getting ready for valencia

1
In business Reporting the 'good news' and keeping a straight face I T'S HARD not to feel for a company spokesman forced to dress dire eco- nomic tidings as good news or a cor- porate speechwriter obliged to spin a coin so fast that it appears to be bigger than it actually is. But such is the fate of employees pre- senting the news of their employing com- pany's results when those results are less than exemplary. And such was the case last month for the corporate affairs department of Norddeutsche Affinerie (NA), the Hamburg-based copper refiner, when the fruits of their labours floated gently into the public domain under a headline that simply challenges conven- tional definitions of the phrase "fair and accurate". "Continued stable trend in earnings - attractive dividends", it trumpeted. In fact, the company's chief executive Werner Marnette was announcing a thumping reduction in pre-tax profits from (~57 million in fiscal year 2000- 2ooi to C38 million in 2ooi - 2002, a "small" mat- ter of 33 per cent. And that despite the disposal to Ecka Granules of copper pow- der-producing subsidiary MicroMet, which was held to no longer fit the company's portfolio as a "core business", and the sale of OMG's estimated 1o per cent hold- ing in NA last year. A local bank has taken up those shares (See Metal Powder Report, November 2002). More lately the Speiss-Urania agrochemicals subsidiary has been "repositioned" in ongoing nego- tiations with Mitsui. And those "attractive dividends", it was further revealed, are projected to be down some 13 per cent this year from Co.75 per share to Co.65, though that has to be confirmed by the annual gener- al meeting in March. There are some bright spots. Although last year saw weak economic growth in Germany and much of the rest of the Euro Zone, and copper demand in Europe declined by 5 per cent, capacity utilisa- tion in NA's plants went up and cathode output at its Hamburg base increased by nearly 4 per cent, from 360 ooo tonnes to 374 ooo tonnes. Reflecting the increased throughput of copper ores that also contain precious metals, silver production rose from 680 tonnes to 727 tonnes and gold produc- tion increased markedly from 23 tonnes to 28 tonnes, a rise of more than one fifth. The shadows cast by some of the core businesses creep back, however, when the important continuous wire rod industry is considered. Weak national and zone economics combined with tough competition saw production down from 347 ooo tonnes to 285 ooo tonnes. This decline of around 18 per cent was ameliorated slightly by only a half per cent decline in cast shapes from 2oi 4 ooo tonnes to 203 ooo tonnes. Against turnover, however, the dis- mal picture persists. Of turnover of (~ 2.oi billion in fiscal 2ooo-2ool, profit before tax represented 2.84 per cent. Last year, however, that ratio reduced to 1.97 per cent, a reduction of about 30 per cent. So where does the company see itself?. Straight-faced, Dr Marnette said: "Again in the last fiscal year NA shares outperformed the most important share indices." And for the future? "In the con- text of the new segmentation of the German equity market, NA has applied for admittance to the Prime Standard." Speaks volumes. Getting ready for Valencia MEETING the challenges of a changing world is the punchy theme for the European Powder Metallurgy Association's premier event of the year, the European PM Congress and Exhibition, to be held in Valencia, Spain from October 2o - 22. Registration is on October 19. Unlike the hard-materials focused event staged last year in Lausanne, this is to be a broad-spectrum event and the hub for the European industry this year, providing the principal meeting place for members of the international PM com- munity, as well as a valuable "shop win- dow" for state-of-the-art technology and products. A call for papers has already been issued. To reinforce the point, the EPMA has launched its annual "Innovations in Powder Metallurgy" awards competition. Over the years this competition has done much to stimulate PM development and wider interest. The prizes will be award- ed at a special Awards Luncheon in Valencia. There will be four main categories. They are: • Components. This covers all types of PM products; • Materials. Powders will be evaluated on their material properties; • Production equipment. Presses, fur- naces, tooling and other items from the arena of PM technology will be carefully evaluated by the judges, and • The International Powder Metallurgy Award. This is chosen from all categories and will be awarded to a company operating outside Europe. Entry is free, but submissions close on May 31. Exhibition space is selling fast, so anyone interested in exhibiting, entering the awards competition or sub- mitting a paper should visit the EPMA web site at-www.epma.com/pm2oo3 or call +44 1743 248899. t6 ~: lanuary2003 metal-powder.net

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Page 1: Getting ready for Valencia

In business

Reporting the 'good news' and keeping a straight face

I T'S HARD not to feel for a company spokesman forced to dress dire eco- nomic tidings as good news or a cor- porate speechwriter obliged to spin a

coin so fast that it appears to be bigger than it actually is.

