/raid1/www/Hosts/bankrupt/TCREUR_Public/030807.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Thursday, August 7, 2003, Vol. 4, No. 155
Headlines
C Z E C H R E P U B L I C
SKODA PRAHA: Gross Profit Up Almost 20% Despite Slump in Sales
F I N L A N D
AS KLEMENTI: Plans to Establish Independent Subsidiary in Sweden
RIFA GROUP: Narrows Operating Loss, Outlook Remains Uncertain
SENTERA PLC: Reports Interim Results for October to June
TELIASONERA: Talentum Acquires Sonera Plaza Media Sales
F R A N C E
ALSTOM SA: E.U. Threatens to Sanction France's Possible Rescue
ALSTOM SA: Continues Negotiations on Financing Package
PROVIMI SA: BB+ Credit Rating Withdrawn at Company's Request
SELAS CORPORATION: Reports Q2 Losses, Insolvency of French Unit
SUEZ SA: Still Undecided on Sale of Water Treatment Supplies Unit
G E R M A N Y
DEGUSSA AG: Successfully Closes EUR 2B Financing Transaction
HEIDELBERGCEMENT AG: Market Weakness Still Affecting Results
KIRCHMEDIA: Creditors Give Haim Saban Control of ProSiebenSAT.1
MEDIA! AG: Chief Financial Officer Leaves Management Board
SUSS MICRO: Posts Improved Q2 Results; Aims to Breakeven for 2003
WESTLB AG: BoxClever Investment May Spur Further Losses
H U N G A R Y
KERESKEDELMI ES HITELBANK: Watchdog Suspends Trading Rights
I R E L A N D
AN POST: Welcomes ComReg's Decision on Plans to Increase Tariff
I T A L Y
TELECOM ITALIA: Fitch Affirms 'A-' Rating After Olivetti Merger
P O L A N D
BANK PEKAO: Sells New York Branch Loan Portfolio for US$114.4 M
R U S S I A
YUKOS: Shares Upbeat on Rumors of Higher Dividend, Stake Sale
S W I T Z E R L A N D
CLARIANT: Initiates Transformation Program To Reduce Debt
SWISS INTERNATIONAL: Negotiations with Ground Staff Successful
ZURICH FINANCIAL: Sells Zurich Life to Swiss Re for USD 460M
U N I T E D K I N G D O M
AES DRAX: Ind. Directors Take Control As Lenders Mull Options
AMP LTD.: Updates Market of Changes to Listed Property Trusts
AVECIA GROUP: Half-Year 2003 Sales Down by 3%
AVECIA GROUP: S&P Junks Rating Due to Poor Second Quarter Results
BRITISH AIRWAYS: Unveils July Traffic and Capacity Statistics
CABLE & WIRELESS: Appoints Poggiali as Group Director of Mobile
GALA GROUP: 'B+' Rating Withdrawn at Company's Request
HAMLEYS PLC: Two Non-executive Directors Step Down from Office
LONDON FORFAITING: Board Continues to Recommend FIMBank's Offer
QUARTERLY HIGH: Calls in Receiver on Failure to Renew Facility
QUEENS MOAT: Discloses Strategic Review and Board Changes
TRINITY MIRROR: Daily Mirror to Dismiss More than 50 Employees
*********
===========================
C Z E C H R E P U B L I C
===========================
SKODA PRAHA: Gross Profit Up Almost 20% Despite Slump in Sales
--------------------------------------------------------------
Skoda Praha, the Czech engineering company which is currently
initiating a restructuring, reported gross profit that is up by
almost 20% year-on-year to CZK17.3 million in the first half.
Operating profit, however, was down to CZK7.6 million from
CZK100.9 million in the same period last year.
Sales dropped by 60% to CZK1.406 billion from CZK3.682 billion.
Total assets were also down to CZK2.552 billion from CZK6.071
billion, according to Czech Happenings.
The company was responsible for the work on the Temelin nuclear
power station, the delay of which forced it to sign an agreement
with power utility CEZ, holder of 29.8% of the company and the
operator of the power station, to swap a CZK700 million for
equity.
Skoda's other shareholders are the National Property Fund, which
owns 55%, and Skodaexport, with 10%.
Under the plan CEZ will get almost 70% of the company, subject to
approval by Skoda's general meeting on September 10.
Skoda's restructuring has cut off one-third of its staff this
year. Another 40 are expected to leave by September, trimming
down the number of employees further to 380.
=============
F I N L A N D
=============
AS KLEMENTI: Plans To Establish Independent Subsidiary in Sweden
----------------------------------------------------------------
Pursuant to the decision of the supervisory board of AS Klementi,
the company has decided to establish an independent subsidiary in
Sweden with a view to providing better service to the Swedish
wholesale clients.
On July 31, 2003 AS Klementi acquired non-active company
Nybyggaren 10:1000 AB. The new business name of the company will
be Klementi Trading AB.
The share capital of Klementi Trading AB is SEK 100,000. AS
Klementi owns 100% of the company's shares.
Members of the supervisory board of Klementi Trading AB are
Toomas Leis (chairman) and Leif Hill and the substitute member is
Evelin Lelmi. The director of Klementi Trading AB is Leif Hill.
*****
AS Klementi reported unaudited consolidated group net loss
amounting to EEK9.1 million in the first quarter. Net loss in
the same period last year was EEK4.6 million (EUR 0.3 million).
The company continues to restructure its business to increase
efficiency and achieve compliance with the competition conditions
on the market.
CONTACT: AS KLEMENTI
Toomas Leis, Director
Phone: +372 6710 700
RIFA GROUP: Narrows Operating Loss, Outlook Remains Uncertain
-------------------------------------------------------------
Highlights of Interim Report:
(a) Net sales in the first half of 2003 increased by 29.9%
totaling EUR39.3 million (EUR30.3 million in the
corresponding period of 2002).
(b) Operating loss was 2.3 million (loss EUR4.9 million)
(c) Loss before extraordinary items was EUR3.0 million (loss
EUR4.9 million)
(d) Earnings per share was -EUR0.017 (-EUR0.053)
(e) Order backlog on June 30, 2003 was EUR12.8 million (EUR16.0
million)
ECONOMIC DEVELOPMENT
Net Sales
Net sales of the Group totaled EUR39.3 million (EUR30.3 million)
which is EUR9.0 million more than during the same period in the
previous year. The net sales of BHC Components, which was
acquired in May 2002, amounted to EUR11.4 million (EUR3.1
million).
Profit
Operating loss of the Group was EUR2.3 million (loss EUR4.9
million) and loss before extraordinary items was EUR3.0 million
(loss EUR4.9 million).
Earnings per share was -EUR0.017 (-EUR0.053) and shareholders'
equity per share was EUR0.115 (EUR0.154).
Order backlog
The order backlog of the Group was EUR12.8 million at the end of
the first half of 2003 (EUR16.0 million at the end of the
corresponding period of 2002; with June 2003 currency rates: EUR
14,8 million). The utilisation rate of the production capacity
was low and almost at the same level as in the previous year.
Price erosion has been continuous during the period, which partly
explains the decrease in the value of the order backlog. Price
erosion continued due to the strength of the euro. Delivery
times are very short, and key customers are increasingly supplied
under JIT (Just-In- Time) arrangements, which also reduces the
order backlog.
FINANCIAL STATUS AND CAPITAL EXPENDITURE
Liquid assets of the Group were EUR5.4 million (EUR4.1 million)
and the equity ratio was 34.3% (39.3%) at the end of first half
of 2003. Translation differences of the equities of foreign
group companies (USD, GBP, SEK, SGD) caused a EUR0,9 M decrease
in equity compared to the situation at the year end in 2002.
The cash flow of the period includes a EUR0.7 million gain on
sales of assets and a EUR0.5 million tax return. The respective
gains have been included in the 2002 income statement.
The capital expenditure of EUR0.7 million (EUR6.4 million)
includes replacement investments both in Europe and in Asia.
Operative cash flow is expected to remain positive during the
rest of the year. To improve cost efficiency, efforts have been
intensified to increase turnover of working capital. To improve
assets utilisation Evox Rifa has started investigations to sell
some of its real estates.
SHARES AND SHARE CAPITAL
The nominal value of the shares of Evox Rifa Group Oyj is
EUR0.05, the number of shares was 173.371.018 on June 30, 2003
and the share capital was EUR8.668.550,90.
PERSONNEL
The average number of personnel of Evox Rifa Group during the
first half of 2003 was 1212 (1183 during the corresponding period
in 2002). The decision to make 50 persons redundant at the
Kalmar factory in Sweden was made in January - the cost saving
effects will be seen during the second half of 2003.
BUSINESS AREA ELECTROLYTIC CAPACITORS
Net sales of the Business Area were EUR20.2 million. Price
erosion increased during the period, and demand in the European
market is slowing down. The JIT concept has enabled more
efficient production planning, and the Business Area has been
able to meet the demands of short delivery times.
Profitability of the Chinese operation has developed as expected,
without major disturbances from the effects of SARS.
Profitability of the Business Area during the second quarter
remained at the same level as in the first quarter of 2003. The
ongoing process development projects will improve profitability
in the future.
BUSINESS AREA FILM CAPACITORS
Net sales of the Business Area were EUR19.3 million. The SARS
outbreak caused a slowdown in the Asian market during the second
quarter. The market is now recovering, but with strong price
pressure continuing. Demand in Europe during the second quarter
has been lower than during the first quarter of the year.
Uncertainty is expected to continue in the European market in the
near future.
The transfer of the small size plastic film capacitor production
from Sweden to Indonesia was finalized as planned, and the
capacity can be fully utilized from the third quarter on.
Marketing efforts of the full SMD (Surface Mounted Device)
product range according to the Matsushita (Panasonic) agreement
continued, with a positive feedback from the market.
The profitability of the European plants did not improve as
expected during the second quarter, mainly because of the strong
euro and low demand in Europe.
OUTLOOK FOR THE YEAR 2003
Evox Rifa's market environment is continuously uncertain. The
situation is not likely to improve in the USA or Europe during
the third quarter of 2003. The sales reflect the general
economic weakness in Europe and the USA. Growth in Asia will
continue, but with hard price pressures.
Evox Rifa will continue to cut costs and improve the efficiency
of its operations. The synergies within the group will be
further utilized in all business processes, with a strong
emphasis on global logistics and local service.
