Componenta - Company Announcement

Componenta changes its prospects for 2014

Componenta Corporation    Stock Exchange Release 16.10.2014 at 18.15

The uncertainty in the European economy has increased mainly due to the
economic sanctions by EU and Russia. This has decreased the demand for
investment goods in Componenta's customer industries. Componenta's order book
on 30 September 2014 was 5% lower than at the same time in the previous year,
at EUR 79 (84) million. 

The order book has declined in many customer segments after the summer vacation
period. Based on the order book and production estimates given by customers,
Componenta's net sales in 2014 are expected to stay behind previous year level.
In addition, the exchange rate rates have developed unfavourably from the
Group's point of view, which have impacted the exchange rate differences
arising from the balance sheet items. 

Due to the before mentioned reasons Componenta expects the operating profit
excluding one-time items to decline from the previous year despite of the
efficiency improvement program. 

The Board of Directors decided earlier in the review period to change the
currency transaction risk policy so that the balance sheet items in Turkish
lira can be left without hedging.  By means of this decision Componenta aims to
decrease cash flow based hedging expenses which during the past five years have
exceeded more than EUR 10 million in total. Based on this decision the fair
value differences of balance sheet items arising from exchange rate changes can
vary, but in the long term their impact on both cash flow and result are
expected to be positive. Due to this change the prospects in the future will be
given excluding one-time items and exchange rate differences of balance sheet
items. 

New prospects for 2014 are as follows:

Componenta expects the operating profit for 2014 excluding one-time items and
exchange rates differences of balance sheet items to improve from the previous
year due to efficiency improvement program being carried out. 

Earlier prospects for 2014 were:

In consequence of the structural efficiency measures being carried out, the
full year operating profit excluding one-time items is expected to improve from
the previous year. 

Helsinki, 16 October 2014

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO



For further information, please contact:

Heikki Lehtonen
President and CEO
tel. +358 10 403 2200

Mika Hassinen
CFO
tel. +358 10 403 2723



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 511 million in 2013 and its share is listed on
the NASDAQ OMX Helsinki. The Group employs approx. 4,400 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.

Attachments:

release_16102014_componenta changes prospects.pdf