2017-02-14 08:00:01 CET
2017-02-14 08:00:01 CET
REGULATED INFORMATION
Exel Composites Oyj - Financial Statement Release
Exel Composites Plc's Financial Statements Release 2016: “Challenging market environment continued”
EXEL COMPOSITES PLC FINANCIAL STATEMENTS RELEASE 14 FEBRUARY 2017 at 09:00 EET
Exel Composites Plc's Financial Statements Release 2016: “Challenging market
environment continued”
Q4 2016 in brief
-- Order intake for the fourth quarter amounted to EUR 18.3 (20.5) million,
-10.4% in comparison to previous year.
-- Revenue amounted to EUR 19.0 (19.3) million, -1.7% in comparison to
previous year.
-- Adjusted operating profit amounted to EUR 0.7 (0.7) million, which is 3.7%
(3.5) of revenue.
-- Net cash flow from operating activities was positive at EUR +1.2 (+0.5)
million.
-- Earnings per share were EUR -0.09 (0.03).
Q1-Q4 2016 in brief
-- Order intake for the period amounted to EUR 74.8 (83.4) million, -10.3% in
comparison to previous year.
-- Revenue amounted to EUR 73.1 (80.2) million, -8.9% in comparison to
previous year.
-- Adjusted operating profit amounted to EUR 2.6 (4.8) million, which is 3.6%
(5.9) of revenue.
-- Net cash flow from operating activities was positive at EUR +3.1 (+3.4)
million.
-- Earnings per share were EUR 0.02 (0.24).
Dividend proposal
The Board of Directors proposes that a dividend of EUR 0.10 per share be paid
for the financial year 2016.
Outlook for full year 2017
Exel Composites estimates that revenue with current company structure (i.e.
without the Chinese company acquisition) will increase from previous year level
and adjusted operating profit will be higher than previous year level. In 2016,
Exel Composites’ revenue was EUR 73.1 million and adjusted operating profit was
EUR 2.6 million.
President and CEO, Riku Kytömäki
The market environment has continued challenging throughout the year. Overall
lower demand and toughened competition impacted some of our key markets such as
telecommunications, where sales to Exel Composites’ biggest customer dropped
approximately by EUR 5 million. Additionally some end customer infrastructure
projects were postponed. The new customer acquisition was not enough to
compensate the declined volumes from some key customers, even though ‘Other
Applications’- customer industry grew by 6%. We have continued focused sales
efforts specifically on customer industries where we see growth opportunities
in the medium and longer term. New customers were developed, among other, in
energy, transportation and construction industries, where we expect volume to
grow during coming years. In general it is not found that Exel Composites’
market shares in key customer industries would have changed compared to
previous year.
During the fourth quarter of 2016 we have continued with cost savings measures
mainly impacting personnel costs. Thanks to these actions, our fixed cost
structure has been brought to a lower level. Thus, the adjusted operating
profit for the fourth quarter was at the same level as during the same period
last year, despite the fact that revenue volume was slightly lower and also our
sales mix less favorable. We continue to actively adapt our operations to the
prevailing market conditions. This involves efficient capacity utilization and
production optimization by pooling volumes when possible and making efficiency
improvements when production runs are shorter and ramp up times need to be
quicker.
At the end of the year, as disclosed in the stock exchange release published on
31 October 2016, we took an important step in the implementation of our growth
strategy by acquiring a Chinese composites production company. In China the
megatrends are strongly driving growth and presenting new business
opportunities. In addition to expanding manufacturing capacity, we are also
expanding our local sales and product development network, our customer
portfolio and the range of applications we offer to the local market. At the
same, the acquisition gives us the opportunity to improve our profitability in
the Asia Pacific (APAC) region by significantly down-sizing the underperforming
Australian unit, reorganizing our operations in the region and improving
efficiency through synergies among the two Chinese units. We expect to close
the transaction during the first quarter of 2017. In connection with the
acquisition we were also able to cancel the Nanjing expansion project. In
addition, the project to expand operations in Austria that was initiated in
2015 is put on hold.
In the short term we expect the market conditions to remain challenging, albeit
some positive signs of recovery. Recent increases in oil and metal prices are
expected to improve the overall market demand. In the longer term we are
confident that global megatrends will drive growth and present new business
opportunities for Exel Composites.
Consolidated key figures
EUR thousand 1.10.-31.1 1.10.-31. Change 1.1.-31.1 1.1.-31.1 Change
2. 12. , 2. 2. ,
2016 2015 % 2016 2015 %
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Order intake 18,334 20,466 -10.4 74,778 83,374 -10.3
Order backlog 1) 16,702 15,348 8.8 16,702 15,348 8.8
Revenue 19,009 19,343 -1.7 73,079 80,196 -8.9
Operating profit -1,209 609 -298.5 649 4,414 -85.3
% of revenue -6.4 3.1 0.9 5,5
Adjusted operating 708 673 5.2 2,621 4,770 -45.1
profit 2)
% of revenue 3.7 3.5 3.6 5.9
Profit for the -1,065 409 -360.4 198 2,844 -93.0
period
Net cash flow 1,157 477 142.6 3,129 3,385 -7.6
Return on capital -12.5 6.8 1.7 12.0
employed, %
Net gearing, % 12.2 2.0 12.2 2.0
Earnings per share, -0.09 0.03 0.02 0.24
EUR
Equity per share, 2.27 2.58 -12.0 2.27 2.58 -12.0
EUR
Employees on 457 493 -7.3 479 498 -3.8
average
Employees at end of 455 494 -7.9 455 494 -7.9
period
1) As per 31 December 2016.
2) Excluding material items affecting comparability, such as restructuring
costs, impairment losses and reversals, and costs related to planned or
realized business acquisitions or disposals. For more information, please refer
to the paragraph “Change in Exel Composites’ financial reporting terminology”
of the Half-year Financial Report published on 21 July 2016.
Financial reporting and Annual General Meeting 2017
Exel Composites publishes the following reports in 2017:
Financial Statements Release 2016: 14 February 2017
Business Review January - March: 4 May 2017
Half Year Financial Report January - June: 20 July 2017
Business Review January - September: 25 October 2017
Annual Financial Report, Corporate Governance Statement and Remuneration
Statement for 2016 will be published on Tuesday 14 March 2017 in electronic
format at the company’s website www.exelcomposites.com.
The Annual General Meeting will be held on Tuesday 4 April 2017 at 10:00 at
Scandic Marina Congress Center at the address of Katajanokanlaituri 6,
Helsinki, Finland.
Financial results briefing
Exel Composites will hold a financial results briefing regarding the financial
statements on Tuesday 14 February 2017 at 12:30 at Scandic Hotel Simonkenttä’s
Roba meeting room (address Simonkatu 9, Helsinki, Finland).
Exel Composites’ Financial Statements Release January – December 2016 is
available in full in pdf format attached to this release. The report and the
related presentation shall also be available at the company’s website under the
Investor section.
Vantaa, 14 February 2017
Exel Composites Plc
Board of Directors
For further information, please contact:
Riku Kytömäki, President and CEO
tel. +358 50 511 8288
riku.kytomaki@exelcomposites.com
Mikko Kettunen, CFO
tel. +358 50 347 7462
mikko.kettunen@exelcomposites.com
Distribution
Nasdaq Helsinki Ltd
Main news media
www.exelcomposites.com
Exel Composites in brief
Exel Composites (www.exelcomposites.com) is a leading composite technology
company that designs, manufactures and markets composite products and solutions
for demanding applications. Exel Composites provides superior customer
experience through continuous innovation, world-class operations and long-term
partnerships.
The core of the operations is based on own, internally developed composite
technology, product range based on it and 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
Nasdaq Helsinki Ltd.
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