Nurminen Logistics Plc’s fiscal year is the calendar year. During the year, the company publishes its financial statement and half-yearly report.
All pages containing financial information are updated when the financial reports are published.
Outlook:
Half-Year Financial Report 3 August 2023
Nurminen Logistics Plc raises its guidance for 2023
Nurminen Logistics expects net sales for 2023 to be EUR 132–148 million (2022: EUR 122.5 million), and comparable operating profit to be EUR 18–21 million (2022: EUR 6.9 million). Comparable EBITDA is expected to be EUR 23–26 million (2022: EUR 9.7 million).
According to the previous guidance, net sales for 2023 were EUR 136–148 million, and operating profit EUR 17–20 million.
The basis for the guidance with regards to net sales is that the start of the direct China and Asia container train traffic will most likely move forward to the coming year. Also the weakened outlook for the Finnish economy may influence the demand of value added services in Cargo operations.
The operating profit guidance is based on the strong development during the first half of the year and the expected efficiency improvements during the second half of the year. Nurminen Logistics has improved its efficiency and succeeded in customer acquisition. Good cost management and investments in international traffic will begin to be reflected in increasing volumes on new railway routes. The takeover of North Rail Oy (formerly Operail Finland Oy), acquired in February 2023, and the growth of its business have been more successful than expected.
Previous outlooks:
Inside information 24 May 2023
Nurminen Logistics Plc raises its guidance for 2023
New guidance as of 24.5.2023: net sales for 2023 will be EUR 136-148 million (2022: 122.5), and operating profit will be EUR 17-20 million (2022: 3.4). EBITDA forecast is EUR 22-25 million (2022: 6.2).
The previous guidance for net sales for 2023 was EUR 135-142 million and for operating profit at least EUR 10 million.
The new guidance is based on the strong development at the beginning of the year and improved outlook for the rest of the year. The company has improved its efficiency and succeeded in customer acquisition. Good cost control and investments in international traffic are starting to show in growing volumes on new railway routes. The takeover of the railway business purchased in February 2023, and its growth, has been more successful than expected.
Preliminary data on operating profit for H1 2023
According to the forecast, the operating profit for 1.1.-30.6.2023 will be EUR 8.0-9.5 million. Operating profit was EUR 2.4 million in 1.1.-30.6.2022.
The company has not previously provided preliminary information on operating profit for H1 2023.
Half-Year Financial Report 4 August 2022
Nurminen Logistics expects that net sales in 2022 will increase or remain at the level of 2021. Comparable operating profit margin guidance is on 4-7 % level.
Financial Statement Release 3 March 2022:
Early year 2022 has started clearly better than the previous year.
Due to the uncertainty caused by the war in Ukraine, Nurminen
Logistics refrains from issuing a guidance for year 2022 before
the situation regarding operational circumstances and financial
development is clearer
Presentation material 3.3.2022Lataa
Stock exchange release September 15, 2021
NURMINEN LOGISTICS PLC has defined the economic goals for 2021–2023 pursuant to its new strategy.
The company’s new medium-term economic goals for 2021–2023 are:
- Net sales is MEUR 200, the growth is implemented through internal financing.
- EBIT at least 9%
- Equity at least 33%
- Gearing below 100%
- Net debt to EBITDA below 2.5
- Increasing dividend distribution 33–50% of net profit
The economic goals for 2021–2023 have been defined taking into account the sustainable growth of shareholder value. The current corporate structure, including the ownership of the Vuosaari terminal property, has also been taken into account as this allows a considerably higher than normal indebtedness level for the company.
In accordance with its strategy, the company will continue to expand its international service network in Europe and Asia and invest in digital platforms for customer management and services. In addition, the company supports the sustainability goals and competitiveness of its customers by offering railway operation solutions to reduce the CO2 emission of logistics.
The financial situation of the company enables acquisitions also in 2021–2023, especially in China, which will promote significant growth in the future.
