2008. Sales to Russian and Ukrainian customers fell by 67% and sales to other customers by 5%. The sales in the third quarter of 2009 were mostly affected by the production suspension of Russian carmakers in August. Sales to Autoliv Group companies amounted to 106 MEEK (6.8 MEUR), a 3% increase when compared to the same period in 2008.

AS Norma exported 99.3% of its products (Q3, 2008: 98.9%) - 48% to Sweden and 39% to Russian customers (Q3, 2008: respectively 26% and 64%). 

For the 9 months of 2009, consolidated sales of AS Norma totalled 550 MEEK (35.1 MEUR), a decline of 49% compared to the same period last year. Sales to Russian and Ukraine customers decreased by 66% and sales to other customers declined by 28%.

The Group's main field of activity were production and sale of car safety seatbelts and their components. The Group also manufactured car components, as well as dies and molds for stamping machines, and rendered engineering services related to the design and adaptation of car safety systems and seatbelts.

The Group employed 622 people at the end of the third quarter 2009; that were less by 364 employees when compared to the same period a year ago. The Group employed a monthly average of 624 people during the third quarter of 2009. The vast majority of the Group has worked part-time during the accounting period.

Assets and liabilities

At the end of the third quarter 2009, the accounts receivable totalled 105 MEEK (6.7 MEUR), of which 43% related to the Russian, Ukrainian and Belorussian customers. The receivables from Autoliv were 54 MEEK (3.5 MEUR). AS Norma's payables to Autoliv amounted to 26 MEEK (1.7 MEUR).

The share of accounts in arrears of total receivables was 13%. The reserve against doubtful receivables was raised to 10.5 MEEK (0.7 MEUR).  At the end of Q3, 2009, the consolidated total assets totalled 999 MEEK (63.9 MEUR), an 82 MEEK (5.3 MEUR) decrease for the present year, thereby cash and financial assets grew 21 MEEK (1.3 MEUR), the receivables decreased 59 MEEK (3.7 MEUR), inventory decreased 23 MEEK (1.5 MEUR), and fixed assets decreased 21 MEEK (1.4 MEUR).

Short-term liabilities amounted to 98 MEEK (6.2 MEUR) at the end of the report period, a 5.5 MEEK (0.3 MEUR) decrease since the beginning of the year.  The Group has no long-term liabilities, all investments and operating activities are financed from equity.

In 2009, the Group's owners equity has decreased by 77 MEEK (4.9 MEUR), amounting to 902 MEEK (57.6 MEUR), i.e. 90% of total assets.

Investments
 
In 2009, AS Norma has invested a total of 25 MEEK (1.6 MEUR) to support existing production capacities and assure the future profits.

The construction of the new production building to ensure the organic growth and reprocessing has started.

Net Profit

In the third quarter 2009, the Group's consolidated unaudited net profit was 8.6 MEEK (0.55 MEUR). In the same period a year earlier the Group's net profit amounted to 49 MEEK (3.1 MEUR). Due to decreased production volumes the machinery was mark-down by 6.4 MEEK (0,4 MEUR)  in the third quarter 2009.

For 9 months of 2009, the net loss amounted to 11 MEEK (0.7 MEUR). The Group's restructuring costs amount to 12.9 MEEK (0.8 MEUR), a mark-down of tangible fixed assets to 6.4 MEEK (0.4 MEUR), and the doubtful accounts' provision has been raised by 9.1 MEEK (0.6 MEUR).

Both, diluted and basic earnings per share were -0.84 EEK (-0.05 EUR) by the end of September, a year earlier EPS was 7.94 EEK (0.51 EUR).

The preliminary financial results for the fourth quarter 2009 will be released on January 28, 2010.