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UPDATE 1-Recycling firm Tomra Q4 beats expectations, upbeat on outlook

Published 21/02/2018, 08:37 pm
© Reuters.  UPDATE 1-Recycling firm Tomra Q4 beats expectations, upbeat on outlook
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(Adds outlook, quotes from presentation, share price)

Feb 21 (Reuters) - Recycling and sorting firm Tomra Systems Asa TOM.OL :

* Q4 EBITDA NOK 301 million (Reuters poll NOK 261 million) vs NOK 316 mln in Q4 2016

* Board proposes a dividend of NOK 2.35 per share, up from NOK 2.10 in the previous year

* Q4 revenue NOK 2.04 billion (Reuters poll NOK 1.98 billion) vs NOK 1.77 bln in Q4 2016

* Shares up 4 pct to 140 crowns after Q4 report vs down 0.2 pct in Oslo Bourse main share index .OSEBX

* Of its two divisions, Collection Solutions was in line with expectations in the Reuters poll, while Sorting was above forecast

* Repeats view that its main market in Collection Solutions, Germany, will replace deposit machines in the lower end of guided range of 2,700-3,700 units in 2018

* CEO Stefan Ranstrand says other markets compensate for the slower demand in Germany

* The Australian state of New South Wales begun a deposit scheme to collect and recycle bottles in Dec

* CEO: "We are in a ramp-up period in New South Wales, we expect around NOK 50 mln in Q1 revenues and - 10 mln on EBITA, we hope to reach profitability in the fourth quarter in New South Wales"

* Tomra booked NOK 57 mln in ramp up costs related to New South Wales in Q4

* CEO about new markets in Collection: "We anticipate Queensland in Australia and Scotland to introduce deposit systems"

* Says is too early to tell if and when England will introduce a deposit system

* CEO says about Sorting unit, whose core areas are food, recycling and mining: "We see good momentum across all businesses and expect demand to continue to pick up"

* Order intake in Sorting unit rose to NOK 793 million in Q4 vs NOK 649 million in Q4 2016

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