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2007-04-26 09:05:00 CEST 2007-04-26 09:05:00 CEST REGULATED INFORMATION Evox Rifa Group - Quarterly reportEVOX RIFA GROUP INTERIM REPORT JANUARY 1 - MARCH 31, 2007· Net sales of the first quarter of 2007 were EUR 23.6 million (EUR 21.6 million in 2006). Net sales increased by 9.3% compared to the previous year. · Operating profit was 0.2 million (loss EUR 0.5 million). Operating profit includes EUR 0.9 million of costs related to the public tender offer made by KEMET for Evox Rifa Group Oyj's shares (restructuring costs in the corresponding period in 2006 were EUR 0.3 million). · Loss before taxes was EUR 0.2 million (loss EUR 1.0 million). · Earnings per share were EUR -0.004 (EUR -0.007). · Order backlog on March 31, 2007 was EUR 21.5 million (EUR 20.4 million). ECONOMIC DEVELOPMENT Net Sales Net sales of the Group totalled EUR 23.6 million (EUR 21.6 million in 2006). In the first quarter of 2007 demand remained at a satisfactory level, but price competition was hard in all market areas. Profit Operating profit of the Group was EUR 0.2 million (loss EUR 0.5 million) and loss before taxes was EUR 0.2 million (loss EUR 1.0 million). The operating profit includes EUR 0.9 million of costs related to the public tender offer made by KEMET Corporation, through its wholly owned subsidiary, KEMET Electronics Corporation, for Evox Rifa's shares. Ín the corresponding period last year, the costs related to restructuring were EUR 0.3 million. Earnings per share were EUR -0.004 (EUR -0.007) and shareholders' equity per share was EUR 0.031 (EUR 0.034). Order backlog The order backlog of the Group was EUR 21.5 million at the end of the first quarter of 2007 (EUR 20.4 million at the end of the corresponding period of 2006). FINANCIAL STATUS AND CAPITAL EXPENDITURE Liquid assets of the Group were EUR 1.4 million (EUR 0.6 million) and the equity ratio was 11.4% (11.8%) at the end of the period. If the convertible capital loan is counted as shareholders' equity, the equity ratio is 21.7%. Investments in manufacturing equipment were EUR 0.4 million (EUR 0.3 million). SHARES AND SHARE CAPITAL The number of shares of Evox Rifa Group Oyj was 178.156.018 on March 31, 2007 and the share capital was EUR 8.908.400,90. ANNUAL GENERAL MEETING The Annual General Meeting on April 23, 2007 decided, according to the proposal by the Board of Directors, not to pay a dividend for the fiscal period ended on December 31, 2006. Mr. Per-Olof Loof, Mr. David E. Gable, Mr. Marc Kotelon, Mr. Kirk D. Shockley and Mr. Michael W. Boone were elected as Members of the Board. The Board of Directors has elected Per-Olof Loof as Chairman of the Board. KPMG Oy Ab was re-appointed auditors of the company. The General Meeting also decided on the amendment of the Articles of Association to comply with the new Companies Act. The Annual General Meeting on 20 April 2006 had authorised the Board of Directors for one year following the AGM to decide on one or more new share issues and/or convertible loans so that the increase of the share capital, based on new issues and/or convertible loans, could be a maximum EUR 1.772.210. The authorization has expired and it was not used. PERSONNEL The average number of personnel in Evox Rifa Group was 1376 during the first quarter of 2007 (1343 in the same period in 2006). BUSINESS DEVELOPMENT Net sales of the electrolytic capacitors product group were EUR 13.2 million in the first quarter of 2007 (EUR 11.6 million in 2006). Profitability of the product group continued at a good level. Net sales of the film capacitors product group were EUR 10.4 million (EUR 10.1 million in 2006). Profitability of the product group was still at an unsatisfactory level, primarily because of the negative result of the Suomussalmi plant. MATERIAL RISKS AND UNCERTAINTIES IN THE NEAR FUTURE The capacitor industry market has become increasingly global, which