INCOME STATEMENT OF EVOX RIFA GROUP
1.1.- 1.1.- 1.1.-
30.6.2003 30.6.2002 31.12.2002
1000 EUR 1000 EUR 1000
EUR
NET SALES 39 342 30 290 69 839
Operating expenses -39 716 -33 162 -74 596
Depreciations and write-downs -1 975 -2 015 -4 185
OPERATING PROFIT (LOSS) -2 349 -4 887 -8 942
Financial income and expenses -675 34 - 797
PROFIT (LOSS) BEFORE
EXTRAORDINARY ITEMS -3 024 -4 853 -9 739
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES -3 024 -4 853 -9 739
NET PROFIT (LOSS) FOR THE PERIOD-2 907 -4 612 -8 735
BALANCE SHEET OF THE GROUP
ASSETS
30.6.2003 30.6.2002 31.12.2002
1000 EUR 1000 EUR 1000 EUR
FIXED ASSETS AND OTHER NON-
CURRENT ASSETS
Intangible assets 1 319 2 262 1 563
Tangible assets 22 175 23 342 21 431
Investments, non-current 110 92 92
INVENTORIES AND CURRENT ASSETS
Inventories 14 297 15 093 13 634
Long-term receivables 0 5 0
Short-term receivables 16 844 24 897 18 802
Cash and bank receivables 5 424 4 149 5 945
TOTAL NON-CURRENT AND
CURRENT ASSETS 60 169 69 840 61 467
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital 8 669 4 334 8 669
Other restricted equity 16 666 19 057 14 722
Non-restricted equity -5 413 3 349 -1 719
TOTAL SHAREHOLDERS' EQUITY 19 922 26 740 21 672
MINORITY INTEREST 694 725 788
LIABILITIES
Deferred tax liability 1 277 762 488
Long-term liabilities 18 912 21 381 20 250
Short-term liabilities 19 364 20 232 18 269
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 60 169 69 840 61 467
EVOX RIFA GROUP CASH FLOW STATEMENT
1.1. - 1.1. - 1.1.-
30.6.2003 30.6.2002 31.12.2002
1000 EUR 1000 EUR 1000 EUR
Net cash from operating
activities 1 631 -1 482 -5 591
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of Group Companies -4 933 -5 329
Purchase of tangible and
intangible assets -709 -1 512 -1 683
Proceeds from sale of tangible
and intangible assets 719 297
Net cash used in(-)/provided by(+)
investing activities 10 -6 445 -6 715
CASH FLOW FROM FINANCING ACTIVITIES
Share issue 6
069
Change in interest bearing loans -1 944 5 221 5 598
Translation adjustment -218 446 175
Net cash used in(-)/ provided
by(+)financing activities -2 162 5 667 11 842
Increase(+)/decrease(-) in cash and
cash equivalents -521 -2 260 -464
Cash and cash equivalents at the
beginning of the period 5 945 6 409 6 409
Cash and cash equivalents at the
end of the period 5 424 4 149 5 945
The figures in the Group cash flow statement cannot be directly
traced from the balance sheet due to translation differences and
elimination of non-cash items.
EVOX RIFA GROUP KEY FIGURES
30.6.2003 30.6.2002 31.12.2002
Return on equity %, ROE -27.3% -34.5% -36.3%
Return on investment %, ROI -10.1% -19.5% -19.1%
Equity ratio % 34.3% 39.3% 36.5%
Gross investments in
fixed assets, TEUR 709 6 509 7 147
% of net sales 1.8% 21.5% 10.2%
Earnings per share, EUR -0,017 -0,053 -0,068
Equity per share, EUR 0.115 0.154 0.125
Order backlog, MEUR 12.8 16.0 13.6
Personnel, average 1 212 1 183 1 288
DERIVATIVE CONTRACTS
The company uses forward contracts and currency options to hedge
foreign currency denominated balance sheet items against exchange
rate fluctuations. The maturity of the forward contracts and
currency options vary from 1 to 3 months.
The market values of off-balance sheet derivative contracts made
to hedge the exchange rates fluctuations (1000 EUR):
Currency options
Bought options
Value at the time of contract 3 388
Market value 30.6. 45
Sold options
Value at the time of contract 6 792
Market value 30.6. -29
The figures of this interim report are unaudited.
In Espoo on August 5, 2003
EVOX RIFA GROUP OYJ
Tuula Ylhainen
President
CONTACT: EVOX RIFA GROUP OYJ
Tuula Ylhainen, President
Phone: +358 9 5406 5001
SENTERA PLC: Reports Interim Results for October to June
--------------------------------------------------------
Highlights for Interim Report:
(a) Iocore Oyj merged during the review period with Solagem Oy,
and the name was changed to Sentera Plc in connection with
the merger. The merger was implemented by means of the
pooling procedure. Solagem Oy's figures are included in the
figures of the review period and the comparison period.
(b) The subsidiaries' operations in France and the Netherlands
are ending. Termination of these operations has negative
impact on operating profit but no impact on the profit of the
Group.
(c) Turnover for the review period: EUR17 887,000 (previous year
EUR17,485), growth 2.3%. Turnover for the third quarter
declined 4.9% and was EUR5,583 (EUR5,872,000 in 2002).
(d) Operating result (EBIT) for the review period: -EUR1 047,000
(previous year EUR1,083,000). Operating result includes one-
time expenses of EUR958,000. Western Europe Group losses
were EUR902,000. Third quarter operating result (EBIT): -
EUR922,000 (EUR409, 0000 during previous year).
REVIEW PERIOD IN BRIEF
The Sentera Group consists of Sentera Plc, Sentera Finland Ltd,
Sentera Western Europe Group and Solagem Ltd. Later in the
document Finnish business operations includes operations of above
mentioned companies, except Western Europe Group.
During the third quarter, the Group's turnover declined 4.9% due
mainly to the decline in Western Europe Group turnover during the
previous year. The business result of the Group during the third
quarter was -EUR992,000, including a total of EUR958,000 in one-
time expenses; EUR498,000 connected with the merger of Sentera
and Solagem, a EUR210,000 goodwill write-off linked with the
divesture of part of international operations plus EUR250,000 of
goodwill write-off connected with the Multicom business acquired
in 2001. The deferred tax asset linked with the termination of
the subsidiaries in the Netherlands and France of EUR210,000 is
included the "taxeso line in the profit and loss statement, and
should be taken into account in assessing the overall impact on
profit.
In Finland's business operations, turnover for the third quarter
increased 9.8% to EUR5,387,000. The business result was
unprofitable by -EUR510,000 including a total of EUR749,000 in
one-time expenses; EUR498,000 connected with the merger of
Sentera and Solagem and a EUR250,000 additional goodwill write-
off on Multicom business activity.
Turnover for the Western Europe Group shrunk dynamically during
the third quarter, due to the difficult market circumstances and
closure of subsidiary companies in France and the Netherlands.
Turnover for the Group increased 2.3% during the review period
October - June, and was EUR17,887,000. The Group's operating
result was -EUR1,047,000 during the review period, including
EUR958,000 of one-time costs from the merger of Sentera PLC and
Solagem Oy, the termination of Dutch and French operations and
goodwill write-off respective to Multicom business activity.
Turnover for Finland's business operations during the review
period increased 13.6% by comparison to the previous year and was
EUR16,513,000. The business result for Finland's business
operations was -EUR146,000 for the review period (in 2002, the
business result was EUR1,243,000).
The business result includes one-time costs linked with merger
and expenditures associated with good will write-off of
EUR749,000.
The review period turnover of Sentera Western Europe shrunk and
was EUR1,381,000, with the business result -EUR902,000.
MERGER OF SENTERA PLC AND SOLAGEM OY
On May 27, 2003, the Boards of Iocore Oyj and Solagem Oy as well
as certain Solagem shareholders agreed on merger of the
companies. The total turnover of the new Group's companies was
EUR23 million during calendar year 2002 and the total number of
personnel was 300. The merger was implemented by arranging a
special issue for Solagem's shareholders. The funds administered
by CapMan with an approximate ownership share of 34% are to
become the largest individual shareholder for the new Group, with
an ownership share of approximately 34%. The funds purchased the
shares respective to Mica Limited and Starbrook International
Holding B.V. from Sentera for approximately EUR4.6 million, which
corresponds to a share price of EUR1.42.
Merger was ultimately decided on during Sentera's extraordinary
meeting of shareholders arranged on June 18, 2003.
Sentera organized a special issue for Solagem's 45 shareholders,
in which subscription of 43,609 new Sentera shares could be
obtained for one old Solagem share. In addition, Sentera offered
new options proposed to the Board's meeting of shareholders for
holders of Solagem options so that 19 201 new Sentera stock
options were obtained with one old Solagem option. The exchange
of shares and options was implemented for Solagem's shareholders
and option holders through an exchange offer.
Moreover, Solagem's shareholders, who represent 79.6% of
corporate stock and number of votes, obligated themselves to
approve the merger and special issue subscription connected with
it, with certain conditions.
For the acquisition of Solagem's share capital, Sentera's Board
of Directors offered a total of, at maximum, 5 212 627 shares as
compensation to Solagem shareholders for subscription in the
exchange offer. Sentera's Board correspondingly proposed an
increase in corporate share capital as a share option to the
meeting of shareholders at no more than EUR260,631.35, by
offering a maximum of 5,212,627 new shares.
In order to determine the terms of trade, Solagem's share capital
was valued by utilizing several methods generally used in fixing
the value of shares.
The list adoption prospectus linked with the exchange offer was
announced during the morning of June 18, 2003. The exchange
offer began after this on June 18, at 10 a.m. The exchange offer
ended July 4, 2003, and Sentera's Board accepted the approvals
obtained in the exchange offer, as well as the special issue-
related capital stock subscriptions after this on July 4, 2003.
The increase in share capital connected with the exchange offer
was entered in the Register of Companies on July 7.
As a result of the arrangements, Solagem became a fully-owned
subsidiary of Sentera PLC.
Solagem and Sentera have been merged by means of the pooling
procedure. The companies' statements of profit and loss and
balance sheets are combined from the review period and the
comparison period as if the companies had always been together.
TURNOVER
The turnover of the Sentera Group (subsequently company) during
the third quarter declined 4.9% and was EUR5,583,000
(EUR5,872,000 during the 2002 financial year). During the review
period October - June, turnover grew 2.3% as compared to the
cycle corresponding to the previous fiscal period, and was
EUR17,888 (EUR17,484,000 during the 2002 financial year).
Finland's turnover for business operations (Sentera Suomi Oy,
Sentera PLC and Solagem Oy) during the third quarter increased
9.8% and was EUR5,387,000 (EUR4,906,000 during the 2002 financial
year). During the review period October - June, turnover grew
13.6% and was EUR16,513,000 (EUR14,525,000 during the 2002
financial year). Turnover growth was organic, and it was also
influenced by, among other things, two significant delivery
projects: the defense forces education portal project and the
installation project in specialist services. The impact of these
projects was noted in turnover mainly during the first and second
quarters of the fiscal period.
The turnover of the Sentera Western Europe Group during the third
quarter was EUR202,000 (EUR966,000 during the 2002 financial
year) and EUR1,381,000 during the review period October - June
(EUR3,463,000 during the 2002 financial year). The decline in
turnover is due to the difficult market circumstances in all
markets in addition to the termination of business operations.
Turnover for the review period accumulated 92.3% from Finland and
7.6% from foreign operations.
PROFIT DEVELOPMENT
The company's business result during the third quarter was
-EIR992,000 (EUR409,000 during the previous fiscal period). The
business loss includes one-time only items to a total of
EUR958,000, of which one-time only costs connected with the
merger of Sentera and Solagem are EUR498,000. Transaction
arrangement charges for these are EUR244,000 and other costs
related to transaction EUR253,000. In addition, the business
result includes a EUR210,000 goodwill write-off directed to
Sentera Western Europe's companies as linked with the termination
of the companies' business operations in the Netherlands and
France, as well as the EUR250,000 depreciation write-off linked
with the goodwill respective to the acquisition of Multicom
business activity. The calculated tax asset connected with the
termination of subsidiaries in the Netherlands and France of
EUR210,000 includes the "taxes" line in the profit and loss
statement, and must be taken into account in assessing the
overall impact on profit. In the profit and loss statement, the
merger costs are included mainly in other operating expenses; the
goodwill write-offs go to depreciations.
During the review period, October - June, the business loss was
-EUR1,047,000, taking the above-mentioned one-time only items
into account (during the previous fiscal period, the business
result was EUR1,083,000).
The business result for Finnish business operations during the
third quarter was -EUR510,000 (EUR392,000 during the 2002
financial year). The review period business result was -
EUR146,000 (EUR1,243,000 during the 2002 financial year). The
one-time costs connected with merger, EUR498,000 and goodwill
write off of EUR250,000 are included in the profit on business
operations during the third quarter.
The business result for the Sentera Western Europe Group during
the third quarter was -EUR482,000 (EUR17,000 during the 2002
financial year). This result includes the EUR210,000 goodwill
write-off. During the review period, October - June, the
business loss was -EUR902,000, taking into account the goodwill
write-off (in 2002 operating result was -EUR160,000).
