STENA METALL AB - Stena Metall Group

Financial review
56
With regard to leases, refer to Note 32
on page 71.
Changes in the Group’s composition
During the fiscal year the following
major acquisitions were made within
Stena Metall. In Sweden, the Group
acquired the assets and liabilities of
Boxholms Aluminiumåtervinning AB,
the shares in B & N Förvaltning AB
(along with its subsidiary Rörsanering i
Luleå AB), and B & N Fastighets AB.
Åmåls Miljöhantering AB was merged
with Stena Miljö AB.
In Denmark, Roskilde Jernverk A/S
was acquired on December 16, 2004
and Herning Produktforretning A/S on
July 1, 2005.
In Austria, Stena acquired the electronics
recycling company Ecotronics
Eco-efficient Electronics and Services
GmbH with operations in Vienna. In
Germany, it acquired Griag Glasrecycling
AG, a specialist in picture tube
recycling.
In Poland, Stena acquired the assets
of the recovered paper companies
Zlotomet and Red-Box, which will be
integrated with the other recovered
paper operations in the country. Stena
also acquired the assets of Bialkor, a
ferrous and non-ferrous metal recycler.
Also in Poland, Stena ISMR, Stena
Alcopper Scrap and Stena Surowce
Wtórne were merged with the parent
company, Stena Sp. z o.o.
No companies or operations were
divested during the year.
The Group’s composition and ownership
structure are explained on pages
80–81.
Environmental information
Ten of the Group’s Swedish companies
are engaged in sensitive activities that
require environmental notification or
permits from the government in accordance
with chap. 9 § 6 of the Environmental
Code (1999:808). In total,
the companies have 100 facilities subject
to notification or permit requirements.
These companies are engaged in the recycling
of ferrous and non-ferrous
scrap, paper, electronics and the production
of aluminium alloys. Operations
also include the collection, storage
and treatment of hazardous waste as
well as steel pre-treatment. The majority
of the Group’s operations in Sweden
have permit requirements.
Five of the ten companies are currently
revising or renewing their permits
due to increased production volumes.
The largest environmental impact
from their operations is from noise as
well as soil, air and water emissions
from the handling and processing of incoming
wastes.
To protect the environment, Group
companies comply with an environmental
policy and utilize established
control systems. All recycling companies
and steel operations are ISO 14001
certified. Umeå Tank & Miljö AB,
which was acquired in the previous
year, is planning for certification in
2006.
As in previous years, the Group has
allocated the necessary provisions to
cover future costs for remediation of
previously contaminated soil.
Change in accounting principles
As of September 1, 2004 the Swedish
Financial Accounting Standards Council’s
recommendations are applied. The
effect of the change is indicated under
the heading “Accounting and valuation
principles” on page 61.
Future outlook
Competition in Stena’s home markets is
increasing, but the Group’s growth in
the Nordic region, Poland and Russia is
expected to continue in the years ahead.
Sales and income
The Group’s consolidated sales
amounted to SEK 20,879.0 million
(17,207.4), an increase of 21.3 percent
compared to the previous fiscal year.
The Parent Company’s sales were SEK
61.1 million (57.6), of which intra-
Group transactions accounted for SEK
54.1 million (51.2). The Group’s income
after tax amounted to SEK 436.2
million (432.1). The Parent Company
reported a loss of SEK 32.4 million,
against a loss of SEK 36.2 million in the
previous year.
Events after the balance sheet date
Electronics recycling within Stena EK
Oy in Finland has been conducted by
the new company Stena Technoworld
Oy since September 1, 2005. The operations
of Stena Metalliyhtymä Oy in
Finland are conducted by the new company
Stena Metalli Oy as of September
1, 2005. Stena Offlex and Stena Ekofix
have been merged with Stena Metalli
Oy.
Parent Company
The Parent Company’s operations consist
primarily of property leasing and
the provision of shared Group services.
Personnel
The Group’s investments in competence
development are more extensive
than ever. Stena Gotthard AB’s trainee
program has continued. Around 160
employees have participated in the
leadership program since its inception
in 2001. Environmental and IT training
is arranged periodically for employees,
as are practical training programs. Six
Sigma, a methodology used to improve
operational performance by reducing
defects, is being implemented by the
Group. One of the objectives is to provide
Six Sigma training to 300 employees
by fiscal year 2005/2006.
Systematic efforts to reduce absenteeism
in Sweden have produced results,
and the trend is positive. Routines
for absenteeism reporting and rehabilitation
were refined and improved during
the year. For information on the
number of employees, salaries, etc. within
the Parent Company and the Group,
refer to Note 1 on pages 64 and 76.