Martela Oyj - Interim report (Q1 and Q3)

MARTELA CORPORATION INTERIM REPORT, 1 JANUARY - 31 MARCH 2012

MARTELA CORPORATION STOCK EXCHANGE RELEASE 27 April 2012 at 8.30 a.m.


MARTELA CORPORATION INTERIM REPORT, 1 JANUARY - 31 MARCH 2012

During the first quarter, the revenue grew and the operating result remained at
the previous year's level. 

Key figures:



                             1-3    1-3   1-12
EUR mill.                   2012   2011   2011
- Revenue                   32.0   27.4  130.7
- Change in revenue, %      16.9   21.4   20.6
- Operating result          -0.9   -0.8    2.6
- Operating result, %       -2.8   -2.9    2.0
- Earnings/share, EUR      -0.27  -0.22   0.39
- Return on investment, %   -9.3   -8.6    6.0
- Return on equity, %      -14.9  -11.8    5.1
- Equity ratio, %           48.4   54.9   44.7
- Gearing, %                16.5  -16.1   -2.6



The Martela Group expects to post year-on-year revenue growth for 2012, and an
operating result at or above the previous year's level. 

Market

The uncertainties affecting the global economy have not had a significant
impact on the demand for office furniture in the Nordic countries. In fact, the
demand remained at a reasonably good level in Finland, Sweden and Poland during
the year. In Denmark, however, demand is still weak. 

Statistics on office construction are available for 2011, and according to
these, 16 per cent more office space in terms of square metres was built in
Finland in 2011 than in the previous year. In the same period significantly
more building permits (+22%) were granted and significantly more new office
building starts (+14%) were made compared with in 2010. In contrast, the number
of granted building permits was 26% lower and the number of starts was 27%
lower in the final quarter of 2011 than in the corresponding period of 2010. 

Consolidated revenue and result

Consolidated revenue for January-March was EUR 32.0 million (27.4), an increase
of 16.9 per cent on the previous year. The acquisition of the Grundell
companies at the end of 2011 increased revenue. Revenue also grew substantially
in the traditional sales channels in Finland, Sweden and Poland. The comparable
revenue growth without acquisitions in the review period was 11.6 per cent. 

First quarter operating result was EUR -0.9 million (-0.8). The Group invested
heavily in the development and growth of its operations in 2011 and the period
under review, which has increased overhead costs resulting from staff
recruitment, new sales outlets and acquisition. The objective of these
investments is particularly to strengthen the Group's service business and
sales channels. Due to this expenditure, the consolidated operating result did
not improve despite of the revenue growth. 

Codetermination negotiations were initiated during the review period to
establish a new service production unit. The purpose of the new unit is to
improve the efficiency of operations, simplify customer service and ensure high
quality. The negotiations were concluded on 20 April 2012 and as a result the
number of personnel in the Group will decrease by nine. In addition, six
permanent office employees will transfer to service production as permanent
factory employees. The reductions and changes will reduce Group fixed costs in
the second half of this year. 

The result before taxes was EUR -1.1 million (-0.9), and the result after taxes
was EUR -1.1 million (-0.9). 

Martela's full interim report for January-March 2012 is included in PDF format
as an attachment to this release. The interim report is also available on the
company's website at www.martela.com. 

Martela Corporation
Board of Directors
Heikki Martela
Managing Director

ATTACHMENT: Martela's interim report January-March 2012


Additional information
Heikki Martela, Managing Director, tel. +358 50 502 4711
Markku Pirskanen, CFO, tel. +358 40 517 4606

Attachments:

2012 0427 Release Q1.pdf