Ferrosilicon-Based Foundry Alloys
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Elkem Annual Report 1999 1 99 Annual Report Elkem ASA Hoffsveien 65 B Postboks 5211 Majorstua 0303 Oslo, Norge http://www.elkem.com Telefon: 22 45 01 00 Faks: 22 45 01 55 Elkem Materials Bremanger Power Plant China: Germany: ELKEM IN BRIEF P.O. Box 8126 Vaagsbygd N-6930 Svelgen, Norway Elkem Elkem N-4675 Kristiansand, Norway Tel +47 57 79 61 21 Representative Office Schirmerstrasse 76, KS Paintbox • Elkem is one of the world’s leading suppliers of metals Tel + 47 38 01 75 00 Fax +47 57 79 36 00 Room 606, EAS Tower Postfach 102220 Print: and materials within its core areas Fax + 47 38 01 49 70 e-mail: [email protected] No. 21, Xiaoyun Road D-40013 Düsseldorf 1, Germany Telex 21392 elmat n Dongsanhuanbeilu Tel + 49 211 36 81 10 e-mail: [email protected] Elkem Saudefaldene Chaoyang District Fax + 49 211 36 05 23 Cathrine Brandt • Its main products are silicon metal, aluminium, hydro- N-4201 Sauda, Norway Beijing 100027, P.R. China power, ferroalloys, carbon and microsilica. Elkem’s share of Elkem Materials Tel + 47 52 78 50 00 Tel + 86 10 6462 3249/3251 India: Design: markets for high-quality products is steadily growing Filtration and Powder Technology Fax + 47 52 78 28 23 + 86 10 6461 2255 ext. 5605 Elkem India P.O. Box 8126, Vaagsbygd e-mail: Fax + 86 10 6462 3250 66/67 Mahavir Centre • Elkem has production plants in Norway, Iceland, the USA, N-4675 Kristiansand, Norway [email protected] e-mail: Sector no. 17, Plot no. 77 Canada and Brazil, and a comprehensive global network of Tel + 47 38 01 75 00 [email protected] Vashi, Mumbai 400703, India Fax + 47 38 01 39 20 Tel + 91 22 789 6401/2/3/4 sales offices and agents Technology Elkem Shanghai Fax + 91 22 789 6409/10 Elkem Materials Warehousing & Trade Telex 01311239 elkm in • Good results are achieved by Elkem in the environmental Ceramite Products Elkem Technology Services Room 2507, Jin Mao Building e-mail: area. A series of measures has reduced the consumption P.O. Box 8126, Vaagsbygd Nydalsveien 26 B No 177, Lu Jia Zui Rd [email protected] of resources and the burden on both people and the envi- N-4675 Kristiansand, Norway P.O. Box 4376 Torshov Shanghai 200120 Tel + 47 38 01 75 00 N-0402 Oslo, Norway PR China Italy: ronment Fax + 47 38 01 75 95 Tel +47 22 45 06 00 Tel + 86 21 5047 6600 Elkem e-mail: Fax +47 22 45 06 10 Fax + 86 21 5047 0899 Centro Direzionale Colleoni • Elkem is listed on the Oslo and Frankfurt Stock [email protected] Palazzo Taurus (A3), Fiskaa Industriservice Elkem Representative Office Viale Colleoni, 5 Exchanges. At 31 December 1999, its market capitalisati- CF Wesenberg Nilsen, Caroline Wesenberg, Jacobsen, Torunn Knut Holst, Ole Walter on was some NOK 9 billion Elkem Materials P.O. Box 8040, Vaagsbygd Room 1402, Beverly House I-20041 Agrate Brianza (Milano), 3, Buckingham Place N-4675 Kristiansand, Norway 93-107 Lockhart Road, Italy Photo: West Wycombe Road Tel + 47 38 01 70 00 Hong Kong Tel + 39 039 60 57 021 CONTENTS High Wycombe Fax + 47 38 01 74 99 Tel + 852 2866 3530 Fax + 39 039 60 57 019 Buckinghamshire HP13 5HW, Fax + 852 2866 3418 Telex 321825 elkem i From the CEO p. 4 England Elkem Research Telex 82319 elkem hx AS Woldsdal&Partnere Annual report p. 5 Tel +44 1 494 45 10 52 P.O. Box 8040, Vaagsbygd e-mail: [email protected] Japan: Fax +44 1 494 44 34 29 N-4675 Kristiansand, Norway Elkem International AS Business reporting groups p. 12 Tel + 47 38 01 70 00 Czech Republic: Tokyo Branch Project manager: Shareholder information p. 30 Elkem Materials Fax + 47 38 01 74 94 Elkem Representative Office Rm. No. 402, P.O. Box 266 Jungmannova 11/23 Nikko Sanno Building Management and organisation p. 32 Pittsburgh, PA 15230-0266 P.O. Box 37 5-3 2-chome, Akasaka Financial statements p. 33 Airport Office Park, Building 2 Business development 111 21 Prague 1, Czech Republic Minato-ku, Environmental report p. 67 400 Rouser Road, Moon Township Tel + 420 2 24 94 67 77 Tokyo 107-0052, Japan PA 15108-2749, USA Chrome business unit: + 420 2 96 24 50 50 Tel + 81 33584 77 11 Addresses p. 74 Tel + 1 412 299 7242 Fax + 420 2 24 94 75 09 Fax + 81 33584 64 25 Fax + 1 412 299 7238 Elkem Rana P.O. Box 394 Denmark: Russia: The business reporting groups in per cent of NOK 8.2 billion Elkem Materials Japan N-8601 Mo i Rana, Norway Elkem Danmark Elkem Representative Office FINANCIAL CALENDAR Nikko Sanno Bld. No. 401 Tel + 47 75 13 67 00 Bygstubben 13 Krzhyzhanovskogo