Financial income and expenses for the review period were
EUR220,000 (EUR145,000 in 2002). Profit before extraordinary
items was -EUR827,000 (EUR1,228,000 in 2002). Extraordinary
items in 2002 include subsidiary dissolution losses of 921,000,
for which a deferred tax asset of EUR598,000 is recorded in the
review period.
FINANCING AND INVESTMENTS
The financing position of the company is good. The sum of
balance sheet at the end of the review period was EUR14 431
thousand euros (EUR14 822,000 in 2002). The solvency ratio was
65,7%, and net liabilities relative to equity (gearing) was -
71,0%. Liquid assets for the company were EUR3 918,000.
Sentera's capital assets were EUR91,000 (EUR506,000 in 2002).
PRODUCT DEVELOPMENT
During October - March, the product development expenditures were
EUR1 200,000 (EUR1 325,000 as corresponding period / previous
year). Product development costs were 6,7% of turnover and 14
persons worked during the review period in
product development.
PERSONNEL
The average number of personnel during the review period was 266
persons, of which 251 worked in Finland. In addition to employed
workers, an average of 17 contract workers worked for the
company. The average number of personnel grew by comparison to
the corresponding period / previous year by 15 persons.
CAPITAL STOCK AND SHARES
The capital stock of Sentera PLC is EUR331,712.65 euros, which
divides into 6,634,253 shares. Taking the company's new capital
stock into account, the increase in capital stock connected with
the acquisition of Solagem Oy after registration on July 7, 2003
is EUR592,122.80, which is divided into 11,842,456 shares.
During the review period, the company's stock was exchanged on
the Helsinki Exchanges / NM list to a total of 660,732 units
(9.9% of shares) at a total value of EUR698,000. During the
review period, the highest trading rate was EUR1.30and the lowest
was EUR0.95.
At the close of the review period, the company has holdings
totalling 106,300 units of Sentera PLC stock, of which the book
equivalent is EUR5,315. Shares have been remitted as
compensation to a total of EUR169,491.31. The proportion of
shareholders' shares from capital stock held by the company and
the total number of votes for all shares is 1.6%. Acquisition of
shareholders' share does not exert a significant impact on
ownership and distribution of the right to vote in the company.
SENTERA WESTERN EUROPE BUSINESS OPERATIONS
During the review period, Sentera PLC decided to terminate the
business operations of its subsidiaries in the Netherlands and
France. Business activity continues in Belgium.
Impact on bookkeeping caused by termination of these subsidiaries
in the Group:
The profit and loss statements for the subsidiaries in France and
Holland have been included in the Group's figures until June 30,
2003. During the third quarter, the goodwill sum of EUR210,000
as directed to subsidiaries, which is included in depreciation in
the profit and loss statement, has been eliminated. Sentera
may, in accordance with the preliminary ruling obtained from the
Finnish tax authorities, deduct in Finnish taxation the
acquisition cost of the Western Europe Group subsidiaries' shares
in accordance with the going value at moment of acquisition. On
June 30, 2003, the company entered a calculated tax claim of
EUR210,000 as connected with the same. Taking into account the
EUR210,000 goodwill write-off (included in the business result)
associated with the termination of Western Europe's operations
and the EUR210,000 calculated tax claim (included in taxes), the
termination of Dutch and French operations exerts no impact on
Group profit.
BUSINESS ACTIVITY DURING THE REVIEW PERIOD
Sentera Suomi Oy
Sentera Suomi Oy and the South Carelia Centre of Excellence
agreed on a development project for a new-generation transport
and vehicle dispatching system for the Kotka Transport
Cooperative. In addition to vehicle dispatching functioning via
electronic orders and vehicle terminals, the system comprises the
monitoring of transport, reporting and electronic billing.
Sentera Suomi Oy transferred the KuntoutuNET service to TELA, the
Finnish Pension Alliance. It unites the producers of
Finland's rehabilitation services, i.e., the rehabilitation
institutes with service clients, the employee pension insurance
companies. By means of KuntoutuNET, the business between service
providers and clients is formatted electronically. The service
consists of the web-based Extranet system and the Sentera ECG
integration base. Sentera Suomi Oy delivered the ECG integration
base to Helsinki Energy for the integration of its internal
corporate data systems.
Sentera Suomi Oy's Specialist Services Unit undertook extensive
data systems-related auditing on assignment from a certain bank.
Sentera PLC's subsidiary, Sentera Belgium, has completed an
agreement with Novartis Pharma NV-SA by which Sentera supplies
the enterprise with the integrated ePayables invoicing solution.
The solution takes care of the handling of all incoming invoices.
The parties are not releasing the contract price.
Solagem Oy
Solagem Oy's most significant business transactions during the
review period were the total solution package including
integration and mobile solutions for Ruoka-Kesko (Kesko / Food
Division), ERP (enterprise resource management) system for Nurmi-
Yhtiot and comprehensive ERP, integration and mobile solution for
a large Finnish steel company. During the spring, Solagem over
ten business agreements with companies in Finnish industry and
wholesale.
The network of collaboration expanded during the review period.
Solagem made a cooperation agreement with Anilinker Oy for the
offering of comprehensive integration solutions to Finnish
industrial enterprises. Collaboration between Solagem and IBM
deepened in, among other things, planning the total solution for
Ruoka-Kesko.
The development of operations control and integration solutions
continued in accordance with the product development plan.
During the review period, the Product Development Unit has
developed new wireless solutions based on Solagem @Hand-
technology. New products include the mobile solution for
maintenance work crew, Service@Hand and Warehouse@Hand for
wireless warehouse management.
Solagem Oy's international operations focused on the Nordic
countries, England and the Benelux nations. In the Nordic
region, a direct survey of the need for integration solutions in
the retail trade was undertaken. International partners were
supported with sales training and through marketing and demo
materials. New partnership candidates were also recognized in
target areas.
SUMMARY OF ANNUAL GENERAL MEETING DECISIONS
The Annual General Meeting on January 29, 2003 made these
decisions:
The balancing of accounts for 2002 was ratified and the proposal
of the Board according to which dividends would not be
distributed was approved. Exemption from liability was granted
to the members of the Board and Managing Director for the fiscal
period ending. Mike Frayne was selected as Chairman of the Board
of Directors, Kari Kontuniemi as Vice-Chairman, and Henrik
Gayer, Ian R. Henson, Kari Katajam"ki and Chris E. Mottram as
members of the Board. Ernst & Young Oy continue to function as
auditors for the company; Kunto Pekkala, Authorized Public
Accountant, as chartered accountant with full responsibility.
The Annual General Meeting also approved the following proposals
made to the meeting in the form presented by the Board (Helsinki
Exchanges announcement, January 10, 2003):
The Board was authorized to decide on subscription issue,
provision of stock option right and/or receipt of convertible
bonds. This authorization is in effect one year from resolution
and, on the basis of authorization, capital stock may be
increased by one or more subscription issues to a maximum of
EUR66,340.
The Board of Directors was authorized to decide on the
acquisition of shareholders' shares for distribution of profits
by means of available assets, in such wise that the book
equivalent of shareholders' shares held by the company and its
subsidiaries at the time, or their number of votes as yielded,
does not exceed five (5) percent of the company's capital stock
or total number of votes proper to shares after acquisition. This
authorization is in effect until 29 January 2004, and acquisition
of shares reduces the company's distributable unrestricted
shareholders' equity.
The Board was authorized to decide on the surrender of the
company's shareholders' shares. The object of authorization is a
maximum of 1,326,850 units of the company's shareholders' shares.
This authorization is in effect until January 29, 2004.
DECISIONS OF THE EXTRAORDINARY SHAREHOLDERS' MEETING, JUNE 18,
2003
The extraordinary shareholders' meeting of Sentera PLC resolved
on June 18, 2003 that the company's name would be changed to
Sentera PLC and that its accompanying English-language equivalent
would be Sentera PLC. The meeting resolved further to amend the
heading of the company's articles of association as well as
paragraphs 1, 3, 6 and 10 in accordance with the proposal of the
Board announced in the Helsinki Exchanges on May 27, 2003 and
with the above.
Senera's extraordinary shareholders' meeting resolved, in
accordance with the proposal of the Board of Directors released
on the Helsinki Exchanges on May 27, 2003, to amend the fiscal
period to the calendar year. In addition, the number of the
members of the Board of Directors was resolved to be seven (7).
The new members of the Board of Directors as elected are Henrik
Gayer, Kari Katajam"ki, Kari Kontuniemi, Richard Lehtola,
Johanna Lindroos, Ilkka P"rssinen and Timo Tiihonen.
Furthermore, the extraordinary shareholders' meeting has, on
June 18, 2003, as pursuant to the proposals of the Board of
Directors released on the Helsinki Exchanges on May 27, 2003,
approved the increase of capital stock of the company and the
granting of new stock option rights in connection with the merger
of Sentera and Solagem and the exchange offer proposed by the
Board of Directors. The prerequisite for the increase of share
capital and for the exchange offer was that the shareholders of
Solagem, representing at least 90 percent of all shares of
Solagem, and the votes attached thereto (calculated on a fully
diluted basis, taking into account the share subscriptions to be
exercised under Solagem's stock option rights), would irrevocably
and bindingly accept the exchange offer.
The extraordinary shareholders' meeting resolved to authorize, in
accordance with the proposals of the Board released on the
Helsinki Exchanges on May 27, 2003, the Board of Directors of the
company to decide on the increase of share capital through new
issues, convertible bonds or granting stock option rights as well
as in regard to purchasing and transferring the company's
shareholders' shares. In addition, the extraordinary
shareholders' meeting resolved to invalidate the stock option
rights totaling 220,800 as currently held by the company, so that
Stock Option Plan II (2001-2005) as approved on January 22, 2001
is to be invalidated in whole and the terms and conditions of
Stock Option Plan I (2000-2005) as approved on May 18, 2000 shall
be amended, pursuant to which amendment the share capital of the
company may as a result of the share subscription carried out
under the stock option rights be increased to a maximum amount of
EUR9,460.
Sentera's new Board of Directors has, in the organization meeting
held June 18, 2003, resolved to appoint Markku Toivanen as a
Managing Director of the company. The present Managing
Director of Sentera, Kari Katajam"ki, has announced his
resignation from the duties of the Managing Director as of 1
August 2003, until which Toivanen shall act as deputy of the
Managing Director. It was further resolved to elect Henrik Gayer
as Chairman of the Board and Kari Kontuniemi as deputy Chairman.
EVENTS SUBSEQUENT TO REVIEW PERIOD
The exchange offer made to the shareholders of Solagem Oy and
stock option holders ended 4 July 2003 and all shareholders and
stock option holders accepted the offer. The increase in stock
capital connected with Solagem Oy's acquisition of shares was
entered in the Register of Companies on July 7, 2003.
Personnel negotiations related to the combination of Sentera Plc
and Solagem Oy were concluded on 4 July 2003. The negotiations
were held in Sentera Plc, Iocore Finland Ltd and Solagem Oy
simultaneously and in close cooperation. During the negotiations
it was discovered that overlapping operations and possible
personnel reductions related to them affect fewer people than
estimated. During the personnel-related negotiations, the
companies evaluated the need for personnel reductions based on
financial and production-related reasons as well as for reasons
owing to the reorganization of operations within the new company.
The names of Sentera Plc subsidiaries Iocore Suomi Oy and Iocore
Solutions Oy has changed to Sentera Suomi Oy and Sentera
Solutions Oy.
NEAR FUTURE OUTLOOK
Turnover for Finnish business operations is anticipated to be on
approximately the same level as the previous year with respect to
the latter part of the 2003 calendar year. The operating result
for Finland's business operations is expected to be slightly
positive in the second half of calendar year 2003.
Turnover for the Group is anticipated to be slightly lower than
the previous year, due to closure of subsidiaries in the
Netherlands and France. The operating result for the Group is
also expected to also be slightly positive in the second half of
calendar year 2003.
