2007-10-16 09:30:11 CEST
2007-10-16 09:30:11 CEST
REGULATED INFORMATION
Componenta - Quarterly report
Componenta interim report 1 January - 30 September 2007
Componenta interim report 1 January - 30 September 2007
· Net sales in the review period totalled MEUR 471.8 (MEUR 444.9).
Comparable growth in net sales was 9.5%.
· Consolidated operating profit, excluding one-time items, was
MEUR 30.6 (MEUR 29.6) and result after financial items, excluding one-time
items, was MEUR 13.1 (MEUR 16.5).
· Consolidated profit for the period after one-time items, taxes and
minority interest was MEUR 23.1 (MEUR 10.6).
· Basic earnings per share was EUR 2.19 (EUR 1.10) and earnings
excluding one-time items was EUR 0.86 (EUR 1.10).
· Consolidated net sales in the third quarter totalled MEUR 143.2
(MEUR 136.4), the operating profit excluding one-time items was
MEUR 5.3 (MEUR 4.9) and the result after financial items excluding one-time
items was MEUR -1.7 (MEUR 1.1).
Due to the purchase at the end of the previous financial year and during
the first quarter of 2007 of 92.6 % of the shares of Döktas, which is
listed on the Istanbul Stock Exchange, the figures for comparison for
the 2006 income statement contained in the text of this report are all
pro forma figures. The tables at the end of the report give a comparison
both with pro forma figures and with the official figures for 2006.
Major events during the review period
In February Componenta sold its holding in the shares of Ulefos NV AS
for roughly EUR 14 million. Componenta recorded a profit on the sale of
about EUR 6.4 million.
As a result of Componenta's tender offer made on 19 February 2007, in
accordance with Turkish law, at the end of the review period Componenta
owns 92.6% of the shares of Döktas.
In March Componenta sold in an MBO the business of Componenta Albin AB
to the company's operative management for EUR 14.3 million. Componenta
recorded a profit of EUR 13.0 million on the sale.
In June Componenta decided to consolidate the operations of the
Componenta Åmål machine shop with Componenta Främmestad in Sweden.
The operations will be consolidated during 2007. A provision of
EUR 4.7 million has been recorded in one-time costs for the period, in
preparation for the costs arising from the merger. By the end of the
third quarter altogether EUR 3.0 million of this provision had been
used. Consolidating operations is expected to improve the combined
result of the business units by some EUR 2 million as from 2008.
On 28 June 2007 Componenta signed a new five year EUR 200 million
syndicated credit facility. This replaces the Group's previous credit
facilities, including the short-term loans raised in 2006 for the
acquisition of Turkish foundry company Döktas.
On 23 August 2007 Componenta announced that it was strengthening its way
of operating with a new corporate structure that would be launched on
1 October 2007. The current division structure of the Group remains
unchanged. At the same time Componenta announced that Marc Omes,
Director of Group Sales and Product Development, would leave the Group
at the end of September and that the Director of the Döktas division
Yaylalý Günay would become Senior Vice President, Investments. Hakan
Göral, Sales Director at Döktas, has been appointed Senior Vice
President of Componenta Döktas Division and Managing Director of
Componenta Döktas A.S. The appointments came into effect on 1 October 2007.
Net sales and order book
The Group's net sales in January - September were EUR 471.8
(444.9) million. Comparable growth in net sales was 9.5%. The order book
at the end of September rose to EUR 125.0 (100.7) million.
Foundries division sales increased by 5.8% from the previous year to
EUR 177.5 (167.8) million.
Sales of the Machine Shop division rose 15.4% to EUR 116.9
(101.3) million.
Showing the order books for the Machine Shops and Foundries divisions
separately is not justified because of the nature of Componenta's supply
chain. At the end of the review period the divisions had a combined
order book of EUR 62.7 (50.0) million.
Net sales of the Döktas division increased 9.9% to EUR 176.9 (160.9)
million. Döktas had an order book at the end of the review period of
EUR 45.4 (38.0) million.
Componenta's net sales by customer sector were as follows: off-road 37%
(37%), heavy truck industry 26% (26%), cars and light trucks 17% (18%),
power and transmission 9% (8%) and machine building 11% (11%).
Result
The interim report has been prepared in accordance with international
financial reporting standards (IFRS). Componenta has prepared the
interim report applying the same accounting principles as in its 2006
Financial Statements. The figures in the interim report are unaudited.
The Group's operating profit excluding one-time items was EUR 30.6
(29.6) million and the result after financial items was EUR 13.1 (16.5)
million. The comparable operating profit - excluding the business
operations sold this year - improved MEUR 3.4.
The Group had one-time items totalling EUR 12.0 (0.0) million during the
review period:
- Profit on sale of Ulefos AS shares EUR 6.4 million
- Profit on sale of business operations of Componenta Albin AB
EUR 13.0 million
- One-time costs, provision for the financial impact of consolidating
the operations of the Componenta Främmestad and Åmål units
EUR 4.7 million
- Writedowns on production equipment to be scrapped and other similar
items EUR 1.8 million
- One-time costs, provision for terminating the business operations of
sales company Componenta UK Ltd (formerly Sherbrook) that were outside
the Group EUR 0.9 million
The Group's net financial costs in the review period amounted to
EUR -17.6 (-13.1) million. Net financial costs increased by EUR 4.0 million
because of equity hedging and changes in exchange rates.
The Group's operating profit was similar to that in the previous year.
The operating profit of the Foundries division improved from the
previous year. The operating losses recorded by the Karkkila foundry and
the Heerlen furan foundry decreased considerably from the previous year.
The operating profit of the Döktas division in the second and third
quarters was poorer than in the previous year due to the rise in the
prices of raw materials, unfavourable developments in exchange rates,
and low sales of aluminium wheels.
The consolidated result after financial items, excluding one-time items,
in the third quarter was EUR -1.7 (1.1) million.
Income taxes in the review period totalled EUR -1.2 (-4.9) million.
The net result for the review period was EUR 23.9 (11.6) million.