The goals of Nurminen Logistics pursuant to the strategy are based on:
Railway logistics business between Asia and Europe
Nurminen Logistics aims at becoming the market-leader in railway operations between China and other Asia and Northern Europe during this strategy period. The aim is to build the company into being the key player of the Nordic logistics hub by utilising the company’s current market position, railway line destinations and timetable frequency, Finland’s excellent logistic location between Asia and Europe and harbour terminals equipped with railway connections in Vuosaari and Kotka from where freight can be quickly transported further to Europe in a couple of days.
Net sales of the business operations will multiply in 2021–2023, after which it will growing faster than the market with improving profitability. The main drivers for the business operation growth are the best customer service on the market, scalable business model, unique cooperation network on the railway markets and the market’s most versatile skills and service offering. The growth is also boosted by the rapid expansion of the market area and clientele in the Nordic countries, Germany, the Netherlands and the UK as well as the increase in the number of offices in China.
The value of the annual trade between China and the countries covered by the company’s market area exceeds MEUR 70 and a significant part of this value is transported in containers. The share of railway transports in this logistics market is billions of euros and this share and value will grow dozens of percentages annually due to the megatrends of climate and speed requirements set for transports.
The competitive advantage of the company in the railway operations between China and Asia and Northern Europe is based on Finnish railway network belonging to the 1520 Area, which makes the route fast and affordable. This is also supported by the quick scalability of the business model, innovativeness, investments in digital solutions, low CO2 emissions of railway logistics, future EU taxonomy regulations, the most extensive service offering on the railway markets from break-bulk cargo to block trains and the company competence in industrial supply chain processes.
Forwarding business
The goal for the strategy period is that the net sales and net operating result will grow faster than the Finnish market, which will be based on process automation, the utilisation of robotics and the field’s best expertise.
Terminal services
Annual growth faster than the market; at least 10%. Focus on producing services in our railway, chemical and heavy goods special terminals in which the markets are growing and our competitive position is strong. Clear improvement of profitability by developing our customer and service experience on the basis of innovativeness and concentration on our core competences. Growth of Projects logistics in railway transports to CIS countries. A major driver for growth is also the notable increase in volume for terminal services by the train traffic of the emerging Asia.
Outsourcing services
Aiming at strong growth and becoming an international logistics outsourcer and developer with MEUR 3–5 annual net sales in the SME sector companies engaged in foreign trade.
Baltic countries
Preserving the current market position and profitability and utilising the company’s Asian train connections in the Baltic countries using the Nordic Hub service.
Half-year Financial Report 2021:
Nurminen Logistics estimates that net sales and operating result will increase significantly in 2021.
Nurminen Logistics previously estimated that net sales will increase and operating result will improve clearly in 2021.
Half-year Financial Report 2021 Presentation
Financial Statement Release 5 March 2021:
The second half of the year 2020 was a time of positive development for the Nurminen Logistics, in spite of the challenges caused by COVID- 19 pandemic. The company’s net sales increased by 27% or EUR 9,4 million on the reference period 2019 and H2 operating result improved clearly compared to H1, amounting to EUR +0.3 million, and EUR +0.9 million excluding non-recurring costs. The development was favourable in all business groups. The development was particularly good in the freight train to China product, which lays down good preconditions for profitable growth in the future as well.
The company will continue strong investments in rail traffic between Europe and Asia and digital production processes and launch a new outsourcing service concept during H1 2021. When the COVID-19 pandemic eases, the company will be able to rapidly increase its capacity and respond with new launches in China, such as refrigerated transport of foodstuffs.
Based on the start of the year 2021, the company’s development will continue well, and the company estimates that net sales will increase and operating result will improve clearly on 2020.
Financial Statement Release 8 March 2018:
Nurminen Logistics believes that the positive trend in the economy and markets will continue in 2018. Nurminen Logistics expects that its comparable net sales and comparable operating result will improve from the level of 2017.
