AarhusKarlshamn: AAK`s Interim Report for the Fourth quarter and Year-end Report, 2012

Thu Feb 7, 2013 2:24am EST

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KARLSHAMN, Sweden--(Business Wire)--
Regulatory News: 

AarhusKarlshamn (STO:AAK) 

Chief Executive´s comments 

Record high operating profit driven by an extraordinary performance in Food
Ingredients Operating profit adjusted for hurricane Sandy ("Sandy")* reached a
record high for the fourth quarter of SEK 292 million (265), an improvement of
10 percent compared to the corresponding quarter in 2011. Operating profit per
kilo adjusted for Sandy* amounted to SEK 0.74 (0.69), a significant improvement
largely attributable to a continuing trend away from low margin commodity
volumes. In addition, Food Ingredients had a very favourable product mix and
unusually high production yields. 

Business Area operating profit adjusted for Sandy*: 

· Food Ingredients reached a record high fourth quarter of SEK 220 million
(151), an improvement of 46 percent 

· Chocolate & Confectionery Fats reported operating profit of SEK 82 million
(115) 

· Technical Products & Feed reported stable profits at SEK 21 million (21) 

Operating profit for the fourth quarter including Sandy* effects amounted to SEK
271 million (265), an improvement of 2 percent. 

Earnings per share increased by 4 percent, from SEK 4.82 to SEK 5.01. Sales
amounted to SEK 4,205 million (4,483), reflecting lost sales related to
Hurricane Sandy and lower raw material prices. 

Continued very strong operational cash flow Continuing strong cash flow in the
fourth quarter amounted to SEK 439 million (499), including a reduction in
working capital of SEK 112 million (289). 

With the raw material price evolution during the second half of 2012, AAK will
display a continuing reduction in working capital in the first half of 2013. 

Increased dividend The proposed dividend is SEK 5.25 (4.75) per share an
increase of SEK 0.50 or 11 percent. 

Business development During the fourth quarter Group volume increased by 2
percent. Food Ingredients continued to demonstrate very strong development,
particularly in Bakery and Infant Nutrition, while commodity volumes in the UK
continued to decline. Further, Scandinavia lost some low margin volumes.
Chocolate & Confectionery Fats continued as expected to be challenged and
Technical Products & Feed stabilized. 

Hurricane Sandy ("Sandy")* The AAK plants in New Jersey, US which were affected
by Hurricane Sandy are back in operation. Sandy* negatively impacted operating
profit in the fourth quarter by estimated SEK 21 million. 

AAK Acceleration and recent acquisitions We continue to see positive effects of
the AAK Acceleration program (Growth-Efficiency-People). Recent acquisitions are
developing in line with plans. 

Concluding remarks The impact on our industry from the more difficult general
economy in Europe is, as we all know, really difficult to predict. 

However, based on AAK`s customer value propositions for health and reduced
costs, our customer product co-development and solutions approach, and the AAK
Acceleration program, we continue to remain prudently optimistic for the future.
The main drivers are expected to be our strong Food Ingredients business and the
expected recovery in our Chocolate & Confectionary Fats business. 

The performance of the Chocolate & Confectionary Fats business is expected to
stabilize in the first part of 2013 and, provided the cocoa butter price remains
at the current more normal level - see page 19 - it is expected to start
improving significantly during the second half of 2013. 

Arne Frank CEO and President 

The information is that which AarhusKarlshamn AB (publ) is obliged to publish
under the provisions of the Stock Exchange and Clearing Operations Act and/or
the Trading in Financial Instruments Act. The information was released to the
media for publication on February 7, 2013 at 08.15 am CET. 

This information was brought to you by Cision http://www.cisionwire.com

AarhusKarlshamn AB
Investor Relations
Arne Frank, President and CEO
Phone: + 46 40 627 83 00
or
Peter Korsholm, Chief Financial Officer
Phone: + 46 40 627 83 00
or
Fredrik Nilsson
Director Group Controlling and Investor Relations
Phone: + 46 40 627 83 34
Mobile: + 46 708 95 22 21
E-mail: fredrik.nilsson@aak.com

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