The basic earnings per share was EUR 2.19 (1.10) and the corresponding
earnings per share excluding one-time items was EUR 0.86 (1.10).
The return on investment including one-time items was 15.7% (8.0%) and
return on equity 34.7% (7.3%).
Financing
In March the Group repaid EUR 3.2 million, or 10%, of the principal of
the preferred capital notes issued in 2002 in accordance with the terms
for the notes.
On 30 September 2007 Componenta Corporation had outstanding capital
notes and convertible notes with a combined value of EUR 52.8 million,
as defined in IFRS. During the review period 4593 of Componenta's
convertible capital notes were converted into shares. As a result, the
number of Componenta shares increased by 918,600 and the shareholders'
equity in the IFRS balance sheet rose by EUR 7.8 million.
At the end of the review period the Group had EUR 139.5 million in
non-utilised long-term credit facilities. The Group has a
EUR 150.0 million commercial paper programme. The Group's
interest-bearing net debt, excluding the outstanding capital notes of
EUR 54.9 million, stood at EUR 209.0 (101.1) million. The company's
net debt as a proportion of shareholders' equity, including the
capital notes in shareholders' equity, was 135.0% (113.8%).
Componenta is making more effective use of capital with a programme to
sell its sales receivables. Under this arrangement, some of the sales
receivables are sold without any right of recourse. By the end of the
period the company had sold sales receivables totalling EUR 33.2 (31.1)
million.
On 28 June 2007 Componenta signed a new five year EUR 200 million
syndicated credit facility to replace the Group's previous credit
facilities. The new facility strengthens Componenta's financial
position, improving the company's capabilities to develop its core
business. The banks participating in the credit facility are Swedbank
AB (publ.), Nordea Bank Finland Plc, OKO Bank Plc, Bayerische Hypo-
und Vereinsbank AG, ABN Amro Bank N.V., Danske Bank A/S and HSH-
Nordbank AG.
Componenta's net cash flow from operations during the review period was
EUR 14.8 (18.7) million, and of this the change in net working capital
was EUR -10.0 (1.2) million. The net cash flow from investment was
EUR -31.5 (-5.3) million.
At the end of the review period the Group's equity ratio was 20.8%
(19.7%). The Group's shareholders' equity, including the capital notes
on 30 September 2007 in shareholders' equity, as a proportion of the
balance sheet total was 32.2% (32.5%).
Performance of business divisions
The 2007 financial reports publish the figures for the Group's three
divisions, Foundries, Machine Shops and Döktas. In addition, the reports
contain figures for Other Business, which includes the service
companies, the Componenta Wirsbo forges, the Componenta UK sales
company, Componenta Pistons, elimination of intra-group items, the
business of Componenta Albin that has been divested, and the Group's
share of the figures for associated company Ulefos NV that has been
divested.
Foundries
The Foundries division comprises the Group's foundries in Karkkila,
Pori, Pietarsaari and Iisalmi in Finland, and the foundries in Weert and
Heerlen in the Netherlands.
The division had net sales in the review period of EUR 177.5 (167.8)
million and an operating profit of EUR 12.0 million or 6.8% of net sales
(EUR 5.1 million, 3.0%). The division's operating profit improved
significantly from the previous year as a result of higher volumes and
enhanced efficiency in operations. The operating results of the Karkkila
and Heerlen Furan foundries improved considerably.
The division had third quarter sales of EUR 52.4 (49.1) million and an
operating profit of EUR 0.8 (-2.1) million.
Machine Shops
The Machine Shops division comprises the Främmestad and Åmål machine
shops in Sweden, the machine shops in Lempäälä and Pietarsaari in
Finland, and the machine shop operations in the Netherlands. The
division had net sales in January - September of EUR 116.9 (101.3)
million and an operating profit of EUR 3.9 million, 3.3% of net sales
(EUR 4.0 million, 4.0%).
Componenta decided to consolidate the operations of the Componenta Åmål
machine shop with Componenta Främmestad in Sweden. The consolidation
will take place during 2007. The objective of the merger is to safeguard
long-term competitiveness, which can be achieved with a larger unit and
by raising efficiency in operations. The merger is expected to improve
the combined result of the business units by some EUR 2 million as from
2008.
The division had third quarter sales of EUR 35.2 (30.7) million and
operating profit of EUR 1.1 (0.6) million.
Döktas
The Döktas division comprises the iron foundry and machine shop in
Orhangazi and the aluminium foundry and machine shop in Manisa.
The division had net sales in the review period of EUR 176.9 (160.9)
million and operating profit of EUR 13.3 million, 7.5% of net sales
(EUR 17.9 million, 11.1%). The division's order book stood at EUR 45.4
(38.0) million. The operating profit of the Döktas division in the
second and third quarters was poorer than in the previous year due to
the rise in the prices of raw materials, unfavourable developments in
exchange rates, and low sales of aluminium wheels.
The Döktas division had net sales in the third quarter of EUR 55.2
(52.1) million and operating profit of EUR 2.6 (5.9) million.
The iron foundry and machine shop in Orhangazi supply ready-to-install
cast components mainly to the off-road industry and to car and light
truck manufacturers. Döktas Orhangazi had net sales in the review period
of EUR 119.1 (106.4) million and operating profit of EUR 9.7 million,
8.1% of net sales (EUR 10.8 million, 10.1%).
The aluminium foundry and machine shop in Manisa mainly manufacture
aluminium pressure cast components and aluminium wheels. Döktas Manisa
had net sales in the review period of EUR 57.8 (54.6) million and
operating profit of EUR 3.6 million, 6.2% of net sales (EUR 6.8 million,
12.5%).
Other Business
Other Business comprises the service companies, the Componenta Wirsbo
forges, the Componenta UK sales company, Componenta Pistons, elimination
of intra-group items, the business of Componenta Albin that has been
divested, and the Group's share of the figures for associated company
Ulefos NV that has been divested.
Other Business had an operating profit excluding one-time items in
January-September of EUR 1.4 (2.6)million. The factors affecting the
operating profit for Other Business were the divestments (Ulefos NV and
Albin).