To See Financial Statements:
http://bankrupt.com/misc/Sentera_Interim_Result.htm
CONTACT: SENTERA PLC
Markku Toivanen, Chief Executive Officer
Phone: +358 9 3747 800
Kari Peltola, Chief Financial Officer
Phone: +358 9 3747 800
Home Page: http://www.sentera..fi
TELIASONERA: Talentum Acquires Sonera Plaza Media Sales
-------------------------------------------------------
The Talentum Group's Talentum Media Oy and TeliaSonera Finland
(Sonera Plc) have signed a partnership agreement under which
sales of Sonera Plaza advertising space will be transferred to
Talentum Media.
Talentum Media and TeliaSonera Finland have signed a five-year
partnership agreement under which sales of advertising space on
the Sonera Plaza Internet service will be outsourced to Talentum
Media. The agreement comes into force on August 5, 2003. Eight
Sonera Plaza advertising sales staff will consequently transfer
to Talentum Media on August 11 as so-called old employees,
joining the Online Sales group that Talentum is setting up.
By working with Talentum in this way, TeliaSonera aims to secure
resources and development of operations backing up its products
and services as effectively as possible.
Talentum Media has solid know-how in selling advertising space,
has a highly professional sales team and uses highly advanced
systems. It is naturally keen to offer this expertise to a
partner that has already proved itself in other functions.
Similarly, selling Sonera Plaza advertising space fits in well
with Talentum's existing sale of advertising space on the
Talentum.com Internet service. The new agreement also creates
potential for Sonera Plaza and Talentum.com to develop joint
content production and new distribution and marketing channels.
Consequent to the agreement the annual value of Internet
advertising sold by Talentum will be around EUR5 million.
Sonera Plaza attracts 2.05 million visits a month, or around 87%
of all Finnish Internet users. The Talentum.com Internet service
for professionals has 187,000 users a month, and altogether
100,000 subscribers to its weekly newsletter.
TALENTUM OYJ
Harri Roschier
CEO
CONTACT: TALENTUM OYJ
Petri Karjalainen, CTO
Phone: +358 40 3424 240
Home Page: http://www.talentum.com
TeliaSonera Finland:
Petteri Kaartinen, Director
Phone: +358 400 621 288
Home Page: http://www.soneraplaza.fi
===========
F R A N C E
===========
ALSTOM SA: E.U. Threatens to Sanction France's Possible Rescue
--------------------------------------------------------------
The European Commission discouraged the French government from
pushing ahead with its plans of bailing out Alstom by saying the
state would face in-depth probe in case it does so.
The producer of TGV high-speed train, cruise ships and power
turbines, needs some EUR600 million to escape a severe liquidity
crisis amidst a steep drop in sales and orders. It has debts of
EUR4.9 billion.
The French government was expected to provide the EUR300 million
(US$340 million) of its planned capital increase.
The E.U. Commission told France to conform with E.U. law and
notify the bail-out package to the Brussels competition
directorate.
An investigation from the regulator could potentially keep France
from participating in any capital increase in Alstom for two
years.
According to officials, Mario Monti, E.U. competition
commissioner, told French finance minister Francis Mer the
notification was a "matter of urgency."
ALSTOM SA: Continues Negotiations on Financing Package
------------------------------------------------------
As announced in our press release dated August 4, 2003, the Board
of ALSTOM met late Monday to review progress in the negotiations
of its financing package. Given that the negotiations are
continuing, the Board decided to reconvene later Tuesday to
review the situation again.
The company has consequently requested the Paris, London and New
York stock exchanges to continue the suspension of trading in its
shares.
CONTACT: ALSTOM
Investor Relations:
E. Chatelain
Phone: +33 1 47 55 25 33
E-mail: investor.relations@chq.alstom.com
PROVIMI SA: BB+ Credit Rating Withdrawn at Company's Request
------------------------------------------------------------
Standard & Poor's Rating Services said that it had withdrawn its
'BB+' long-term corporate credit rating on Provimi S.A., France-
based leader in animal nutrition, with sales of EUR1.5 billion in
2002. The ratings were withdrawn at the company's request.
At Dec. 31, 2002, Provimi had total debt of EUR593 million, which
was primarily drawn under its EUR580 million syndicated senior
secured credit facilities, and coverage of net debt by funds from
operations of 17%, up from 15% a year before. The group has no
rated bond issues or rated bank loans.
SELAS CORPORATION: Reports Q2 Losses, Insolvency of French Unit
---------------------------------------------------------------
Selas Corporation of America (AMEX:SLS) reported results for the
second quarter and six months ended June 30, 2003.
For the second quarter, the company had a net loss from
continuing operations of US$649,000, or US$.13 per share, on
sales of US$17.2 million. This compares with continuing
operations net income of US$74,000, or US$.01 per share, on sales
of US$18.0 million for the second quarter of 2002. For the six-
month period, the company reported a net loss from continuing
operations of US$1,078,000, or US$.21 per share, on sales of
US$31.9 million, versus net income of USUS$93,000, or US$.02 per
share, on sales of US$34.7 million for the year-ago six months.
Selas recognized a net loss of US$682,000, or US$.13 per share,
from discontinued operations for the second quarter, compared
with net income from discontinued operations in the comparable
year-earlier period of US$157,000, or US$.03 per share. Second-
quarter 2002 discontinued operations include: Selas' large
furnace operation, which was sold in December 2002, and Deuer
Manufacturing, which was sold in July 2003.
For the second quarter of 2003, Selas reported a total net loss
of US$1,331,000, or US$.26 per share, compared with net income of
US$231,000, or US$.04 per share, in 2002. For the six months
ended June 30, 2003, the total net loss was US$1,567,000, or
US$.31 per share, compared with a net loss of US$10,459,000, or
US$2.04 per share, for the year-ago period. 2002 six-month
results included a US$10.6 million, or US$2.06 per share loss,
due to a goodwill change in accounting.
Mark S. Gorder, president and chief executive officer of Selas,
reiterated that the company's long-term strategy is to create
accelerated growth for its Precision Miniature Medical and
Electronic Products business. Selas' core competencies position
it well to expand its line of medical products to capture
significantly more business. "With our expertise in the robotic
manufacture of miniature and micro-miniature electronic products,
we believe we are well-suited to compete in a medical device
market," Gorder said.
For the six months ended June 30, 2003, Precision Miniature
Medical and Electronic Products sales increased 6 percent to
US$18.7 million, from US$17.5 million in the comparable 2002
period. Net income rose to US$626,000 from US$432,000 in the
prior year. Results for this business were buoyed by Selas'
small, but growing medical component business that saw year-over-
year revenue growth of 98%. The medical component increase was
primarily due to components within third-party medical products
to detect air bubbles in IV lines and for safety needles included
as part of implanted drug delivery systems. However, income from
this segment was more than offset by losses in the company's Heat
Technology segment and by corporate expenses.
Selas SAS
After four consecutive quarters of substantial losses together
with a US$1.3 million adverse judgment in the French Courts
related to a subcontractor lawsuit, Selas' wholly owned French
subsidiary, Selas SAS, filed for insolvency yesterday. Under
French law, Selas SAS will be put in the hands of a government
court administrator.
Gorder stated: "Our Heat Technology business in Europe has
suffered from the weak global capital-goods markets and the
strengthening of the Euro. Deterioration of the business over
the past four quarters and an uncertain future required Selas SAS
to take this action."
As a result of the filing, Selas Corporation of America will take
a minimum pre-tax charge of US$1.6 million in the third quarter.
In addition, the Company may incur additional liabilities related
to corporate guarantees and joint obligations or possible legal
action against Selas in French courts; however, the company
cannot predict the impact of any such liabilities or actions on
Selas.
"We regret Selas SAS filing for insolvency; however, we believe
without substantial additional investment, Selas SAS would be
difficult to turn around. We believe this action is in the best
long-term interest of Selas Corporation of America and its
shareholders," Gorder said.
As a result of the losses incurred to date and the insolvency of
Selas SAS, the company is out of compliance with certain
covenants with its bank lenders. Management is currently in
discussions with its banks to obtain the appropriate waivers.
Gorder concluded, "Strong second-quarter performance for our
Precision Miniature Medical and Electronic Products shows that
we're on track for the future. We're building the company around
these core product lines and divesting ourselves of our non-core
assets."
About Selas
Headquartered in St. Paul, Minn., Selas Corporation of America
designs, develops, engineers and manufactures microminiaturized
medical and electronic products. The company's core business
segment, Precision Miniature Medical and Electronic Products,
supplies microminiaturized components, systems and molded plastic
parts, primarily to the hearing instrument manufacturing
industry, as well as the computer, electronics,
telecommunications and medical equipment industries. Through its
core competencies and robotic manufacturing expertise, Selas is
well-positioned to compete in the hearing health market and a
medical device market that increasingly demands products with
increased miniaturization, better cost containment, more
reliability and high customer satisfaction. The company has
facilities throughout the United States, Asia and Europe. Selas'
common stock is traded on the American Stock Exchange under the
symbol "SLS."
Selas Corporation of America
Consolidated Balance Sheets
June 30, December 31,
2003 2002
(Unaudited) (Audited)
------------ ------------
Total current assets 43,441,484 43,891,282
Total current liabilities 44,339,476 40,337,266
Total shareholders' equity 14,292,034 16,615,739
SUEZ SA: Still Undecided on Sale of Water Treatment Supplies Unit
-----------------------------------------------------------------
Suez SA is still deliberating on whether to sell its U.S.-based
water treatment supplies unit, Ondeo Nalco, for which it received
bids from several funds, people familiar with the situation said,
according to Dow Jones.
Kohlberg Kravis Roberts & Co. and The Blackstone Group, are among
those interested for the asset which Suez bought for US$4.5
billion in 1999 in an effort to expand in the U.S.
Now the company is selling assets as part of a wide-ranging
restructuring plan aimed at trimming down its gargantuan EUR26
billion-debt load. It has raised EUR6 billion so far.
The company declined to comment on its plans, according to the
report.
=============
G E R M A N Y
=============
DEGUSSA AG: Successfully Closes EUR 2B Financing Transaction
------------------------------------------------------------
Degussa AG, Dusseldorf, has on Friday successfully closed its
EUR2.0 billion syndicated Revolving Credit Facilities announced
at the beginning of July. The Facilities serve to enhance the
maturity profile of Degussa's existing financial debt as well as
liquidity backup. The Facilities comprise a EUR1.0 billion 364-
day tranche and a EUR1.0 billion 5-year tranche.
BNP Paribas, Commerzbank Securities, Dresdner Kleinwort
Wasserstein and J.P. Morgan acted as Mandated Lead Arrangers for
the transaction. Syndication targeted a select group of Degussa's
bank partners and was very successful. The final syndicate of
banks will define Degussa's relationship banks for the coming
years. The success of Degussa's transaction in the syndicated
loan market can be attributed to its strong banking relationships
and pre-eminent position in specialty chemicals.
Degussa is a multinational corporation consistently aligned to
highly profitable specialty chemistry. With sales of EUR11.8
billion and a workforce of some 48,000, it is Germany's third-
largest chemical company and the world market leader in specialty
chemicals. In fiscal 2002, the corporation generated operating
profits (EBIT) of more than EUR900 million. Degussa's core
strength lies in highly-effective system solutions that are
tailored to the requirements of its customers in over 100
countries throughout the world. Degussa`s activities are led by
the vision "Everybody benefits from a Degussa product - every day
and everywhere".
