2012-10-26 08:00:06 CEST
2012-10-26 08:00:16 CEST
REGULATED INFORMATION
Exel Composites Oyj - Interim report (Q1 and Q3)
Exel Composites Plc's interim report for January 1 - September 30, 2012
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 26.10.2012 at
9.00 1 (12)
EXEL COMPOSITES PLC'S INTERIM REPORT FOR JANUARY 1 - SEPTEMBER 30, 2012
JULY - SEPTEMBER 2012 HIGHLIGHTS
- Net sales decreased to EUR 17.1 (20.5) million in the third quarter of 2012,
down by 16.7 per cent on the previous year
- Operating profit was EUR 1.4 (2.6 including +0.1 non-recurring items) million
in the third quarter of 2012, or 8.0 (12.5) per cent of net sales
- Net operative cash flow was positive at EUR +0.3 (+2.5) million
- Fully diluted earnings per share were EUR 0.07 (0.15)
JANUARY - SEPTEMBER 2012 HIGHLIGHTS
- Net sales decreased to EUR 57.4 (65.4) million in the first nine months of
2012, down by 12.3 per cent on the corresponding period in 2011
- Operating profit was EUR 5.0 (9.3 including +0.3 non-recurring items)
million, or 8.7 (14.3) per cent of net sales
- Net operative cash flow was positive at EUR +3.8 (+6.5) million
- Fully diluted earnings per share were EUR 0.29 (0.56)
OUTLOOK FOR 2012
Major uncertainties relating to general growth prospects in the economy
continue, and these uncertainties may affect the demand for composite products.
Due to the prevailing state of the markets, the visibility is low.
Exel Composites maintains its cautious stance in 2012, but will continue to
drive the long-term initiatives to strengthen the Company's competitive
position and to invest in growing market segments to pursue the strategy of
profitable growth.
COMMENTS BY THE CEO
“The Group's net sales decreased to EUR 17.1 (20.5) million on the third
quarter of 2012 representing a 16.7 per cent decrease on the corresponding
period in 2011. Market demand continued to decrease in the building,
construction and infrastructure market, telecommunication products, energy
sector and machine industry compared to the same period last year. Market
demand increased in the transportation and cleaning and maintenance segments
compared to the third quarter of 2011.
The European economic situation has impacted the results negatively. The weak
market situation has affected the sales of our main customers, which has
resulted in declining sales for Exel Composites. We have continued to invest
more resources in sales and customer-driven product development to generate new
sales. Even though this has not yet compensated the loss of sales from existing
main customers, it is expected to strengthen future top line. Exel Composites'
market share is estimated to have remained stable.
The Group's operating profit for the third quarter of 2012 decreased to EUR 1.4
(2.6) million. We were not able to adjust the cost base fully to the decreased
sales volumes. The Australian unit's operating profit decreased significantly;
the main reasons were lower sales and development costs for a new solution for
the water treatment market. We have started corrective actions to improve
profitability in Australia. The operating cash flow continued to be positive.
Our financial position is strong and net gearing was 7.8 per cent.
Cost-savings campaigns commenced in the second quarter of 2012 continued in all
the units of the Group. We will continue measures to mitigate the effects of
the rising costs, and to pass them to the market by increasing product prices.
Operations will be adjusted to demand. Temporary and permanent lay-offs of
employees have been commenced.
Visibility remains low and we remain cautious. However, the financial situation
of Exel Composites is strong and we will continue our strategy of profitable
growth and to invest in the development of new products with customers, to
expand our customer base by reinforcing sales and to maintain good cost
control. We are prepared to reinforce actions to cope with continuing slow
demand and uncertainty.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
1.7. - 1.7 - Change 1.1. - 1.1. - Change 1.1. -
30.9. 30.9. % 30.9. 30.9. 31.12.