Shares and share capital
The shares of Componenta Corporation are quoted on the Small Cap segment
of the OMX Nordic Exchange in Helsinki. At the end of the review period
the company's share capital stood at EUR 21.9 (19.4) million. On
30 September 2007 the quoted price of Componenta Corporation shares stood
at EUR 10.25 (EUR 6.60). The average price during the review period was
EUR 11.64, the lowest quoted price was EUR 8.49 and the highest
EUR 14.37. At the end of the review period the share capital had a market
capitalization of EUR 111.3 (63.9) million and the volume of shares
traded during the review period was equivalent to 36.3% (42.6%) of the
share stock.
On 8 May 2007 Componenta received notification from Simo-Pekka Inkinen
that the share of the voting rights and share capital carried by the
shares in Componenta Corporation under his control had fallen below the
5% limit in a share transaction on 8 May 2007.
During the review period 581,400 new Componenta Corporation shares
were subscribed with 2,907 capital notes from the convertible capital
notes issued by Componenta Corporation in 2006. As a result of the
conversion, the share capital of Componenta Corporation rose by
altogether EUR 1,162,800 and the invested non-restricted equity fund
by EUR 4,069,800.
A total of 337,200 new Componenta Corporation shares were subscribed
with 1,686 capital notes from the convertible capital notes issued by
Componenta Corporation in 2005. As a result of the conversion the
share capital of Componenta Corporation rose by altogether EUR 674,400
and the share premium account by EUR 2,697,600.
The increases in share capital were registered in the Trade Register
on 16 March 2007, 14 May 2007, 4 June 2007, 28 June 2007 and
28 September 2007. After these increases the registered share capital of
Componenta Corporation is EUR 21,881,796 and the company has
10,940,898 shares.
The new shares are traded on the OMX Nordic Exchange Small Cap list in
Componenta Corporation's share series (CTH1V). The new shares entitle
holders to a dividend as from the date of registry in the Trade
Register.
Share-based incentive scheme
The Board of Directors of Componenta Corporation decided on
3 April 2007 under the authorization given by the Annual General
Meeting to establish a share-based incentive scheme for the period
2007 - 2009. The scheme comprises three one-year earnings periods which
are the calendar years 2007, 2008 and 2009. The bonuses will be paid
in 2008, 2009 and 2010 partly in company shares and partly in cash.
The part to be paid in cash will cover the tax and similar charges
arising from the bonus. There is a ban on selling the shares for two
years after the end of the earnings period.
Any yield from the scheme is based on the Group's result after
financial items and the Group's return on investment. In the 2007
earnings period the target group contains 38 persons. If the targets
set for the scheme are met in full, the scheme will pay a bonus of a
maximum of 180,000 Componenta Corporation shares. On 30 September 2007
the scheme covered a maximum of 60,000 Componenta Corporation shares.
The President and CEO accounted for a maximum of 12,000 out of the
total figure, and other key personnel altogether for a total maximum
of 48,000 shares. The scheme had an impact before taxes on the result
in the review period of EUR 0.05 million.
Purchasing and disposing of company shares
Under the authorization of the AGM held on 26 February 2007 the Board of
Directors may decide to purchase a maximum of 1,000,000 of the Company's
own shares using the Company's unrestricted shareholders' equity.
The shares shall be purchased in public trading, for which reason they
will be purchased other than in proportion to the holdings of
shareholders. The purchase price shall be based on the market price for
Componenta shares in public trading. The shares shall be purchased on
the OMX Nordic Exchange in Helsinki and in accordance with its rules and
regulations.
The Board of Directors may not implement the authorization to purchase
the Company's own shares if after the purchase the Company or its
subsidiary would possess or hold in pledge altogether more than 10 per
cent of all the Company's shares. The authorization does not exclude the
right of the Board of Directors to decide on a direct purchase of
shares.
The AGM authorized the Board to decide to issue shares and grant
option rights and other special rights with an entitlement to shares
under the following terms and conditions:
1. Under the authorization the Board may decide to issue shares and
grant option rights and special rights as defined in chapter 10,
section 1 of the Finnish Companies Act such that a maximum total of
2,000,000 shares are issued under the authorization. The authorization
does not exclude the right of the Board of Directors to decide on a
direct issue of shares
2. The authorization is valid for a period of five years from the
date of the decision of the AGM.
The Board has to date not exercised either of these authorizations.
Investments
Componenta's investments in production facilities during the review
period totalled EUR 15.0 (10.4) million, and finance lease investments
accounted for EUR 0.3 million of this. The net cash flow from
investments was EUR -31.5 (-5.3) million. This includes EUR 37.7 million
used during the first quarter to purchase Döktas shares on the Istanbul
Stock Exchange and in the mandatory tender offer made according to the
Turkish law, and the cash flows obtained from the sale in the same
quarter of Componenta Albin and associated company Ulefos NV.
Board of Directors and Management
Componenta's Annual General Meeting of Shareholders on 26 February
2007 elected the following to the Board of Directors: Heikki Bergholm,
Heikki Lehtonen, Juhani Mäkinen, Marjo Raitavuo and Matti Tikkakoski.
The Board held its organization meeting after the AGM and elected
Heikki Bergholm as its Chairman and Juhani Mäkinen as Vice Chairman.
At the end of the review period the corporate executive team of
Componenta Group comprised the following: President and CEO Heikki
Lehtonen; Yaylalý Günay, Managing Director, Componenta Döktas (as from
1 October 2007 Senior Vice President, Investments); Hakan Göral, Sales
Director, Componenta Döktas (as from 1 October 2007 Senior Vice
President, Döktas division); Olli Karhunen, Director, Foundries; CFO
Matti Kivekäs; Jari Leino, Director, Sales and Product Development,
Heavy Trucks; Anu Mankki, Director, Human Resources; Marc Omes,
Director, Group Sales and Product Development (took up employment
elsewhere at the end of September); Marko Sipola, Director, Business
Development; Michael Sjöberg, Director, Machine Shops, and
Communications Manager Pirjo Aarniovuori.