CONTACT: DEGUSSA
Corporate Communications
Hannelore Gantzer, Spokeswoman
pHONE: +49-211-65 041-368
HEIDELBERGCEMENT AG: Market Weakness Still Affecting Results
------------------------------------------------------------
The weakness of the world economic development continued in the
second quarter. The first indications for a gradual economic
revival are appearing and, emanating, as in earlier recovery
phases, once again from the U.S. The disproportionately strong
seasonal impairment from the first quarter could be recovered
with varying degrees in the regions. However, this is only
reflected in the turnover figures to a limited extent due to the
weakness of the U.S. dollar compared with the euro. Turnover
fell compared with the previous year by 5.9% to EUR3,015 million
(previous year: 3,205). Adjusted for currency and consolidation
effects, turnover remained almost stable.
The drop in operating income before depreciation (OIBD) to EUR396
million (previous year: 493) or in the operating income to EUR81
million (previous year: 172) is caused by the unsatisfactory
price situation in the German cement market in addition to
exchange rate effects. The results from participations of EUR29
million (previous year 52) reflect market factors in Germany and
consolidation effects. Profit before tax dropped to EUR44
million (previous year 154), accordingly. After the tax ratio
has returned to a normal level, the profit for the first half-
year fell to a loss of EUR 4 million. The disinvestment program
for 2003 is expected to contribute more than EUR 300 million to
debt reduction, of which EUR116 million were achieved in the
first half-year.
The capital measures were successfully completed with a total
volume of EUR2.6 billion. In the process, EUR404 million accrued
to the company from the capital increase. Old and new
shareholders exercised subscription rights to more than 99%. The
high-yield bond, the volume of which was increased to EUR700
million, met lively interest from investors. The bond has a
seven-year term and a coupon of 7.375%. Similarly, we were able
to successfully conclude the refinancing of two syndicated bank
loans. The volume of the new syndicated loan was increased to
EUR1.5 billion due to the huge demand from the banking sector.
As a result, HeidelbergCement has enhanced not only the debt
maturity profile, but has also significantly strengthened its
financial flexibility.
Cement and clinker sales volumes
Cement and clinker sales volumes increased across the Group by 8%
to 23.8 million tons (previous year: 22.0). The gain amounted to
0.6% without taking into account new consolidations.
Employees
In the first half-year, 37,389 employees (previous year: 37,646)
were working for HeidelbergCement. Thus, the number of staff
fell by 257 compared to the previous year. The increase from new
consolidations - particularly in Central Europe East and Central
Europe West -- were more than compensated by reductions from
disinvestments and restructuring measures.
Investments
Compared with the previous year, we reduced total cash relevant
investments by a third to EUR242 million (previous year: 354).
Tangible fixed asset investments declined to EUR156 million
(previous year: 235). Financial fixed assets fell to EUR86
million (previous year: 119).
Prospects
Our cautious assessment for the full year 2003 remains unaltered
at the end of the second quarter. In Germany, stabilization of
the construction industry is not expected until 2004. However,
we assume that our proceeds should have gone through the trough.
The consolidation of the German cement industry continues.
Demand in the Benelux countries should remain somewhat weak in
the second half-year, while the slightly increasing trend should
continue in Great Britain. Our expectations are positive for the
regions of Central Europe East and above all North America. We
also view the development in Africa-Asia-Turkey as predominantly
optimistic.
The full year results are also shaped by a higher tax burden,
financial results on previous year's level, higher book profits,
changes in the consolidation scope and considerable exchange rate
effects.
After the successful completion of our capital measures, our main
focus is still on the intensified reduction in liabilities. In
addition to the planned disposals and reduced investments, the
results from restructuring and modernization measures together
with other cost savings will contribute significantly to lowering
our gearing markedly below 100% as planned.
To view full report and financials:
http://bankrupt.com/misc/HEIDERBERG_AG.pdf
KIRCHMEDIA: Creditors Give Haim Saban Control of ProSiebenSAT.1
---------------------------------------------------------------
U.S. entrepreneur Haim Saban was finally able to clinch a deal to
take a controlling stake in ProSiebenSAT.1, Germany's second-
largest commercial broadcaster, according to the Financial Times.
Creditors of Kirchmedia, which controls 72% of ProSiebenSAT.1,
accepted Saban Capital's offer of EUR7.50-a-share , or a total of
EUR525 million. This is despite a rival offer from Apax, the
U.K. private equity group, which values the group at EUR8-a-
share. Apax is understood to have spent six weeks preparing its
bid, but was seeking further due diligence.
Under the agreement, Saban and its financial backers will inject
EUR280 million into ProSieben and make a public offer for its
listed preference shares, trading at EUR5.60-EUR5.65 a share.
The revised offer, which was accepted a meeting in Munich, does
not include the KirchMedia film library.
The deal, which is expected to close at the end of the week, is
funded by private equity companies including Providence Equity
Partners, Hellman & Friedman, Thomas H. Lee, Quadrangle Group and
Bain Capital.
MEDIA! AG: Chief Financial Officer Leaves Management Board
----------------------------------------------------------
Effective July 31, 2003, Thomas Diepenbruck left the Management
Board by his own request and in mutual agreement of
MEDIA! AG (ISIN DE0006633308). Diepenbruck belonged to the
Company since October 2002 as Chief Financial Officer.
Based on the current situation of the company the supervisory
board decided not to reoccupy the position. The tasks of Thomas
Diepenbruck will be taken over by Dr. Arno Haselhorst, CEO, who
will represent the Company solely in the future.
*****
Media! AG filed for bankruptcy last month. Earlier this year,
the company reported a consolidated net loss of EUR8.4 million
for the first nine months of fiscal year 2002-03. A EUR2.8
million provision for risks negatively impacted the results, the
company said. As of March 31, 2003, the company had equity
capital of EUR6.9 million.
CONTACT: MEDIA! AG
Simone Saft, Investor Relations
Phone: + 49 (0)89 620 111 151
Fax: + 49 (0)89 620 111 153
E-mail: invest@media-ag.com,
Home Page: http://www.media-ag.com
SUSS MICRO: Posts Improved Q2 Results; Aims to Breakeven for 2003
-----------------------------------------------------------------
In the second quarter of 2003, SUSS MicroTec AG's results showed
a marked improvement from the previous quarter. This applies
especially to the significant recovery in gross profit margin
(44% in the second quarter, compared with 27% in the first
quarter) and to earnings after tax, which picked up to -EUR3.0
million after -EUR5.8 million in the first quarter.
Key figures for the quarter at a glance: net sales EUR21.6
million (Q1/2003:EUR17.6 million, +23%), gross profit EUR9.5
million (Q1/2003: EUR4.7 million, +99%). EBITDA -EUR2.7 million
(Q1/2003: -EUR7.5 million), earnings before tax -EUR4.6 million
(Q1/2003: -EUR9.6 million), net cash in hand (less current bank
liabilities): EUR18.5 million (Q1/2003: EUR16.7 million).
In the second quarter cash was generated again, due mainly to a
further improvement in collection of receivables, and a free cash
flow of EUR2.5 million achieved (Q1/2003: EUR4.6 million). SUSS
MicroTec's Q2 order entry, at EUR25.0 million, was roughly on a
par with the first quarter's EUR25.3 million. Year on year, the
group's order entry was down 6% on the first half, yet new orders
were up 4% in the first half after eliminating exchange-rate
effects. The order backlog as of June 30, 2003, adjusted for
currency changes and cancellations, was EUR40.7 million.
The Executive Board looks forward with cautious optimism to the
further course of business in 2003 now that more intensive
discussions with customers are under way, mainly in the
production equipment segment for Advanced Packaging processes.
In addition, the new SupraYield technology launched in the second
quarter, positions SUSS MicroTec much better in applications with
higher resolution requirements. Discussions with important
customers are progressing very positively in this segment. For
the second half the Board anticipates successive increases in
order entry and sales in the various SUSS MicroTec markets.
For the full year 2003, reaching cash break even remains a major
target with sales in the range of EUR105 million. Higher sales
are still possible, but become more difficult due to the current
development of the dollar-euro exchange rate.
For details of key figures for Q2/2003, see http://www.suss.de
WESTLB AG: BoxClever Investment May Spur Further Losses
-------------------------------------------------------
WestLB's disastrous financing of U.K. company Box Clever may
cause further damage to the German bank's half-year earnings,
according to Boersen-Zeitung.
The region's third largest state-owned bank may have to bear
additional losses of EUR200 million beyond the anticipated EUR482
million (US$546.7 million) in writedowns the report said.
The Dusseldorf-based bank was forced to post a EUR1.7 billion
loss last year due to significant writedowns on investment with
Box Clever, the U.K. television leasing company.
German regulator, BaFin, criticized the bank on the leniency of
its risk control, prompting chief executive officer, Juergen
Sengera, to resign last month.
=============
H U N G A R Y
=============
KERESKEDELMI ES HITELBANK: Watchdog Suspends Trading Rights
-----------------------------------------------------------
The Watchdog State Supervision of Financial Organisations has
suspended the trading rights of Kereskedelmi es Hitelbank
Equities until the end of September, according to Bluebull.
The ruling prohibits the brokerage from providing investment
service, additional investment service, and services for pension
funds. At such, the regulator has instructed the firm to
finalize ongoing transactions with clients until August 31, and
to report the results of this to the watchdog until September 10.
The regulator has allowed it only one transaction: to transfer
the shares of one of its clients to a rival brokerage. Existing
clients who want to trade with their shares were advised to
choose another brokerage. It was not yet known which rival will
have Kereskedelmi es Hitelbank's recommendation.
The only leeway that the watchdog gave K&H equities was to allow
it to allocate its own assets into state bonds. The watchdog's
decision is unappealable, although a control probe on court may
be asked.
TCR-Europe previously mentioned that Hungarian bank Kereskedelmi
es Hitelbank was subject of investigation for engaging in
fraudulent activities involving as much as EUR76 million in
investments. Chief Executive Tibor Rejto, which admitted the
fraud before resigning, said the bank's brokers indeed knowingly
promised high returns on as much as EUR76 million in investments
from high net-worth and institutional investors.
=============
I R E L A N D
=============
AN POST: Welcomes ComReg's Decision on Plans to Increase Tariff
---------------------------------------------------------------
An Post welcomes ComReg's conditional approval for our proposal
to increase the basic postal tariff from 41c to 48c on August 30
next.
We will be studying the ComReg document and will be making a
detailed response within the time-frame specified.
The increase will be the first major increase in Irish postal
rates since 1991. Even with the increase the Irish basic postal
tariff will still be one of the cheapest in Europe.
*****
An Post Group reported a pre-tax operating loss of EUR17.4
million in 2002. Costs, which rose 11% have for a second year,
pushed it into deficit.
When an exceptional charge of EUR52.5 million -- for
restructuring -- is included, the total losses reported for 2002
are EUR70.5 million, its biggest ever deficit since An Post was
established as a commercial State company in 1984.
=========
I T A L Y
=========
TELECOM ITALIA: Fitch Affirms 'A-' Rating After Olivetti Merger
---------------------------------------------------------------
Fitch Ratings, the international rating agency, has affirmed
Telecom Italia Spa's (New TI) Senior Unsecured rating at 'A-' (A
minus), Outlook Stable, following its merger with Olivetti SpA.
As indicated in Fitch's press release of August 1, the rating of
Olivetti SpA has been upgraded to 'A-' (A minus) from 'BBB' and
removed from Rating Watch Positive, to bring its rating inline
with that of Telecom Italia Spa (Old TI). At the same time the
agency has withdrawn the rating of Olivetti SpA as the merged
entity has been renamed Telecom Italia SpA (New TI).
