Operating income for Marel for the first quarter 2003 was EUR 24.1 million, which is an 8% decrease from previous year. The net profit after taxes for the period was EUR 665 thousand, which is a 37% increase from same time last year.
Outcome from Marel hf Consolidated Financial Statements for 1st Quarter 2003.
Operating income for Marel for the first quarter 2003 was EUR 24.1 million, which is an 8% decrease from previous year. The net profit after taxes for the period was EUR 665 thousand, which is a 37% increase from same time last year.
Marel’s investments were kept at a minimum, only EUR 0.4 million compared to EUR 4.6 million at the same time last year.
Net cash from operation was EUR 3.1 million. For first quarter 2002 this was a negative post of 1.8 million.
A comparison between 2003 and 2002 is influenced by the development of the Icelandic currency’s exchange rate: in 1Q 2003 the euro’s average exchange rate was 5.3% lower than in 1Q 2002, the USD was 22.7% lower, and the ISK exchange rate index 11.5% higher. The decrease in operational income is to a large extent caused by a weakened USD exchange rate against the euro, as an unusually large part of the Marel Group’s income during this period of time was in USD.
The Marel Group’s main markets in USA and Europe have seen a universal economic recession and new investments have been scarce. In spite of this, intensive marketing efforts and forceful product development have secured the company an increased share of the market and consolidated the Group’s competitive position.
Unfavourable external conditions were met by successful rationalizations. The main emphasis has been to obtain operating profit by decreasing operational expenses. Other operating expenses were EUR 4.8 million compared to EUR 5.7 million in 2002, a decrease of 19%. Bought material in 1Q 2003 was 29.1% of operating income but was 30.1% in the same period 2002. Wages and benefits were EUR 10.7 million compared to EUR 10.9 million the previous year in spite of unfavourable currency rates and a considerable increase in wages in Iceland.
Prospects
In 2Q 2003 the Marel Group’s order-book is in good condition. Sales of several new products introduced last year have been successful. In particular, the sales of a new type of grading systems for poultry have exceeded expectations.
There is, however, a sales resistance in some markets due to the economic recession in USA and Europe. Sales in the poultry industry have exceeded plans while sales in the meat and fish industries so far have not been according to plans. In May the Group introduced a number of new products, at the Brussels Seafood Exhibition for example, and it is hoped that these will boost sales to the fish industry.
On the other hand, the current strengthening of the ISK produces a very negative effect on Marel hf operations in Iceland, as it does on other Icelandic export companies in general. This will be met by ongoing rationalizations and by looking for ways to decrease expenses in ISK.
In the near future an increase in the number of employees is expected to meet increased sales. New employees will mainly be hired in the Group’s subsidiaries outside Iceland.
The financial statements for the Marel Group for 1st quarter 2003 were approved at the Marel Board meeting today, 12 May. Accounts are in euros, which are the Group’s operation’s currency. The principal accounting policies adopted in the preparation of these financial statements are mainly the same as applied before:
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Operation, first quarter 2003. Amounts in thous EUR |
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Welcome to Marel hf in Iceland - manufacture of food processing solutions for the global food processing industry.Marel manufactures food processing solutions for use in all major sectors of the food processing industry. Marel's vision is to be an international leader in developing and marketing high-tech processing systems and equipments for the global food processing industry in order to increase the productivity of Marel's customers.
Food Processing Systems - Solutions
Marel focuses on assisting processors in their ongoing efforts to maximise yields, increase throughput and efficiency, reduce labour costs, and optimise product quality, consistency and customer satisfaction. Marel
maintains strong ties with leading companies in the food processing industries around the world and designs and develops high-tech food processing systems and equipments that are in line with the needs of each industry.
Fish Processing Solutions: Marel offers total solutions for all fish processing needs both on land and at sea.
Meat Processing Solutions: Marel offers high quality meat processing solutions from trimming and deboning to portioning and packing.
Poultry Processing Solutions: Marel offers concepts in poultry processing that can revolutionize your plant.
About Marel hf in Iceland
Marel hf in Iceland is a subsidiary of Marel Food Systems which develops and markets an extensive range of equipment for all fields of the food processing industry. The company is made up of four elements that form an integrated whole: Marel hf. in Iceland, Carnitech A/S in Denmark, AEW Delford Systems Ltd in Britain and Scanvaegt International A/S in Denmark. Marel Food Systems is a leader in its field with subsidiaries in 22 countries and currently employ over 2.100 people.
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