Packaging

Operating profit AAK Group and Business Areas, fourth quarter 2010

Friday 18. February 2011 - Operating profit AAK Group and Business Areas, fourth quarter 2010

Fourth quarter 2010
· Net sales increased to SEK 3,930 million (3,788) due to increased raw material prices, partly offset by negative currency translation impact of SEK 149 million. Volume increased by 1 percent.
· Operating profit at SEK 251 million (289).
Adjusted for divestments and at fixed exchange rates, operating profit amounted to SEK 258 million (287). Fourth quarter 2009 was exceptional as earlier communicated.
· Earnings per share amounted to SEK 4.98 (3.85)
· AAK has in the fourth quarter started to use hedge accounting and thereby eliminated the IAS 39 effect, see page 9.
Full year 2010
· Net sales were SEK 14,808 million (15,884). The decrease in sales was net of a negative translation impact of SEK 600 million and reflected the deferred effect of lower raw material prices. Volume increased by 1 percent.
· Operating profit, at SEK 824 million (827) was in line with last year. Adjusted for divestments and at fixed exchange rates, operating profit amounted to SEK 855 million (810), an improvement of 6 percent.
· Earnings per share amounted to SEK 14.15 (10.14).
· Proposed dividend of SEK 4.50 (4.25), an increase by SEK 0.25, or 6 percent.
CEO comments
“Operating profit for 2010 was in line with our expectations. We now have a very strong foundation for our mid- and long-term, the “AAK Acceleration programme”. Focus areas are Growth, Efficiency and People. The prioritized growth areas are: Bakery & Bakery Service, Dairy Fat Industries, Chocolate & Confectionery Fats, Infant Nutrition (Baby Food), Food Service, Fast-growing economies (e.g. China and Brazil) and Merger & Acquisitions.
For 2011 we have a cash flow challenge because of significant raw material price increases that occurred in 2010 but with a time lag affecting 2011. I am pleased that we have been able to finalize the refinancing, with improved financial flexibility and we have now total committed facilities of SEK 6,000 million for five years or more”,” says CEO Arne Frank in a comment to the Q4 report.