CONTACT: FITCH RATINGS
Raymond Hill, London
Phone: +44 (0)20 7417 4314
E-mail: raymond.hill@fitchratings.com
Stuart Reid
Phone: +44 (0)20 7417 4323
E-mail: stuart.reid@fitchratings.com
===========
P O L A N D
===========
BANK PEKAO: Sells New York Branch Loan Portfolio for US$114.4 M
---------------------------------------------------------------
Management Board of Bank Polska Kasa Opieki SA informs that in
accordance with the decision made to close the Bank's Branch in
New York, what was published in the current report no. 17/2003 on
February 5, 2003, it has concluded with UniCredito Italiano SpA
New York Branch (the branch of UniCredito Italiano SpA in New
York, which belongs to UniCredito Italiano S.p.A. holding 53.17%
stake in Bank Polska Kasa Opieki S.A.) sale at nominal value of
Bank Pekao S.A. New York Branch loan portfolio, of which nominal
value is equal to US$114.4 M (one hundred fourteen million four
hundred).
In accordance with this transaction Bank Polska Kasa Opieki SA
signed with UniCredito Italiano SpA New York Branch Guarantee
Agreement covering whole the above mentioned loan portfolio.
Guarantee Agreement has been collateralised by cash deposit of
US$116 (one hundred sixteen) million placed by Bank Polska Kasa
Opieki S.A in UniCredito Italiano SpA New York Branch.
===========
R U S S I A
===========
YUKOS: Shares Upbeat on Rumors of Higher Dividend, Stake Sale
-------------------------------------------------------------
Shares in Yukos, which tumbled some 28% in July following the
detention of key shareholder Platon Lebedev, soared more than 5%
at early trade in Moscow on Tuesday.
Rumors that the embattled Russian oil group might pay out higher
dividends are believed to have sparked interest for the shares.
It was also thought that reports of negotiations with U.S.-based
rival ChevronTexaco regarding a possible sell-off of a 25% stake
may have encouraged trading.
Yukos jumped 4.9% by 13:20 GMT and its turnover was accounting
nearly half of the overall Moscow trade of US$13.32 million on
Russia's benchmark RTS index.
Yukos denied any negotiations with ChevronTexaco, but it was
thought that the rumors were supported by the fact that there
were massive Western sales in LUKOIL and Surgutneftegaz recently,
while there was a no less massive buying of Yukos, according to
the report.
Yukos, which is currently subject of several state-initiated
probes, is rumored to increase dividend payouts to 40% of its
earnings, one of the highest in the world's oil industry.
=====================
S W I T Z E R L A N D
=====================
CLARIANT: Initiates Transformation Program To Reduce Debt
---------------------------------------------------------
Roland Losser, Clariant's new chief executive, announces a wide-
reaching corporate transformation program that will significantly
reduce debt, cut costs, and re-establish the group as one of the
leading specialty chemicals companies.
The program, which is the result of an extensive internal review,
includes the sale of the Cellulose Ethers and Electronic
Materials businesses and the closure of four agrochemicals
plants. Overall, the program targets more than CHF1.5 billion in
proceeds from asset sales and aims to increase the pre-tax return
on invested capital within the next three to four years to at
least 12%, up from the current level of around 7%.
Stable Financial Situation
Clariant also reported operating results for the first half year.
Cost reduction measures launched at the beginning of the quarter
resulted in savings of approximately CHF60 million including
management bonus cuts. These measures will have further positive
effect over the next 18 months. Amid a challenging market
environment, sales grew 2% in local currencies, but declined 7%
in Swiss franc terms to CHF4.3 billion. After an exceptional
charge of CHF142 million relating to a previously announced plant
closure, the company reported a net loss for the second half of
CHF49 million, compared with a net income of CHF145 million in
the year earlier period.
"We are not satisfied with these results and they underline our
determination to refocus the company and significantly improve
our performance over both the short and long term," Mr. Losser
said.
The Clariant chief executive confirmed that the company's
financial situation is stable. "We have successfully completed
negotiations with lending banks on amended credit lines and we
have sufficient liquidity," he said. Furthermore, measures are
underway to reduce net debt to below CHF2.5 billion within 9
months, down from CHF3.7 billion at present. Mr. Losser
explicitly ruled out any new issuance of equity over the short
and medium term. "We will strengthen our balance sheet primarily
through asset sales," he said.
Newly Sharpened Strategy
In detailing the newly sharpened strategy, Mr. Losser said
Clariant will focus mainly on businesses where it can combine its
strong customer service capabilities with its leading-edge
surface and color technology. "We have a lot to be proud of in
this area," Mr. Losser said. "Clariant has already very
successfully built many of these types of businesses, for example
Masterbatches, Performance & Process Chemicals, Textile Chemicals
and Coatings. We will build further on these strengths."
Mr. Losser said that in addition to Cellulose Ethers and
Electronic Materials, several other businesses will be sold.
"Meanwhile we will ensure that their value is maintained and in
some cases improved. We are fully committed to delivering to
customers of these businesses Clariant's high quality standards,"
he said.
The businesses Clariant has decided to sell are either not
central to the new focus, carry high investment requirements or
cannot achieve leading market positions. Interest shown by
potential buyers has been highly encouraging and the company is
confident of achieving the target of raising over CHF1.5 billion
in proceeds.
Clariant also has several under-performing businesses where the
company, after having considered all options, believes internal
restructuring must be the first priority. This restructuring
includes the Life Sciences division, where four Custom Synthesis
plants producing agrochemicals in the U.S. and in Germany will be
closed, resulting in a workforce reduction of approximately 200
employees.
Reducing Costs and Increasing Cash Flow
The corporate transformation program includes short-term actions
to reduce costs and increase cash flow with minimal restructuring
charges. Short-term measures will focus on the areas of working
capital, purchasing and logistics, reducing the cost base by over
CHF100 million by 2004. Further medium-term structural measures
will focus on reducing manufacturing and administrative costs.
Overall, the transformation program aims to improve Clariant's
operating income by over CHF400 million over the medium-term.
The program will be driven by a strengthened, central senior
management team to ensure successful implementation across
divisions and functions.
"The transformation program, which is to be activated
immediately, marks a major shift in focus and determination," Mr.
Losser said. "Ultimately it will make Clariant a stronger, more
profitable company."
Job losses throughout the whole of Clariant will be unavoidable.
Management is currently evaluating which areas in particular will
see major reductions. Details will be provided in due course.
Mr. Losser detailed a newly strengthened management team, with
four out of five division heads recently appointed. They include
Nico Gontha in Textile, Leather and Paper Chemicals; Uwe Nickel
in Pigments & Additives; Dominik von Bertrab in Masterbatches;
Siegfried Fischer in Functional Chemicals; and Joachim Mahler in
Life Science and Electronic Chemicals, who was appointed in March
2002.
Hartmut Wiezer assumes the newly created role of Head of
Technology and Innovation with responsibility for spreading
innovation throughout the organization. Peter Brandenberg is
responsible for Human Resources, Corporate Communications and
Regional Coordination. Thomas Wellauer, joins as a senior
consultant to the chief executive, responsible for performance
improvement initiatives across divisions and functions.
Market Outlook
Mr. Losser gave a cautious outlook for the remainder of the year.
"We expect little or no help for the rest of 2003 from a market
environment that remains difficult," he said. "Nevertheless, we
are confident that we will make steady progress, particularly in
terms of net debt reduction."
"This transformation program leaves me very confident about
Clariant's future," Mr. Losser added. "It is already the result
of a tremendous amount of hard work. We are well aware of the
challenges we face, but we have the right team and the right
focus to get the job done."
CONTACT: CLARIAN AG
Investor Relations
Phone: +41 61 469 67 48
Fax: +41 61 469 67 67
Iris Welten
Phone: +41 61 469 67 47
Holger Schimanke
Phone: +41 61 469 67 45
Daniel Leuthardt
Phone: +41 61 469 67 49
SWISS INTERNATIONAL: Negotiations with Ground Staff Successful
--------------------------------------------------------------
SWISS and the GATA, KV Schweiz, Push and VDO ground staff unions
have agreed to make a contribution to the airline's economy
measures. The essential part of this contribution comes through
flexibility as regards individual working hours, as well as
reductions in other personnel costs. There was no agreement on a
general reduction in salaries.
The package incorporates a working model, covering flexible
arrangements between 42 and 37 hours.
The ground staff unions are supporting the contribution by
agreeing to changes in respect of airline employee tickets and to
a price adaptation of the currently subsidized personnel catering
charges.
Potential legal disputes in connection with the mass dismissals
have been settled.
In return, SWISS has prolonged the existing social plan by 12
months to December 31, 2004. An improvement in the social plan
arrangements for older and long-serving employees has also been
finalized.
CONTACT: SWISS
Corporate Communications
P.O. Box, CH-4002 Basel
Phone: +41 (0) 848 773 773
Fax: +41 61 582 35 54
E-mail: communications@swiss.com
Home Page: http://www.swiss.com
ZURICH FINANCIAL: Sells Zurich Life to Swiss Re for USD 460M
------------------------------------------------------------
Zurich Financial Services Group (Zurich) announces the closure of
Zurich Life Assurance Company (Zurich Life), one of Zurich's U.K.
life businesses, and its sale to Swiss Re. The transaction
values the business at approximately USD 460 million.
Approximately USD 240 million constitutes the cash payment, which
will be paid by Swiss Re on completion. The balance of the
transaction value will be remitted as dividends to Zurich ahead
of completion. Subject to regulatory approvals, the transaction
is expected to close by the end of 2003.
Sandy Leitch, Chief Executive Officer of the Zurich Financial
Services UKISA/Asia Pacific Business Division, commented, 'We are
transforming our Life businesses in the U.K. This involves
sharpening our focus, reducing expenses, strengthening our
overall capital position, and growing profitable new business.
This transaction contributes to all of those aims. Zurich's
overall business strategy and our commitment to building a
powerful Zurich brand in the U.K. are unaffected by this
decision."
Zurich Life's total annual premiums in 2002 were USD 118 million
and new business premiums in 2002 (on an annual premium
equivalent basis) were USD 19 million, representing 2% of
Zurich's overall new business figures for its U.K. life business
of USD 808 million.
Zurich Life will no longer accept new business with effect from
August 27, 2003.
Servicing and administration of the closed business will
transition to Computer Sciences Corporation, Swiss Re's third
party administrators in 2004. The policy benefits of all
existing customers will remain unaffected.
Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs about 68,000 people.
Swiss Re is a leading reinsurer and the world's largest life and
health reinsurer. The company is global, operating from 70
offices in 30 countries. Since its foundation in 1863, Swiss Re
has been in the reinsurance business. Swiss Re has three
business groups: Property & Casualty, Life & Health and Financial
Services. Swiss Re offers a wide range of traditional
reinsurance products and related services, which are complemented
by insurance-based corporate finance solutions and supplementary
services. Swiss Re is rated 'AA' by Standard & Poor's, 'Aa1' by
Moody's and 'A++' by A.M. Best.
Computer Sciences Corporation
Founded in 1959, Computer Sciences Corporation is one of the
world's leading information technology (IT) services companies.
CSC's mission is to provide customers in industry and government
with solutions crafted to meet their specific challenges and
enable them to profit from the advanced use of technology. With
approximately 90,000 employees, CSC provides innovative solutions
for customers around the world by applying leading technologies
and CSC's own advanced capabilities. These include systems
design and integration; IT and business process outsourcing;
applications software development; Web and application hosting;
and management consulting. Headquartered in El Segundo, Calif.,
CSC reported revenue of $11.3 billion for the 12 months ended
March 28, 2003.
===========================
U N I T E D K I N G D O M
===========================
AES DRAX: Ind. Directors Take Control As Lenders Mull Options
-------------------------------------------------------------
Creditors of AES Drax, Britain's biggest power station, allowed
independent directors to take executive control of the plant
after rejecting a restructuring offer for the firm.
Banks and bondholders appointed Gordon Horsfield, a former
director of operations at PricewaterhouseCoopers as chairman and
Gerald Wingrove, former finance director at London Electricity,
as finance director.
U.S. parent, AES, pulled out directors Garry Levesley, the plant
manager, Neil Hopkins, Naveed Ifmail, and John Turner from the
Drax power station in Yorkshire when it failed to have its
restructuring proposal approved late on Tuesday.
