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2012-07-27 12:03:10 CEST 2012-07-27 12:04:07 CEST REGULATED INFORMATION Neo Industrial Oyj - Interim report (Q1 and Q3)NEO INDUSTRIAL´S INTERIM REPORT FOR JANUARY-JUNE 2012 (H1/ 2011)Neo Industrial Plc STOCK EXCHANGE RELEASE 27 July 2012 at 1.00 p.m. NEO INDUSTRIAL´S INTERIM REPORT FOR JANUARY-JUNE 2012 (H1/ 2011) The Cable segment recorded a positive result, and Avilon's corporate reorganisation programme was confirmed. Working capital funding continued to be a challenge. - The Neo Industrial Group's net sales were EUR 57.7 million (67.9 million in 2011), decreasing by 15 percent. - Operating result improved by 193 percent to EUR 8.6 million (-9.2 million). - Result for the period improved by 114 percent to EUR 1.6 million (-11.7 million). Net sales for the Cable segment in January-June were EUR 55.6 million (52.9 million). Sales developed favourably in Finland and other Nordic countries throughout the review period. However, competition remained tough, and price levels were lower than expected in power plant sales in Finland as well as in the Baltic countries in general. The Cable segment's operating result for the first half of the year was EUR 1.4 million (-0.9 million) of which EUR 0.9 million resulted from the conversion of Reka Cables' leases for premises into open-ended contracts. Net sales for the Viscose Fibres segment in January-June were 2.1 EUR million (15.0 million). Avilon's production standstill continued throughout the review period. The District Court of Pirkanmaa accepted Avilon's proposal for a corporate reorganisation programme. Avilon's debts decreased by a total of EUR 14.5 million. The segment recorded a positive operating result of EUR 7.6 million (-7.8 million). Finndomo, the company that constitutes the Single Family Housing segment, filed for corporate reorganisation during the review period. Omatalo Ltd acquired the industrial premises and business operations of Finndomo's Sonkajärvi plant in April. Neo Industrial recorded its EUR 6.4 million share in Finndomo as a write-off in its balance sheet in June. The Single Family Housing segment is reported separately for the last time in this interim report. KEY FIGURES Q2/2012 Q2/2011 Change H1/2012 H1/2011 Change Net sales (EUR million) 31.4 36.3 -13% 57.7 67.9 -15% Operating result (EUR 10.6 -2.0 629% 8.6 -9.2 193% million) Profit for the period (EUR 4.1 -4.2 197% 1.6 -11.7 114% million) Earnings per share, EUR 0.50 -0.66 0.13 -1.92 ROI 5.7% -15.4% Equity ratio 19.3% 23.4% MANAGING DIRECTOR MARKKU E. RENTTO: The proposals for corporate reorganisation programmes for the Viscose Fibres and Single Family Housing segments were prepared during the first half of the year, and the programme for the Viscose Fibres segment was confirmed. The Cable segment's improved result had a positive effect on the Group's financial performance. Working capital management was a key challenge for the Cable segment. The growth outlook for the Cable segment is affected by the uncertain European economy. However, underground cabling in Finland and European investments in new energy forms show promise for the future. In the Viscose Fibres segment, Avilon's corporate reorganisation programme was confirmed in June, which improved the company's debt structure and future prospects. The company continued to make preparations for launching the production of antimicrobial products. Moreover, it entered into a marketing agreement related to the PPV technology marketing and license sales. In June, Neo Industrial decided to write off its shares in Finndomo Oy and discontinue its Single Family Housing segment, which is reported separately for the last time in this interim report. NEAR-TERM OUTLOOK The outlook for the autumn is uncertain due to the economic situation in Europe. In the Cable segment, investments in renewable energy create a great number of new opportunities, as does increased cabling as a result of storms. The Cable segment is expected to record a positive operating result also in the second half of the year as well. In the Viscose Fibres segment, Avilon is expected to launch the production of antimicrobial products in August, after the investment in post-processing has been completed. Viscose production will be launched after the operating conditions, right product mix and funding have been secured. In licensing negotiations related to technologies, the first agreement is expected to be concluded in the third quarter of 2012. DISCLOSURE POLICY OF INTERIM REPORT Neo Industrial discloses relevant information related to its Interim Report with this Stock Exchange Release. Neo Industrial's Interim Report Q2/ 2012 is attached to this release and is also available on company's website at www.neoindustrial.fi. Helsinki, 27 July 2012 Neo Industrial Plc Board of Directors More information: Markku E. Rentto, Managing Director, tel. +358 20 720 9191 Sari Tulander, CFO, tel. +358 20 720 9192 www.neoindustrial.fi 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 NASDAQ OMX Helsinki Stock Exchange. Neo Industrial's business segments are Cable and Viscose Fibres. ENCL: Neo Industrial Interim Report Q2 2012 |
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