2011-07-22 09:00:00 CEST
2011-07-22 09:00:07 CEST
REGULATED INFORMATION
Exel Composites Oyj - Interim report (Q1 and Q3)
Exel Composites Plc's interim report for 1 January - 30 June 2011
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 22.7.2011 at 10.00 1
(13)
EXEL COMPOSITES PLC'S INTERIM REPORT FOR 1 JANUARY - 30 JUNE 2011
April - June 2011 highlights
- Net sales increased to EUR 23.4 (19.2) million, up by 21.9 per cent on the
previous year
- Operating profit was EUR 3.6 (2.7) million, representing 15.5 (13.8) per cent
of net sales
- Net operative cash flow was positive at EUR +2.3 (+3.3) million
- Fully diluted earnings per share were EUR 0.22 (0.16)
January - June 2011 highlights
- Net sales increased to EUR 44.9 (34.8) million in the first six months of
2011, up by 28.9 per cent on the corresponding period in 2010
- Operating profit was EUR 6.8 (3.6) million representing 15.1 (10.4) per cent
of net sales
- Net operative cash flow was positive at EUR +4.0(+4.1) million
- Fully diluted earnings per share were EUR 0.41 (0.22)
Outlook for 2011
Demand in the pultrusion industry has improved gradually. We believe that Exel
Composites is well positioned to take advantage of the growth opportunities as
the markets recover. As a result of improved profitability, good cash flow
generation and reduced debt level we believe in Exel Composites' long-term
performance. Exel Composites recorded a strong first half of 2011, but
maintains its cautious stance for the full year 2011, since market
uncertainties persist.
Vesa Korpimies, President and CEO:
“Strong growth continued in the second quarter of 2011. The Group's net sales
for the second quarter of 2011 increased by 21.9 per cent to EUR 23.4 (19.2)
million compared to the corresponding period in 2010. Strong market demand
continued in the telecommunications and machine industry also during the second
quarter of 2011. Building and infrastructure sales were supported by a recovery
in airport products from the previous year's low levels as well as a positive
trend in windows and doors driven by consistent sales efforts. Further support
to quarterly sales was provided by the electrical industry following recovered
demand most notably in the electrical machine industry and other electrical
applications.
We made a decision to invest in five new production lines using advanced
pultrusion technology to secure future growth. Exel also invested more
resources in sales and customer-oriented product development and will continue
to strengthen the organization to ensure future growth.
The operating profit increased also in the second quarter of 2011 to EUR 3.6
(2.7) million. The measures taken in the Chinese and British units to improve
efficiency continued to show positive results. The turnaround projects will
continue throughout 2011. Raw material costs have continued to increase. Exel
Composites has taken action to mitigate the effects.
Return on capital employed improved to 32.5 per cent compared to 17.5 per cent
in the corresponding period last year.
We are well-positioned to capitalize on growth opportunities as the markets
gradually recover. Exel Composites will continue its strategy of profitable
growth in 2011.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
1.4.- 1.4.-3 Change 1.1.-30.6. 1.1.-30.6. Change 1.1.-
30.6. 0.6. % 2011 2010 % 31.12.
2011 2010 2010
Net sales 23.4 19.2 21.9 44.9 34.8 28.9 72.9
Operating profit 3.6 2.7 36.8 6.8 3.6 86.1 9.4
% of net sales 15.5 13.8 15.1 10.4 12.9
Profit for the 2.6 1.9 33.1 4.9 2.6 87.8 6.8
period
Shareholders' 30.8 27.5 12.0 30.8 27.5 12.0 32.5
equity
Net 2.1 5.6 -62.9 2.1 5.6 -62.9 -1.4
interest-bearing
liabilities
Capital employed 41.0 43.2 -5.0 41.0 43.2 -5.0 42.7
Return on equity, 31.8 29.7 31.0 19.7 23.3
%
Return on capital 34.2 26.3 32.5 17.5 21.8
employed, %
Equity ratio, % 54.0 47.2 54.0 47.2 57.4
Net gearing, % 6.8 20.4 6.8 20.4 -4.3
Earnings per 0.22 0.16 0.41 0.22 0.57
share, EUR
Earnings per 0.22 0.16 0.41 0.22 0.57
share, diluted,
EUR
Equity per share, 2.59 2.31 2.59 2.31 2.73
EUR
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 2010 financial
statements.
