Ceepackaging

Corporate

Constantia sees sales up 59% in first nine months of 2008

Nine-month 2008 results reflect strong growth relative
to the previous year. The bulk of this growth was
attributable to the full consolidation of AMAG in the
fourth quarter of 2007. AMAG is a leading European
manufacturer of specialty, premium aluminum products.
Nine-month consolidated sales rose by 58.8% to
€1,628.8 million, up from €1,025.6 million the previous
year. EBITDA growth outpaced that of sales, advancing
by 74.8% from €136.2 million to €238.1 million, while
the EBITDA margin advanced from 13.3% to 14.6%.
Operating income (EBIT) surged by 80.4% from €84.6
million to €152.7 million, with the operating margin
moving up from 8.3% to 9.4%. Earnings before tax
(EBT) rose from €93.8 million to €117.2 million, while
consolidated net income (excluding minority interests)
increased from €60.0 million to €67.4 million.

Nine-month operating cash flow improved from
€74.8 million to €132,9 million in 2008. Capital
expenditures totaled €85.5 million, up from €62.2
million the previous year.
As of September 30, 2008, the equity ratio was 38.2%,
up from 27.6% by the end of 2007, while net debt was
€475.7 million, compared with €602.1 million as of
December 31, 2007. The company’s new debt was used
primarily for Constantia Aloform GmbH’s acquisition
of the German plant of Alupak AG, Switzerland, the
acquisition of a 24.7% equity interest in Croatia’s
largest paper producer Belisce d.d., and the acquisition
of the remaining 40% minority interest in Duropack AG.
In July, meanwhile, an underwriting agreement was
signed with an Austrian bank for a €250 million profit
participation bond. The bond pays 7.163% interest plus
a maximum 1% performance-based bonus, thereby
ensuring cost-effective refinancing for the company
during a period of financial and capital market
turbulence. The perpetual maturity, non-callable bond
is renewable after seven years. Given the bond’s deep
subordination, the capital is classified as 100% equity
under International Financial Reporting Standards
(IFRS). The company’s equity ratio will therefore rise to
about 40% by the end of 2008.
As of September 30, 2008, the number of employees
totaled 8,418, up from 7,256 the previous year. The
bulk of this increase resulted from the fourth quarter
2007 acquisition of AMAG.

The Group’s business portfolio has three solid pillars.
Nine-month sales broke down as follows: Aluminum
segment 39%, Corrugated Board segment 16% and
Flexible Packaging segment 48% (3% intragroup).