has eliminated geographical market differences. A visible impact of this has been the harmonization of prices and logistics requirements. Major customers tend to concentrate their purchases with fewer suppliers, keeping just one or two suppliers instead of three or four. Half a dozen global suppliers dominate competition in certain product areas. Evox Rifa Group's customers compete in areas in which technologies change rapidly and products have a short life cycle. Product development is exceptionally fast in the telecommunications market, as new technologies weaken the competitiveness of existing technologies or render them obsolete. The Group continuously evaluates benefits and profitability of new production processes and technologies. Evox Rifa Group has received product reclamations that are still being processed. The Group's management believes that the provisions contained in the consolidated balance sheet are sufficient to cover potential currently known compensation risks. EVENTS AFTER THE END OF THE FIRST QUARTER OF 2007 On 12 March 2007, KEMET Corporation through its wholly owned subsidiary, KEMET Electronics Corporation, launched a public tender offer for all shares of Evox Rifa Group Oyj and for all loan notes of the convertible capital loan. The offer period expired on 12 April 2007. KEMET Electronics Corporation acquired the tendered shares and convertible capital loan notes on 24 April 2007, after which it owned 92.7% of Evox Rifa Group Oyj's shares and 95.7% of the convertible capital loan notes. KEMET's total holding in Evox Rifa Group Oyj amounts to 94.1% of all shares and the loan notes, if all loan notes were converted into new shares. Following the settlement of the completion trades relating to KEMET's tender offer, Evox Rifa Group Oyj has on 24 April 2007 become a subsidiary of KEMET Electronics Corporation. As KEMET's ownership in Evox Rifa Group Oyj exceeds 90 %, it has under the Finnish Companies Act, the right and obligation to redeem at a fair price the remainder of Evox Rifa's issued and outstanding shares. KEMET Electronics Corporation has on 24 April 2007 notified Evox Rifa Group Oyj of its decision to exercise the redemption right and presented its redemption claim for the remaining shares in Evox Rifa Group Oyj under the Finnish Companies Act. The Board of Directors of Evox Rifa has on 24 April 2007 decided, subject to Trade Register approval, to appoint Kirk D. Shockley as Managing Director of Evox Rifa after former Managing Director Tuula Ylhäinen having notified the company of her decision to leave the company and move towards new challenges. Kirk Shockley will also be leading the new Electrolytic and Film Business Group within the KEMET group of companies. OUTLOOK FOR THE YEAR 2007 KEMET Electronics Corporation, the majority owner of Evox Rifa Group Oyj, has announced its intention to integrate the business of Evox Rifa Group into KEMET's global organization of business units and sales region units. The planning and implementation of such activites will start in the second quarter of 2007. During the course of completing the compulsory redemption proceedings under the Companies Act, it is expected that the company's shares will be delisted from the Helsinki Stock Exchange. INCOME STATEMENT OF EVOX RIFA GROUP 1.1.- 1.1.- 1.1.- 31.3.07 31.3.06 31.12.06 1000 EUR 1000 EUR 1000 EUR NET SALES 23 578 21 635 89 787 Operating expenses -22 754 -21 484 -85 220 Depreciation and -673 -657 -2 702 amortisation expenses OPERATING PROFIT (LOSS) 151 -506 1 865 Financial income and expenses -379 -502 -2 090 PROFIT (LOSS) BEFORE TAXES -228 -1 008 -225 Income Taxes -385 -163 -716 NET PROFIT (LOSS) FOR THE PERIOD -613 -1 171 -941 Attributable to: Shareholders of the parent -625 -1 152 -948 Minority interest 12 -19 7 -613 -1 171 -941 Earnings per share (EUR) -0.004 -0.007 -0.005 Earnings per share (EUR), diluted -0.004 -0.007 -0.005 BALANCE SHEET OF EVOX