FINANCIAL PERFORMANCE
1 April - 30 June 2011
The Group's net sales in April - June 2011 increased on the corresponding
period last year and were EUR 23.4 (19.2) million.
Market conditions have continued to improve. Strong market demand continued in
the telecommunications and machine industry also during the second quarter of
2011. Building and infrastructure sales were supported by a recovery in airport
products from the previous year's low levels as well as a positive trend in
windows and doors driven by consistent sales efforts. Further support to
quarterly sales was provided by the electrical industry following recovered
demand most notably in the electrical machine industry and other electrical
applications.
We made a decision to invest in five new production lines using advanced
pultrusion technology to secure future growth. Exel also invested more
resources in sales and customer-oriented product development and will continue
to strengthen the organization to ensure future growth.
Exel Composites' operating profit for the second quarter of 2011 was EUR 3.6
(2.7) million, or 15.5 (13.8) per cent of net sales. The measures taken in the
Chinese and British units to improve efficiency initiated in the last quarter
of 2010 continued to show positive results. The turnaround projects will
continue throughout 2011.
1 January - 30 June 2011
The Group's net sales in January - June 2011 increased by 28.9 per cent to EUR
44.9 (34.8) million compared to the corresponding period in 2010.
Market conditions have continued to improve. In the first half of 2011 demand
has increased especially in the machine industry and the telecommunication
market segment.
Raw material costs have continued to increase. Exel Composites has taken action
to mitigate the effects and part of the increase has been transferred into
product prices.
The European Commission's anti-dumping tariff on imported Chinese glass fiber
was lowered from the original 43.6 per cent to 13.8 per cent in mid-March 2011.
Exel Composites has increased product prices, employed alternative sourcing
opportunities and increased production in its Chinese operations in Nanjing to
reduce the impact of the tariff.
Exel Composites' operating profit in January - June 2011 increased by 86.1 per
cent to EUR 6.8 (3.6) million compared to the corresponding period last year.
Operating profit as a percentage of net sales was 15.1 (10.4) per cent. In 2010
other operating expenses included one-off restructuring costs of Floorball
business amounting to EUR 1.2 million. Other operating income included one-off
licensing income of EUR 1.2 million. During the first half of 2011 other
operating income included EUR 0.2 million of one-off items.
The Group's net financial expenses in January - June 2011 were EUR -0.1 (-0.1)
million. The Group's profit before taxes was EUR 6.6 (3.5) million and profit
after taxes EUR 4.9 (2.6) million.
Earnings per share improved to EUR 0.41 (0.22). Return on capital employed was
32.5 (17.5) per cent and return on equity 31.0 (19.7) per cent.
BALANCE SHEET AND FINANCIAL POSITION
Cash flow from business operations was positive at EUR 4.0 (4.1) million. Cash
flow before financing, but after capital expenditure, amounted to EUR 2.5 (3.4)
million.
Capital expenditure was financed with cash flow from business operations. At
the end of the period under review, the Group's liquid assets stood at EUR 8.1
(10.0) million.
The dividend for 2010 resolved by the Annual General Meeting on 6 April 2011
totaling EUR 5.9 (3.0) million was paid during the period under review.
The Group's consolidated total assets at the end of the review period were EUR
57.1 (58.3) million.
Interest-bearing liabilities amounted to EUR 10.2 (15.7) million, of which
short-term liabilities accounted for EUR 0.0 (7.5) million. Net
interest-bearing liabilities amounted to EUR 2.1 (5.6) million.
Equity at the end of the period under review was EUR 30.8 (27.5) million and
equity ratio 54.0 (47.2) per cent. The net gearing ratio was 6.8 (20.4) per
cent.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets amounted to EUR 1.5 (0.7) million.
Total depreciation of non-current assets during the period under review
amounted to EUR 1.3 (1.4) million.
PERSONNEL
The number of Exel Composites Group employees on 30 June 2011 was 438 (396), of
whom 205 (179) worked in Finland and 233 (217) in other countries. The average
number of personnel during the reporting period was 424 (403). The increase
both in Finland and abroad is due to the increased sales volumes.
SHARES AND SHARE CAPITAL
At the end of June 2011, 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 June 2011, the market capitalization totaled
EUR 96.6 (61.3) million. During the reporting period 649,317 (1,381,356) shares
were traded, accounting for 5.5 (11.6) per cent of the average number of shares
outstanding.
