2014-08-12 08:00:01 CEST
2014-08-12 08:00:06 CEST
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE PUBLISHES ITS INTERIM REPORT JANUARY 1, 2014 – JUNE 30, 2014 AND LOWERS ITS FINANCIAL ESTIMATE FOR 2014
Espoo, Finland, 2014-08-12 08:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report August 12, 2014 at 9.00
Efore Plc is adopting a new disclosure procedure in accordance with Regulations
and Guidelines 7/2013 (disclosure obligation on issuers) of the Financial
Supervisory Authority and is publishing the interim report for January-June
2014 as an attachment to this stock exchange release. This release is a summary
of Efore's January-June 2014 interim report. Efore Group's interim report for
January-June 2014 is a PDF file attachment to this stock exchange release and
is available on the company's website at the address www.efore.fi.
As a result of changing Efore's financial year, FY 2013 figures in brackets
have been changed to match with the periods of the financial year 2014.
Furthermore, when comparing the figures it should be noticed that the last year
acquired Roal has been consolidated into Efore Group from the beginning of July
2013. FY 2013 Income Statements figures are shown at the end of this release in
a separate table.
April - June 2014 (Q2) in brief:
- Net sales totaled EUR 22,5 million (EUR 13,8 million),up 63,3 % compared with
the corresponding period last year
- Results from operating activities without one-time items were EUR -0,4
million (EUR -1,4 million)
- Results for the period including one-time items were EUR -1,6 million (EUR
-1,9 million), representing -7,3 % of net sales (-13,5%)
- Earnings per share were EUR -0,04 (EUR -0,04)
January - June 2014 (H1) in brief:
- Net sales totaled EUR 41,7 million (EUR 29,1 million),up 43,2 % compared with
the corresponding period last year
- Results from operating activities without one-time items were EUR -0,9
million (EUR -2,6 million)
- Results for the period including one-time items were EUR -2,2 million (EUR
-3,4 million), representing -5,3 % of net sales (-11,6 %)
- Earnings per share were EUR -0,05 (EUR -0,09)
4-6/14 4-6/13 Change 1-6/14 1-6/13 Change 11/12-12
/13
Key indicators, EUR 3 mo 3 mo % 6 mo 6 mo % 14 mo
million
--------------------------------------------------------------------------------
Net Sales 22,5 13,8 63,3 41,7 29,1 43,2 82,5
Telecommunication 13,1 9,6 36,0 22,8 20,8 9,6 48,6
sector
Industrial sector 9,5 4,2 125,7 18,9 8,3 127,7 33,9
Results without -0,4 -1,4 71,4 -0,9 -2,6 65,4 -4,3
one-time items
Results from operating -1,6 -1,9 12,3 -2,2 -3,4 35,3 -5,8
activities
Result before taxes -1,8 -1,8 -1,6 -2,7 -3,5 23,5 -6,1
Net result -1,9 -1,7 -10,0 -2,8 -3,4 18,5 -6,2
Earnings per share, -0,04 -0,04 0,0 -0,05 -0,09 44,4 -0,15
EUR
Solvency ratio, % 36,3 40,7 -10,8 36,3 40,7 -10,8 39,7
Gearing, % 8,4 15,9 47,2 8,4 15,9 47,2 14,3
Cash flow from 2,0 -1,6 3,6 -2,0 1,4
business operations
Financial estimate for the 2014
Efore Plc lowers its financial estimate for the 2014.
Old financial estimate was: The Company estimated its net sales of financial
year 2014 to be EUR 85-95 million and results from operating activities without
one-time items to be EUR 1.5-3.5 million.
New financial estimate for the 2014 is:
The Company estimates its net sales of financial year 2014 to be EUR 83-91
million and results from operating activities without one-time items to be EUR
0-2,0 million.
Vesa Vähämöttönen, Efore's President and CEO:
The main targets of Efore's strategy have been balancing business areas by
creating a strong industrial sector alongside of the telecommunication sector
and by developing the company structure to improve the profitability. The
strategic transformation and first steps of ROAL integration have been
progressing as planned. The integration requires still more work in order to
reach all synergy benefits. One unified manufacturing and sourcing organization
and business units for telecommunication and industrial sectors have been
created. Sales organization will still be strengthened in North America and
Europe. The target to reach annual EUR 1,5 million synergy benefit in material
purchases announced together with the acquisition has been met. Broadening of
the co-operation with suppliers and focusing on core competencies especially in
production is next logical step in the development of the group.
Net sales of Efore's telecommunication sector increased more than 35 % during
the second quarter compared with the first quarter of 2014, as expected.
Telecom sector product portfolio is renewing and broadening during the year and
new products are expected to drive the sales growth, improve margin as well as
decrease the demand fluctuations.
Net sales of industrial sector remained on the same level with the first
quarter of 2014 which weakened company's profitability. The demand is returning
back but sales in the second half of 2014 is forecasted to be at the same level
with the first one. In the second half of the year industrial sector is
focusing on launching new power products for large LED displays and street
lighting. For broader market suitable version of the EMP protected power
system, originally developed for the Finnish Defense Forces, has been
introduced in the defence and security trade show in Paris last June. New
products will also be launched for instrumentation, automation and medical
markets.
