Sonae Industria's 3Q turnover fell by 8% to Euro 312 million

Nov 20, 2012. /Lesprom Network/. Sonae Industria's consolidated turnover in 3Q 2012 totalled Euro 312 million, representing a 8% decrease compared to 2Q12. The Recurrent EBITDA margin dropped 0.7pp to 6.4% mainly due to the seasonal lower activity in the Northern Hemisphere countries, as the company said in a press release received by Lesprom Network. Belmiro de Azevedo, President of the Executive Committee said: “During last quarter, as expected, activity was negatively affected by the normal summer shut downs in the Northern Hemisphere. This effect, combined with a depressed economy in Europe, due to the austerity measures implemented, led to a weaker demand and the consequent further sales volumes drop. Following our efforts to refinance debt, we finalized 2 important operations over the last 2 months: in September, we closed the negotiations of a securitization transaction on the maximum amount of Euro 100 million with ING Belgium organised in collaboration with Finacity Corporation; in October we modified the repayment plan of bonds, which enables us to postpone to May 2017 the total amount of 45 million Euros previously due in 2012 and 2013. In the UK, as previously announced, we decided to close the Knowsley plant, following in-depth consultation with employees and trade union representatives, started in July. This decision is the result of the long delays to reconstruct the plant due to political and licensing difficulties and the reduced and unsustainable capacity levels that we were facing. However, it continues to be our intention, to supply the UK market from other plants located in Europe. I am aware of the difficult path towards long term sustainability of the company. However, I count on Sonae Industria team to overcome all adversities that may arise, in order to bring it back to profitability, and creating value to shareholders.” Compared to nine months of 2011, consolidated turnover for the first nine months of 2012 decreased by 2% to Euro 1,005 million with a reduction of approximately 4% in volumes sold. Price adjustments were not enough to compensate the variable cost increases and lower volumes which resulted in a 0.4pp recurrent EBITDA margin decrease to 7.6% of turnover. Total EBITDA in the first nine months of 2012 reached Euro 71 million (which includes around Euro 5 million non recurrent costs) and was 9% below first nine months of 2011. The first nine months of 2012 consolidated net losses from continued operations were Euro 28 million, an improvement of Euro 21 million compared with the first nine months of 2011. Net losses from discontinued operations were Euro 42 million, including impairment losses of Euro 41 million resulting from closing Knowsley plant. Consolidated net losses attributable to Sonae Indústria shareholders were Euro 69 million. Additions to Fixed Assets in the first nine months of 2012 were Euro 29 million, of which Euro 19 million are mostly related to investments in maintenance, Health & Safety and Environmental improvements. Almost Euro 10 million are related to the reconstruction of the UK plant, which were financed under the insurance program. During the first nine months of 2012, Working Capital increased by Euro 4 million when compared to the end of 2011, but decreased Euro 29 million compared to the first nine months of 2011, and resulted in a Euro 28 million reduction in net debt (when compared to the first nine months of 2011). Sonae Indústria is one of the largest wood based panels producers in the world. The product range includes: particleboard; MDF (Medium Density Fibreboard); hardboard; OSB (Oriented Strand Board).