The highest share quotation was EUR 9.40 (6.79) and the lowest EUR 6.85 (5.00).
The share price closed at EUR 8.12 (5.15). The average share price during the
review period was EUR 8.29 (5.93).
Exel Composites did not hold any of its own shares during the period under
review.
SHAREHOLDERS AND DISCLOSURES
Exel Composites had a total of 2,566 shareholders on 30 June 2011. Information
on Exel Composites' shareholders is available on the Company website at
www.exelcomposites.com.
Exel Composites received a flagging notification on 20 May 2011 according to
which the holdings of Veikko Laine Oy had fallen under 5 per cent of the voting
rights and share capital in Exel Composites Plc on 20 May 2011. Before the
transaction the holdings of Veikko Laine Oy were 595,796 shares or 5.95 per
cent of Exel Composites' share capital and votes. After the transaction Veikko
Laine Oy's ownership was 395,796 shares or 3.33 per cent.
ANNUAL GENERAL MEETING
The Annual General Meeting of Exel Composites Plc was held on 6 April 2011. The
financial accounts of the Group were approved and the members of the Board of
Directors and the President were discharged from their liabilities for the
financial year 2010. The AGM approved the Board of Directors' proposal to
distribute a dividend of EUR 0.50 per share for the financial period that ended
on 31 December 2010.
The Annual General Meeting authorized the Board of Directors to acquire the
Company's own shares by using unrestricted equity. The maximum amount to be
acquired is 600,000 shares. The authorization is valid until the next Annual
General Meeting.
The AGM confirmed the number of the members of the Board of Directors as five
and elected a new Board. The following members of the Board of Directors were
re-elected: Peter Hofvenstam, Göran Jönsson, Reima Kerttula and Heikki
Mairinoja. Heikki Hiltunen was elected as a new member of the Board of
Directors. At the formative meeting of the Board of Directors held after the
AGM, the Board of Directors elected from among its members Peter Hofvenstam as
its Chairman.
EVENTS AFTER THE PERIOD UNDER REVIEW
Exel Composites ensured in July 2011 a new committed 3-year revolving credit
facility of EUR 20 million to refinance current credit facilities and to ensure
the financing of growth.
Exel Composites has entered into trademark license agreement with E-Sports
Group in relation to Exel's pole products. The agreement will be in effect from
1 August 2011.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to the general
economic development, government regulations and a possible new 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 and put
pressure on profitability. The European Commission's anti-dumping tariffs
imposed on Chinese glass fiber will have a negative effect on the profitability
in case the rising costs of raw materials cannot be transferred in full to
product prices. If the measures taken in the Chinese and British units to
improve efficiency prove to be unsuccessful, this may have an effect on the
result of the company. 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 2011
Demand in the pultrusion industry has improved gradually. We believe that Exel
Composites is well positioned to take advantage of the growth opportunities as
the markets recover. As a result of improved profitability, good cash flow
generation and reduced debt level we believe in Exel Composites' long-term
performance. Exel Composites recorded a strong first half of 2011, but
maintains its cautious stance for the full year 2011, since market
uncertainties persist.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
(unaudited)
EUR 1.4.-3 1.4.-30.6. Change 1.1.-30.6. 1.1.-30.6. Change 1.1.-31
thousand 0.6. 2010 % 2011 2010 % .12.
2011 2010
Net sales 23,367 19,173 21.9 44,915 34,843 28.9 72,872
Materials -9,295 -7,189 -29.3 -17,673 -13,252 -33.4 -28,403
and
services
Employee -5,672 -4,892 -15.9 -10,894 -9,274 -17.5 -18,833
benefit
expenses
Deprecia-ti -663 -763 13.1 -1,347 -1,438 6.3 -2,880
on and
impairment
Other -4,424 -4,229 -4.6 -8,686 -9,052 4.0 -16,808
operating
expenses
Other 317 553 -42.7 452 1,809 -75.0 3,481
operating
income
Operating 3,630 2,653 36.8 6,768 3,636 86.1 9,430
profit
Net -104 -10 -940.0 -127 -96 -32.3 -493
financial
items
Profit 3,527 2,643 33.4 6,641 3,540 87.6 8,936
before tax
Income -948 -706 -34.3 -1,729 -925 -86.9 -2,165
taxes
Profit/ 2,579 1,937 33.1 4,912 2,615 87.8 6,772
loss for
the period
Other
comprehens
ive income:
Exchange 172 1,008 -82.9 -696 2,303 -130.2 3,411
difference
s on
translatin
g foreign
operations Other 172 1,008 -82.9 -696 2,303 -130.2 3,411
comprehens
ive income,
net of tax
Total 2,751 2,946 -6.6 4,216 4,918 -14.3 10,183
comprehen-
sive income
Profit/
loss
attribu-ta
ble to:
Equity 2,579 1,937 33.1 4,912 2,615 87.8 6,772
holders of
the parent
company
Comprehen-s
ive income
attribu-tab
le to:
Equity 2,751 2,946 -6.6 4,216 4,918 -14.3 10,183
holders of
the parent
company
Earnings 0.22 0.16 37.5 0.41 0.22 87.8 0.57
per share,
diluted
and
undiluted,
EUR
CONDENSED CONSOLIDATED BALANCE SHEET
EUR thousand 30.6. 30.6. Change 31.12.
