Partek Annual Report 1997

Annual Report 1997 Competence and Nordic limestone are the cornerstones on which Partek has grown to become today’s global engineering company. Partek celebrates its centenary year focusing on increasing the company’s value. The changes implemented during the year have strengthened Partek’s structure and strategic position considerably. Each of the three businesses now has the strength to grow and the capacity to produce results. Partek 1997 LOAD HANDLING Container handling Cargo handling Partek is the world’s leading supplier of Partek is the world’s leading manufac- logistical solutions for ports and freight turer of cargo handling equipment for terminals. vehicles. Partek is particularly strong in the Hiab general cargo cranes are market market for terminal tractors, straddle leaders globally while Loglift and carriers, reachstackers and heavy lift Jonsered timber cranes and Multilift trucks. Other products include mobile demountable equipment lead in Europe gantry cranes and timber-handling and Norba refuse vehicles in Scandina- equipment. via. The customer base consists of pri- Ottawa, Kalmar and Sisu are globally vate truck owners, transport companies, renowned brands. Customers are prima- forest machine manufacturers and en- rily stevedoring companies, ports, rail- trepreneurs, suppliers of construction ways, distribution terminals and industry. materials, waste-handling companies, the public sector and defence forces in several countries. AGRIFOREST Forest machines Tractors Partek is the world’s second largest Partek is the leading manufacturer of manufacturer of forest machines for cut- tractors in Scandinavia and second larg- to-length method. The environmentally est in South America. The focus is on the preferred cut-to-length method involves rapidly expanding high-powered tractors harvesters, as they are called, which fell, segment of 60-190 hp. Tractor production trim, cut and sort the timber, which is is built up on rapid and efficient market- then transported out of the forest by for- driven manufacture to meet customer warders. This method, used throughout requirements. Scandinavia, is widespread in Europe Valtra Valmet is the brand name for and becoming increasingly popular in these products. Partek’s diesel engines North and South America and Asia. are used not only in the company’s own The machines are sold under Valmet tractors, forest machines and cargo han- brand. The main customers are forest dling equipment but also by external machine entrepreneurs and forestry customers. companies. MINERAL Lime Insulation Partek leads the field in limestone-based Partek is the leading manufacturer of products in the Baltic Sea region. The rockwool-based insulation in Finland, company extracts the raw material from Sweden and the Baltic region. its own quarries and refines it into prod- The product range includes building ucts used in the processing industry. The insulation, technical insulation and build- products are used for soil improvement, ing panels which are used for thermal, soil stabilisation, cleaning of flue gases, sound and fire insulation. and for purifying drinking water and Brand names are Paroc, and in Swe- cleaning waste water. den, Rockwool. The products are sold under the Customers include building contrac- Nordkalk brand. Customers include the tors, entrepreneurs and installation steel, pulp and paper, glass, construc- firms, the construction and shipbuilding tion, metal, chemical and ceramic indus- industries, private home builders, and tries. Lime is also used in agriculture and wholesalers and hardware businesses. environmental care. Partek is an engineering company that is a world leader in load handling with strong mineral-based business in the Baltic Sea 44 % region. The company’s strength is its leading position in all of its businesses. In 1997 Partek Load handling Share of Group’s net sales acquired Sisu, Inc., a Finnish engineering group, and a majority shareholding in Kalmar Industries AB, a Swedish container handling company. Partek’s roots are in Finland. The company was established in 1898 in Pargas, on the southwest coast. Today Partek has operations 33 % in some 30 countries. With the current structure, net sales amount to over FIM Agriforest 12 billion (USD 2.5 billion) 76% of which is Share of Group’s net sales generated outside Finland. The Group employs nearly 12,000 people, 5000 of them in Finland. Partek’s shares have been quoted on the Helsinki Stock Exchange since 1915. The number of shareholders at year end was about 11,000. Foreign ownership accounted for 11% 19 % of the shares and voting rights. Mineral Share of Group’s net sales Contents From the President ............................................................................................... 2 One hundred years of competence – and change Partek in figures .................................................................................................... 4 1997 in brief .......................................................................................................... 5 Growth within the engineering industry and improved result Shares and shareholders ..................................................................................... 6 Container handling ............................................................................................. 10 Increased order volume in the face of increased price pressure and competition Cargo handling .................................................................................................... 14 Operating profit improved by FIM 100 million Forest machines ................................................................................................. 18 Demand revived on most markets Tractors ................................................................................................................ 22 Record year for Partek’s European tractor operations Lime ..................................................................................................................... 26 Limestone activities stronger than ever Insulation ............................................................................................................. 30 Continued expansion in Baltic region Other Business Activities ................................................................................... 34 Precast Concrete merged with the Swedish company Strängbetong Partek and the environment .............................................................................. 36 Development of environmental management systems continues Annual report of the Board of Directors ........................................................... 39 Consolidated income statement ....................................................................... 47 Consolidated balance sheet .............................................................................. 48 Group source and application of funds ............................................................. 50 Income statement and source and application of funds, Parent Company ... 51 Balance sheet, Parent Company ....................................................................... 52 Accounting principles......................................................................................... 53 Definitions of key figures .................................................................................... 54 Appendices ......................................................................................................... 55 Five-year review ................................................................................................. 65 Financial risk management ................................................................................ 66 Auditors’ report................................................................................................... 67 Stock exchange release summary 1997 ........................................................... 68 Board of Directors, Management Team and Auditors ...................................... 70 For more information about Partek ................................................................... 72 Contact information ........................................................................................... 73 Annual General Meeting, Dividend and Financial Information ........................ 74 Partek 100 years 1 From the President By the end of 1997 Partek had grown to twice what it was at the beginning of the year, showing a profit which was conse- quently better than ever before and with a structure built on the biggest ever change in the company’s history. Partek is now listed as an engineering company while at the same time our lime operations, Partek’s original activity, have grown stronger than ever. The Partek that this year celebrates its centenary anni- versary represents both change and continuity. During the year sales doubled to FIM 12 billion on a yearly basis. Of this only FIM 4.5 billion comes from operations that formed part of the company at the beginning of the year. The total volume for those activities that were acquired or sold during the year amounted to about FIM 10 billion. In our efforts to expand in load handling Partek merged with the Finnish engineering company Sisu in the spring. Some months later we took the following step when the newly acquired Sisu Terminal Systems merged with its principal rival, the Swedish quoted company Kalmar Industries. The two Christoffer Taxell companies, each of which had claimed to be largest in container

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