2012 2011 2012 2011 2011
Net sales 17.1 20.5 -16.7 57.4 65.4 -12.3 85.1
Operating profit 1.4 2.6 -46.8 5.0 9.3 -46.3 11.1
% of net sales 8.0 12.5 8.7 14.3 13.0
Profit for the period 0.9 1.8 -49.7 3.5 6.7 -47.3 7.9
Shareholders' equity 33.2 32.5 2.1 33.2 32.5 2.1 35.1
Net interest-bearing 2.6 0.2 -1,185 2.6 0.2 -1,185 -1.7
liabilities .2 .2
Capital employed 43.4 41.3 5.0 43.4 41.3 5.0 43.2
Return on equity, % 10.8 22.4 13.7 27.4 23.5
Return on capital 12.7 25.0 15.6 29.8 26.1
employed, %
Equity ratio, % 59.0 56.5 59.0 56.5 61.6
Net gearing, % 7.8 0.6 7.8 0.6 -5.0
Earnings per share, 0.07 0.15 0.29 0.56 0.67
EUR
Earnings per share, 0.07 0.15 0.29 0.56 0.67
diluted, EUR
Equity per share, EUR 2.79 2.74 2.79 2.74 2.95
IFRS REPORTING
This interim report has been prepared in accordance with the recognition and
measurement principles of IFRS, which are the same as in the 2011 financial
statements.
FINANCIAL PERFORMANCE
1 July - 30 September 2012
The Group's net sales decreased to EUR 17.1 (20.5) million in the third quarter
of 2012 representing a 16.7 per cent decrease on the corresponding period in
2011. Market demand continued to decrease in the building, construction and
infrastructure market, telecommunication products, energy sector and machine
industry compared to the same period last year. Market demand increased in the
transportation and cleaning and maintenance segments compared to the third
quarter of 2011.
The European economic situation has impacted the results negatively. The weak
market situation has affected the sales of our main customers, which has
resulted in declining sales for Exel Composites. We have continued to invest
more resources in sales and customer-driven product development to generate new
sales. Even though this has not yet compensated the loss of sales from existing
main customers, it is expected to strengthen future top line. Exel Composites'
market share is estimated to have remained stable.
The Group's operating profit for the third quarter of 2012 decreased to EUR 1.4
(2.6 including +0.1 non-recurring items) million. Operating profit for the
third quarter was improved by EUR 0.6 million by cost provision release. We
were not able to adjust the cost base fully to the decreased sales volumes. The
Australian unit's operating profit decreased significantly; the main reasons
were lower sales and development costs for a new solution for the water
treatment market. We have started corrective actions to improve profitability
in Australia. The operating cash flow continued to be positive. Our financial
position is strong and net gearing was 7.8 per cent.
Cost-saving campaigns commenced in the second quarter of 2012 continued in all
the units of the Group. We will continue measures to mitigate the effects of
the rising costs, and to pass them to the market by increasing product prices.
Operations will be adjusted to demand. Temporary and permanent lay-offs of
employees have been commenced.
1 January - 30 September 2012
The weak demand that started during the third quarter of 2011 continued during
the first nine months of 2012. The Group's net sales in January - September
2012 decreased by 12.3 per cent to EUR 57.4 (65.4) million compared to the
corresponding period in 2011.
Exel Composites' operating profit in January - September 2012 decreased by 46.3
per cent to EUR 5.0 (9.3) million compared to the corresponding period last
year. Operating profit as a percentage of net sales was 8.7 (14.3) per cent.
The declined operating profit is mainly due to decreased sales volumes and
investments made in organizational development.
The Group's net financial expenses in January - September 2012 were EUR -0.3
(-0.3) million. The Group's profit before taxes was EUR 4.7 (9.1) million and
profit after taxes EUR 3.5 (6.7) million.
Earnings per share were EUR 0.29 (0.56). Return on capital employed was 15.6
(29.8) per cent. Return on equity was 13.7 (27.4) per cent.
