Negative Q1 for Lerøy Seafood Group

In the first quarter of 2008 Lerøy Seafood Group had consolidated operating revenues of NOK 1,317 million, which is a decrease from NOK 1,491 million for the same period in 2007. The Group`s operating profit before fair value adjustment biomass was NOK 68.7 million vs. a corresponding figure of NOK 125.0 million for the first quarter of 2007. The Group`s operating margin before fair value adjustment biomass amounted to 5.2 % for the fist quarter this year vs. 8.4 % for the first quarter of 2007. In the first quarter of 2008, the Group achieved an operating profit after fair value adjustment biomass of -105.3 million vs. a comparable NOK 88.5 million for the first quarter of 2007. Income from affiliated companies totalled NOK 3.6 million in the first quarter 2008 vs. NOK 16.7 million the first quarter of 2007. Adjusted for fair value adjustment biomass the figures are NOK 6.3 million and NOK 21.6 million respectively. The Group`s net financial items for the first quarter of 2008 amounted to NOK -30.6 million compared to NOK -17.3 million for the first quarter of 2007. The Group`s profit before tax before fair value adjustment biomass was NOK 44.4 million vs. a corresponding figure of NOK 129.3 million for the first quarter of 2007. Net earnings for the first quarter of 2008 correspond to a profit before fair value adjustment biomass of NOK 0.65 per share, against a corresponding figure of NOK 2.05 per share for the first quarter of 2007. The number of outstanding shares is 53,577,368 shares. The Group`s return on capital employed (ROCE) before fair value adjustment biomass was 5.6% vs. 14.1 % for the same period last year. The Group`s financial position is solid with an accounting equity of NOK 3,688 million, corresponding to an equity ratio of 51.3%. The Group`s net interest-bearing debt at the end of March 2008 was NOK 1,842 million against a corresponding figure of NOK 1,754 million per 31.12.2007. The Board has recommended for the company`s Ordinary General Assembly, which will be held 20 May 2008, that dividend for 2007 is set to NOK 1.80 per share. The Group expects a positive price development compared to the first quarter of 2008. This, together with an improved productivity gives rise to a positive profit development for the rest of the year. In the first quarter of 2008, the Group exported, in line with its market strategy, a wide range of seafood products from Norway to a considerable number of countries. The largest of these markets were France, Japan, USA, and Sweden.