str. 14, bld 3 5-3, 2-chome Akasaka, Fax + 47 75 13 68 70 DK-2950 Vedbæk, Denmark P.O. Box 148 9 Feb. 2000 : Preliminary results 1999 Minato-ku Tel + 45 45 66 12 12 117218 Moscow, Russia 27 April 2000 : First quarter 2000 Tokyo 107-0052, Japan Mineração Vila Nova Fax + 45 45 66 12 06 Tel/Fax + 7 503 737 7554 10 May 2000 : Annual general meeting Tel + 81 3 3584 7712 Avenida Santana, 429 e-mail: Tel + 7 095 124 4717 23 Aug 2000 : Second quarter 2000 Fax + 81 3 3584 0437 Santana – Amapa [email protected] Fax + 7 095 331 44 11 19 Oct 2000 : Third quarter 2000 Brazil 68925-000 Tel + 55 96 281 1804 England: South Africa: Energy division Fax + 55 96 281 2230 Elkem Elkem Technology (S.A.) (Pty) Ltd INFORMATION Price development Elkem share 1995-1999 301 Glossop Road Hurlingham Office Suites The annual report, quarterly results, presentations Elkem ASA Sheffield S10 2HL, England Block A, Hurlingham Office Park and other investor relations information will also be Energy Division Shared functions: Tel + 44 1142 70 03 34 Cnr. William Nicol Drive & Index Elkem NOK available on Elkem’s web site when published. The Hoffsveien 65 B Fax + 44 1142 75 31 03 Rebublic Rd. 2 000 200 P.O. Box 5211 Majorstua Elkem Distribution Center P.O. Box 78465, Sandton 2146, address is http://www.elkem.com N-0303 Oslo, Norway Wolweverstraat 4 France: South Africa 1 600 160 Tel + 47 22 45 01 00 2984 CD Ridderkerk Elkem Tel + 27 11285 0076 Shareholders who want to receive ElkemInfo, the Fax + 47 22 45 05 94 Netherlands 52 avenue de la Grande-Armee Fax + 27 11285 0026 Group’s newsletter, are requested to write to the Tel + 31 180 44 11 67 F-75017 Paris, France 1 200 120 Group’s corporate communications department. Elkem Energi Salten Fax + 31 180 44 11 60 Tel + 33 1 45 74 03 54 Sweden: N-8226 Straumen, Norway Fax + 33 1 45 74 03 80 Elkem Sverige 800 80 Tel +47 75 69 81 00 Kungsgatan 18 CHANGES OF ADDRESS Fax +47 75 69 82 06 Elkem’s sales offices: P.O. Box 144 Shareholders whose holdings are registered with the 400 40 S 101 22 Stockholm, Sweden Norwegian Central Securities Depository (VPS) '95 ’96 '97 '98 '99 Belgium: Tel + 46 8 24 56 75 should report any change of address to their regis- Elkem Benelux Fax + 46 8 20 34 48 trar of shares and not directly to Elkem. All share index Elkem Boulevard Charlemagne 27 a 1000 Brussels, Belgium Tel + 32 2 231 10 30 Fax + 32 2 231 10 15 Main Figures Main Figures 1999 1998 1997 1996 1995 Net sales 9 583 9 957 9 594 9 334 9 320 Income from operations 924 1 027 1 061 1 024 1 135 Ordinary income before tax 1 163 929 983 945 1 079 Net profit for the year 794 587 908 738 857 Operating margin (%) 9.6 10.3 11.1 11.0 12.2 Total assets 9 671 10 222 9 141 8 277 8 170 Equity ratio (%) 55 48 50 46 40 Earnings per share (NOK) 16.48 11.38 18.18 14.94 17.25 Dividend per share (NOK) 6.50 6.00 6.00 5.00 4.50 Number of employees (at 31.12) 4 030 5 254 5 203 5 048 5 301 All numbers in NOK million unless otherwise stated. • The sale of the manganese business and the proposed merger of the energy business with Hafslund ASA give Elkem a foundation for further profitable progress • Distinct improvements in operations resulted in a satisfactory year despite weak prices • Systematic improvement efforts have also yielded a substantial reduction in lost-time injuries • The Group’s working capital has been considerably reduced • Improved sales and positioning in special products • Elkem is well positioned and has the financial strength to implement further growth *excl manganese H = Lost-time injuries per million working hours 3 Positioned for further growth Dear shareholder, Although IT-based businesses are receiving most public attention at the beginning of the new millennium, I take an optimistic view of the future for traditional manufacturing. We are now witnessing the development and spread of new communication technologies which will be of fundamental significance for the development of our society. This trend makes heavy demands on traditional industries to show adaptability, but also offers very substantial opportunities. Information technology will be an absolutely central tool in the development of our work processes, and I also believe it will stimulate growth in those sectors of the economy which consume our main products. Norwegian industry is strongly placed to take advantage of the “new economy” because we “Increasing shareholder value have a well-educated workforce able to adopt these technologies quickly.