2011 2010 2010
ASSETS
Non-current assets
Goodwill 11,396 10,294 1,102 11,637
Other intangible assets 2,109 2,975 -866 2,426
Tangible assets 10,576 10,904 -328 10,427
Deferred tax assets 642 1,737 -1,095 1,585
Other non-current assets 63 62 1 64
Non-current assets total 24,786 25,972 -1,186 26,139
Current assets
Inventories 10,097 9,671 426 9,600
Trade and other receivables 14,109 12,617 1,492 9,540
Cash at bank and in hand 8,131 10,044 -1,913 11,606
Current assets total 32,336 32,331 5 30,746
Total assets 57,122 58,303 -1,181 56,885
EQUITY AND LIABILITIES
Shareholders´ equity
Share capital 2,141 2,141 0 2,141
Other reserves 30 37 -7 37
Invested unrestricted equity fund 8,488 8,488 0 8,488
Translation differences 2,616 2,204 412 3,311
Retained earnings 12,631 12,039 592 11,757
Profit for the period 4,912 2,615 2,297 6,772
Total equity attributable to equity holders of 30,818 27,524 3,294 32,507
the parent company
Total equity 30,818 27,524 3,294 32,507
Non-current liabilities
Interest-bearing liabilities 10,207 8,162 2,045 10,204
Interest-free liabilities 367 321 46 362
Deferred tax liabilities 559 206 353 549
Current liabilities
Interest-bearing liabilities 10 7,510 -7,500 15
Trade and other non-current liabilities 15,160 14,580 580 13,250
Total liabilities 26,304 30,779 -4,475 24,378
Total equity and liabilities 57,122 58,303 -1,181 56,885
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR thousand Share Other Invested Translation Retained Total
Capita reserves Unrestricted Differences Earnings
l Equity Fund
Balance at 1 2,141 37 8,488 -100 15,013 25,580
January 2010
Comprehensive 0 0 0 2,303 2,615 4,918
result
Dividend 0 0 0 0 -2,974 -2,974
Balance at 30 2,141 37 8,488 2,204 14,654 27,524
June 2010
Balance at 2,141 37 8,488 3,311 18,529 32,507
1st January
2011
Comprehensive 0 0 0 -696 4,912 4,216
result
Other items 0 -7 0 0 50 43
Dividend -5,948 -5,948
Balance at 30 2,141 30 8,488 2,616 17,543 30,818
June 2011
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
EUR thousand 1.1.-30.6. 1.1.-30.6. Change 31.12.