BALANCE SHEET AND FINANCIAL POSITION
Cash flow from business operations was positive at EUR 3.8 (6.5) million. Cash
flow before financing, but after capital expenditure, amounted to EUR 1.6 (4.4)
million.
Capital expenditure was financed with cash flow from business operations.
At the end of the review period, the Group's liquid assets stood at EUR 7.5
(8.6) million.
The Group's consolidated total assets at the end of the period under review
were EUR 56.5 (57.6) million.
Interest-bearing liabilities amounted to EUR 10.1 (8.8) million. Net
interest-bearing liabilities were EUR 2.6 (0.2) million.
Equity at the end of the period under review was EUR 33.2 (32.5) million and
equity ratio 59.0 (56.5) per cent. The net gearing ratio was 7.8 (0.6) per
cent.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets amounted to EUR 2.1 (2.1) million.
Total depreciation of non-current assets during the period under review
amounted to EUR 2.1 (2.0) million.
PERSONNEL
The number of Exel Composites Group employees on 30 September 2012 was 430
(431), of whom 197 (200) worked in Finland and 233 (231) in other countries.
The average number of personnel during the reporting period was 432 (427).
Temporary lay-offs and permanent personnel reductions have taken place in
several units in 2012. Co-determination negotiations concerning the salaried
employees working in the Finnish units of the Exel Composites Group were
concluded in July 2012. In addition to permanent personnel reductions, the
salaried employees of the Finnish units will be laid off temporarily for a
maximum of 90 days between autumn 2012 and spring 2013. Despite the challenging
economic situation Exel Composites continues to invest in the technical sales
organization to secure future growth.
The ExelWay project that was launched in the latter half of 2011 was continued.
The project aims at improving co-operation and harmonizing processes between
the units. Project findings including new and efficient business processes and
best practices are to be implemented as the project proceeds.
SHARES AND SHARE CAPITAL
At the end of September 2012, Exel Composites' share capital was EUR
2,141,431.74 and the number of shares was 11,896,843. There were no changes in
the share capital during the review period.
Based on the closing price on 30 September 2012, the market capitalization
totaled EUR 77.1 (89.2) million. During the reporting period 674,931
(1,099,591) shares were traded, accounting for 5.7 (9.2) per cent of the
average number of shares outstanding.
The highest share quotation was EUR 8.79 (9.40) and the lowest EUR 6.00 (6.75).
The share price closed at EUR 6.48 (7.50). The average share price during the
period under review was EUR 7.45 (8.18).
Own shares
Exel Composites did not hold any of its own shares during the period of review.
SHAREHOLDERS AND DISCLOSURES
Exel Composites had a total of 2,710 (2,573) shareholders on 30 September 2012.
Information on Exel Composites' shareholders is available on the Company
website at www.exelcomposites.com.
Exel Composites received no flagging notifications during the period under
review.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to the general
economic development, government regulations and continued financial crisis in
the Euro area as well as to market demand in certain market segments. Raw
material prices, energy cost and other cost increases may continue to put
pressure on profitability. Currency rate changes, price competition and
alternative competing materials may also have a negative effect on the result.
The availability and cost of financing may continue to have an effect on the
demand and increase the risk of credit losses.
OUTLOOK FOR 2012
Major uncertainties relating to general growth prospects in the economy
continue, and these uncertainties may affect the demand for composite products.
Due to the prevailing state of the markets, the visibility is low.
Exel Composites maintains its cautious stance in 2012, but will continue to
drive the long-term initiatives to strengthen the Company's competitive
position and to invest in growing market segments to pursue the strategy of
profitable growth.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
(unaudited)
EUR thousand 1.7. - 1.7. - Change 1.1. - 1.1. - Change 1.1. -
30.9. 30.9. , 30.9. 30.9. , % 31.12.