Stock Exchange Release 20 December 2017:
Nurminen Logistics raises its result guidance for 2017:
Nurminen Logistics expects that its net sales will improve significantly compared to 2016 and operating result will improve clearly compared to 2016 and will be clearly positive. The updated guidance covers both reported net sales and operating result as well as comparable net sales and operating result.
Half Year Financial Report 10 August 2017:
Nurminen Logistics expects that its comparable net sales, comparable result and earnings per share will improve compared to 2016. Exchange rate fluctuations have an impact on the reported net sales and operating result.
Financial Statement Release 9 March 2017:
Nurminen Logistics expects that its comparable net sales, comparable result and earnings per share will improve compared to 2016. Exchange rate fluctuations have an impact on the reported net sales and operating result.
Half Year Financial Report 11 August 2016:
Nurminen Logistics expects that its comparable net sales will remain at the same level as in 2015 and that its comparable result and earnings per share will improve compared to 2015. Exchange rate fluctuations have a significant impact on the reported net sales and operating result.
Financial Statement Release 18 February 2016:
Nurminen Logistics expects that both its operating result and earnings per share will improve compared to 2015, but that its net sales will fall short of the level of 2015. The predictability of the operating result involves significant uncertainty due to the development of the rouble exchange rate. Exchange rate fluctuations have a significant impact on the reported net sales and operating result.
Stock Exchange Release 3 November 2015:
Nurminen Logistics updates its outlook for 2015:
Nurminen Logistics expects its net sales, operating result without exchange rate changes and earnings per share to decline significantly from the 2014 levels. The main reasons for decline in net sales are sale of Nurminen Logistics Heavy Oy’s shares and the depreciation of the rouble. If realised, the planned fleet sales will have a positive impact on cash flow and financial position. The effect of fleet sales on the result depends on the rouble exchange rate at the time of the transaction. The predictability of the operating result involves significant uncertainty due to the development of the rouble exchange rate in the end of the year. Exchange rate fluctuations have a significant impact on the reported net sales and operating result.
Interim Report 6 August 2015:
The company’s outlook published in stock exchange release on 5 May 2015 is unchanged:
Nurminen Logistics expects its net sales, operating result and earnings per share to decline from the level of 2014. If realised, the planned fleet sales will have a positive impact on cash flow and financial position. The effect of fleet sales on the result depends on the rouble exchange rate at the time of the transaction. The predictability of the operating result involves significant uncertainty due to the development of the rouble exchange rate in the second half of the year.
Stock Exchange Release 5 May 2015:
Nurminen Logistics expects its net sales, operating result and earnings per share to decline from the level of 2014. If the company’s plan to sell its railway wagons will realize, it will have a strong positive effect on operating result. Forecasting operating result include significant factors of uncertainty due to the development of rouble exchange rate in the beginning of the year and its outlook on the end of the year.
Financial Statement Release 19 February 2015:
Nurminen Logistics expects market conditions to remain similar to last year. A slight increase in Finnish exports appears possible, particularly through the ports of Helsinki and Kotka, while a decrease in imports also seems likely. Under the prevailing circumstances, Finnish exports to Russia are likely to remain at the same level as in the fourth quarter of 2014, with Russian domestic traffic remaining at the same level as in 2014. Changes in the rouble exchange rate have a significant impact on the company’s profitability.
In the present situation, the forecast horizon is short. Nevertheless, we expect our net sales, operating result and earnings per share to improve in 2015 compared to 2014, based on our increasingly diverse clientele and improved operational efficiency.
Interim Report 6 November 2014:
The company’s outlook published in stock exchange release on 5 August 2014 is unchanged:
Nurminen Logistics expects that its key market of Russia and its neighbouring countries will decrease in 2014 due to the continuation of the crisis in Ukraine, but that it will again pick up quickly, especially with regard to rail transport volumes and project transport business, when the international political situation settles. With regard to Finnish exports and imports, the company’s market outlook is stable in 2014 based on existing customer agreements.