But such is the fate of employees pre- senting the news of their employing com- pany's results when those results are less than exemplary. And such was the case last month for the corporate affairs department of Norddeutsche Affinerie (NA), the Hamburg-based copper refiner, when the fruits of their labours floated gently into the public domain under a headline that simply challenges conven- tional definitions of the phrase "fair and accurate".

"Continued stable trend in earnings - attractive dividends", it trumpeted. In fact, the company's chief executive Werner Marnette was announcing a thumping reduction in pre-tax profits from (~57 million in fiscal year 2000- 2ooi to C38 million in 2ooi - 2002, a "small" mat- ter of 33 per cent. And that despite the disposal to Ecka Granules of copper pow- der-producing subsidiary MicroMet, which was held to no longer fit the company's portfolio as a "core business", and the sale of OMG's estimated 1o per cent hold- ing in NA last year. A local bank has taken up those shares (See Metal Powder Report, November 2002). More lately the Speiss-Urania agrochemicals subsidiary has been "repositioned" in ongoing nego- tiations with Mitsui.

And those "attractive dividends", it was further revealed, are projected to be down some 13 per cent this year from Co.75 per share to Co.65, though that has to be confirmed by the annual gener- al meeting in March.

There are some bright spots. Although last year saw weak economic growth in Germany and much of the rest of the Euro Zone, and copper demand in Europe declined by 5 per cent, capacity utilisa- tion in NA's plants went up and cathode output at its Hamburg base increased by nearly 4 per cent, from 360 ooo tonnes to 374 ooo tonnes.

Reflecting the increased throughput of copper ores that also contain precious metals, silver production rose from 680 tonnes to 727 tonnes and gold produc- tion increased markedly from 23 tonnes to 28 tonnes, a rise of more than one fifth. The shadows cast by some of the core businesses creep back, however, when the important continuous wire rod industry is considered.

Weak national and zone economics combined with tough competition saw production down from 347 ooo tonnes to 285 ooo tonnes. This decline of around 18 per cent was ameliorated slightly by only a half per cent decline in cast shapes from 2oi 4 ooo tonnes to 203 ooo tonnes.

Against turnover, however, the dis- mal picture persists. Of turnover of (~ 2.oi billion in fiscal 2ooo-2ool, profit before tax represented 2.84 per cent. Last year, however, that ratio reduced to 1.97 per cent, a reduction of about 30 per cent.

So where does the company see itself?. Straight-faced, Dr Marnette said: "Again in the last fiscal year NA shares outperformed the most important share indices." And for the future? "In the con- text of the new segmentation of the German equity market, NA has applied for admittance to the Prime Standard." Speaks volumes.

Getting ready for Valencia MEETING the challenges of a changing world is the punchy theme for the European Powder Metallurgy Association's premier event of the year, the European PM Congress and Exhibition, to be held in Valencia, Spain from October 2o - 22. Registration is on October 19.

Unlike the hard-materials focused event staged last year in Lausanne, this is to be a broad-spectrum event and the hub for the European industry this year, providing the principal meeting place for members of the international PM com- munity, as well as a valuable "shop win- dow" for state-of-the-art technology and products. A call for papers has already been issued.

To reinforce the point, the EPMA has launched its annual "Innovations in Powder Metallurgy" awards competition. Over the years this competition has done much to stimulate PM development and wider interest. The prizes will be award- ed at a special Awards Luncheon in Valencia.

There will be four main categories. They are:

• Components. This covers all types of PM products;

• Materials. Powders will be evaluated on their material properties;

• Production equipment. Presses, fur- naces, tooling and other items from the arena of PM technology will be carefully evaluated by the judges, and

• The International Powder Metallurgy Award. This is chosen from all categories and will be awarded to a company operating outside Europe.

Entry is free, but submissions close on May 31. Exhibition space is selling fast, so anyone interested in exhibiting, entering the awards competition or sub- mitting a paper should visit the EPMA web site at-www.epma.com/pm2oo3 or call +44 1743 248899.

t 6 ~ : lanuary 2003 metal-powder.net