2012 2011 % 2012 2011 2011
Net sales 17,054 20,463 -16.7 57,364 65,378 -12.3 85,136
Materials and services -6,706 -8,156 17.8 -22,31 -25,82 13.6 -33,35
6 9 8
Employee benefit -4,422 -4,820 8.3 -15,98 -15,71 -1.7 -21,13
expenses 2 4 3
Depreciation and -619 -683 9.4 -2,083 -2,030 -2.6 -2,702
impairment
Other operating expenses -4,052 -4,356 7.0 -12,71 -13,04 2.5 -17,70
2 1 9
Other operating income 107 113 -5.3 736 565 30.3 849
Operating profit 1,362 2,560 -46.8 5,007 9,328 -46.3 11,082
Net financial items -206 -126 -63.5 -319 -253 -26.1 -284
Profit before tax 1,156 2,434 -52.5 4,688 9,075 -48.3 10,798
Income taxes -266 -664 59.9 -1,186 -2,393 50.4 -2,852
Profit/loss for the 890 1,770 -49.7 3,502 6,682 -47.6 7,946
period
Other comprehensive
income:
Exchange differences on -23 -47 51.5 638 -742 186.0 893
translating foreign
operations
Other comprehen-sive -23 -47 51.5 638 -742 186.0 893
income, net of tax
Total comprehen- 867 1,724 -49.7 4,140 5,940 -30.3 8,839
sive income
Profit/loss attributable
to:
Equity holders of the 890 1,770 3,502 6,682 7,946
parent company
Comprehensive income
attributable to:
Equity holders of the 867 1,724 4,140 5,940 8,839
parent company
Earnings per share, 0.07 0.15 0.29 0.56 0.67
diluted and undiluted,
EUR
CONDENSED CONSOLIDATED BALANCE SHEET
EUR thousand 30.9.2012 30.9.2011 Change 31.12.2011
ASSETS
Non-current assets
Goodwill 12,192 11,142 1,050 11,939
Other intangible assets 1,720 1,921 -201 1,961
Tangible assets 11,669 10,870 799 11,612
Deferred tax assets 108 557 -449 148
Other non-current assets 65 63 2 64
Non-current assets total 25,754 24,554 1,201 25,723
Current assets
Inventories 10,445 10,868 -423 10,499
Trade and other receivables 12,725 13,632 -907 10,985
Cash at bank and in hand 7,533 8,555 -1,022 9,840
Current assets total 30,703 33,056 -2,353 31,323
Total assets 56,457 57,610 -1,153 57,047
EQUITY AND LIABILITIES
Shareholders' equity
Share capital 2,141 2,141 0 2,141
Other reserves 45 30 15 30
Invested unrestricted equity fund 8,488 8,488 0 8,488
Translation differences 4,842 2,569 2,273 4,204
Retained earnings 14,223 12,633 1,590 12,309
Profit for the period 3,502 6,682 -3,180 7,946
Total equity attributable to equity 33,241 32,544 697 35,118
holders of the parent company
Total equity 33,241 32,544 697 35,118
Non-current liabilities
Interest-bearing liabilities 8,132 8,048 84 8,088
Interest-free liabilities 413 356 57 392
Deferred tax liabilities 414 555 -141 539
Current liabilities
Interest-bearing liabilities 2,010 710 1,300 10
Trade and other non-current 12,247 15,396 -3,149 12,900
liabilities
Total liabilities 23,217 25,066 -1,849 21,928
Total equity and liabilities 56,457 57,610 -1,153 57,047
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR thousand Share Other Invested Translation Retained Total
Capita Reserve Unrestricted Differences Earnings
l s Equity Fund
Balance at 1 2,141 37 8,488 3,311 18,529 32,507
January 2011
Comprehensive 0 0 0 -742 6,682 5,940
result
Other items 0 -7 0 0 53 45
Dividend 0 -5,948 -5,948
Balance at 30 2,141 30 8,488 2,569 19,315 32,544
September
2011
Balance at 1 2,141 30 8,488 4,204 20,255 35,118
January 2012
Comprehensive 0 0 0 638 3,502 4,140
result
Other items 0 15 0 0 -84 -69
Dividend 0 -5,948 -5,948
Balance at 30 2,141 45 8,488 4,842 17,725 33,241
September
2012
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
EUR thousand 1.1. - 30.9. 1.1. - Change 1.1. -
2012 30.9. 31.12.
