Componenta - Interim report (Q1 and Q3)

CORRECTION: Result improved considerably, demand outlook for the rest of year remains encouraging

Componenta Corporation Stock Exchange Release 15.7.2011 at 13.15

CORRECTION: Componenta Interim Report 1 January - 30 June 2011

Componenta published its interim report 1 January - 30 June 2011 today at 8.15.
In the English version, there was an error in the Key ratios table on page 10.
In the published interim report, a figure of EUR 0.18 was shown in line
“Earnings per share, with dilution (EPS), EUR”, for the 30.6.2011. Correct
figure is EUR 0.15. 

The corrected interim report is enclosed.

Helsinki 15 July 2011

COMPONENTA CORPORATION


Pirjo Aarniovuori
Communications Director



ENCLOSURE: Corrected Componenta interim report January - June 2011



April - June 2011 in brief (corresponding period in the previous year in
brackets) 

  -- The Group's net sales in the April - June period rose 33% to EUR 156.5
     million (EUR 117.3 million).
  -- Operating profit excluding one-time items rose to EUR 10.7 (4.0) million.
     Operating profit after one-time items was EUR 10.1 (4.0) million.
  -- The Group's capacity utilization rate was 76% (58%). 
  -- Result after financial items excluding one-time items improved from the
     previous year to EUR 4.1 (-2.2) million and after one-time items to EUR 3.5
     (-2.2) million.
  -- The profit attributable to shareholders excluding one-time items for the
     second quarter was EUR 2.9 (-1.7) million, or EUR 0.16 (-0.10) per share.
  -- The net cash flow from business operations in the April - June period was
     EUR 5.3 (12.1) million.

Operating profit improved from the previous year mainly due to considerably
higher production volumes and measures taken earlier to adjust costs. However,
the rise in prices for local raw materials and other, non-surcharged raw
materials had a negative impact of EUR -0.7 million on the operating profit for
the second quarter. 

January - June 2011 in brief (corresponding period in the previous year in
brackets) 

  -- The Group's order book rose 33%, standing at MEUR 111 (MEUR 84) at the end
     of June.
  -- Consolidated net sales in the review period increased 44% to MEUR 301 (MEUR
     209).
  -- Capacity utilization rate in the review period was 74% (54%). 
  -- Operating profit excluding one-time items was MEUR 19.2 (MEUR 4.3).
     Operating profit after one-time items was MEUR 16.1 (MEUR 4.3).
  -- Result after financial items excluding one-time items was MEUR 7.3 (MEUR
     -7.8). Result after financial items including one-time items was MEUR 4.2
     (MEUR -7.8).
  -- Earnings per share excluding one-time items, was EUR 0.29 (EUR -0.33).
     Earnings per share after one-time items, was EUR 0.15 (EUR -0.33).
  -- Unused committed credit facilities and cash in bank totaled MEUR 57 at the
     end of the review period.

Market outlook

The demand outlook in all the Group's customer sectors is good at the beginning
of the third quarter of 2011. However, the increased uncertainty in the
financial markets may impact on the business confidence negatively. 

Demand in the heavy trucks sector is expected to continue at good level, in
particular because of positive market development in Europe and Northern
America. 

Demand for mining machinery components is expected to continue developing
favorably, mainly because of the high material prices. Demand for construction
equipment is expected to continue growing in the developing countries. In the
developed countries, the demand growth comes mainly from fleet renewals. Demand for agricultural machinery in the second half of the year is estimated
to rise from the previous year as a result of higher food prices and positive
market development in Europe and Russia. 

The market development in the automotive industry is expected to be modest in
Europe. However, the development in demand for aluminium alloy wheels is
estimated to continue favourably in the second half of 2011. 

Demand in the wind power sector is expected to develop moderately in Europe
during the year 2011. 

Demand in the machine building industry is expected to continue to grow to some
extent in Northern and Central Europe. 

Componenta's prospects

Componenta's prospects for 2011 are based on general external economic
indicators, delivery forecasts given by customers, and on Componenta's order
intake and order book. 

Componenta's order book at the end of June was 33% higher than at the end of
the comparison period. In 2011 the Group's net sales are expected to rise more
than 30% and the result after financial items excluding one-time items to be
positive. Full year net cash flow from operations is expected to be positive.
Investments in 2011 are expected to be some EUR 25 million. 

Key figures

                                                   1-6/2011  1-6/2010  1-12/2010
Order book at end of review period, MEUR              111.2      83.6       94.6
Net sales, MEUR                                       300.6     208.5      451.6
Operating profit before one-time items, MEUR           19.2       4.3       13.6
Operating profit % before one-time items                6.4       2.1        3.0
Result after financial items excl. one-time             7.3      -7.8       -9.9
 items, MEUR                                                                    
Net result for the period, MEUR                         3.3      -5.7       -7.5
Earnings per share excl. one time items, EUR           0.29     -0.33      -0.45
Net gearing, % (preferred capital notes as            208.8     192.4      170.5
 equity)             
Return on investment, excl. one-time items, %          13.1       3.4        5.0
Return on equity, excl. one-time items, %              18.7     -15.6      -10.2
Number of personnel at period end, incl. leased       4,815     4,261      4,414
 personnel                                                                      

President and CEO Heikki Lehtonen:

“Componenta's net sales in the first half of the year 2011 rose 44% compared to
the previous period in 2010 and the operating profit improved significantly
mainly due to higher production volumes and measures taken earlier to adjust
costs. Volumes have increased in all our operating countries. Expecially strong
the growth has been in Turkey, where the net sales increased 50% compared to
the same period in the previous year, and in Sweden, where the growth in net
sales was 75%. Average capacity utilization rate in the Group was 74% in the
review period. 

Componenta's order book at the end of June was 33% higher than at the same time
in the previous year. The market outlook in all our customer sectors is good at
the beginning of the third quarter, and the net sales is expected to grow
clearly in 2011. In order to secure the increasing deliveries we will continue
developing and improving our operations to guarantee our customers the
solutions, components and service they need.” 

Componenta's complete Interim Report for the period January - June 2011 as a
PDF format is available as an attachment of this release. The interim report is
also available on the Componenta's website at www.componenta.com. 

Press conference to analysts and media representatives at 10.30 (EEST)

A press conference will be arranged in Käpylä, in auditorium of the Sato house,
at the address Panuntie 4, 00610 Helsinki starting at 10.30 (EEST). The press
conference will be webcast simultaneously via internet. Link can be found on
Componenta's Internet pages at www.componenta.com. 

Helsinki, 15 July 2011

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO



ENCLOSURE. Componenta's Interim Report January - June 2011


FURTHER INFORMATION

Heikki Lehtonen
President and CEO
tel. +358 10 403 00

Mika Hassinen
CFO
tel. +358 10 403 00

Attachments:

release_correction_15072011.pdf

componenta_interim_report_Q2_2011.pdf