Personnel
During the review period the Group had on average 4,210 (4,088)
employees. The number of Group personnel at the end of the year
including contract labour was 5,083 (5,130). At the end of September 50%
(50%) of the Group's personnel were in Turkey, 22% (22%) were in
Finland, 17% (17%) in the Netherlands and 11% (11%) in Sweden.
Risks and uncertainties in the near future
Fluctuations in the prices for Componenta Group's main raw material,
scrap metal, affect the sales margins on the Group's products. When the
price of scrap metal rises, the increase in the price of the raw
materials can be passed on to the products supplied to customers after a
certain delay, so price increases in scrap metal reduce the sales margin
temporarily. When scrap prices go down the Group's margins improve for a
while.
The electricity consumption of the Group's foundries and machine shops
creates a spot price risk for the purchased electricity. The Group
purchases electricity price forwards to hedge against the impact of
electricity prices on the financial performance. The target hedging
level for the forecast electricity consumption by the Group's production
plants is 90% for the next 12 months, 60% for the following year and 40%
for the third year. Trading in electricity price forwards has been
outsourced. The Group aims to pass on the increase in the price of
electricity to customers with a separate electricity surcharge.
Appropriate insurance has been taken against risks associated with
assets and interruption of operations and to minimize indemnity.
The financial risks relating to Componenta Group's business operations
are managed in accordance with the financial policy approved by the
Board of Directors. This aims to protect the Group against adverse
changes in the financial markets and safeguard the performance of the
Group and its financial position. Management of financial risks takes
place in the corporate treasury function.
Following the acquisition of Döktas, Componenta now has a significant
currency position in Turkish lira. The company hedges the translation
and transaction risks in accordance with its treasury policy. Despite
the hedging, however, any changes in the value of the Turkish lira in
relation to other currencies, especially the euro, US dollar and GB
pound, may have an impact on Componenta's financial performance in the
short term.
The Group has no significant concentration of credit risk for
receivables. The Group has not recognized any major credit losses in the
net result for the review period.
The company's financial agreements contain normal clauses according to
which the company's loans may fall due for payment before the maturity
date if control of the company changes in consequence of a public
purchase offer. The company is not party to any other significant
contracts that will come into force, that can be amended or that can
cease to be valid if control of the company changes in consequence of a
public purchase offer.
Prospects
Componenta's prospects in 2007 are based on general external financial
indicators, order forecasts given by customers, and on Componenta's
order intake and order book.
Demand for heavy truck components remained strong in the third quarter
of 2007.
Demand for components in the off-road and power and transmission
industries, from car and light truck manufacturers, and in the machine
building industry continued to grow in the third quarter compared to the
corresponding period in the previous year.
The demand outlook in the Group's customer sectors is good in 2007.
Rising interest rates and unfavourable developments in exchange rates
may weaken prospects in the next year.
Combining the operations of Componenta and Döktas is estimated to
achieve synergy benefits of EUR 10 million by the end of 2008. Some of
the synergies are expected to improve the company's result in the final
part of the year. The efforts to enhance the performance of the Karkkila
and Heerlen units are continuing during 2007. The operating result at
the units should improve significantly during the current year.
At the end of the review period Componenta's order book was at a
significantly higher level than at the same time in the previous year.
Componenta Group's 2007 net sales are expected to increase and the
operating profit to improve on the corresponding pro forma figures for
2006. Due to the strengthening of the Turkish lira and the rise in
interest rates, it is estimated that Componenta's financial costs will
increase. The profit in 2007 after financial items, excluding one-time
items, is expected to be about EUR 20 million.
Income statement
1.1.- 1.1.- 1.7.- 1.7.- 1.1.-
MEUR 30.9.2007 30.9.2006 30.9.2007 30.9.2006 31.12.2006
Net sales 471.8 266.6 143.2 78.4 362.1
Other
operating
income 20.7 0.6 0.8 0.1 0.8
Operating
expenses -431.6 -244.9 -134.0 -75.7 -332.8