2011 2011
Cash Flow from Operating Activities
Profit for the period 3,502 6,682 -3,180 7,946
Adjustments 3,782 4,591 -809 6,308
Change in working capital -1,508 -2,618 1,110 -2,216
Cash Flow Generated by Operations 5,776 8,655 -2,879 12,038
Interest paid -186 -245 59 -349
Interest received 68 62 6 129
Other financial items -30 -90 60 -191
Income taxes paid -1,877 -1,895 18 -2,067
Net Cash Flow from Operating Activities 3,751 6,487 -2,736 9,560
Cash flow from Investing Activities
Capital expenditure -2,118 -2,123 -5 -3,208
Proceeds from sale of fixed assets 16 0 16 0
Cash Flow from Investing Activities -2,338 -2,123 -215 -3,208
Cash Flow from Financing
Proceeds from long-term borrowings 0 0 0 0
Instalments of long-term borrowings 0 -2,160 2,160 -2,160
Change in short-term loans 2,000 700 1,300 0
Instalments of finance lease liabilities -8 -7 -1 -10
Dividends paid -5,948 -5,948 0 -5,948
Net Cash Flow from Financing -3,956 -7,415 3,459 -8,118
Change in Liquid Funds -2,307 -3,051 744 -1,766
Liquid funds in the beginning of period 9,840 11,606 -1,766 11,606
Change in liquid funds -2,307 -3,051 744 -1,766
Liquid funds at the end of period 7,533 8,555 -1,022 9,840
QUARTERLY KEY FIGURES
EUR thousand III/ II/ I/ IV/ III/ II/ I/
2012 2012 2012 2011 2011 2011 2011
Net sales 17,054 19,791 20,519 19,758 20,463 23,367 21,548
Materials and services -6,706 -7,491 -8,119 -7,529 -8,156 -9,295 -8,378
Employee benefit -4,422 -5,942 -5,618 -5,419 -4,820 -5,672 -5,221
expenses
Depreciation and -619 -723 -742 -672 -683 -663 -684
impairment
Operating expenses -4,052 -4,209 -4,452 -4,668 -4,356 -4,424 -4,262
Other operating income 107 390 240 284 113 317 135
Operating profit 1,362 1,816 1,828 1,754 2,560 3,630 3,137
Net financial items -206 -30 -83 -31 -126 -104 -23
Profit before taxes 1,156 1,786 1,745 1,723 2,434 3,527 3,115
Income taxes -266 -485 -435 -459 -664 -948 -782
Profit/loss for the 890 1,302 1,310 1,264 1,770 2,579 2,333
period from continuing
operations
Profit/loss for the 890 1,302 1,310 1,264 1,770 2,579 2,333
period
Earnings per share, EUR 0.07 0.11 0.11 0.11 0.15 0.22 0.20
Earnings per share, EUR, 0.07 0.11 0.11 0.11 0.15 0.22 0.20
diluted
Average number of
shares, undiluted,
1,000 shares 11,897 11,897 11,897 11,897 11,897 11,897 11,897
Average number of
shares, diluted,
1,000 shares 11,897 11,897 11,897 11,897 11,897 11,897 11,897
Average number of 433 435 428 433 433 432 416
personnel
COMMITMENTS AND CONTINGENCIES
EUR thousand 30.9.2012 30.9.2011
On own behalf
Mortgages 2,733 2,783
Corporate mortgages 12,500 12,500
Lease liabilities
- in next 12 months 789 784
- in next 1-5 years 2,972 2,347
Other commitments 6 24
DERIVATIVE FINANCIAL INSTRUMENTS
Nominal values 30.9.2012 30.9.2011
EUR thousand
Interest rate derivatives
Interest rate swaps 5,000 10,000
CONSOLIDATED KEY FIGURES
EUR thousand 1.1. - 30.9. 1.1. - 30.9. Change % 1.1. -
2012 2011 31.12.
