2015-10-21 08:00:01 CEST
2015-10-21 08:00:04 CEST
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE PLC’S INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2015
Espoo, Finland, 2015-10-21 08:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report October 21, 2015 at 9.00
This release is a summary of Efore's Interim Report January - September 2015.
The full report is a PDF file attachment to this stock exchange release and is
available on the company's website at the address www.efore.com.
July - September 2015 in brief:
- Net sales totalled EUR 22.8 million (EUR 22.1 million), up 3.2 % compared
with the corresponding period last year
- Results from operating activities without one-time items resulted EUR 0.0
million (EUR 1.6 million)
- Result from operating activities resulted EUR -0.3 million (EUR 1.6 million)
- Earnings per share were EUR 0.00 (EUR 0.02)
January - September 2015 in brief:
- Net sales totalled EUR 70.1 million (EUR 63.8 million), up 9.8 % compared
with the corresponding period last year
- Results from operating activities without one-time items were EUR 0.7 million
(EUR 0.6 million)
- Result from operating activities were EUR 0.4 million (EUR -0.6 million)
- Earnings per share were EUR -0.01 (EUR -0.04)
7-9/15 7-9/14 Change 1-9/15 1-9/14 Change 1-12/1
4
Key indicators, EUR 3 mo 3 mo % 9 mo 9 mo % 12 mo
million
--------------------------------------------------------------------------------
Net Sales 22,8 22,1 3,2 70,1 63,8 9,8 85,3
Telecommunication sector 11,9 12,2 -2,5 37,1 35,0 6,0 46,0
Industrial sector 10,9 10,0 9,0 33,0 28,9 14,2 39,3
Results from operating 0,0 1,6 0,7 0,6 0,1
activities without
one-time items
Results from operating -0,3 1,6 0,4 -0,6 -2,0
activities
Result before taxes -0,2 1,2 -0,4 -1,5 -3,1
Net result -0,1 1,1 -0,6 -1,7 -2,6
Earnings per share, EUR 0,00 0,02 -0,01 -0,04 -0,05
Solvency ratio, % 37,6 38,5 -2,3 37,6 38,5 -2,3 38,1
Gearing, % 4,1 7,1 -42,3 4,1 7,1 -42,3 9,0
Cash flow from business 0,4 1,0 4,6 4,6 3,8
operations
-------- --------
Key indicators Q3/201 Q2/201 Q1/201 Q4/201 Q3/201 Q2/201
quarterly, EUR million 5 5 5 4 4 4
-------------------------------------------------------------------------
Net Sales 22,8 23,7 23,5 21,4 22,1 22,5
Telecommunication sector 11,9 12,1 13,1 11,0 12,2 13,1
Industrial sector 10,9 11,6 10,4 10,4 10,0 9,5
Results from operating 0,0 0,0 0,7 -0,5 1,6 -0,4
activities without
one-time items
Results from operating -0,3 0,0 0,7 -1,3 1,6 -1,6
activities
Financial estimate for 2015
Efore Plc lowered its financial estimate for 2015 and published a new financial
estimate on October 1, 2015 as follows:
The Company estimates its net sales of financial year 2015 to be EUR 86 to 92
million and results from operating activities without one-time items to be at
break-even level or mildly positive.
Heikki Viika, President and CEO:
“The third quarter net sales decreased from the previous quarter and were
slightly lower than expected. Anyhow, the net sales increased by 3.2 % to EUR
22.8 million compared with the previous year. The results from operating
activities were lower than expected due to too high personnel and material
costs in manufacturing.
The net sales of the telecommunication sector were EUR 11.9 million decreasing
slightly compared with the previous quarter. Strong demand at the end of the
second quarter slowed down towards the end of the summer.
The net sales of the industrial sector were EUR 10.9 million decreasing 6.0 %
compared with the previous quarter. The background for the change compared with
the previous quarter was a slight recovery from the excellent second quarter,
during which especially DC systems demand was at a high level. However, the
net sales increased by 9 % compared with the previous year. Furthermore, the
industrial sector is a focal growth area for Efore in the future.
We have developed a new strategy for Efore during the summer. We are focusing
to be The Trusted Power Partner based on reliability in our products and
operation. The four cornerstones of our strategy are: Efficient cost base,
Empower competent employees, Evolve game changing technologies and Expand
selected markets.
In September we implemented a flatter organization structure based on strong
global functions. The target of the new structure is to focus the resources of
the whole company to better serve our customers.
During the summer we have implemented new actions in order to further improve
cost efficiency. Our manufacturing process in Suzhou has been reorganized in
order to improve factory throughput time. The target is to decrease the capital
tied in the manufacturing process. One of our focal development areas is cost
efficiency in manufacturing. In order to secure the efficiency improvements we
have restructured Group manufacturing responsibilities.
The purpose of the human resource strategy is to secure our current high
competency level when implementing the new strategy. We have started to review
our competencies both for the present and target status.