Depreciation,
amortization
and write-
down -18.4 -12.9 -5.6 -4.4 -17.4
Share of the
associated
companies'
result 0.1 1.2 0.0 0.4 1.8
Operating
profit 42.6 10.7 4.3 -1.2 14.5
% of net sales 9.0 4.0 3.0 -1.5 4.0
Financial
income and
expenses -17.6 -6.9 -7.0 -2.3 -9.9
Result after
financial
items 25.0 3.8 -2.7 -3.4 4.6
% of net
sales 5.3 1.4 -1.9 -4.3 1.3
Income taxes -1.2 -0.9 0.5 1.0 -1.1
Net profit 23.9 2.9 -2.2 -2.5 3.5
Allocation of net profit
for the period
To equity
holders of
the parent 23.1 2.9 -2.1 -2.4 3.5
To minority
interest 0.8 0.0 -0.1 0.0 0.0
23.9 2.9 -2.2 -2.5 3.5
Earning per share
calculated on
the profit
attributable
to equity holders
of the parent
Earnings per
share, EUR 2.19 0.30 -0.19 -0.25 0.36
Earnings per
share with
dilution, EUR 1.75 0.30 -0.12 -0.20 0.36
Income statement excluding one-time items
1.1.- 1.1.- 1.7.- 1.7.- 1.1.-
MEUR 30.9.2007 30.9.2006 30.9.2007 30.9.2006 31.12.2006
Net sales 471.8 266.6 143.2 78.4 362.1
Other
operating
income 1.5 0.6 0.8 0.1 0.8
Operating
expenses -426.0 -244.9 -133.2 -75.7 -332.6
Depreciation,
amortization
and write-down -16.8 -12.9 -5.5 -4.4 -17.2
Share of the
associated
companies'
result 0.1 1.2 0.0 0.4 1.8
Operating
profit 30.6 10.7 5.3 -1.2 14.9
% of net sales 6.5 4.0 3.7 -1.5 4.1
Financial
income and
expenses -17.6 -6.9 -7.0 -2.3 -9.9
Result after
financial items 13.1 3.8 -1.7 -3.4 5.0
% of net sales 2.8 1.4 -1.2 -4.3 1.4
Income statement, pro forma
1.1.- 1.1.- 1.7.- 1.7.- 1.1.-
MEUR 30.9.2007 30.9.2006 30.9.2007 30.9.2006 31.12.2006
Net sales 471.8 444.9 143.2 136.4 602.3
Other
operating
income 20.7 1.4 0.8 0.4 1.7
Operating
expenses -431.6 -400.4 -134.0 -126.4 -542.0
Depreciation,
amortization
and write-down -18.4 -17.5 -5.6 -5.8 -23.7
Share of the
associated
companies'
result 0.1 1.2 0.0 0.4 1.8
Operating
profit 42.6 29.6 4.3 4.9 40.0
% of net sales 9.0 6.7 3.0 3.6 6.6
Financial
income and
expenses -17.6 -13.1 -7.0 -3.8 -4.6
Result after
financial items 25.0 16.5 -2.7 1.1 35.5
% of net sales 5.3 3.7 -1.9 0.8 5.9
Income taxes -1.2 -4.9 0.5 -0,9 -5.9
Net profit 23.9 11.6 -2.2 0.2 29.6
Allocation of net profit
for the period
To equity
holders of
the parent 23.1 10.6 -2.1 -0.1 27.2
To minority
interest 0.8 1.0 -0.1 0.3 2.4
23.9 11.6 -2.2 0.2 29.6
Earning per share
calculated on
the profit
attributable
to equity holders
of the parent
Earnings per
share, EUR 2.19 1.10 -0.19 -0.01 2.80
Income statement excluding one-time items, pro forma
1.1.- 1.1.- 1.7.- 1.7.- 1.1.-
MEUR 30.9.2007 30.9.2006 30.9.2007 30.9.2006 31.12.2006
Net sales 471.8 444.9 143.2 136.4 602.3
Other
operating
income 1.5 1.4 0.8 0.4 1.7
Operating
expenses -426.0 -400.4 -133.2 -126.4 -541.9
Depreciation,
amortization
and write-down -16.8 -17.5 -5.5 -5.8 -23.5
Share of the
associated
companies'
result 0.1 1.2 0.0 0.4 1.8
Operating
profit 30.6 29.6 5.3 4.9 40.4
% of net sales 6.5 6.7 3.7 3.6 6.7
Financial
income and
expenses -17.6 -13.1 -7.0 -3.8 -18.8
Result after
financial items 13.1 16.5 -1.7 1.1 21.7
% of net sales 2.8 3.7 -1.2 0.8 3.6
Income taxes -3.2 -4.9 0.2 -0.9 -5.1
Net profit 9.8 11.6 -1.5 0.2 16.6
Allocation of net profit
for the period
To equity
holders of
the parent 9.0 10.6 -1.4 -0.1 15.2
To minority
interest 0.8 1.0 -0.1 0.3 1.4
9.8 11.6 -1.5 0.2 16.6
Earning per share
calculated on
the profit
attributable
to equity holders
of the parent
Earnings per
share, EUR 0.86 1.10 -0.13 -0.01 1.56
Balance sheet
MEUR 30.9.2007 30.9.2006 31.12.2006
Assets
Non-current assets
Intangible assets 2.4 1.9 2.0
Goodwill 59.0 0.5 43.4
Investment properties 1.8 1.9 1.9
Tangible assets 210.4 160.3 213.7
Investment in associates 0.3 7.4 7.4
Receivables 5.1 0.5 1.0
Other investments 0.5 0.5 0.5
Deferred tax assets 8.8 8.1 8.2
Total non-current assets 288.4 181.1 278.2
Current assets
Inventories 80.6 39.9 78.5
Receivables 101.7 42.3 95.9
Tax receivables 0.9 0.0 0.0
Cash and bank accounts 10.6 10.1 15.3
Total current assets 193.8 92.3 189.7
Total assets 482.2 273.5 467.9
Liabilities and shareholders' equity
Shareholders' equity
Share capital 21.9 19.4 20.0
Other equity 70.1 34.5 35.1
Equity attributable to
equity holders of the parent 92.0 53.9 55.2
Minority interest 7.9 0.1 32.2
Shareholders' equity 99.9 54.0 87.3
Liabilities
Non-current
Capital loan 49.8 31.9 61.5
Interest bearing 78.1 56.6 94.4
Interest free 0.0 0.1 0.1
Provisions 5.3 0.4 1.2
Deferred tax liability 2.5 0.7 3.2
Current
Capital loan 5.1 2.9 2.9
Interest bearing 141.5 54.6 107.8
Interest free 94.5 71.8 102.4
Tax liabilities 0.3 - 2.0
Provisions 5.0 0.5 4.9
Total liabilities 382.3 219.5 380.6
Total liabilities and
shareholders' equity 482.2 273.5 467.9
Cash flow statement
1.1.- 1.1.- 1.1.-
MEUR 30.9.2007 30.9.2006 31.12.2006
Cash flow from operations
Result after financial items 25.0 3.8 4.6
Depreciation, amortization
and write-down 18.4 12.9 17.4
Net financial income and
