Martela Oyj - Financial Statement Release

MARTELA CORPORATION'S FINANCIAL STATEMENTS, 1 JANUARY - 31 DECEMBER 2012

MARTELA CORPORATION    FINANCIAL STATEMENTS RELEASE          6 February 2013 at
8.30 a.m. 


MARTELA CORPORATION'S FINANCIAL STATEMENTS, 1 JANUARY - 31 DECEMBER 2012

Consolidated revenue up, operating result worse than previous year

Key figures:



                           10-12  10-12   1-12   1-12
EUR million                 2012   2011   2012   2011
- Revenue                   40.8   39.0  142.7  130.7
- Change in revenue %        4.7   14.5    9.2   20.6
- Operating result           0.3    1.9   -0.9    2.6
- Operating result %         0.8    4.9   -0.6    2.0
- Earnings per share, EUR  -0.01   0.36  -0.51   0.39
- Return on investment, %    2.5   18.4   -2.7    6.0
- Return on equity, %       -0.8   19.1   -7.1    5.1
- Equity ratio, %                         42.6   44.7
- Gearing, %                              28.6   -2.6



The Martela Group anticipates that its revenue in 2013 will be at about the
2012 level, and that its operating result will show a year-on-year improvement 

Market

The demand for office furniture was still fairly high in Finland, Sweden and
Poland during the first half of 2012, but significant uncertainty was seen in
customers' decision-making after the summer, for the first time in the year.
The effects of the uncertainty in the international economy grew distinctly
towards the end of the year and became evident as a slackening in demand,
especially on the Finnish market. 

Statistics on office construction in Finland are available for the first three
quarters (January-September) of 2012, and these indicate that 39 per cent more
office space (square metres) was built than in the same period the previous
year. At the same time, however, fewer building permits (-4%) were granted than
a year earlier, and there were also 10 per cent fewer new office building
starts. The figures also indicate a slight weakening in the construction
outlook in late September. 

Consolidated revenue and result

Consolidated revenue for the fourth quarter was EUR 40.8 million (39.0) ), an
increase of 4.7 per cent on the previous year. Consolidated revenue in 2012 was
EUR 142.7 million (130.7), an increase of 9.2 per cent on the previous year.
This was partly due to the acquisition of the Grundell companies at the end of
2011, though revenue also grew in the traditional sales channels in Finland. By
contrast, Martela did not manage to boost revenue on other main markets.
Instead, revenue in both Business Unit Sweden and Norway and Business Unit
Poland fell slightly year on year. The Martela Group's like-for-like revenue
growth (excluding the Grundell acquisition) was 4.7 per cent for the year. 

Business Unit Finland's revenue was up by 10.7 per cent. Business Unit Sweden &
Norway's revenue was down by 1.0 per cent, and Business Unit Poland's by 1.2
per cent, calculated in local currencies. Movements in exchange rates did not
have a significant impact on the Group's revenue. 

During the fourth quarter, operating result decreased to EUR 0.3 million (1.9).
The 2012 operating result was EUR -0.9 million (2.6), which was -0.6 per cent
(2.0) of revenue. The Group's result was adversely affected by the investment
in business development made during the year, and by the reorganisation of the
Danish business in the latter part of the year. In addition, demand did not
reach the forecast level late in the year, especially in Finland, due to the
general weakening of the economy.  Following the acquisition of Grundell the
previous year, the integration of service production proceeded as planned. 

The result before taxes was EUR -1.8 million (1.9), and the result after taxes
was EUR -2.0 million (1.6). 


Martela's full interim report for January-June 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 Oyj
Board of Directors
Heikki Martela
CEO

For more information, please contact
Heikki Martela, CEO, tel. +358 50 502 4711
Markku Pirskanen, CFO, tel. +358 40 517 4606


Distribution
NASDAQ OMX Nordic
Main News Media
www.martela.com

Attachments:

Financial Statements 2012 release.pdf