Atorka Group hf.
Nine Months Results 2008
Atorka Group hf. / Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Key figures from the interim financial statement of Atorka Group hf.: Parent company financial statements: After-tax loss in Q3 was ISK 2.3 billion 9M after-tax loss was ISK 6.3 billion Total assets at the end of September amounted to ISK 58.2 billion Equity at the end of September was ISK 14.6 billion. Equity ratio at the end of September was around 25.1 % All of Atorka's investments are in specialised manufacturing and service companies. Most of these projects are in high-growth sectors, such as renewable energy, water treatment, environmental technology and packaging. Atorka's holding is generally 20-40%, ensuring it can strongly influence company strategy and management. Most of these companies operate outside of Iceland and on international markets. Near all of these companies have posted profits in their last accounts Consolidated accounts: After-tax losses according to the consolidated financial statements of Atorka Group hf. in Q3 were ISK 2.7 billion. After-tax losses according to the consolidated financial statements of Atorka Group hf. for the first 9M of 2008 were ISK 11.4 billion. The greatest share of these losses in the consolidated accounts can be attributed to major ISK depreciation. Total income during the first 9 months of this year was ISK 69.9 billion. Total group assets at the end of September amounted to ISK 129 billion. Equity at the end of September was ISK 0.2 billion. Atorka's performance and activities are reflected by the parent company statements and not the consolidated statements. All decisions are based on the parent company, including currency hedges taken to hedge parent company investments against exchange rate fluctuations which now appear as losses in the consolidated accounts due to ISK weakening. Significant events occurring after the end of Atorka Group's Q3 operations: Work is currently underway, in co-operation with the company's banks, on its debt refinancing. An extraordinary general meeting approved by an overwhelming majority the delisting of the company from OMX Iceland. Atorka won a complete victory in its case before the Supreme Court against OMX Iceland resulting from the latter's objections to information presented in a press release in August 2006. The Reykjavík District Court had previously found in favour of Atorka. OMX Iceland has announced that Atorka Group hf. will be delisted 5 Dec 2008. Known issues from write downs of Glitnirs share and Glitnirs money market fund have been taken into account, total 1.7 billion ISK Magnús Jónsson, CEO of Atorka: Circumstances on financial markets as well as the general economic situation are very difficult and many of the world's largest economies are facing a recession. This makes it more difficult to predict how companies will perform. Access to credit has tightened enormously, making it difficult for companies to obtain funding. This impacts their financing cost as well as their possibilities for growth and refinancing. The situation in Iceland is anything but normal and shrouded in considerable uncertainty after the collapse of the banking system. This uncertainty is reflected in the financial instruments negotiated by the company with its banks to minimise currency risk. In addition, because of the huge fall in the ISK year to date the company's balance sheet has expanded despite substantial sales of assets. ISK weakening in the consolidated financial statements means that parent company hedges appear as losses in the consolidated statements. The protracted downward slide of equity markets, especially in recent months, has a negative impact on the company's performance. The fact that Atorka's investments are in non-financial companies means that the financial crisis does not impact the company as negatively. Atorka's principal investments are in renewable energy, water treatment, plastics and specialised logistics. In recent quarters the company has prepared itself for the challenging times ahead. The company concluded its largest exit ever of an investment project this past year and extended its financing agreements. During the past year Atorka has sold substantial assets and paid down debt, making the company better equipped to deal with an adverse economic environment. The collapse of the Icelandic banking system at the beginning of October, however, was much more of a shock than anyone could predict. With the lion's share of its investments in well performing non-financial companies, Atorka can respond more effectively to such adversity and will continue to support the long-term development of its core investments. Future Outlook: Emphasis will continue on supporting the principal investment projects in the company's portfolio. Most of Atorka's investment projects are in the fields of renewable energy, plastics, water purification, environmental technology and specialised transport services, all of which benefit from globalisation. The short-term outlook is challenging, with considerable uncertainty as to how the global economy will develop in coming quarters. Long-term prospects for the company's investment projects are favourable, with major growth opportunities ahead in all main markets. Further information can be obtained from: Magnus Jonsson, Chief Executive Officer, tel: +354 540 6200 Harpa Thorlaksdottir Head of Corporate Communication, tel: +354 840 6212 Atorka Group's interim financial statements can be found on the Company's website: www.atorka.com News Source: NASDAQ OMX 28.11.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Atorka Group hf. Iceland Phone: Fax: E-mail: Internet: ISIN: IS0000000669 WKN: End of News DGAP News-Service ---------------------------------------------------------------------------
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