expenses 17.6 6.9 9.9
Other income and expenses,
adjustments to cash flow -18.2 -0.3 0.2
Change in net working
capital -10.0 1.2 1.6
Cash flow from operations
before financing and
income taxes 32.9 24.5 33.7
Interest received and paid
and dividends received -14.9 -5.8 -7.6
Taxes paid -3.2 0.0 0.0
Net cash flow from operations 14.8 18.7 26.2
Cash flow from investing
activities
Capital expenditure in
tangible and
intangible assets -14.9 -5.4 -7.0
Proceeds from tangible and
intangible assets 0.1 0.1 0.1
Other investments and
loans granted -5.1 0.0 0.0
Proceeds from other
investments and repayments
of loan receivables 28.4 0.0 0.0
Acquisition of subsidiary,
net of cash acquired -40.0 - -97.4
Net cash flow from investing
activities -31.5 -5.3 -104.2
Cash flow from financing
activities
Dividends paid -3.3 0.0 0.0
Share issue (capital notes) 7.8 0.8 1.6
Draw-down (+)/ repayment
(-) of the equity part of
convertible capital notes 0.0 0.0 2.2
Repayment of finance lease
liabilities -1.9 -1.6 -2.2
Draw-down (+)/ repayment
(-) of current loans 34.5 0.0 26.1
Draw-down (+)/ repayment
(-) of non-current loans -25.2 -7.8 60.4
Net cash flow from financing
activities 12.0 -8.6 88.1
Change in liquid assets -4.7 4.8 10.0
Cash and bank account at
the beginning of the period 15.3 5.3 5.3
Cash and bank account at the
period end 10.6 10.1 15.3
Change during the
financial period -4.7 4.8 10.0
Statement of changes in shareholders' equity
Trans- Share-
Share lation holders'
Share premium Other diffe- Retained Minority equity
MEUR capital account reserves rences earnings Total interest total
Shareholders'
equity 1.1.2006 19.3 11.6 2.4 0.1 15.3 48.5 0.1 48.6
Derivatives 1.7 1.7 1.7
Other changes 0.1 0.1 0.1
Increase of share
capital (warrants) 0.1 0.1 0.0 0.6 0.8 0.8
Equity share of
convertible
capital notes 0.0 0.0 0.0
Profit/loss
for the period 2.9 2.9 0.0 2.9
Shareholders'
equity 30.9.2006 19.4 11.6 4.0 0.7 18.1 53.9 0.1 54.0
Trans- Share-
Share lation holders'
Share premium Other diffe- Retained Minority equity
MEUR capital account reserves rences earnings Total interest total
Shareholders'
equity 1.1.2007 20.0 12.4 3.4 0.1 19.1 55.2 32.2 87.3
Derivatives 0.0 0.0 0.0
Share-based
payments 0.0 0.0 0.0
Other changes 10.6 10.6 0.6 11.3
Change in
equity hedging -2.2 -2.2 -2.2
Dividends paid -2.5 -2.5 -0.8 -3.3
Increase of share
capital
(convertible
notes) 1.8 2.5 3.4 7.8 7.8
Equity share
of convertible
capital notes 0.0 0.0 0.0
Change in minority
interest 0.0 -24.8 -24.8
Profit/loss
for the period 23.1 23.1 0.8 23.9
Shareholders'
equity 30.9.2007 21.9 14.9 6.9 8.6 39.7 92.0 7.9 99.9
Key ratios
pro forma
30.9.2007 30.9.2006 31.12.2006 31.12.2006
Equity ratio, % 20.8 19.7 18.7 -
Equity per
share, EUR 8.41 5.56 5.50 -
Invested capital 374.5 200.0 354.0 -
Return on
investment, % 15.7 8.0 6.6 11.3
Return on
investment,
excluding one-time
items % 11.4 8.0 - 11.4
Return on equity, % 34.7 7.3 6.0 33.9
Return on equity,
excluding one-time
items % 14.3 7.3 - 19.0
Net interest
bearing debt,
MEUR, capital
note in debt 263.9 135.9 251.4 -
Net gearing,
%, capital
note in debt 264.2 251.8 287.8 -
Order book, MEUR 125.0 64.9 101.0 95.4
Investments
in non-current assets
without finance
leases, MEUR 55.0 5.3 118.4 -
Investments
in non-current assets
incl. finance
leases, MEUR 55.2 10.4 123.6 -
Average number of
personnel during the
period 4,210 2,183 2,196 -
Number of personnel
at period end 4,192 2,239 4,316 -
Share of export and
foreign activities
in net sales, % 89.1 82.5 82.4 -
Contingent
liabilities, MEUR 181.8 96.4 190.1 -
Earnings per
share, EUR 2.19 0.30 0.36 -
Earnings per share
with dilution, EUR 1.75 0.30 0.36 -
Changes in tangible assets and goodwill
MEUR 1-9/2007 1-9/2006 1-12/2006
Changes in tangible assets
Acquisition cost at the
beginning of the period 513.7 339.4 339.4
Translation difference 10.7 0.5 2.5
Additions 11.0 10.2 175.3
Disposal of subsidiary -15.3 - -
Disposals -0.8 -2.4 -3.5
Acquisition cost at the
end of the period 519.3 347.6 513.7
Accumulated depreciation at
the beginning of the period -300.0 -176.8 -176.8
Translation difference -8.1 -0.3 -1.4
Accumulated depreciation
on additions -2.2 0.0 -108.0
Accumulated depreciation on
disposals 0.4 2.2 3.1
Depreciation on disposal of
subsidiary 10.7 - -
Depreciation during
the period -18.1 -12.4 -16.8
Accumulated depreciation at
the end of the period -317.2 -187.4 -300.0
Book value at the
end of the period 202.1 160.3 213.7
Goodwill
Acquisition cost at the
beginning of the period 45.7 2.8 2.8
Additions 11.9 - 42.9
Translation difference 3.7 - -
Acquisition cost at the
end of the period 61.3 2.8 45.7
Accumulated depreciation
at the beginning of
the period -2.3 -2.3 -2.3
Accumulated depreciation at
the end of the period -2.3 -2.3 -2.3
Book value at the
end of the period 59.0 0.5 43.4
Segments
Primary reporting format