Basis for our product strategy is reliability in all our products and in our
operation. Analysis of the product lines is ongoing in order to secure our
growth strategy in the best possible way.
Our growth strategy is based on high customer satisfaction in conjunction with
our added value as well as growth especially in industrial sector. We strive to
seek a high market positioning based on added value, for example in the LED
lighting market.
Efore's long term target is to reach 10% EBIT level and an average annual net
sales growth of 5-10%. In the short term Efore is focusing to improve the
profitability.
Our previous target to reach at least 6% EBIT level by the end of 2015 will not
materialize.
July - September net sales and financial development
The third quarter net sales totalled EUR 22.8 million (EUR 22.1 million)
decreasing EUR 0.9 million compared with the previous year.
The net sales of the telecommunication sector were EUR 11.9 million (EUR 12.2
million) decreasing 1.7 % compared with the previous quarter.
The net sales of industrial sector were EUR 10.9 million (EUR 10.0 million)
decreasing 6 % from the previous quarter.
Results from the operating activities went down clearly compared with the last
year resulting EUR 0.0 million (EUR 1.6 million). The results from the
operating activities included one-time items EUR 0.3 million (EUR 0.0 million)
caused by the structural changes of the organization.
January - September net sales and financial development
Net sales totalled EUR 70.1 million (EUR 63.8 million).
The net sales of the telecommunication sector were EUR 37.1 million (EUR 35,0
million) increasing 6.0 % compared with the previous year.
The net sales of industrial sector were EUR 33.0 million (EUR 28.9 million)
increasing 14.2 % from the previous year.
Results from the operating activities before one-time items improved slightly
compared with the last year resulting EUR 0.7 million (EUR 0.6 million).
Results from the operating activities including one-time items were EUR 0.4
million (EUR -0.6 million). Previous year results from the operating activities
included one-time items EUR 1.3 million related mainly to the structural
changes of Italian organization as a result of manufacturing transfer to
Tunisia. The result of the previous year was inflated by certain costs
relating to the whole year but not recorded until the fourth quarter of 2014.
Business development
The third quarter net sales decreased from the previous quarter and were
slightly lower than expected. Anyhow, the net sales increased by 3.2 % to EUR
22.8 million compared with the previous year. The results from operating
activities were lower than expected due to too high personnel and material
costs.
The net sales of the telecommunication sector were EUR 11.9 million decreasing
slightly compared with the previous quarter. Strong demand at the end of the
second quarter slowed down towards the end of the summer.
The net sales of the industrial sector were EUR 10.9 million decreasing 6.0 %
compared with the previous quarter. The background for the change compared with
the previous quarter was a slight recovery from the excellent second quarter of
the year, during which especially the demand of DC systems was at a high level.
Anyhow, the net sales increased by 9 % compared with the previous year.
Furthermore, the industrial sector is a focal growth area for Efore in the
future.
Efore's new strategy was developed during the summer. According to the new
strategy the focus is to be The Trusted Power Partner based on reliability in
all products and operation. The four cornerstones of the strategy are:
Efficient cost base, Empower competent employees, Evolve game changing
technologies and Expand selected markets.
Efore has invested in several R&D projects and especially in the telecom
product portfolio a significant renewal has started. The products for the
small base stations will be ready for production in 2016. In addition to the
current customers Efore is focusing on new marketing channels and new customer
acquisition in order to increase volume mainly in the industrial sector.
The key target for Efore is to continue to develop the company structure in
order to improve profitability.
Outlook
During the last years the group has reached in to new markets enabling better
opportunities for growth. The products based on the LTE (4G) technology are in
a key role in network expansions and Efore has a strong position in this
development. Large network roll-outs have been published creating a base for
the stability of the demand. There is a trend towards smaller base stations
where Efore also focuses product development investments.
Power supplies for LED lighting, instrumentation, medical equipment and
infrastructure offer several growth areas for Efore in the industrial sector.
Efore focuses on expanding its product selection especially in the segments
where high reliability is required, where market fluctuations are lower and
product life-cycles are longer.
Long-term targets
Efore Group's long term target is to reach 10% EBIT level and an average annual
net sales growth of 5-10%. Target is to grow especially in industrial the
sector. Market driven product platforms and efficient R&D investment
utilization are key factors to support group's target to improve profitability.
Efore does not consider the long term targets as market guidance for any given
year. The Group will issue separate financial estimate.
EFORE PLC
Board of Directors
Further information
For further information please contact Heikki Viika, President and CEO, on
October 21, 2015 at 10 - 11 a.m., tel. +358 9 4784 6312.
DISTRIBUTION
Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its production
units are located in China and Tunisia. Sales and marketing operations are
located in Europe, United States and China. In the fiscal year ending in
December 2014, consolidated net sales totalled EUR 85,3 million and the Group's
personnel averaged 914. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd. www.efore.com
ENCL. Interim Report January - September 2015 including tables (pdf)
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