Cencorp - Company Announcement

CLOSING DOWN CENCORP GUANGZHOU PLANT DECREASES CENCORP’S FULL YEAR SALES ESTIMATE – CENCORP’S EBITDA STILL POSITIVE - CENCORP MAKES A WRITE-OFF IN RELATION TO THE CLOSING OF THE GUANGZHOU PLANT - THE STATUTORY NEGOTIONS IN CENCORP’S OFFIC

Cencorp Oyj                      Stock Exchange Release 21 June 2012 at 10.00
Finnish time 

CLOSING DOWN CENCORP GUANGZHOU PLANT DECREASES CENCORP'S FULL YEAR SALES
ESTIMATE - CENCORP'S EBITDA STILL POSITIVE - CENCORP MAKES A WRITE-OFF IN
RELATION TO THE CLOSING OF THE GUANGZHOU PLANT   - THE STATUTORY NEGOTIONS IN
CENCORP'S OFFICES IN FINLAND HAVE BEEN FINISHED 

Cencorp announced on 29 May 2012 that the company closes down its decoration
plant in Guangzhou, China. The decoration business has made heavy losses: in
2011 the operating loss was EUR2.8 million and in the first quarter of 2012 EUR
0.9 million.  Closing down Guangzhou plant will decrease the number of
Cencorp's personnel by some 110 people. Operations at Cencorp's Beijing plant
continue normally. As a result of the closing down the Guangzhou plant and
restructuring of operations in Finland the company will make a provision of
approximately EUR 1 million and write-off of about EUR 5.7 million from fixed
assets which has no direct impact in cash flow. The decoration business in
Guangzhou will be reported as discontinued operations. Cencorp's continuing
operations consist of Laser and Automation Applications segment and Special
Components segment which from now on includes only special component production
at Beijing plant. 

Exit from the decoration operations will influence Cencorp's outlook for 2012
as from now on decoration business sales and result since the beginning of the
year will no longer be reported in the sales and result of Cencorp
Corporation's continuing operations. The company estimates the full-year net
sales of its continuing operations to be smaller than last year's corresponding
sales that were EUR21.6 million and the full-year EBITDA is estimated to be
positive provided that no essential change takes place in the operating
environment or in the current economic outlook. Last year's corresponding
EBITDA was EUR-1.7 million. Company's previous estimation was as follows:
”Despite the uncertain economic situation, Cencorp estimates its net sales to
increase compared to 2011 and the full-year EBITDA is estimated to be positive
provided that no essential change takes place in the operating environment or
in the current economic outlook.” 

Cencorp's statutory negotiations that started in May 2012 have been finished.
As a result of the negotiations the number of Cencorp's personnel in Finland
will decrease by 14 persons. Reduction will be carried out by outsourcing and
with notices of terminations. As stated in Cencorp's new strategy published in
April the company will outsource its in-house equipment production including
supportive functions. At the same time product design will be strengthened with
strategic partnerships. 

Restructuring of Cencorp Group's foreign units has been started. In North
America the number of employees is decreased by three persons. Cencorp's
purpose is to close down the subsidiaries in Hungary, Sweden and UK by the end
of 2012. Closing down subsidiaries has no influence in the number of personnel. 

These actions will reduce the number of Cencorp corporation's personnel from
310 to 183 persons. "Restructuring is estimated to generate approximately EUR2.5 - 3 million annual
savings in fixed and operative costs. Additionally, some cost flexibility
reflecting the fluctuations in demand will be gained through outsourcing.
Cencorp sets a strong focus in the development of clean technology applications
in cooperation with its customers as well as in life cycle management of laser
and automation equipment and applications", says Cencorp's CEO Iikka Savisalo. 

In Mikkeli 21 June 2012

Cencorp Corporation



Iikka Savisalo

President and CEO



Further information:

Iikka Savisalo, CEO, tel. +358 40 521 6082, iikka.savisalo@savcor.com



Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com


Cencorp Corporation is a leading provider of industrial automation solutions.
The equipment included in the product portfolio designed for depaneling,
odd-form assembly, testing and laser materials processing substantially
improves the efficiency of customers' production. The product range also
includes EMI shielding solutions, flexible circuits, decorations and RFID
antennas. Cencorp's customers are automotive electronics manufacturers and
manufacturers operating in telecommunications, industrial automation and EMS.
Cencorp's head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.