Foundries, MEUR 30.9.2007 30.9.2006 31.12.2006
Assets 127.8 133.0 135.1
Liabilities 36.6 39.4 40.4
Investments in non-current
assets (incl. finance leases) 3.2 3.0 4.3
Depreciation 7.8 6.6 11.2
Machine shops, MEUR 30.9.2007 30.9.2006 31.12.2006
Assets 57.0 50.2 53.9
Liabilities 24.6 20.5 23.3
Investments in non-current
assets (incl. finance leases) 1.8 4.6 5.4
Depreciation 2.6 2.8 3.4
Döktas, MEUR 30.9.2007 30.9.2006 31.12.2006
Assets 206.2 - 182.3
Liabilities 20.5 - 28.6
Investments in non-current
assets (incl. finance leases) 8.4 - -
Depreciation 4.9 - -
Secondary reporting format
Nordic countries, MEUR 30.9.2007 30.9.2006 31.12.2006
Assets 206.6 199.5 194.1
Investments in non-current
assets (incl. finance leases) 4.8 8.8 10.2
Other European
countries, MEUR 30.9.2007 30.9.2006 31.12.2006
Assets 275.6 74.0 273.9
Investments in non-current
assets (incl. finance leases) 10.2 1.6 1.9
Group development
Net sales by market area
MEUR 1-12/2006 1-9/2006 1-9/2007
Nordic countries 177.1 128.3 138.6
Other European countries 162.6 121.4 310.0
Other countries 22.5 16.9 23.2
Total 362.1 266.6 471.8
Quarterly development by market area
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Nordic
countries 45.6 47.3 35.4 48.8 53.7 46.5 38.5
Other European
countries 42.1 42.2 37.1 41.2 106.7 106.6 96.7
Other
countries 5.9 5.1 5.9 5.5 7.4 7.7 8.0
Total 93.6 94.6 78.4 95.5 167.9 160.7 143.2
Group development
MEUR 1-12/2006 1-9/2006 1-9/2007
Net sales 362.1 266.6 471.8
Operating profit 14.5 10.7 42.6
Net financial items -9.9 -6.9 -17.6
Profit/loss after
financial items 4.6 3.8 25.0
Group development by business division
Net sales, MEUR 1-12/2006 1-9/2006 1-9/2007
Foundries 224.5 167.8 177.5
Machine shops 137.9 101.3 116.9
Döktas - - 176.9
Other business and internal
items -0.3 -2.4 0.4
Componenta total 362.1 266.6 471.8
Operating profit, MEUR 1-12/2006 1-9/2006 1-9/2007
Foundries 6.6 5.1 12.0
Machine shops 5.8 4.0 3.9
Döktas - - 13.3
Other business and internal
items 2.1 1.8 13.4
Componenta total 14.5 10.7 42.6
Order book, MEUR 12/2006 9/2006 9/2007
Foundries and
Machine shops 52.0 50.0 62.7
Döktas 34.7 - 45.4
Other business and internal
items 14.3 14.9 16.9
Componenta total 101.0 64.9 125.0
Group development by quarter
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Net sales 93.6 94.6 78.4 95.5 167.9 160.7 142.3
Operating
profit 5.3 6.6 -1.2 3.8 26.6 11.7 4.3
Net financial
items -2.2 -2.5 -2.3 -3.0 -4.4 -6.2 -7.0
Profit/loss
after financial
items 3.1 4.1 -3.4 0.9 22.2 5.5 -2.7
Quarterly development by business division
Net sales,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries 57.5 61.2 49.1 56.8 63.1 62.0 52.4
Machine
shops 35.4 35.1 30.7 36.7 41.2 40.6 35.2
Döktas - - - - 61.5 60.2 55.2
Other business
and internal
items 0.7 -1.7 -1.4 2.1 2.1 -2.0 0.4
Componenta
total 93.6 94.6 78.4 95.5 167.9 160.7 143.2
Operating profit,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries 2.9 4.2 -2.1 1.6 5.2 6.1 0.8
Machine
shops 1.8 1.5 0.6 1.8 1.5 1.3 1.1
Döktas - - - - 5.6 5.1 2.6
Other business
and internal
items 0.5 0.8 0.3 0.5 14.3 -0.7 -0.1
Componenta
total 5.3 6.6 -1.2 3.8 26.6 11.7 4.3
Order book at
period end,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries and
Machine shops 52.6 48.9 50.0 52.0 51.4 53.6 62.7
Döktas - - - 34.7 42.3 39.3 45.4
Other business
and internal
items 12.9 12.7 14.9 14.3 11.0 14.0 16.9
Componenta
total 65.5 61.6 64.9 101.0 104.7 106.9 125.0
Group development excluding one-time items
MEUR 1-12/2006 1-9/2006 1-9/2007
Net sales 362.1 266.6 471.8
Operating profit 14.9 10.7 30.6
Net financial items -9.9 -6.9 -17.6
Profit/loss after
financial items 5.0 3.8 13.1
Group development by business division excluding one-time items
Operating profit, MEUR 1-12/2006 1-9/2006 1-9/2007
Foundries 6.6 5.1 12.0
Machine shops 5.8 4.0 3.9
Döktas - - 13.3
Other business
and internal items 2.5 1.8 1.4
Componenta total 14.9 10.7 30.6
Group development by quarter excluding one-time items
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Net sales 93.6 94.6 78.4 95.5 167.9 160.7 143.2
Operating
profit 5.3 6.6 -1.2 4.2 13.7 11.7 5.3
Net financial
items -2.2 -2.5 -2.3 -3.0 -4.4 -6.2 -7.0
Profit/loss
after financial
items 3.1 4.1 -3.4 1.2 9.3 5.5 -1.7
Quarterly developments by business division excluding one-time items
Operating profit,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries 2.9 4.2 -2.1 1.6 5.2 6.1 0.8
Machine
shops 1.8 1.5 0.6 1.8 1.5 1.3 1.1
Döktas - - - - 5.6 5.1 2.6
Other business
and internal
items 0.5 0.8 0.3 0.8 1.4 -0.8 0.8
Componenta
total 5.3 6.6 -1.2 4.2 13.7 11.7 5.3
Group development, pro forma figures
Net sales by market area, pro forma
MEUR 1-12/2006 1-9/2006 1-9/2007
Nordic countries 177.9 129.0 138.6
Other European countries 395.0 293.9 310.0
Other countries 29.4 22.0 23.2
Total 602.3 444.9 471.8
Quarterly development by market area, pro forma