Nurminen Logistics expects that both its operating result and earnings per share will improve compared to 2013, but that its net sales will fall short of the level of 2013 due to the decline in volumes in rail transport between Finland and Russia resulting from the crisis in Ukraine and the sanctions imposed on Russia.
Stock Exchange Release 5 August 2014:
Nurminen Logistics updates its outlook for 2014 with regard to net sales:
Nurminen Logistics expects that both its operating result and earnings per share will improve compared to 2013, but that its net sales will fall short of the level of 2013 due to the decline in volumes in rail transport between Finland and Russia resulting from the crisis in Ukraine and the sanctions imposed on Russia.
In its previous estimate (Interim Report 8 May 2014), the company expected its net sales, operating result and earnings per share to improve compared to 2013.
Interim Report 8 May 2014:
The company’s outlook published in the Financial Statement Release on 20 February 2014 is unchanged:
Nurminen Logistics expects that its key market of Russia and its neighbouring countries will grow in 2014 based on already concluded customer agreements and the stable outlook of the Russian railway market in 2014–2015. Demand in the Finnish market is expected to be better than in 2013.
Nurminen Logistics expects its net sales, operating result and earnings per share to improve compared to 2013.
Financial Statement Release 20 February 2014:
Nurminen Logistics expects that its key market of Russia and its neighbouring countries will grow in 2014 based on already concluded customer agreements and the stable outlook of the Russian railway market in 2014–2015. Demand in the Finnish market is expected to be better than in 2013.
Nurminen Logistics expects its net sales, operating result and earnings per share to improve compared to 2013.
The company’s long-term goal is to grow at a faster rate than the market, on average by over 15% per year. Going forward, over 50% of net sales will come from the growth markets of Russia and its neighbouring countries. The company’s further long-term goals are to improve profitability, achieve an operating profit level of 10 per cent and return on equity of 20 per cent.
Interim Report 31 October 2013:
The company’s outlook published in the Stock Exchange Release on 20 September 2013 is unchanged:
The company expects both its net sales and operating result to be clearly lower than 2012 level.
Stock Exchange Release 20 September 2013:
The company expects both its net sales and operating result to be clearly lower than 2012 level.
Interim Report 1 August 2013:
Due to the continuing challenging market situation, Nurminen Logistics expects its net sales and operating result to be lower than in 2012.
Interim Report 2 May 2013:
Due to the weak market situation at the start of the year, Nurminen Logistics expects its net sales and operating result to be slightly lower than in 2012.
Financial Statement Release 26 February 2013:
Nurminen Logistics’ key markets in Russia and its neighbouring countries are expected to continue to grow in 2013, although the rate of growth may be slower than in 2012, at least early in the year. Demand in the Finnish market is expected to be slightly lower than in 2012 due to the slowing down of economic growth.
Nurminen Logistics expects its net sales and operating result to be at the same level as in 2012 and earnings per share to improve.
The company’s long-term goal is to grow at a faster rate than the market, on average by over 15% per year. Going forward, over 50% of net sales will come from the growth markets of Russia and its neighbouring countries. The company’s further long-term goals are to improve profitability, achieve an operating profit level of 10% and return on equity of 20%.
Interim Report 2 November 2012:
The company’s outlook published in the Stock Exchange Release on 25 September 2012 is unchanged:
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be significantly better than in 2011, with the estimated figure being EUR 5-6 million.
Stock Exchange Release 25 September 2012:
Nurminen Logistics is updating its outlook for 2012.
Outlook published on 12 April 2012:
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be clearly better than in 2011.
New outlook published on 25 September 2012:
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be significantly better than in 2011, with the estimated figure being EUR 5-6 million.
Interim Report 3 August 2012:
The company’s outlook published in the Stock Exchange Release on 12 April 2012 is unchanged:
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be clearly better than in 2011.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market.
Interim Report 4 May 2012:
The company’s outlook published in the Stock Exchange Release on 12 April 2012 is unchanged:
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be clearly better than in 2011.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market.
Stock Exchange Release 12 April 2012:
Nurminen Logistics updates its year 2012 outlook.