RIFA GROUP 31.3.07 31.3.06 31.12.06 ASSETS 1000 EUR 1000 EUR 1000 EUR NON-CURRENT ASSETS Property, plant and equipment 12 471 15 314 12 821 Intangible assets 1 288 1 295 1 266 Other receivables 275 363 285 CURRENT ASSETS Inventories 17 321 15 472 16 615 Trade and other receivables 17 390 18 822 17 109 Cash and cash equivalents 1 403 578 1 313 TOTAL ASSETS 50 148 51 844 49 409 EQUITY AND LIABILITIES Share capital 8 909 8 861 8 909 Other restricted equity 2 611 2 603 2 611 Retained earnings -5 957 -5 465 -5 276 Minority interest 145 114 133 TOTAL EQUITY 5 708 6 113 6 377 LIABILITIES Deferred tax liabilities 496 712 515 Convertible capital loan 5 158 5 038 5 125 Pension obligations 1 645 2 220 1 904 Non-current liabilities 7 530 9 137 7 557 Current liabilities 29 611 28 624 27 931 TOTAL EQUITY AND LIABILITIES 50 148 51 844 49 409 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 1.1. - 31.3.2007 Share Other Transl. Retained Minority Total capital reserves difference earnings interest Shareholders' equity on 31.12.2006 8 909 2 611 -1 589 -3 687 133 6 377 Movements: Translation difference -56 -56 Loss for the period -625 12 -613 Shareholders' equity on 31.3.2007 8 909 2 611 -1 645 -4 312 145 5 708 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 1.1. - 31.3.2006 Share Other Transl. Retained Minority Total capital reserves difference earnings interest Shareholders' equity on 31.12.2005 8 861 2 603 -1 481 -2 739 142 7 386 Movements: Translation difference -93 -9 -102 Loss for the period -1 152 -19 -1 171 Shareholders' equity on 31.3.2006 8 861 2 603 -1 574 -3 891 114 6 113 EVOX RIFA GROUP CASH FLOW STATEMENT 1.1.- 1.1.- 1.1.- 31.3.07 31.3.06 31.12.06 1000 EUR 1000 EUR 1000 EUR Net cash flow from operating activities 330 -3 846 -1 765 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment* -266 7 -738 Acquisition of intangible assets -27 -10 -16 Proceeds from sale of property, plant and equipment 28 4 106 5 952 Net cash from investing activities -265 4 103 5 198 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 500 458 658 Repayment of borrowings -759 -2 024 -5 169 Payment of finance lease liabilities -32 -37 -141 Proceeds from the issue of shares 56 Net cash from financing activities -291 -1 603 -4 595 Net change in cash and cash equivalents -226 -1 346 -1 163 Cash and cash equivalents at the beginning of the period -5 183 -3 883 -3 883 Translation difference -1 137 Cash and cash equivalents at the end of the period -5 409 -5 228 -5 183 Cash and cash equivalents: Cash in bank and in hand 1 403 578 1 313 Bank overdrafts -6 812 -5 806 -6 496 Total -5 409 -5 228 -5 183 * New investment grant of 151 thousand euros has been deducted (Q1/2006 and year 2006 260 thousand euros). The figures in the Group cash flow statement cannot be directly traced from the balance sheet due to translation differences and elimination of non-cash items. EVOX RIFA GROUP KEY FIGURES 31.3.07 31.3.06 31.12.06 Return on equity %, ROE -40,6 % -69,4 % -13,7 % Return on investment %, ROI 2,6 % -5,9 % 5,6 % Equity ratio % 11,4 % 11,8 % 12,9 % Equity ratio %*) 21,7 % 21,5 % 23,3 % Gross investments in fixed assets, TEUR 444 263 1 021 % of net sales 1,9 % 1,2 % 1,1 % Earnings per share (EUR) -0,004 -0,007 -0,005 Equity of parent shareholders/ share (EUR) 0,031 0,034 0,036 Order backlog, (MEUR) 21,5 20,4 23,2 Average number of personnel 1 376 1 343 1 391 *) The convertible capital loan is included in the shareholders' equity. The figures of this Financial Report are unaudited. This Financial Report is in compliance with the IFRS accounting standards, but all requirements under IAS 34 have not been fulfilled. In Espoo on April 26, 2007 EVOX RIFA GROUP OYJ Board of Directors For further information please contact: Evox Rifa Group Oyj, Juhani Pöhö, Chief Financial Officer, tel. +358 9 5406 5011 DISTRIBUTION: Helsinki Stock Exchange, Main Media |
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