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Nordic
countries 45.9 47.5 35.6 48.9 53.7 46.5 38.5
Other European
countries 98.9 101.6 93.4 101.1 106.7 106.6 96.7
Other
countries 7.5 7.1 7.4 7.4 7.4 7.7 8.0
Total 152.3 156.2 136.4 157.4 167.9 160.7 143.2
Group development, pro forma
MEUR 1-12/2006 1-9/2006 1-9/2007
Net sales 602.3 444.9 471.8
Operating profit 40.0 29.6 42.6
Net financial items -4.7 -13.1 -17.6
Profit/loss after
financial items 35.5 16.5 25.0
Group development by business division, pro forma
Net sales, MEUR 1-12/2006 1-9/2006 1-9/2007
Foundries 224.5 167.8 177.5
Machine shops 137.9 101.3 116.9
Döktas 218.2 160.9 176.9
Other business and internal
items 21.9 14.9 0.4
Componenta total 602.3 444.9 471.8
Operating profit, MEUR 1-12/2006 1-9/2006 1-9/2007
Foundries 6.6 5.1 12.0
Machine shops 5.8 4.0 3.9
Döktas 24.2 17.9 13.3
Other business and internal
items 3.4 2.6 13.4
Componenta total 40.0 29.6 42.6
Order book, MEUR 12/2006 9/2006 9/2007
Foundries and
Machine shops 52.0 50.0 62.7
Döktas 34.7 38.0 45.4
Other business 8.8 12.7 16.9
Componenta total 95.4 100.7 125.0
Group development by quarter, pro forma
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Net sales 152.3 156.2 136.4 157.4 167.9 160.7 143.2
Operating
profit 9.6 15.1 4.9 10.4 26.6 11.7 4.3
Net financial
items -4.2 -5.0 -3.8 8.6 -4.4 -6.2 -7.0
Profit/loss
after financial
items 5.4 10.1 1.1 19.0 22.2 5.5 -2.7
Quarterly development by business division, pro forma
Net sales,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries 57.5 61.2 49.1 56.8 63.1 62.0 52.4
Machine
shops 35.4 35.1 30.7 36.7 41.2 40.6 35.2
Döktas 52.8 56.0 52.3 57.1 61.5 60.2 55.2
Other business
and internal
items 6.6 4.0 4.3 7.0 2.1 -2.0 0.4
Componenta
total 152.3 156.2 136.4 157.4 167.9 160.7 143.2
Operating profit,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries 2.9 4.2 -2.1 1.6 5.2 6.1 0.8
Machine
shops 1.8 1.5 0.6 1.8 1.5 1.3 1.1
Döktas 3.8 8.2 5.9 6.3 5.6 5.1 2.6
Other business
and internal
items 1.0 1.1 0.4 0.8 14.3 -0.7 -0.1
Componenta
total 9.6 15.1 4.9 10.4 26.6 11.7 4.3
Order book at period
end, MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries and
Machine shops 52.6 48.9 50.0 52.0 51.4 53.6 62.7
Döktas 41.0 33.0 38.0 34.7 42.3 39.3 45.4
Other
business 10.0 10.1 12.7 8.8 11.0 14.0 16.9
Componenta
total 103.6 92.0 100.7 95.4 104.7 106.9 125.0
Group development excluding one-time items, pro forma
MEUR 1-12/2006 1-9/2006 1-9/2007
Net sales 602.3 444.9 471.8
Operating profit 40.4 29.6 30.6
Net financial items -18.8 -13.1 -17.6
Profit/loss after
financial items 21.7 16.5 13.1
Group development by business division excluding one-time items, pro forma
Operating profit, MEUR 1-12/2006 1-9/2006 1-9/2007
Foundries 6.6 5.1 12.0
Machine shops 5.8 4.0 3.9
Döktas 24.2 17.9 13.3
Other business
and internal items 3.7 2.6 1.4
Componenta total 40.4 29.6 30.6
Group development by quarter excluding one-time items, pro forma
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Net sales 152.3 156.2 136.4 157.4 167.9 160.7 143.2
Operating
profit 9.6 15.1 4.9 10.7 13.7 11.7 5.3
Net financial
items -4.2 -5.0 -3.8 -5.5 -4.4 -6.2 -7.0
Profit/loss
after financial
items 5.4 10.1 1.1 5.2 9.3 5.5 -1.7
Quarterly developments by business division excluding one-time items,
pro forma
Operating profit,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
Foundries 2.9 4.2 -2.1 1.6 5.2 6.1 0.8
Machine
shops 1.8 1.5 0.6 1.8 1.5 1.3 1.1
Döktas 3.8 8.2 5.9 6.3 5.6 5.1 2.6
Other business
and internal
items 1.0 1.1 0.4 1.1 1.4 -0.8 0.8
Componenta
total 9.6 15.1 4.9 10.7 13.7 11.7 5.3
Largest registered shareholders on 30 September 2007
Share of total
Shareholder Shares voting rights
1 Lehtonen Heikki 4,039,334 36.92 %
Cabana Trade S.A. 3,801,988
Oy Högfors-Trading Ab 237,346
2 Etra-Invest Oy Ab 2,224,750 20.33 %
3 Inkinen Simo-Pekka 336,660 3.08 %
Inkinen Simo-Pekka 333,660
Väli-Gunnarla Avoin Yhtiö 3,000
4 OP-Finland Small Firm Fund 269,179 2.46 %
5 Ilmarinen Mutual Pension
Insurance Company 257,600 2.35 %
6 Lehtonen Anna-Maria 178,823 1.63 %
7 FIM Fenno Fund 177,478 1.62 %
8 Laakkonen Mikko 143,000 1.31 %
9 eQ Finland Small Firm Fund 128,971 1.18 %
10 Bergholm Heikki 113,490 1.04 %
Nominee-registered shares 437,298 4.00 %
Other shareholders 2,634,315 24.08 %
Total 10,940,898 100.00 %
The members of the Board of Directors own 38.1 % of the shares. All
shares have equal voting rights. If all the convertible capital notes
were converted to shares, the holding of shares by the members of the
Board of Directors would decrease to 31.5 %.
Helsinki, 16 October 2007
COMPONENTA CORPORATION
Board of Directors
Heikki Lehtonen
President and CEO
Further information:
Heikki Lehtonen
President and CEO
tel. +358 10 403 00
Matti Kivekäs
CFO
tel +358 10 403 00
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