Outlook published on 24 February 2012:
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be better than in 2011.
New outlook published on 12 April 2012:
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be clearly better than in 2011.
Financial Statements Release 24 February 2012:
Nurminen Logistics is expecting its markets to develop favourably in 2012. Demand is expected to remain on a good level, especially, in company’s strategically important growth market − domestic railway transports in Russia and other CIS countries.
The net sales of the company are expected to increase in 2012 compared to 2011. The company’s operating result is expected to be better than in 2011.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Interim Report 4 November 2011:
The company’s outlook published in the financial statement release on 25 February 2011 is unchanged.
The net sales of the company are expected to increase by approximately 10% in 2011 compared to 2010. The company’s operating result is expected to be slightly better than in 2010.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Interim Report 5 August 2011:
The company’s outlook published in the financial statement release on 25 February 2011 is unchanged.
The net sales of the company are expected to increase by approximately 10% in 2011 compared to 2010. The company’s operating result is expected to be slightly better than in 2010.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Interim Report 6 May 2011:
The company’s outlook published in the financial statement release on 25 February 2011 is unchanged.
The net sales of the company are expected to increase by approximately 10% in 2011 compared to 2010. The company’s operating result is expected to be slightly better than in 2010.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Financial Statement Release 25 February 2011:
The net sales of the company are expected to increase by approximately 10% in 2011 compared to 2010. The company’s operating result is expected to be slightly better than in 2010.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Interim Report 5 November 2010:
The company’s outlook for 2010 remains unchanged. Nurminen Logistics Plc expects the company’s net sales to increase in 2010 compared to 2009, but the operating result excluding non-recurring items is expected to be negative.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Interim Report 6 August 2010:
Nurminen Logistics Plc expects the company’s net sales to increase in 2010 compared to 2009, but the operating result excluding non-recurring items is expected to be negative. The change of the outlook is due to the weaker than expected volume and price development in the market.
The company published its previous outlook for 2010 on 7 May 2010. In that outlook the net sales were expected to increase in 2010 compared to 2009 and the operating result excluding non-recurring items was expected to be positive despite the weak profitability in the beginning of the year.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Interim Report 7 May 2010:
The company’s outlook published in the financial statement release on 26 February 2010 remains unchanged.
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
Due to the global financial crisis foreign trade volumes have declined in all sectors. The volumes have started to slightly grow after strong decline in the beginning of 2009 but both exports and imports are still on a significantly lower level than before the financial crisis.
The net sales of the continuing operations in year 2010 are expected to increase compared to 2009 and the company’s operating result excluding non-recurring items is expected to be positive despite the weak profitability in the beginning of the year.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Outlook for 2010, Financial Statement Release 2009, 26 February 2010:
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
Due to the global financial crisis foreign trade volumes have declined in all sectors. The volumes have started to slightly grow after strong decline in the beginning of 2009 but both exports and imports are still on a significantly lower level than before the financial crisis.
The net sales of the continuing operations in year 2010 are expected to increase compared to 2009 and the company’s operating result excluding non-recurring items is expected to be positive despite the weak profitability in the beginning of the year.
The company believes that Nurminen Logistics’ responsible behaviour and investments in the future during difficult market conditions, as well as the company’s good brand, have strengthened customers’ confidence in the company, which in turn has already brought the company more customers.
The company is actively following the structural changes in the logistics market as well as acquisition opportunities.
Interim Report 1 January- 30 September 2009, 6 November 2009:
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The general economic situation is assessed to delay achieving of the growth objectives in the short term.
Due to the global financial crisis foreign trade volumes have declined in all sectors. The volumes have started to slightly grow after strong decline in the beginning of the year but both exports and imports are still on a significantly lower level than in the corresponding period last year.
The net sales of the continuing operations in year 2009 are assessed to be lower than in 2008 and the company’s operating result excluding non-recurring items is assessed to be positive.