2011 2010 2010
Cash Flow from Operating Activities
Profit for the period 4,912 2,615 2,297 6,772
Adjustments 2,562 3,125 -563 6,276
Change in working capital -2,468 -515 -1,953 1,729
Cash Flow Generated by Operations 5,006 5,225 -219 14,777
Interest paid -173 -273 100 -515
Interest received 47 154 -107 114
Other financial items 146 64 82 -88
Income taxes paid -1,070 -1,071 1 -2,296
Net Cash Flow from Operating Activities 3,956 4,099 -143 11,992
Acquisitions 0 0 0 0
Disposal of business 0 0 0 0
Capital expenditure -1,478 -695 -783 -1,570
Proceeds from sale of fixed assets 0 0 0 0
Cash Flow from Investing Activities -1,478 -695 -783 -1,570
Cash Flow from Financing
Share issue 0 0 0 0
Proceeds from long-term borrowings 0 0 0 0
0 0
Instalments of long-term borrowings 0 -2,157 2,157 -6,857
Change in short-term loans 0 0 0 -106
Instalments of finance lease -5 -826 821 -1,477
liabilities
Dividends paid -5,948 -2,974 -2,974 -2,974
Net Cash Flow from Financing -5,953 -5,957 4 -11,414
Change in Liquid Funds -3,475 -2,553 -922 -992
Liquid funds in the beginning of period 11,606 12,597 -991 12,597
Change in liquid funds -3,475 -2,553 -922 -992
Liquid funds at the end of period 8,131 10,044 -1,913 11,606
QUARTERLY KEY FIGURES
EUR thousand II/ I/ IV/ III/ II/ 1/
2011 2011 2010 2010 2010 2010
Net sales 23,367 21,548 19,338 18,692 19,173 15,671
Materials and services -9,295 -8,378 -7,700 -7,451 -7,189 -6,062
Employee benefit expenses -5,672 -5,221 -4,982 -4,577 -4,892 -4,381
Depreciation and impairment -663 -684 -719 -724 -763 -675
Operating expenses -4,424 -4,262 -3,901 -3,856 -4,229 -4,824
Other operating income 317 135 1,078 595 553 1,255
Operating profit 3,630 3,137 3,115 2,679 2,653 983
Net financial items -104 -23 -246 -152 -10 -86
Profit before taxes 3,527 3,115 2,869 2,527 2,643 897
Income taxes -948 -782 -578 -662 -706 -219
Profit/loss for the period from 2,579 2,333 2,291 1,865 1,937 678
continuing operations
Profit/loss for the period 2,579 2,333 2,291 1,865 1,937 678
Earnings per share, EUR 0.22 0.20 0.19 0.16 0.16 0.06
Earnings per share, EUR, diluted 0.22 0.20 0.19 0.16 0.16 0.06
Average number of shares,
undiluted,
1,000 shares 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
Average number of personnel 432 416 408 402 397 408
COMMITMENTS AND CONTINGENCIES
EUR thousand 30.6.2011 30.6.2010 31.12.2010
On own behalf
Mortgages 2,783 2,783 2,783
Corporate mortgages 12,500 12,500 12,500
Lease liabilities
- in next 12 months 927 384 886
- in next 1-5 years 2,481 1,411 2,770
Other commitments 6 182 10
DERIVATIVE FINANCIAL INSTRUMENTS
Nominal values 30.6.2011 30.6.2010 31.12.2010
EUR thousand
Interest rate derivatives
Interest rate swaps 10,000 10,000 10,000
Purchased interest rate options 0 0 0
CONSOLIDATED KEY FIGURES
EUR thousand 1.1.-30.6. 1.1.-30.6. Change % 31.12.
2011 2010 2010
Net sales 44,915 34,843 28.9 72,872
Operating profit 6,768 3,636 86.1 9,430
% of net sales 15.1 10.4 12.9
Profit before tax 6,641 3,540 87.6 8,936
% of net sales 14.8 10.2 12.3
Profit for the period 4,912 2,615 87.8 6,772
% of net sales 10.9 7.5 9.3
Shareholders´ equity 30,818 27,524 12.0 32,507
Interest-bearing liabilities 10,217 15,672 -34.8 10,219
Cash and cash equivalents 8,131 10,044 -19.0 11,606
Net interest-bearing liabilities 2,086 5,628 -62.9 -1,387
Capital employed 41,035 43,196 -5.0 42,725
Return on equity, % 31.0 19.7 23.3
Return on capital employed, % 32.5 17.5 21.8
Equity ratio, % 54.0 47.2 57.4
Net gearing, % 6.8 20.4 -4.3
Capital expenditure 1,478 695 112.7 1,570
% of net sales 3.3 2.0 2.2
Research and development costs 795 702 13.2 1.312
% of net sales 1.8 2.0 1.8
Order stock 15,946 12,353 29.1 13,316
Earnings per share, EUR 0.41 0.22 87.8 0.57
Earnings per share, EUR, diluted 0.41 0.22 87.8 0.57
Equity per share, EUR 2.59 2.31 12.1 2.73
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 424 403 5.2 404
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.
Vantaa, 22 July 2011
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
DASDAQ OMX Helsinki Ltd.
Main news media
www.exelcomposites.com
EXEL COMPOSITES IN BRIEF
Exel Composites 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 |