Uponor - Company Announcement

Preliminary information on Uponor’s 2013 net sales and performance

Uponor Corporation           Stock Exchange Release           21 January 2014  
       12.00 EET 


Preliminary information on Uponor's 2013 net sales and performance

On 1 July 2013, Uponor cancelled its guidance for 2013 in connection with the
changes related to the start-up of Uponor Infra on the same day, due to the
fact that the company was unable to reliably estimate the impact of future
restructuring measures and the implementation of the conditions set by the
Market Court. 

Today, in Uponor's view, justifiable market expectations concerning the
company's financial performance deviate from the company's own preliminary
estimates. Uponor therefore wishes to announce in advance that, according to
its preliminary estimates, Uponor's consolidated net sales for 2013 will be
€906 million and its estimated operating profit will be €48.5-50.5 million. 

Net sales and operating profit development during the final quarter of 2013 was
heavily impacted by the weak performance of Uponor S.A.R.L., a French
subsidiary company. This resulted from the cancellation, during the fourth
quarter, of a local French product approval concerning a central product
system, which led to a drop in sales. In addition, Uponor accepted product
returns from the distribution chain, which incurred costs. The returned
products are fully approved for sale in Uponor's key markets, thus bearing no
risk of being non-marketable. According to the information available to Uponor,
some competitors have faced similar problems in France. 

Because, since December 2013, Uponor has had a valid approval for a
substituting product and system for the French market, this issue is not
expected to materially impact Uponor's 2014 performance. Uponor will continue
its business in France and aims to capture any lost market share. 

Uponor Infra's performance is positively influenced by lower than expected
integration costs. Following the establishment of Uponor Infra, the company
initiated restructuring measures that have caused a total of €4.8 million in
non-recurring costs, which is €1.3 million less than communicated during the
autumn 2013. The associated costs burdened Uponor's operating profit during the
third and fourth quarter of 2013. 

Uponor's financial performance in the final quarter of 2013 was further
affected by subdued demand in the markets of Building Solutions - Europe in
November and December 2013. Other than that, no major changes were witnessed in
the market and demand outlook in Uponor's key markets. 

Uponor will publish its financial statements bulletin for 2013 on 14 February
2014. 

For further information, please contact:
Jyri Luomakoski, President and CEO, tel. +358 20 129 2824
Riitta Palomäki, CFO, tel. +358 20 129 2822


Uponor Corporation

Tarmo Anttila
Vice President, Communications
Tel. +358 20 129 2852


DISTRIBUTION:
NASDAQ OMX Helsinki
Media
www.uponor.com



Uponor is a leading international provider of plumbing and indoor climate
solutions for residential and commercial building markets across Europe and
North America. On 1 July 2013, Uponor and KWH Group merged their infrastructure
businesses into a jointly owned company, Uponor Infra, which is a leading
supplier of infrastructure pipe systems in Northern Europe, with wide
operations internationally. In 2012, the Uponor Group employed approx. 3,000
persons in 30 countries and its net sales exceeded €810 million. Uponor
Corporation is listed on NASDAQ OMX Helsinki in Finland. http://www.uponor.com