Second quarter results included EUR 1,3 million one-time items. Almost all of
them were related to the structural changes in Italy due to production transfer
to Tunisia. Cash effect of these items will be spread over the coming 24 months
and the annual cost saving is approximately EUR 1,6 million.
Efore is focusing on final assembly and testing in telecommunication sector
manufacturing in its China plant for reaching cost savings. Telecom sector PCB
assembly manufacturing will be transferred to an EMS partner by the end of this
year. By utilizing the capabilities of an EMS company Efore can get the access
to the latest SMT manufacturing technology and capacity in a flexible way and
can continue to invest in R&D and expanding of the sales network. Efore will
continue PCB assembly manufacturing for certain customer segments and product
development purposes.
Efore's long term financial target is to reach 10% EBIT level and an average
annual net sales growth of 5-10%. On short term Efore is focusing to improve
its profitability. Target is to reach at least 6% EBIT level at the end of
2015.
April - June net sales and financial development
Second quarter net sales totaled EUR 22,5 million (EUR 13,8 million). Net sales
increased EUR 3,3 million or 17,2 % compared with the previous quarter. Net
sales of telecommunication sector increased EUR 3,4 million or 35,1 % and net
sales of industrial sector remained at the same level with the previous
quarter.
Results from operating activities without one-time items were EUR -0,4 million
(EUR -1,4 million). Second quarter results included EUR 1,3 million one-time
items. Almost all of them were related to the structural changes in Italy due
to production transfer to Tunisia. Cash effect of these items will be spread
over the coming 24 months and the annual cost saving is approximately EUR 1,6
million.
January - June net sales and financial development
Net sales totaled EUR 41,7 million (EUR 29,1 million). Results from operating
activities without one-time items were EUR -0,9 million (EUR -2,6 million).
Second quarter results included EUR 1,3 million one-time items as expected.
Almost all of them were related to the structural changes in Italy due to
production transfer to Tunisia. Cash effect of these items will be spread over
the coming 24 months and the annual cost saving is approximately EUR 1,6
million.
Investment in product and technology development during the period under review
was EUR 3,4 million (EUR 3,3 million) representing 8,1 % of net sales (11,3
%).
Business development
Net sales of Efore's telecommunication sector increased more than 35 % during
the second quarter compared with the first quarter of 2014, as expected.
Telecom sector product portfolio is renewing and broadening during the year and
new products are expected to drive the sales growth, improve margin as well as
decrease the demand fluctuations.
Net sales of industrial sector remained on the same level with the first
quarter of 2014 which weakened company's profitability. The demand is returning
back but sales in the second half of 2014 is forecasted to be at the same level
with the first one. In the second half of the year industrial sector is
focusing on launching new power products for large LED displays and street
lighting. For broader market suitable version of the EMP protected power
system, originally developed for the Finnish Defense Forces, has been
introduced in the defence and security trade show in Paris last June. New
products will also be launched for instrumentation, automation and medical
markets.
Efore is focusing on final assembly and testing in telecommunication sector
manufacturing in its China plant for reaching cost savings. Telecom sector PCB
assembly manufacturing will be transferred to an EMS partner by the end of this
year. By utilizing the capabilities of an EMS company Efore can get the access
to the latest SMT manufacturing technology and capacity in a flexible way and
can continue to invest in R&D and expanding of the sales network. Efore will
continue PCB assembly manufacturing for certain customer segments and product
development purposes.
Outlook
As a result of the acquisition the group has expanded into new markets which
creates better opportunities for the growth. LTE (4G) technology is in a key
role in network expansions and Efore has a strong position in this development.
Several large network roll-outs have been published after two slow years
creating base for demand growth. Power supplies for LED lighting,
instrumentation, medical and infrastructure offer several growth areas for
Efore in industrial sector.
During the last 18 months the group has started several new product development
projects and especially telecom product portfolio is renewing significantly
this year. New products make Efore's product portfolio wider, which is expected
to be visible as sales growth and as a decrease in demand fluctuations.
Getting new products into volume deliveries as forecasted is essential for the
growth and profitability improvement of the company.
In the near future, Efore is focusing on introducing new products into volume
production and on necessary profitability improvement actions. Due to the
renewal of product portfolio and streamlining actions financial year 2014
improves towards the end.
Long-term targets
Efore Group's long term financial target is to reach 10% EBIT level and an
average annual net sales growth of 5-10%. Target is to grow especially in
industrial sector. Market driven product platforms and better R&D investment
utilization are key factors to support company's target to improve
profitability.
On short term Efore is focusing to improve its profitability. Target is to
reach at least 6% EBIT level at the end of 2015.
Efore does not consider the long term targets as market guidance for any given
year. It will issue separate financial estimate.
EFORE PLC
Board of Directors
Further information
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on August 12, 2014 at 9 - 10 a.m., tel. +358 9 4784 6312.
DISTRIBUTION
Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its production
units are located in China and Tunis. Sales and marketing operations are
located in Europe, United States and China. In the fiscal year ending in
December 2013, consolidated net sales totaled EUR 82.5 million and the Group's
personnel averaged 836. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd. www.efore.com
Enclosure: EFORE GROUP INTERIM REPORT JANUARY 1, 2014 - JUNE 30, 2014
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