2011
Net sales 57,364 65,378 -12.3 85,136
Operating profit 5,007 9,328 -46.3 11,082
% of net sales 8.7 14.3 13.0
Profit before tax 4,688 9,075 -48.3 10,798
% of net sales 8.2 13.9 12.7
Profit for the period 3,502 6,682 -47.6 7,946
% of net sales 6.1 10.2 9.3
Shareholders' equity 33,241 32,544 2.1 35,118
Interest-bearing liabilities 10,142 8,759 15.8 8,098
Cash and cash equivalents 7,533 8,555 -11.9 9,840
Net interest-bearing 2,609 203 -1,185.2 -1,742
liabilities
Capital employed 43,383 41,302 5.0 43,216
Return on equity, % 13.7 27.4 23.5
Return on capital employed, 15.6 29.8 26.1
%
Equity ratio, % 59.0 56.5 61.6
Net gearing, % 7.8 0.6 -5.0
Capital expenditure 2,118 2,123 -0.2 3,208
% of sales 3.7 3.2 3.8
Research and development 1,191 1,188 0.3 1,639
costs
% of net sales 2.1 1.8 1.9
Order stock 13,732 14,727 -6.8 13,114
Earnings per share, EUR 0.29 0.56 -48.4 0.67
Earnings per share, EUR, 0.29 0.56 -48.4 0.67
diluted
Equity per share, EUR 2.79 2.74 1.8 2.95
Average number of shares
- cumulative 11,897 11,897 0.0 11,897
- cumulative, diluted 11,897 11,897 0.0 11,897
Average number of employees 432 427 1.2 428
PRESS CONFERENCE
Exel Composites will hold an analyst and press conference regarding the interim
report today Friday 26 October 2012 at 12.30 p.m. in the Pavilion Cabinet of
the Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland.
FORWARD-LOOKING STATEMENTS
Certain statements in this report, which are not historical facts, including,
without limitation, those regarding expectations for general economic
development and market situation; regarding customer industry profitability and
investment willingness; regarding Company growth, development and
profitability; regarding cost savings; regarding fluctuations in exchange rates
and interest levels; regarding the success of pending and future acquisitions
and restructurings; and statements preceded by "believes,""expects,""anticipates,""foresees" or similar expressions are forward-looking
statements.
These statements are based on current expectations and currently known facts.
Therefore, they involve risks and uncertainties that may cause actual results
to differ materially from results currently expected by the Company.
Other unknown or unpredictable factors or underlying assumptions subsequently
proving to be incorrect could cause actual results to differ materially from
those in the forward-looking statements. Exel Composites does not undertake any
obligation to publicly update or revise forward-looking statements, whether as
a result of new information, future events or otherwise, except to the extent
legally required.
Vantaa, 26 October 2012
EXEL COMPOSITES PLC Vesa Korpimies
Board of Directors President and CEO
FURTHER INFORMATION:
Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email
vesa.korpimies@exelcomposites.com
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or
email ilkka.silvanto@exelcomposites.com
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main news media
www.exelcomposites.com
EXEL COMPOSITES IN BRIEF
Exel Composites (www.exelcomposites.com) is a technology company which designs,
manufactures and markets composite profiles and tubes for industrial
applications. The Group is the leading composite profile manufacturer in the
world and concentrates on growing niche segments.
The core of the operations is based on own, internally developed composite
technology, product range based on it and a strong market position in selected
segments with a strong quality and brand image. Profitable growth is pursued by
a relentless search for new applications and development in co-operation with
customers. The personnel's expertise and high level of technology play a major
role in Exel Composites' operations.
Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX
Helsinki Ltd.
© 2024 Nasdaq, Inc. All Rights Reserved |