Kyro Oyj Abp: Kyro's Year-End Stronger Than Last - Enhanced Performance From Efficiency

- Group net sales EUR 268.9 (266.7) million - Comparable operating profit EUR 22.0 (23.0) million - Comparable profit before taxes EUR 22.3 (21.9) million - Profit after taxes EUR 12.1 (22.4) million, earnings per share EUR 0.15  (0.28) - Glaston’s new machine orders EUR 175.9 (177.8) million - Order book 31 December 2006: Group EUR 127.5 (140.7) million, Glaston  EUR 111.2 (108.8) million - Group efficiency programmes generate net savings of EUR 4.5 million in 2007 - Board of Directors’ proposal for dividend EUR 0.09 per share KYRO GROUP STRUCTURE Kyro’s business areas are Glaston Technologies and Energy.

The main business  area, Glaston Technologies, consists of the Glass Machinery Group and Tamglass  Glass Processing Ltd.

The Glass Machinery Group is the world market leader in glass processing  machines. The Glass Machinery Group’s products are glass pre-processing  machines as well as safety glass machines for the architectural and automotive  industries. The group consists of Tamglass, the technology and market leader in  safety glass machines; Uniglass, which manufactures flat tempering machines;  the leading supplier of glass pre-processing machines Bavelloni, which also  produces stone processing machines; and DiaPol, which manufactures tools for  glass and stone pre-processing.

Tamglass Glass Processing focuses on markets in Finland and neighbouring countries and is the leading comprehensive supplier of glass processing  products in Finland. Its safety and insulating glass products sold under the  Tamglass brand as well as its balcony systems are supplied to the building,  window and door industries, specialty vehicle manufacturers and construction

projects.  Kyro’s second business area is Energy, which consists of the electricity and  heat generating gas-fired combi power plant of Kyro Power Oy.


In 2006 the Group initiated efficiency programmes which Kyro now estimates will  have a positive impact on profits of EUR 4.5 million in the current year. To  support future growth, it was decided to increase Bavelloni’s maintenance and service personnel at the end of the year, as a result of which the net  personnel reductions of Bavelloni’s efficiency programme are smaller than  anticipated. The estimated six million euros in savings, therefore, have been  adjusted downward. The costs of the measures, EUR 5.3 million, were recognised  in full during 2006. The related provisions were 1.6 EUR million.

In September, Bavelloni began a programme to boost the efficiency of its  Italian operations, which led, among other things, to the closure of the  Bergamo assembly plant. The programme also includes other productivity-raising  operational and process changes, with arrangements affecting personnel. The  outcome of negotiations relating to these measures was a reduction of 59 jobs,  mainly in connection with the factory closure.

As part of the programme, the distribution logistics in Europe of Bavelloni’s  tools and spare parts were enhanced. The area’s three tool and spare parts  warehouses were centralised in Italy, from where they can be delivered to  European customers more quickly than before.  Measures taken in the Glass Processing Group included the restructuring of  Tamglass Finton, the merger of three Glass Processing Group companies into one  company, and the personnel reductions, a total of 36 employees, that followed  from these.


The Kyro Group’s net sales were EUR 268.9 (266.7) million in 2006. The  Group’s comparable operating profit was EUR 22.0 (23.0) million, representing  8.2% (8.6%) of net sales.

Comparable operating profit does not include non-recurring items totalling  EUR 5.6 million recognised in 2006 for the above-mentioned efficiency  programmes. They consist of EUR 1.3 million for the Glass Processing Group  restructuring and EUR 4.0 million for the Bavelloni efficiency programme. In  addition, a non-recurring item of EUR 0.3 million was recognised for the  Energy business area’s Partner project.

Comparable profit before taxes was EUR 22.3 (21.9) million, representing 8.3%  (8.2%) of net sales.

Taking into account the recognised non-recurring items, profit before taxes  was EUR 16.7 (34.3) million. Profit for the financial period was EUR 12.1  (22.4) million. This includes a EUR 1.8 million tax refund from previous  years. Return on invested capital was 12.1% (26.1%). Earnings per share were  EUR 0.15 (0.28) and equity per share was EUR 1.75 (1.76).

Net financial items totalled EUR 0.3 (—1.2) million. This includes interest,  dividend and other financial income of EUR 2.2 (2,4) million, and interest  and other financial expenses of EUR —1.9 (—3.7) million.  The Group’s order book on 31 December 2006 was EUR 127.5 (140.7) million.

In 2006 Kyro, commenting on its future prospects, stated that both the  previous year’s net sales and comparable operating profit were expected to  grow. After the third quarter, the estimate was adjusted by mentioning that

certain significant delivery projects had been postponed to 2007 and that realising the target level would be substantially decided by other orders in  the latter part of the year. Kyro increased its net sales, but comparable  operating profit fell slightly from the previous year, as the profitability  of the above-mentioned other orders at the end of the year proved to be  weaker than expected.

Read the entire news on the ource link below.

600450 Kyro Oyj Abp: Kyro's Year-End Stronger Than Last - Enhanced Performance From Efficiency
Date: 9 February 2007

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