Interim Report 1 January- 30 June 2009, 7 August 2009:
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The situation of the financial markets is assessed to delay achieving of the growth objectives in the short term.
Due to the global financial crisis foreign trade volumes have declined in all sectors. The volumes have started to slightly grow after strong decline in the beginning of the year but both exports and imports are still on a significantly lower level than in the corresponding period last year.
The net sales of the continuing operations in year 2009 are assessed to be lower than in 2008 and the company’s operating result excluding non-recurring items is assessed to be slightly negative.
Interim Report 1 January- 31 March 2009, 8 May 2009:
The company’s unchanged long-term goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The situation of the financial markets delays achieving of the growth objectives in the short term.
There was a sudden change for the worse in Finnish economy during November and December 2008. Export volumes declined in all sectors and also import volumes declined strongly in the end of the year. The volumes of Finnish foreign trade have not decreased since the beginning of the year but both exports and imports are on a significantly lower level than in the corresponding period last year.
The net sales of the continuing operations in year 2009 are expected to be lower than in 2008 and the company’s operating profit margin is expected to decline.
Stock Exchange Release, 21 April 2009:
Nurminen Logistics Plc expects operating result for the first quarter of 2009 to be slightly negative and net sales to be clearly weaker than in the last quarter of 2008.
As the company has already earlier announced, the net sales of the continuing operations in year 2009 are expected to be lower than in 2008 and the company’s operating profit margin is expected to decline.
Stock Exchange Release, 2 April 2009:
Nurminen Logistics Plc expects net sales and operating profit for the first quarter of 2009 to be clearly weaker than net sales and operating profit of the last quarter of 2008. This is due to the rapid decrease of the volumes of the Finnish foreign trade. The company has announced on 25 February 2009 that it will adjust its operations to match the market situation. The company´s cost savings goal for the year 2009 is EUR 1.5 million.
In year 2009 the net sales of the continuing operations are expected to be lower than in 2008 and the company’s operating profit margin is expected to decline.
Financial Statement Release 2008, 25 February 2009:
Due to the recession in global economy the economic outlook and market situation are very uncertain. Therefore, the company will not give a net sales or operating profit level forecast for year 2009. On the long-term the company’s goal is to increase its net sales annually by approximately 20% on average, including acquisitions, and to reach an operating profit level of over 7%. The situation of the financial markets may delay achieving of the growth objectives in a short term.
There was a sudden change for the worse in Finnish economy during November and December. Export volumes declined in all sectors and also import volumes declined strongly in the end of the year. Also investments are expected to decline during 2009.
Despite the quite satisfactory outcome of the financial year 2008 the company must be prepared for a possible decline in net sales by adapting its operations and cost structure to the general volume of economy.
There is an exceptional amount of uncertainty also in the development of Russian economy. That as well as the rouble exchange rate is connected to the world market price of oil. Devaluation of rouble hinders the outlook of Russian imports but on the other hand it improves the possibilities of Russian exports as well as foreign companies’ investment opportunities in Russia. As trade becomes more versatile and foreign investments grow, there will be new opportunities for logistics service providers like Nurminen Logistics.
Extensions of Niirala and Luumäki terminals and the opening of logistics centre in Vuosaari harbour on 28 November 2008 have positive effects on the outlook of Nurminen Cargo. The extension of Niirala terminal increased terminal space by 4,000 square meters to a total 18,000 square meters. The extension of Luumäki terminal increased terminal space 3,400 square meters to a total 11,700 square meters. The logistics centre in Vuosaari has in the first phase 38,000 square meters. As a result of these investments, investments in railway wagons, and due to the rationalization of its operations, the company has a strong competitive position when economy starts to grow. On the other hand the costs of these investments hamper the company’s profitability in the current economic situation.
The outlook of Nurminen Heavy is mostly affected by the volumes of mechanical engineering industry and its project cargos. The outlook for mechanical engineering industry has weakened recently and it remains to be seen how its backlog will develop. The market situation of mechanical engineering industry will after some delay also affect Nurminen Heavy’s operations.