2016-03-11 12:30:01 CET
2016-03-11 12:30:01 CET
BIRTINGARSKYLDAR UPPLÝSNINGAR
Componenta - Financial Statement Release
Net sales at same level as in previous year, operating profit fell. Changes in the focus points for business operations in accordance with the new strategy that is being drawn up resulted in significant write-downs on long-term assets.
Componenta Corporation Financial Statements Bulletin 11.3.2016 at 13.30
January - December 2015 in brief
-- Order book declined 14% from previous year to MEUR 77 (MEUR 89).
-- Consolidated net sales in the financial year totalled MEUR 495 (MEUR 495).
-- EBITDA excluding one-time items and exchange rate differences on balance
sheet items was MEUR 23.8 (MEUR 35.8). Reasons for the decline in EBITDA
included wage inflation in Turkey, weaker developments in productivity than
expected, and problems with quality in foundry operations.
-- Operating profit excluding one-time items and exchange rate differences on
balance sheet items (”operating profit on business operations”) was MEUR
6.0 (MEUR 17.8) and including these items MEUR -23.4 (MEUR 2.2).
-- The result after financial items excluding one-time items and exchange rate
differences on operative balance sheet items was MEUR -19.4 (MEUR -9.5) in
the year. The result after financial items excluding one-time items was
MEUR -18.4 (MEUR -12.2).
-- One-time items and exchange rate differences on operative balance sheet
items that had an impact on the result after financial items for the review
period totalled MEUR -29.5 (MEUR -19.2). The company’s Board of Directors
has started structural changes which will be implemented step by step until
the profitability of the company meets its targets. The new strategy that
is being drawn up has been redefined, and Componenta will focus on medium
volume product series in iron castings and on aluminium castings, and aims
to raise capacity utilization rates at all its production plants. The
expected impact of the strategy being drawn up was taken into consideration
in the impairment testing of assets, and write-downs on real estate and
machinery and equipment were recorded as one-time items based on this
impairment testing.
-- The net result for the period was MEUR -82.7 (MEUR -28.6). During the
financial year the Group recorded one-time changes in tax of MEUR -33.9.
These mainly comprise write-downs on deferred tax assets in Finland, the
Netherlands and Sweden. Due to low productivity the probability of being
able to make use of tax losses has declined significantly in these
countries.
-- Basic earnings per share were EUR -0.86 (EUR -0.63).
-- At the beginning of December Componenta started negotiations for a
financing solution, which would support the new strategic alignments,
ensure the company’s financial position and strengthen the balance sheet.
In addition, negotiations began relating to the Nordic syndicated loan
agreement because the company was not in compliance with certain terms of
the loan agreement. At the end of December Componenta signed a standstill
agreement with the Nordic counterparties of the syndicated loan, according
to which the lenders relieve Componenta from complying with the loan terms
mentioned above for a fixed period. The agreement is in force until end of
April 2016 and it contains typical terms for such agreements that the
company has to fulfil for the duration of the agreement. The Group has
long- and short-term loans from financial institutions of EUR 143.9 million
maturing in 2016 and EUR 24.9 million maturing in 2017. Failure to comply
with certain terms of the syndicated loan agreement and cross default terms
have resulted in several debt instalments, nominal amount of EUR 63.2
million, being classified as current in the company’s balance sheet. The
company’s liquidity was tight at the end of 2015 and early in 2016, and
this has had a negative impact on the company’s production operations.
Negotiations with financial and other investment institutions have
continued at the beginning of 2016.
-- Componenta published an announcement concerning the progress of financial
negotiations on 11 March 2016.
-- New contracts received during the year totalled MEUR 75.
-- The Board of Directors proposes to the Annual General Meeting that no
dividend be paid for the 2015 financial year.
October - December 2015 in brief
-- Net sales were at a similar level as in the previous year, standing at MEUR
119 (MEUR 120).
-- EBITDA excluding one-time items and exchange rate differences on balance
sheet items was MEUR 0.1 (MEUR 5.4).
-- Operating profit excluding one-time items and exchange rate differences on
balance sheet items was MEUR -4.2 (MEUR 1.2) and including these items MEUR
-34.3 (MEUR -9.0).
-- The result after financial items excluding one-time items and exchange rate
differences on operative balance sheet items was MEUR -11.6 (MEUR -4.9).
The result after financial items excluding one-time items was MEUR -13.7
(MEUR -5.9).
-- One-time items and exchange rate differences on operative balance sheet
items that had an impact on the result for the October - December period
totalled MEUR -30.1 (MEUR -10.5). One-time items include write-downs of
MEUR -19.6 on machinery, equipment and real estates.
-- The net result for the October – December period was MEUR -73.6 (MEUR
-17.3) and the basic earnings per share were EUR -0.76 (EUR -0.18). The
result includes one-time changes in tax of MEUR -35.5.
-- The president and CEO of Componenta Group changed on 16 November 2015 when
Harri Suutari, who had been chairman of the company’s Board of Directors,
was appointed President and CEO.