According to the Financial Times, the creditors, who are owed
GBP1.3 billion, wanted to have more time to consider rival
refinancing offers. Last month, AES received a higher offer for
a portion of Drax's debt from International Power, former
overseas arm of the demerged National Power.
International Power promised an offer worth about GBP80 million,
and 55p in the pound for debt in return for up to 36% of Drax.
AES offered only 47p to lenders.
A standstill agreement preventing creditors taking action that
could damage other lenders is expected to be extended, according
to the report.
AMP LTD.: Updates Market of Changes to Listed Property Trusts
-------------------------------------------------------------
AMP Limited outlined the impact of potential changes to its
listed property trust business, managed by AMP Henderson Global
Investors.
Chief Executive Officer Andrew Mohl said that consolidation was
occurring across the Australian listed property sector and that
AMP's property strategy had to take account of these changes.
"AMP Henderson is managing an exit from the listed property trust
sector at a time of significant market strength while mindful of
the interests of all stakeholders -- the listed property trust
unitholders, AMP shareholders and AMP Life policyholders," Mr.
Mohl said.
Three listed property trusts -- AMP Shopping Centre Trust, AMP
Diversified Property Trust and AMP Industrial Trust -- were
recently subject to takeover offers, which were recommended by
AMP Henderson, the Responsible Entity.
Changes are now proposed to the remaining listed property trust,
the AMP Office Trust.
AMP Henderson, the Responsible Entity for AMP Office Trust, has
proposed a restructure of the Trust's management through the
creation of a new management company, Ronin Property Group (RPG),
which subject to unitholder approval will replace AMP Henderson
as the Responsible Entity for the Trust.
If the proposed restructuring is approved by AMP Office Trust
unitholders, AMP will receive a one-off payment of AU$31 million
as a procurement fee for the retirement of AMP Henderson as
Responsible Entity. If approved, the changes will result in a
reduction in gross assets under management of approximately A$1.5
billion. The annualised net profit after tax impact on AMP
Henderson will be a reduction of around AU$4.2 million.
AMP Henderson and RPG will have an ongoing relationship in areas
such as property management services and new product development.
If the AMP Office Trust proposal is approved by unitholders, AMP
Henderson will have raised a total of AU$87.8 million across its
four listed property trusts. The cumulative profit impact from
the exit of the LPT sector on AMP Henderson will be an annualized
reduction of AU$16.5 million. The full financial impact will not
take place until 2004.
Mr. Mohl said that property remained an important part of AMP
Henderson's asset management capability.
"AMP Henderson will continue to be Australasia's largest manager
of unlisted wholesale property assets with a portfolio in excess
of US$10 billion, invested in the office, industrial and retail
property sectors," Mr. Mohl said.
Impact of changes on AMP Life (policyholders)
AMP Life, which represents the interests of AMP's 1.7 million
policyholders, is the largest unitholder in AMP Office Trust
owning approximately 21 per cent of the Trust. AMP Life is
entitled to vote on each of the three resolutions being proposed
to AMP Office Trust unitholders.
AMP Life has advised AMP Henderson that it welcomes the proposal
for internalization. In order to facilitate the proposal, AMP
Life has agreed to waive any pre-emptive rights it may have in
relation to the properties it co-owns with AMP Office Trust that
may arise from the implementation of this proposal. As part of
the arrangement, AMP Life has achieved greater clarity around co-
ownership agreements and ongoing management of co-owned
properties.
In terms of the three other listed property trusts, AMP Life sold
its 12.2% stake in the AMP Industrial Trust to Macquarie Goodman
for $1.28 per share, payable in cash. This represented a 27%
premium to net tangible asset value prior to the takeover
activity.
AMP Life sold its 3.8% stake in the AMP Diversified Property
Trust to Stockland for $3.07, which was a 25 per cent premium to
net tangible asset value prior to the takeover activity. AMP
Life also sold its 16.75 per cent stake in the AMP Shopping
Centre Trust to Westfield for $1.80, which was a 26% premium to
net tangible asset value prior to the takeover activity.
In total, the listed property trusts activity has benefited
policyholders by realizing almost $80 million above the stated
net tangible asset value of AMP Life's previous unitholdings
prior to the takeover activity. This is in addition to an
increase of some US$250 million in the valuation of its direct
property holdings since the takeover activity.
AMP Life Managing Director Craig Dunn said: "AMP Life has
achieved strong returns for its policyholders by realizing units
in buoyant markets".
CONTACT: AMP
Investor inquiries
Mark O'Brien
Phone: 9257 7053
AMP
Limited Level 24, 33 Alfred Street
Sydney NSW 2000
Australia
ABN
Phone: 49 079 354 519
AVECIA GROUP: Half-Year 2003 Sales Down by 3%
---------------------------------------------
Avecia announced half-year results for 2003. Group Sales for the
period ending June 30, 2003 were 3% down on the previous half-
year on a like-for-like basis. Group Operating Profit was
constrained by weak demand in pharmaceutical fine chemicals,
limited capacity availability in the Biotechnology business,
margin pressures in NeoResins and currency/weather related
impacts in the Specialty Products sector.
Jeremy Scudamore, chief executive officer said: "Avecia
businesses were impacted by a number of factors in the first half
of 2003. In particular, Biotechnology sales were constrained due
to a comprehensive program of work to extend GMP manufacturing
capacity in both our Biologics and DNA Medicines business units."
He added, "The enhanced manufacturing capacity should contribute
significantly to extra sales in 2004".
Mr. Scudamore confirmed that the sale of Avecia's Metal
Extraction Products and Intermediates & Stabilizers businesses to
Cytec Industries Inc, for approximately US$97 million in cash is
expected to be completed later today. Cytec will acquire
substantially all of the assets and liabilities of the businesses
including the majority of assets at Avecia's Mount Pleasant site
in Tennessee. Net proceeds from the sale of the businesses will
be used primarily to repay Avecia bank debt.
Avecia Group sales for the half year 2003 were GBP264.3 million,
3% below the same period in 2002 after accounting for currency
effects resulting from the weaker US$ and changes in the
portfolio following the sale of Avecia's Pigments business in
December 2002. Business sector highlights include:
Good sales of ink jet printing materials for new 'All-in-One"
printers helped lift sales in the Electronic Materials sector
Fine Chemical sales were impacted by industry difficulties
affecting many Pharmaceutical fine chemical companies, namely the
sparsity of large-scale contract manufacturing opportunities
resulting from the innovation gap in pharmaceuticals
Good demand for Avecia's 'early-phase' pharmaceutical development
services following completion of a number of new investments in
this area.
Sales of biotechnology products were limited by a comprehensive
program to significantly extend GMP manufacturing capacity and
validate manufacturing processes in DNA medicines. In addition,
the first stage of a GBP70 million investment program in a new
Advanced Biologics manufacturing facility in the U.K. is nearing
completion and on schedule to meet customer demand from Q4 2003
Specialty Products' sales reflect a change in population
following the sale of Avecia's Pigments business in December 2002
and the impact of a weaker U.S. dollar in the U.S.-based Biocides
and Metal Extraction Products businesses. The U.S. Pool season
also started badly in May and June, due to some of the wettest
weather conditions in North East U.S. States for 100 years
NeoResins' sales for the half year 2003 were 4% ahead of the same
period in 2002, driven by good recovery in the Coatings sectors
CONTACT: AVECIA
Public Affairs Group
Phone: +44 (0)161 721 2942 / 2441
Fax: +44 (0)161 721 5319
AVECIA GROUP: S&P Junks Rating Due to Poor Second Quarter Results
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on U.K.-based specialty chemicals
manufacturer Avecia Group PLC to 'B' from 'B+', following a poor
performance in the second quarter and limited near-term recovery
prospects. The outlook is negative.
At the same time, the company's senior unsecured debt rating was
lowered to 'CCC+' from 'B-', and the rating on the company's
preference stock was lowered to 'CCC' from 'CCC+'.
"The rating action follows poor second-quarter results and a
continued weak near-term outlook, which, in particular, are due
to sluggish demand in the group's Fine Chemicals division," said
Standard & Poor's credit analyst Ralf Kortuem. The segment in
general is struggling with overcapacities in the pharmaceutical
intermediates market. In addition, recent large investments in
the group's biologics facility have not yet generated any cash
flows, as it will only come on stream at the end of 2003.
The group's indebtedness is onerous despite the recent disposal
of two activities to Cytec Industries Inc. (Cytec; BBB/Stable/--
). In addition, ability for further debt repayment is limited
unless free cash flows can be improved. Apart from the positive
effects of the new biologics facility, cash flow generation in
2004 should be supported by cost savings as a result of Avecia's
ongoing restructuring program. Avecia also has the potential to
supply additional meaningful volumes of pharmaceutical
intermediates for a new drug that might be launched in the U.S.
later this year.
"Avecia's high financial leverage has only been reduced slightly
following the recent Cytec transaction, with a ratio of net debt
to the past 12 months EBITDA (pro forma the disposal) still in
excess of 6x," said Mr. Kortuem. "Nevertheless, the group is
expected to continue to be able to generate funds from asset
disposals, which have repeatedly supported cash flows in the
past."
Avecia's liquidity position is fair. Although there is currently
ample availability under the group's key o100 million revolving
credit facility, the facility is subject to tight financial
covenants, and the ability to comply at the end of the third and
fourth quarters in uncertain. Scheduled bank debt maturities of
about GBP30 million and GBP33 million during the 12 months ending
June 30, 2004, and June 30, 2005, respectively, are additional
constraints.
The negative outlook reflects concerns about Avecia's significant
reliance on its key revolving credit facility as a source of
liquidity and the little remaining headroom under the financial
covenants of this facility in the near term. The ratings might
be lowered further if free cash flows do not improve as a result
of restructuring activity, structural improvements in the group's
Fine Chemicals division, or a reduction in capital expenditure.
BRITISH AIRWAYS: Unveils July Traffic and Capacity Statistics
-------------------------------------------------------------
Summary of the headline figures:
In July 2003, overall load factor fell 2.2 points to 67.9%.
Passenger capacity, measured in Available Seat Kilometres, was
3.0% above July 2002 and traffic, measured in Revenue Passenger
Kilometres, was higher by 2.5%. This resulted in a passenger
load factor down 0.3 points versus last year, to 76.4%. The
increase in traffic comprised a 1.7% reduction in premium traffic
and a 3.2% increase in non-premium traffic. The statistics are
distorted by the unofficial strike action, which occurred during
the month and has impacted both Available Seat Kilometres and
Revenue Passenger Kilometers by some 2 percentage points. Cargo,
measured in Cargo Ton Kilometers, fell by 7.8% affected by both
the strike action and the temporary closure of the Ascentis World
Cargo Centre for maintenance work.
Market conditions
Market conditions are broadly unchanged from last month, the
outlook still fragile with traffic volumes remaining very
sensitive to yield. Seat factors are expected to continue at
close to last year's levels. We expect that revenue in the
second quarter will be lower than last year.
Strategic Developments
British Airways posted a pre-tax loss of GBP45 million (2002:
GBP65 million profit) for the first quarter to June 30, 2003.
The operating profit for the first quarter was GBP40 million
(2002: GBP158 million profit). The deterioration in operating
profit reflects the significant reduction in revenue due to
continuing economic weakness, the war in Iraq and the impact of
SARS. This was partially offset by cost savings delivered
through the airline's Future Size and Shape recovery program.
British Airways announced that the airline had reached agreement
with staff over the introduction of its electronic swiping in and
out system and that the trades unions concerned had agreed to
remove the threat of industrial action. The direct cost of the
unofficial industrial action will be in the range GBP30 million
to GBP40 million reflecting costs incurred and lost revenue.
