Winpak's Q3 net income up 18% year-over-year to US$17.3M, helped by improvement in gross margins, favorable currency exchange; revenue down 3.1% to US$165.4M

WINNIPEG, Manitoba , October 26, 2012 (press release) – Winpak Ltd. (TSX:WPK) today reports consolidated results in US dollars for the third quarter of 2012, which ended on September 30, 2012.  

                                                                                                                               
                                                                            
(thousands of US dollars,                                                   
 except per share amounts)        Quarter Ended      Year-To-Date Ended (1) 
                             ----------------------- -----------------------
                              September   September   September   September 
                                30 2012     25 2011     30 2012     25 2011 
                             ----------- ----------- ----------- -----------
                                                                            
Revenue                         165,399     170,670     496,852     480,547 
                             ----------- ----------- ----------- -----------
                             ----------- ----------- ----------- -----------
Net income                       17,319      14,635      50,573      46,228 
                             ----------- ----------- ----------- -----------
                             ----------- ----------- ----------- -----------
                                                                            
Income tax expense                7,935       7,912      22,160      21,434 
Net finance income                 (316)       (100)       (726)       (257)
Depreciation and amortization     6,577       6,745      19,706      20,037 
                             ----------- ----------- ----------- -----------
EBITDA (2)                       31,515      29,192      91,713      87,442 
                             ----------- ----------- ----------- -----------
                             ----------- ----------- ----------- -----------
                                                                            
Net income attributable to                                                  
 equity holders of the                                                      
 Company                         17,078      14,408      50,041      45,297 
Net income attributable to                                                  
 non-controlling interests          241         227         532         931 
                             ----------- ----------- ----------- -----------
Net income                       17,319      14,635      50,573      46,228 
                             ----------- ----------- ----------- -----------
                             ----------- ----------- ----------- -----------
                                                                            
Basic and fully diluted                                                     
 earnings per share (cents)          26          22          77          70 
                             ----------- ----------- ----------- -----------
                             ----------- ----------- ----------- -----------

Winpak Ltd. manufactures and distributes high-quality packaging materials and related packaging machines. The Company's products are used primarily for the packaging of perishable foods, beverages and in health care applications.

(1) The 2012 fiscal year comprises 53 weeks and the 2011 fiscal year comprised 52 weeks. Each quarter of 2012 and 2011 comprises 13 weeks with the exception of the first quarter of 2012, which comprised 14 weeks.

(2) EBITDA is not a recognized measure under International Financial Reporting Standards (IFRS). Management believes that in addition to net income, this measure provides useful supplemental information to investors including an indication of cash available for distribution prior to debt service, capital expenditures and income taxes. Investors should be cautioned, however, that this measure should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's performance. The Company's method of calculating this measure may differ from other companies, and accordingly, the results may not be comparable.

Forward-looking statements: Certain statements made in the following report contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance. Such forward-looking statements represent Winpak's current views based on information as at the date of this report. They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Unless otherwise required by applicable securities law, we disclaim any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance upon forward-looking statements.

Financial Performance

Net income attributable to common shareholders for the third quarter of 2012 was $17.1 million or 26 cents in earnings per share compared to $14.4 million or 22 cents per share in the corresponding quarter of 2011, an increase of 18.5 percent. An improvement in gross profit margins added approximately 0.5 cents in earnings per share while a lower effective income tax rate bolstered earnings by 1.5 cents per share. A favorable foreign exchange impact contributed a further 2 cents in earnings per share in the quarter.

For the nine months ended September 30, 2012, net income attributable to common shareholders equalled $50.0 million or 77 cents in earnings per share, eclipsing the prior year three-quarter result of $45.3 million or 70 cents in earnings per share by 10.5 percent. Higher sales volumes added 3 cents to earnings per share while improved manufacturing performance raised earnings per share by an additional 1 cent. However, higher operating expenses offset some of this improvement by lowering earnings per share by 1 cent. A lower effective income tax rate and a lesser amount attributable to non-controlling interests further added to earnings per share by 1.5 cents and 0.5 cents respectively. Finally, foreign exchange favorably impacted earnings per share by 2 cents.

Revenue

Revenue for the third quarter of 2012 was $165.4 million, a decline of $5.3 million or 3.1 percent over the comparable quarter in 2011, primarily a result of lower selling prices in response to reduced raw material costs. Volumes in total were up marginally from the prior year comparable quarter, increasing by 0.3 percent. A realignment of inventory levels by a major specialty beverage customer in the first two months of the quarter resulted in shipment reductions of over 20 percent for that customer in the three-month period compared to the third quarter of 2011, and offset a general improvement in volume across many of the other product groups. Overall, demand in the third month of the quarter was particularly promising. Volumes in modified atmosphere and specialty film packaging advanced in the mid-single digit percentage range in the quarter versus the prior year corresponding period. Lidding volumes grew marginally while rigid container shipments retracted by a few percentage points. However, excluding specialty beverages, rigid container volumes rose in excess of 15 percent in the quarter due to strong performance in juice cups and custom containers. Also during the quarter, the Company concluded an agreement to divest its drink cup product line including equipment, inventory and customer lists to a Canadian competitor, representing approximately $7 million in revenue on an annualized basis. This divestiture is expected to be marginally accretive to earnings in the fourth quarter. As in the second quarter of this year, both packaging machinery and biaxially oriented nylon continued to experience weak demand, with double-digit percentage declines in revenue. Packaging machinery bookings, however, are much improved going into the final quarter of the year. The greatest impact on revenue for the period in relation to the third quarter of 2011 was an overall decline in selling prices, in response to lower raw material costs, which reduced revenue by 2.9 percent. A weaker Canadian dollar further reduced revenue by 0.5 percent in the current quarter in relation to the corresponding prior year period.

For the first nine months of 2012, revenue grew to $496.9 million, an increase of $16.3 million or 3.4 percent in relation to the comparable period in 2011. This was due entirely to increased volumes, which expanded by 3.8 percent. Demand was strongest in modified atmosphere packaging followed closely behind by lidding, specialty films and rigid containers, which all advanced in the mid-single digit percentage range. Biaxially oriented nylon and packaging machinery were most impacted by the lackluster performance of the economy, recording volume declines in percentage terms in the mid single-digit and low double-digit range respectively from the prior year. The combination of selling prices and product mix was neutral to revenues year-to-date while a weaker Canadian dollar compared to the prior year had only a minor effect on revenue, resulting in a reduction of 0.4 percent.

Gross profit margins

Gross profit margins widened to 28.8 percent of revenue in the third quarter of 2012 from the 27.6 percent of revenue recorded in the same quarter of 2011, an increase of 1.2 percentage points. An improvement in manufacturing performance as a result of greater efficiencies resulted in a contribution of 0.5 cents in earnings per share.

For the first three quarters of 2012, gross profit margins surpassed the comparable prior year period at 29.0 percent versus 28.6 percent in 2011. This added 1 cent in additional earnings per share as higher average material costs for product sold in the first nine months of 2012 were more than offset by enhanced production efficiencies and lower waste levels.

For reference, the following presents the weighted indexed purchased cost of Winpak's eight primary raw materials in the reported quarter and each of the preceding eight quarters, where base year 2001 = 100. The index was rebalanced as of December 26, 2011 to reflect the mix of the eight primary raw materials purchased in 2011.

----------------------------------------------------------------------------
Quarter and Year        3/12  2/12  1/12  4/11  3/11  2/11  1/11  4/10  3/10
----------------------------------------------------------------------------
Purchase Price Index   167.3 174.5 174.7 172.3 182.9 184.5 168.0 154.7 150.7
----------------------------------------------------------------------------

The purchase price index fell by 4.1 percent in the third quarter of 2012 in relation to the second quarter. Certain raw materials experienced declines while others remained steady. Likewise, the index retreated by 8.5 percent from a year prior with several materials rising in price while others decreased. Overall, the outlook for the fourth quarter is a relatively stable raw material pricing environment.

Expenses and Other

Operating expenses were in line with the levels recorded in the third quarter of 2011 while foreign exchange had a favorable impact on earnings per share of 2 cents. The strengthening Canadian dollar in the third quarter of 2012 resulted in foreign exchange gains on the translation of Canadian net monetary assets, accounting for the majority of the favorable foreign exchange impact. A lower overall income tax rate in the third quarter of 2012, in relation to the comparable period in 2011, resulted in an additional 1.5 cents in earnings per share. A 1.5 percentage point decrease in the 2012 federal corporate income tax rate in Canada, an upward adjustment to the year-to-date income tax rate in the third quarter of 2011, and a larger proportion of net income being earned in lower tax jurisdictions in 2012 all contributed to this favorable result.

On a year-to-date basis, operating expenses progressed at a higher rate than the expansion in sales volumes over the prior year period, due to elevated freight costs, new hires in sales representation, and share-based incentive costs which rose in conjunction with the Company's stock price. This resulted in a reduction of approximately 1 cent in earnings per share. More than offsetting this decrease were the favorable foreign exchange gains, mainly on the translation of Canadian net monetary assets, which added 2 cents in earnings per share as well as a lower amount attributable to the non-controlling interests which augmented earnings per share by a further 0.5 cents. An additional 1.5 cents in earnings per share was a consequence of lower income tax rates in 2012.

Capital Resources, Cash Flow and Liquidity

The Company's cash and cash equivalents balance at the end of the third quarter of $120.3 million diminished by $2.4 million from the end of the previous quarter. Winpak continued to generate consistent cash flow from operating activities before changes in working capital amounting to $32.4 million in the three-month period, an improvement of $2.3 million from the third quarter of 2011. Cash was utilized to supplement working capital by $5.3 million, property, plant and equipment additions of $20.8 million, income tax payments of $5.3 million, dividends of $1.9 million, and other items of $1.5 million.

For the nine months ended September 30, 2012, the cash and cash equivalents balance decreased by $6.6 million. Cash flow from operating activities before changes in working capital advanced to $93.5 million, surpassing the prior year corresponding period by $4.8 million. Additions to working capital utilized $17.3 million in cash, with inventory levels rising by $9.5 million since the start of the year, but down from the $14.7 million escalation seen in the first half of 2012. Cash was also used for property, plant and equipment additions of $51.0 million, income tax payments of $20.6 million, dividends of $5.8 million, employee defined benefit plan payments of $3.6 million and other items totalling $1.8 million. The Company remains debt-free and has unutilized operating lines of $38 million, with the ability to increase borrowing capacity further should the need arise.

Summary of Quarterly Results                                                
Thousands of US dollars, except per share amounts (US cents)                
                                                                            
                                        ------------------------------------
                                               Q3       Q2       Q1       Q4
                                             2012     2012     2012     2011
                                        ------------------------------------
                                                                            
Revenue                                   165,399  159,648  171,805  171,516
Net income attributable to equity                                           
 holders of the Company                    17,078   16,002   16,961   18,486
EPS                                            26       25       26       28
                                        ------------------------------------

                                                                            
                                        ------------------------------------
                                               Q3       Q2       Q1       Q4
                                             2011     2011     2011     2010
                                        ------------------------------------
                                                                            
Revenue                                   170,670  161,340  148,537  154,930
Net income attributable to equity                                           
 holders of the Company                    14,408   16,195   14,694   12,794
EPS                                            22       25       23       20
                                        ------------------------------------

Looking Forward

The Company is cautiously optimistic heading into the fourth quarter. Sales volumes rebounded in the last month of the third quarter and appear to be trending in the right direction. From a raw material pricing standpoint, volatility appears to be at its lowest level in quite a while with a stable outlook. The Company's capital expenditure program is forging ahead. Over $50 million has been invested year-to-date and approximately $25 to $30 million more is planned for the final quarter of the year. This significant commitment in technology will provide the foundation for continued growth and keep the Company at the forefront of innovation and new product development. Much of the capital being spent in 2012 will be commercialized in the first half of 2013 with the associated revenue to begin flowing shortly thereafter. However, one should note that as this new capacity becomes available, costs may temporarily increase as development expenses peak and new capacity is not yet fully utilized. Margins, however, are not expected to deviate from current levels by more than a few percentage points during that period. In the months ahead, the Company will also continue to seek out acquisition opportunities in its core competencies of food and health care packaging while remaining strongly committed to the capital investment plan.

Winpak Ltd.                                                                 
Interim Condensed Consolidated Financial Statements                         
Third Quarter Ended: September 30, 2012                                     

These interim condensed consolidated financial statements have not been audited or reviewed by the Company's independent external auditors, PricewaterhouseCoopers LLP. For a complete set of notes to the condensed consolidated financial statements, refer to www.sedar.com or the Company's website, www.winpak.com.

Winpak Ltd.                                                                 
Condensed Consolidated Balance Sheets                                       
(thousands of US dollars) (unaudited)                                       
                                                                            
                                                  September 30  December 25 
                                                          2012         2011 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets:                                                             
  Cash and cash equivalents                            120,263      126,879 
  Trade and other receivables                           87,295       83,935 
  Income taxes receivable                                1,265           33 
  Inventories                                           87,525       78,018 
  Prepaid expenses                                       3,393        2,769 
  Derivative financial instruments                         463          242 
                                                  ------------ -------------
                                                       300,204      291,876 
                                                                            
Non-current assets:                                                         
  Property, plant and equipment                        288,158      256,938 
  Intangible assets                                     14,609       15,076 
  Deferred tax assets                                    3,365        3,729 
                                                  ------------ -------------
                                                       306,132      275,743 
                                                  ------------ -------------
Total assets                                           606,336      567,619 
                                                  ------------ -------------
                                                                            
Equity and Liabilities                                                      
                                                                            
Current liabilities:                                                        
  Trade payables and other liabilities                  55,575       59,294 
  Provisions                                               528          592 
  Income taxes payable                                   3,853        4,988 
  Derivative financial instruments                          25          836 
                                                  ------------ -------------
                                                        59,981       65,710 
                                                                            
Non-current liabilities:                                                    
  Employee benefit plan liabilities                     11,291       12,504 
  Deferred income                                        9,133       10,243 
  Provisions                                             7,604        8,423 
  Deferred tax liabilities                              19,760       17,116 
                                                  ------------ -------------
                                                        47,788       48,286 
                                                  ------------ -------------
Total liabilities                                      107,769      113,996 
                                                  ------------ -------------
                                                                            
Equity:                                                                     
  Share capital                                         29,195       29,195 
  Reserves                                                 361         (426)
  Retained earnings                                    453,196      409,008 
                                                  ------------ -------------
Total equity attributable to equity holders of the                          
 Company                                               482,752      437,777 
Non-controlling interests                               15,815       15,846 
                                                  ------------ -------------
Total equity                                           498,567      453,623 
                                                  ------------ -------------
Total equity and liabilities                           606,336      567,619 
                                                  ------------ -------------
                                                                            
Winpak Ltd.                                                                 
Condensed Consolidated Statements of Income                                 
(thousands of US dollars, except per share amounts) (unaudited)             
                                                                            
                         Quarter Ended               Year-To-Date Ended     
                  ----------------------------- ----------------------------
                  ----------------------------- ----------------------------
                  September 30   September 25   September 30   September 25 
                          2012           2011           2012           2011 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenue                165,399        170,670        496,852        480,547 
Cost of sales         (117,837)      (123,503)      (352,930)      (343,016)
                  -------------- -------------- -------------- -------------
Gross profit            47,562         47,167        143,922        137,531 
                                                                            
Sales, marketing                                                            
 and distribution                                                           
 expenses              (13,798)       (13,574)       (42,141)       (39,731)
General and                                                                 
 administrative                                                             
 expenses               (6,477)        (6,130)       (21,002)       (19,631)
Research and                                                                
 technical                                                                  
 expenses               (3,332)        (3,346)       (10,198)        (9,600)
Pre-production                                                              
 expenses                  (30)           (38)          (537)          (240)
Other income                                                                
 (expenses)              1,013         (1,632)         1,963           (924)
                  -------------- -------------- -------------- -------------
Income from                                                                 
 operations             24,938         22,447         72,007         67,405 
Finance income           1,244          1,054          3,513          3,111 
Finance expense           (928)          (954)        (2,787)        (2,854)
                  -------------- -------------- -------------- -------------
Income before                                                               
 income taxes           25,254         22,547         72,733         67,662 
Income tax expense      (7,935)        (7,912)       (22,160)       (21,434)
                  -------------- -------------- -------------- -------------
Net income for the                                                          
 period                 17,319         14,635         50,573         46,228 
                  -------------- -------------- -------------- -------------
                                                                            
Attributable to:                                                            
  Equity holders                                                            
   of the Company       17,078         14,408         50,041         45,297 
  Non-controlling                                                           
   interests               241            227            532            931 
                  -------------- -------------- -------------- -------------
                        17,319         14,635         50,573         46,228 
                  -------------- -------------- -------------- -------------
                                                                            
Basic and fully                                                             
 diluted earnings                                                           
 per share - cents          26             22             77             70 
                  -------------- -------------- -------------- -------------
                                                                            
Condensed Consolidated Statements of Comprehensive Income                   
(thousands of US dollars) (unaudited)                                       
                                                                            
                                  Quarter Ended        Year-To-Date Ended   
                             ----------------------- -----------------------
                             ----------------------- -----------------------
                              September   September   September   September 
                                30 2012     25 2011     30 2012     25 2011 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net income for the period        17,319      14,635      50,573      46,228 
                             ----------- ----------- ----------- -----------
                                                                            
Cash flow hedge gains                                                       
 (losses) recognized                589        (424)        611         (42)
Cash flow hedge gains                                                       
 transferred to the statement                                               
 of income                         (138)       (456)       (146)     (1,158)
Cash flow hedge losses                                                      
 transferred to property,                                                   
 plant and equipment                625           -         567           - 
Income tax relating to                                                      
 applicable components of                                                   
 other comprehensive income         (91)        249        (245)        350 
                             ----------- ----------- ----------- -----------
Other comprehensive income                                                  
 (loss) for the period - net                                                
 of income tax                      985        (631)        787        (850)
                             ----------- ----------- ----------- -----------
Comprehensive income for the                                                
 period                          18,304      14,004      51,360      45,378 
                             ----------- ----------- ----------- -----------
                                                                            
Attributable to:                                                            
  Equity holders of the                                                     
   Company                       18,063      13,777      50,828      44,447 
  Non-controlling interests         241         227         532         931 
                             ----------- ----------- ----------- -----------
                                 18,304      14,004      51,360      45,378 
                             ----------- ----------- ----------- -----------
                                                                            
Winpak Ltd.                                             
Condensed Consolidated Statements of Changes in Equity  
(thousands of US dollars) (unaudited)                   
                                                                            
                          Attributable to equity holders of the Company     
                         ---------------------------------------------------
                         ---------------------------------------------------
                                                                            
                                                                            
                                Share                 Retained              
                              capital    Reserves     earnings        Total 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Balance at December 27,                                                     
 2010                          29,195         441      361,128      390,764 
                         ---------------------------------------------------
                                                                            
  Comprehensive (loss)                                                      
   income for the period                                                    
    Cash flow hedge                                                         
     losses, net of tax             -         (19)           -          (19)
    Cash flow hedge gains                                                   
     transferred to the                                                     
     statement of income,                                                   
     net of tax                     -        (831)           -         (831)
                         ---------------------------------------------------
  Other comprehensive                                                       
   loss                             -        (850)           -         (850)
  Net income for the                                                        
   period                           -           -       45,297       45,297 
                         ---------------------------------------------------
  Comprehensive (loss)                                                      
   income for the period            -        (850)      45,297       44,447 
                         ---------------------------------------------------
                                                                            
  Preferred share                                                           
   redemption                       -           -            -            - 
  Dividends                         -           -       (5,856)      (5,856)
                         ---------------------------------------------------
                                                                            
Balance at September 25,                                                    
 2011                          29,195        (409)     400,569      429,355 
----------------------------------------------------------------------------

                                                   
                                                   
                                                   
                                                   
                                 Non-              
                          controlling              
                            interests Total equity 
---------------------------------------------------
---------------------------------------------------
                                                   
Balance at December 27,                            
 2010                          16,533      407,297 
                         --------------------------
                                                   
  Comprehensive (loss)                             
   income for the period                           
    Cash flow hedge                                
     losses, net of tax             -          (19)
    Cash flow hedge gains                          
     transferred to the                            
     statement of income,                          
     net of tax                     -         (831)
                         --------------------------
  Other comprehensive                              
   loss                             -         (850)
  Net income for the                               
   period                         931       46,228 
                         --------------------------
  Comprehensive (loss)                             
   income for the period          931       45,378 
                         --------------------------
                                                   
  Preferred share                                  
   redemption                    (980)        (980)
  Dividends                      (833)      (6,689)
                         --------------------------
                                                   
Balance at September 25,                           
 2011                          15,651      445,006 
---------------------------------------------------
                                                                            
                            Attributable to equity holders of the Company   
                         ---------------------------------------------------
                         ---------------------------------------------------
                                                                            
                                Share                 Retained              
                              capital    Reserves     earnings        Total 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Balance at December 26,                                                     
 2011                          29,195        (426)     409,008      437,777 
                         ---------------------------------------------------
                                                                            
  Comprehensive income                                                      
   for the period                                                           
    Cash flow hedge                                                         
     gains, net of tax              -         334            -          334 
    Cash flow hedge gains                                                   
     transferred to the                                                     
     statement of income,                                                   
     net of tax                     -        (114)           -         (114)
    Cash flow hedge                                                         
     losses transferred                                                     
     to property, plant                                                     
     and equipment                  -         567            -          567 
                         ---------------------------------------------------
  Other comprehensive                                                       
   income                           -         787            -          787 
  Net income for the                                                        
   period                           -           -       50,041       50,041 
                         ---------------------------------------------------
  Comprehensive income                                                      
   for the period                   -         787       50,041       50,828 
                         ---------------------------------------------------
                                                                            
  Dividends                         -           -       (5,853)      (5,853)
                         ---------------------------------------------------
                                                                            
Balance at September 30,                                                    
 2012                          29,195         361      453,196      482,752 
                         ---------------------------------------------------
                                                                            

                                                   
                                                   
                                                   
                                                   
                                 Non-              
                          controlling              
                            interests Total equity 
---------------------------------------------------
---------------------------------------------------
                                                   
Balance at December 26,                            
 2011                          15,846      453,623 
                         --------------------------
                                                   
  Comprehensive income                             
   for the period                                  
    Cash flow hedge                                
     gains, net of tax              -          334 
    Cash flow hedge gains                          
     transferred to the                            
     statement of income,                          
     net of tax                     -         (114)
    Cash flow hedge                                
     losses transferred                            
     to property, plant                            
     and equipment                  -          567 
                         --------------------------
  Other comprehensive                              
   income                           -          787 
  Net income for the                               
   period                         532       50,573 
                         --------------------------
  Comprehensive income                             
   for the period                 532       51,360 
                         --------------------------
                                                   
  Dividends                      (563)      (6,416)
                         --------------------------
                                                   
Balance at September 30,                           
 2012                          15,815      498,567 
                         --------------------------
                                                   
Winpak Ltd.                                                                 
Condensed Consolidated Statements of Cash Flows                             
(thousands of US dollars) (unaudited)                                       
                                                                            
                            Quarter Ended            Year-To-Date Ended     
                     --------------------------- ---------------------------
                     --------------------------- ---------------------------
                     September 30  September 25  September 30  September 25 
                             2012          2011          2012          2011 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash provided by                                                            
 (used in):                                                                 
                                                                            
Operating activities:                                                       
                                                                            
Net income for the                                                          
 period                    17,319        14,635        50,573        46,228 
Items not involving                                                         
 cash:                                                                      
 Depreciation               6,559         6,543        19,464        19,422 
 Amortization -                                                             
  deferred income            (303)         (309)         (911)         (920)
 Amortization -                                                             
  intangible assets           321           511         1,153         1,535 
 Employee defined                                                           
  benefit plan                                                              
  expenses                    800           718         2,796         2,433 
 Net finance income          (316)         (100)         (726)         (257)
 Income tax expense         7,935         7,912        22,160        21,434 
 Other                         41           135          (964)       (1,080)
                     ------------- ------------- ------------- -------------
  Cash flow from                                                            
   operating                                                                
   activities before                                                        
   the following           32,356        30,045        93,545        88,795 
 Change in working                                                          
  capital:                                                                  
  Trade and other                                                           
   receivables             (9,792)       (3,866)       (3,360)       (6,847)
  Inventories               5,239         4,185        (9,507)      (12,002)
  Prepaid expenses            504          (160)         (624)       (1,524)
  Trade payables and                                                        
   other liabilities       (1,246)       (2,435)       (3,802)        2,855 
                                                                            
 Provisions                  (107)          850          (999)          850 
 Employee defined                                                           
  benefit plan                                                              
  payments                 (1,388)         (483)       (3,633)       (2,995)
 Income tax paid           (5,292)       (4,422)      (20,580)      (16,455)
 Interest received            118            86           367           205 
 Interest paid                (28)           (8)          (30)          (17)
                     ------------- ------------- ------------- -------------
  Net cash from                                                             
   operating                                                                
   activities              20,364        23,792        51,377        52,865 
                     ------------- ------------- ------------- -------------
                                                                            
Investing activities:                                                       
                                                                            
 Acquisition of                                                             
  property, plant and                                                       
  equipment - net         (20,813)      (11,920)      (50,963)      (27,817)
 Acquisition of                                                             
  intangible assets            (2)          (55)         (687)         (286)
                     ------------- ------------- ------------- -------------
                          (20,815)      (11,975)      (51,650)      (28,103)
                     ------------- ------------- ------------- -------------
                                                                            
Financing activities:                                                       
                                                                            
 Dividends paid            (1,915)       (1,976)       (5,780)       (5,895)
 Change in non-                                                             
  controlling                                                               
  interests in                                                              
  subsidiary                    -             -          (563)       (1,813)
                     ------------- ------------- ------------- -------------
                           (1,915)       (1,976)       (6,343)       (7,708)
                     ------------- ------------- ------------- -------------
                                                                            
Change in cash and                                                          
 cash equivalents          (2,366)        9,841        (6,616)       17,054 
                                                                            
Cash and cash                                                               
 equivalents,                                                               
 beginning of period      122,629        97,701       126,879        90,488 
                     ------------- ------------- ------------- -------------
                                                                            
Cash and cash                                                               
 equivalents, end of                                                        
 period                   120,263       107,542       120,263       107,542 
                     ------------- ------------- ------------- -------------

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