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Challenges of Earnings per Share (EPS)

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…the number of shares decreased by 14%!

• Example - Huhtamäki 2002 (Meur)• “Earnings per share (EPS) +17 %, dividend

proposal 0,38 eur (+22 %)”

Key numbers Q4 Change(%)

Q1-Q4 Change(%)

Revenue 526 -9 2.239 -6

EBITA 45 -18 218 -2Result before minority interest and taxes 25 -25 131 +1

Earnings per share (EPS) 0,26 -16 1,3 +17

What was the operational management’s input to ”good” result? Share buyback! Are we comparing apples with oranges?

Source: Huhtamäki Oyj Q4/2002 report

@TimoNurminiemi

http://www.linkedin.com/in/timonurminiemi

ArgonProconsulting

training

@TimoNurminiemi

http://www.linkedin.com/in/timonurminiemi

@TimoNurminiemi

http://www.linkedin.com/in/timonurminiemi

e-mail: timo.nurminiemi@kolumbus.fi