British Airways announced its route schedule for the winter 2003
season. The new schedule reflects the airline's strategy of
focusing on more profitable routes. The network changes, which
start on October 26, 2003 unless specified, are:
(a) A new service from London Gatwick to Turin which will operate
on a daily basis until December, 2003, when a twice daily
service commences. In addition, from April, 2004, there will
be a new service from London Gatwick to Dubrovnik in Croatia
which will operate three times each week.
(b) A new twice daily service from Manchester to Copenhagen,
operated by British Airways CitiExpress.
(c) Additional frequencies from London Gatwick to the Caribbean
commencing in December 2003. Flights to Antigua will
increase from seven to 10 each week and flights to Barbados
will increase from eight to 10 each week.
(d) Flights to Bilbao in Spain will switch from London Gatwick to
London Heathrow.
(e) Services from London Gatwick to Bremen and Brussels will be
suspended from September 1, 2003, and the service between
London Gatwick and Dusseldorf will be suspended from October
1, 2003. The service between London Heathrow and Zagreb in
Croatia will be suspended from September 14, 2003, and the
service between London Heathrow and San Diego will be
suspended from October 26, 2003.
August 5, 2003
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of July Financial year to
date
April through July
BRITISH AIRWAYS GROUP * Change * Change
SCHEDULED SERVICES 2003 2002 (%) 2003 2002 (%)
Passengers carried (000)
UK/Europe 2258 2312 -2.3 9439 9165 +3.0
Americas 651 621 +4.7 2464 2304 +7.0
Asia Pacific 127 140 -9.4 399 516 -22.6
Africa and Middle East 235 214 +9.9 842 795 +5.8
Total 3270 3287 -0.5 13144 12779 +2.9
Revenue passenger km (m)
UK/Europe 1972 1934 +2.0 7777 7330 +6.1
Americas 4338 4187 +3.6 16490 15515 +6.3
Asia Pacific 1345 1435 -6.3 4310 5250 -17.9
Africa and Middle East 1537 1408 +9.2 5662 5280 +7.2
Total 9191 8963 +2.5 34239 33375 +2.6
Available seat km (m)
UK/Europe 2655 2574 +3.2 11257 10507 +7.1
Americas 5468 5330 +2.6 21051 21051 -0.0
Asia Pacific 1847 1788 +3.3 6693 6863 -2.5
Africa and Middle East 2067 1991 +3.8 7998 7947 +0.6
Total 12037 11682 +3.0 46999 46368 +1.4
Passenger load factor (%)
UK/Europe 74.3 75.1 -0.8pts 69.1 69.8 -
0.7pts
Americas 79.3 78.6 +0.7pts 78.3 73.7
+4.6pts
Asia Pacific 72.8 80.3 -7.5pts 64.4 76.5 -
12.1pts
Africa and Middle East 74.4 70.7 +3.7pts 70.8 66.4
+4.4pts
Total 76.4 76.7 -0.3pts 72.8 72.0
+0.8pts
Revenue ton km (RTK) (m)
Cargo ton km (CTK) 333 362 -7.8 1387 1409 -1.6
Total RTK 1254 1258 -0.3 4801 4738 +1.3
Available ton km (m) 1846 1794 +2.9 7163 7125 +0.5
Overall load factor (%) 67.9 70.1 -2.2pts 67.0 66.5
+0.5pts
*****
* Comparative numbers from 1 July 2002 have been adjusted to
remove the impact of dba following its disposal on June 30, 2003
CONTACT: BRITISH AIRWAYS
Investor Relations
Waterside (HCB3)
PO Box 365
Harmondsworth
UB7 OGB
Phone: +44 (0) 20 8738 6947
Fax: +44( 0) 20 8738 9602
CABLE & WIRELESS: Appoints Poggiali as Group Director of Mobile
---------------------------------------------------------------
Cable & Wireless announces that it has appointed Barbara Poggiali
as Group Director of Mobile, effective September 1, 2003.
Mobile is a fast growing part of Cable & Wireless' national
telecommunications businesses in, for example, the Caribbean,
Macau and Panama. Barbara Poggiali's role will be to assist the
mobile operations to maximise their business potential. She will
report to Kevin Loosemore, Chief Operating Officer.
Barbara Poggiali is currently a member of the Office of the
Chairman of Telecom Italia, responsible for projects spanning
both mobile and fixed-line services. She was previously COO of
e.Biscom, a broadband network company. Prior to that she held a
number of senior roles at Omnitel Pronto Italia, including Vice
President of its North West Region, of its Consumer Division and
of Strategy and Development from 1995-2000. Previous experience
was in strategic consultancy with Bain and McKinsey.
Francesco Caio, Chief Executive, Cable & Wireless, commenting on
the appointment, said: 'Mobile is a significant and growing part
of our national telco businesses. We are increasing our focus on
it and are committed to developing it further as an integral
element of these operations around the world.
"Barbara brings to Cable & Wireless a wealth of experience and
expertise in strategy, marketing and general management in the
mobile sector."
CONTACTS: CABLE & WIRELESS
Investor Relations
Louise Breen
Phone: 020 7315 4460
Virginia Porter
Phone: +1 646 735 4211
Caroline Stewart
Phone: 020 7315 6225
Ed Knight, Corporate Communications Manager
E-mail: ed.knight@cw.com
Phone: +44 20 7315 6759
Fax: +44 20 7315 5052
GALA GROUP: 'B+' Rating Withdrawn at Company's Request
------------------------------------------------------
Standard & Poor's Rating Services said it had withdrawn its 'B+'
long-term corporate credit rating on Gala Group Ltd., the U.K.-
based gaming company. The rating was withdrawn at the company's
request.
The withdrawal of the rating follows the purchase of Gala by
venture capital companies Cinven Ltd. and Candover Ltd., and the
subsequent repayment of bonds issued by the company's subsidiary
Gala Group Holdings PLC. Standard & Poor's withdrew its ratings
on Gala Group Holdings on May 29, 2003, following the repayment
of rated debt.
HAMLEYS PLC: Two Non-executive Directors Step Down from Office
--------------------------------------------------------------
Following the announcement by Soldier Limited on August 4, 2003
that the Revised Increased Offer for the entire issued ordinary
share capital of Hamleys plc had become unconditional in all
respects, Mr. Simon Burke, the Executive Chairman of Hamleys plc,
and Mr. John Napier and Mr. Jim Hodkinson, both non-executive
directors of Hamleys plc, have all resigned from the Board with
immediate effect.
LONDON FORFAITING: Board Continues to Recommend FIMBank's Offer
---------------------------------------------------------------
On July 22, 2003, FIMBank (U.K.) Limited announced a recommended
offer of 29.5p in cash for the entire issued and to be issued
share capital of London Forfaiting Company PLC.
The Company confirms it has received an approach from Resurge PLC
with a view to a potential competing offer for the Company.
At this stage, there is no certainty that an alternative offer
will be made for the Company by Resurge PLC. Accordingly, the
Board continues to recommend acceptance of the offer made by
FIMBank on July 22, 2003. The first closing date for the Offer
from FIMBank is 3.00 p.m. on August 12, 2003.
In the event that Resurge PLC indicates a firm intention to make
an offer for the Company, the Board will re-assess its
recommendation in the prevailing circumstances.
A further announcement will be made as soon as Resurge PLC
clarifies its intentions.
Shareholders who are in any doubt about the action they should
take should consult immediately their stockbroker, bank manager,
solicitor, accountant or other independent financial advisor
authorized under the Financial Services and Markets Act 2000.
CONTACT: LONDON FORFAITING
Jack Wilson / Stathis Papoutes
Phone: 020 7481 3410
KINMONT
Gavin Kelly / Fraser Shand
Phone: 020 7493 8488
HOGARTH PARTNERSHIP
Nick Denton / Andrew Jaques
Phone: 020 7357 9477
QUARTERLY HIGH: Calls in Receiver on Failure to Renew Facility
---------------------------------------------------------------
The Quarterly High Income Trust PLC is at present dependent upon
the support of its consortium of banks. The banks on Tuesday
stated that they will not renew the QHIT banking facility which
expires on October 3, 2003. Accordingly the directors have
resolved that they have no alternative but to invite the banks to
appoint a receiver and have requested the suspension of QHIT
shares.
*****
Securities suspended:
Quarterly High Income Trust Plc
Ordinary Shares of 25p each
(0-162-223)(GB0001622231)
fully paid
Zero Dividend Preference Shares of 25p each
(0-606-936)(GB0006069362)
fully paid
CONTACT: MORLEY FUND MANAGEMENT
Neil Smith
Phone: 020 7809 6000
UBS
Will Rogers
Phone: 020 7567 8000
QUEENS MOAT: Discloses Strategic Review and Board Changes
---------------------------------------------------------
Given the continuing difficult market environment for hotel
companies and the Group's complex debt structure, the Board of
Queens Moat Houses is undertaking a full strategic review of its
business. The company has retained Cazenove and Deloitte &
Touche LLP to assist in this process.
Implementation of the conclusions of the strategic review is
likely to require the consent of the company's lenders.
Discussions with lenders were recently initiated by the company,
seeking their support for the outcome of the strategic review as
well as significant modification to certain terms of the existing
debt.
It is not anticipated that any further announcement will be made
prior to a more detailed update on the outcome of the strategic
review which will accompany the announcement of interim results
in September 2003. The results are expected to confirm that
trading remains in line with the Chairman's comments at the
Annual General Meeting in May 2003. In particular, rooms yield
for the first twenty-six weeks, on a like-for-like basis,
declined by 2.7% in the U.K., 10.1% in Germany and 10.2% in The
Netherlands.
Separately, the Board has been reviewing for some time the
composition of the executive management team to take into account
the changing needs of the business. It has been agreed that,
after ten years as Group Chief Executive, Andrew Coppel will be
stepping down with effect from September 30, 2003. Stuart
Metcalfe, currently Corporate Development Director, will be
appointed Group Chief Executive with effect from October 1, 2003.
Ashley Krais, Group Finance Director, will take on the additional
role of Deputy Group Chief Executive, also with effect from
October 1, 2003.
Commenting on the management changes, Richard Jewson, Chairman,
said:
"We have been fortunate to have had Andrew as Chief Executive of
QMH for the last ten years during which he has overseen the
financial restructuring of the Group and has steered the business
through some extremely turbulent times. Andrew has done a great
job in creating a focused business and leaves behind an excellent
management team.
"We have in Stuart, who has made a significant contribution to
the Group since joining us almost two years ago, an experienced
hotelier with a strong operational and marketing track record.
He is ideally suited to lead the business forward successfully in
a challenging environment."
CONTACT: QUEENS MOAT HOUSES
Phone: 01708 730 522
Andrew Coppel, Group Chief Executive
Ashley Krais, Group Finance Director
CAZENOVE
Phone: 020 7588 2828
Duncan Hunter
Roger Lambert
COLLEGE HILL
Phone: 020 7457 2020
Mark Garraway
Crawford Burden
TRINITY MIRROR: Daily Mirror to Dismiss More than 50 Employees
--------------------------------------------------------------
The Daily Mirror is axing 53 correspondents at its medical and
education posts. The number accounts for a tenth of the planned
job cuts across the national and regional newspaper group under
Trinity Mirror's drive to reduce costs, according to The
Guardian.
The dismissals are in addition to the 28 redundancies resulting
from the closure of weekend magazines M and The Look.
The Mirror will stop producing a standalone Welsh edition, and
will dismiss seven out of 15 employees on its office at Canary
Wharf.
Jobs that are also under threat are those of six of the 20 staff
on the Irish Mirror, and one at the Scottish edition of the
paper.
The TV listing desk will have to part with 9 employees, while the
photographic department will have to do away with five.
Eighteen of the 53 employees made redundant were volunteers.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Larri-Nil
Veloso, Ma. Cristina Canson, and Laedevee Gonzales, Editors.
Copyright 2003. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *