2015-02-13 08:00:03 CET
2015-02-13 08:00:07 CET
REGULATED INFORMATION
Efore - Financial Statement Release
EFORE PLC’S FINANCIAL STATEMENTS RELEASE JANUARY 1, – DECEMBER 31, 2014
Espoo, Finland, 2015-02-13 08:00 CET (GLOBE NEWSWIRE) --
EFORE PLC Financial Statements February 13, 2015 at 9.00
This release is a summary of Efore's Financial Statements 2014. The full
financial Statements 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. When
comparing the figures it should be noticed that the acquired ROAL Electronics
S.p.a. 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.
October - December 2014 in brief:
- Net sales totalled EUR 21,4 million (EUR 23,3 million), down 8,0 % compared
with the corresponding period last year
- Results from operating activities without one-time items were EUR - 0,5
million (EUR -1,1 million)
- Results for the period including one-time items were EUR -1,3 million (EUR
0,2 million)
- Earnings per share were EUR -0,02 (EUR -0,03)
Financial year 2014 in brief:
- Net sales totalled EUR 85,3 million (EUR 74,5 million), up 14,5 % compared
with the corresponding period last year
- Results from operating activities without one-time items were EUR 0,1 million
(EUR -4,3 million)
- Results for the period including one-time items were EUR -2,0 million (EUR
-4,5 million)
- Earnings per share were EUR -0,05 (EUR -0,12)
10-12/ 10-12/ Change 1-12/1 1-12/1 Change 11/12-
14 13 4 3 12/13
Key indicators, EUR 3 mo 3 mo % 12 mo 12 mo % 14 mo
million
--------------------------------------------------------------------------------
Net Sales 21,4 23,3 -8,0 85,3 74,5 14,5 82,5
Telecommunication sector 11,0 12,1 -9,2 46,0 43,1 6,8 48,6
Industrial sector 10,4 11,2 -6,7 39,3 31,4 25,0 33,9
Results from operating -0,5 -1,1 0,1 -4,3 -4,3
activities without
one-time items
Results from operating -1,3 0,2 -2,0 -4,5 56,4 -5,8
activities
Result before taxes -1,6 0,0 -3,1 -4,8 34,5 -6,1
Net result -0,9 -0,4 -2,6 -5,0 47,2 -6,2
Earnings per share, EUR -0,02 -0,03 -0,05 -0,12 -0,15
Solvency ratio, % 38,1 39,7 -4,0 38,1 39,7 -4,0 39,7
Gearing, % 9,0 14,3 37,1 9,0 14,3 37,1 14,3
Cash flow from business -0,8 3,7 3,8 3,2 1,4
operations
Key indicators quarterly, EUR million Q4/201 Q3/201 Q2/201 Q1/201
4 4 4 4
--------------------------------------------------------------------------------
Net Sales 21,4 22,1 22,5 19,2
Telecommunication sector 11,0 12,2 13,1 9,7
Industrial sector 10,4 10,0 9,5 9,5
Results from operating activities without -0,5 1,6 -0,4 -0,6
one-time items
Results from operating activities -1,3 1,6 -1,6 -0,6
Financial estimate for the 2015
The Company estimates its net sales of financial year 2015 to be EUR 86-96
million and results from operating activities without one-time items to be EUR
2-5 million.
Vesa Vähämöttönen, Efore's President and CEO:
“Net sales and results of the fourth quarter were lower than expected. At the
end of the third quarter the demand grew rapidly but decreased in the beginning
of the fourth quarter. The demand improved again at the end of the year.
Write-offs related to end of life products and provisions related to projects
had a negative impact of EUR 0,8 million on the EBIT of last quarter although
accumulated throughout the year. The fourth quarter did not include invoicing
for R&D work.
The fourth quarter demand of telecommunication sector was lower than expected
and amounted to EUR 11,0 million. This was partly due to delay in some new
product introductions because of external reasons.
As expected, the fourth quarter net sales of industrial sector increased
slightly compared to previous quarters in 2014.
Efore's long term financial target is to reach 10% EBIT level and an average
annual net sales growth of 5-10%. In the short term Efore is focusing to
improve its profitability. The target is to reach at least 6% EBIT level at the
end of 2015. “
October - December net sales and financial development
The fourth quarter net sales totalled EUR 21,4 million (EUR 23,3 million). Net
sales of the telecommunication sector was EUR 11,0 million decreasing 9,8 %
compared to the previous quarter. The net sales of industrial sector was EUR
10,4 million and improved 4,0 % compared with the previous quarter.
Results from operating activities without one-time items were EUR -0,5 million
(EUR -1,1 million). Write-offs related to end of life products and provisions
related to projects had a negative impact of EUR 0,8 million on the EBIT of
last quarter although accumulated throughout the year. The fourth quarter did
not include invoicing for R&D work
Net sales and financial development of the financial year
Net sales totalled 85,3 million (EUR 74,5 million). Results from operating
activities without one-time items were EUR 0,1 million (EUR -4,3 million).
Results included EUR 2,0 million one-time items related to organizational
changes in Italy and Finland.
During the period under review the total expenditure on R&D activities was EUR
8,9 million (EUR 7,7 million) of which EUR 2,8 million were capitalized. The
total R&D expenditure represented 10,5 % of net sales (10,3 %).
The investment level in the telecommunication sector remained still low which
together with slower-than-anticipated growth of industrial sector had an impact
on lower-than expected net sales development in 2014.
Business development
The demand in the telecommunication sector was lower than expected in the
fourth quarter amounting to EUR 11,0 million. This was partly due to delay in
some new product introductions because of external reasons.
The major part of the telecom sector PCB assembly manufacturing was transferred
to an EMS partner during the financial year. By utilizing the capabilities of
an EMS company Efore can access the latest manufacturing technology and
capacity in a flexible way and can continue to investing in R&D and expanding
the sales network.
The fourth quarter net sales of the industrial sector was slightly better than
previous quarters in 2014 amounting to EUR 10,4 million.
Since 2012 Efore has made efforts to develop a profitable business model for
design and manufacturing of Electric Vehicles (EV) power products. However,
significantly slower than expected market development has made this
unsustainable. The company has therefore decided to discontinue investments in
EV business. As a result of this decision no major costs have been recognized
during the financial year.
Efore sold its real estate in Italy on October 27, 2014 according to the option
agreement, which was made at the same time with the acquisition last year. The
sales price of the facility was EUR 1,5 million and it is leased at least for
three years. The realization gain was EUR 0,1 million.
Outlook
During the last two years the group has expanded to new markets enabling
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 creating a base for demand growth.
Power supplies for LED lighting, instrumentation, medical equipment and
infrastructure offer several growth areas for Efore in the industrial sector.
Efore has invested in several product development projects and especially
telecom product portfolio will be renewed significantly. New products expand
Efore's product portfolio, which is expected to bring sales growth and
stabilize demand fluctuations. Efore's main customers are well positioned in
the developing wireless network markets.
Introducing new products into volume deliveries as forecasted is essential for
the growth and profitability improvement of the company.
In the near future, Efore focuses on introducing new products into volume
production and on necessary actions to improve the competitiveness.
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 efficient R&D
investment utilization are key factors to support group's target to improve
profitability.
In the short term Efore is focusing to improve its profitability. The 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.
Events after the period under review
In June 2014, Efore announced to dissolve the share ownership system of the
management and in the same connection Efore Management Oy, a company owned by
the members of the Efore Group Executive Management Team decided to dissolve.
Liquidation of Efore Management Oy was made after the period under review, on
January 19, 2015.
Riitta Järnstedt has been appointed as acting President and CEO of the company
starting on March 1, 2015. New President and CEO Heikki Viika will start in
the position on June 1, 2015.
EFORE PLC
Board of Directors
Further information
For further information please contact Mr.Vesa Vähämöttönen, President and
CEO, on February 13, 2015 at 10 - 11 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 2014, consolidated net sales totaled EUR 85,3 million and the Group's
personnel averaged 914. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd. www.efore.com
© 2024 Nasdaq, Inc. All Rights Reserved |