Neo Industrial Oyj - Inside information

Neo Industrial: Preliminary information about turnover and operating profit 2017 and outlook for 2018

NEO INDUSTRIAL PLC  STOCK EXCHANGE RELEASE  12 JANUARY 2018 3:30 PM

Preliminary information about Neo Industrial’s turnover and operating profit 2017 and outlook for 2018

Neo Industrial's preliminary net sales was EUR 110 million in 2017 and in line with performance guidance, i.e. clearly increasing from the previous year.

Neo Industrial's preliminary operating profit for the financial year 2017 EUR 5.0 million is below the previous performance guidance. According to earlier performance guidance, operating profit was projected to be at the level of the operating profit of 2016, i.e. 5.9 million euros.

The decline in the operating profit is caused by increasing raw material prices which are always transferred with delay into the sales prices and the changes in exchange rates, especially the Norwegian and Swedish krona. These together decreased the sales margin and the value of inventory and raw material price hedges during the last quarter of 2017.

The preliminary EBITDA of the cable business in 2017 was EUR 7.8 million, compared with EUR 8.3 million in 2016.

For the financial year 2018, Neo Industrial's net sales are expected to increase from the previous financial year and the operating result is expected to increase clearly from the previous financial year. Large variations between different quarters are part of the business and they may differ from year to year.

The company will release the 2017 financial statement release on 13 February 2018.
 

Neo Industrial
Board of Directors

Further information:
Ralf Sohlström, Managing Director, tel. +35840 770 2720

 

www.neoindustrial.fi/en

Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the main list of NASDAQ Helsinki Stock Exchange. Neo Industrial's business segment is Cable Industry.