-- The objective of the new strategy that is being drawn up is to achieve a
clear improvement in profitability. In future the company will concentrate
on medium volume product series in iron castings and on aluminium castings,
and aims to raise capacity utilization rates at all its production plants.
Dividend proposal
On 31 December 2015 the parent company had distributable equity of EUR 58.1
(204.1) million. The Board of Directors proposes to the Annual General Meeting
to be held on 18 March 2016 that no dividend be paid for the 1 January - 31
December 2015 financial period.
Componenta’s guidance for 2016
Due to the financial situation of the company and the structural changes
currently taking place, giving earnings guidance is exceptionally challenging.
Because of this, Componenta is not for the time being making forecasts about
its financial performance when commenting on its prospects.
President and CEO Harri Suutari comments on the review period and events after
the end of period
”Componenta’s net result in 2015 was extremely poor. Despite its excellent
customers and skilled personnel, and in spite of many measures taken and
efforts to improve, the company’s financial performance has fallen short of its
targets in the past few years, due to poorer developments than expected in
productivity, high quality related costs, and tight liquidity over a long
period. On top of this, the targeted cost savings have not been achieved as
expected.
In order to reverse this trend, the company needs major structural changes. In
November 2015 the company’s Board of Directors initiated changes, and progress
will be made step by step with these until the company’s profitability is
brought in line with its targets.
The new strategy that is being drawn up has been redefined and Componenta will
in future concentrate on medium volume product series in iron castings and on
aluminium castings, and aims to raise capacity utilization rates at all its
production plants. In connection with this, a strategic review of the business
structure will be carried out, and this will cover the possible closure or sale
of production plants, transfers of production and other measures aiming to
significantly improve profitability. The strategic review will cover all the
Group’s production plants in the Netherlands, Sweden and Finland.
As part of the new alignments, Componenta’s organization management structure
was clarified by dividing the business operations into five business areas. The
organization structure was simplified by integrating into the business units
the Group level sales, engineering, quality and customer service functions,
with the aim of developing the core competences of the business units and
clearly improving customer service and quality. Fixed costs will be cut with
several measures, the most notable being the reorganization of the customer
interface. In addition, in Finland personnel involvement in management will be
improved by appointing an employee representative as a member of each business
unit management team.
In the new management structure, profit and loss responsibility will be
transferred to the business units. I believe that the renewed operational model
will bring significant value to our customers and create a solid base for
profitable growth.”
Key figures
Q4 Q4 Change 2015 2014 Change
2015 2014
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Order book, MEUR 76.9 88.9 -14% 76.9 88.9 -14%
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Net sales, MEUR 119 120 0% 495 495 0%
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EBITDA*), MEUR 0.1 5.4 -98% 23.8 35.8 -33%
--------------------------------------------------------------------------------
Operating profit*), MEUR -4.2 1.2 n/m 6.0 17.8 -66%
--------------------------------------------------------------------------------
Operating profit*), % -3.5 1.0 n/m 1.2 3.6 -66%
--------------------------------------------------------------------------------
Result after financial items*), -11.6 -4.9 139% -19.4 -9.5 103%
MEUR
--------------------------------------------------------------------------------
Result after financial items -13.7 -5.9 133% -18.4 -12.2 50%
excluding one-time items, MEUR
--------------------------------------------------------------------------------
One-time items and exchange rate -30.1 -10.5 187% -29.5 -19.2 54%
differences on operative balance
sheet items impacted on the result
after financial items, MEUR
--------------------------------------------------------------------------------
Taxes, MEUR -31.8 -1.9 1,587% -33.8 0.2 n/m
--------------------------------------------------------------------------------
Net result for the financial year, -73.6 -17.3 326% -82.7 -28.6 189%
MEUR
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Earnings per share, EUR -0.76 -0.18 326% -0.86 -0.63 36%
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Net gearing, % 1,273 194 555% 1,273 194 555%
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Return on investment*), % -1.3 0.4 n/m 2.0 5.6 -65%
--------------------------------------------------------------------------------
Return on equity*), % -8.9 -7.3 21% -21.6 -12.1 79%
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Number of personnel at year end, 4,269 4,238 1% 4,269 4,238 1%
incl. leased personnel
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*) Excluding one-time items and exchange rate differences on operative balance
sheet items
Componenta’s Financial Statements Bulletin 2015 in pdf format is in the
appendix to this release. It is also available on the company’s website at
www.componenta.com.
Helsinki, 11 March 2016
COMPONENTA CORPORATION
Harri Suutari
President and CEO
ENCL. Financial Statements Bulletin 1 January - 31 December 2015
For further information, please contact:
Harri Suutari
President and CEO
tel. +358 400 384 937
Markku Honkasalo
CFO
tel. +358 10 403 2710
Componenta is a metal sector company with international operations and
production plants located in Finland, Turkey, the Netherlands and Sweden. The
net sales of Componenta were EUR 495 million in 2015 and its share is listed on
Nasdaq Helsinki. The Group employs approx. 4,250 people. Componenta specializes
in supplying cast and machined components and total solutions made of them to
its global customers, who are manufacturers of vehicles, machines and
equipment.
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