Neo Industrial Oyj - Interim report (Q1 and Q3)

NEO INDUSTRIAL´S INTERIM REPORT FOR JANUARY-SEPTEMBER 2012

Neo Industrial Plc                  INTERIM REPORT                    7
November 2012 at 2.45 p.m. 

The board of the Neo Industrial Group signed a demerger plan in August. The
Cable segment again recorded a positive operating result in the third quarter. 

January-September:
- The Neo Industrial Group's net sales were EUR 86.0 million (95.2 million in
2011), decreasing by 9.6 percent. 
- Its operating result improved by 167.0 percent to EUR 8.1 million (-12.1
million). 
- The Cable segment's operating result was EUR 2.3 million (-2.0 million).
- The Viscose Fibres segment's operating result was EUR 6.5 million (-8.9
million). 
- The Group's result for the period improved by 100.4 percent to EUR 0.1
million (-16.3 million). 

  July-September
- The Neo Industrial Group's net sales were EUR 28.3 million (27.4 million),
increasing by 3.4 percent. 
- Its operating result improved by 114.8 percent to EUR 0.4 million (-2.9
million). 
- The Cable segment's operating result was EUR 1.8 million (-1.5 million).
- The Viscose Fibres segment's operating result was EUR -1.1 million (-1.1
million). 
- The Board of Directors signed a demerger plan.

KEY FIGURES

                                Q3/      Q3/  Change    Q1-3/     Q1-3/   Change
                               2012     2011             2012      2011         
Net sales (EUR million)        28.3     27.4   3,4 %     86.0      95.2   -9,6 %
Operating result (EUR           0.4     -2.9  114,8%      8.1     -12.1  167,0 %
 million)                                                                       
Profit for the period (EUR     -1.5     -4.7  67,1 %      0.1     -16.3  100,4 %
 million)                                                                       
Earnings per share, EUR       -0.38    -0.64  41,2 %    -0.25     -2.56   90,3 %
ROI                                                     6,1 %   -19,8 %         
Equity ratio                                           17,3 %    21,3 %         



MANAGING DIRECTOR JARI SALO:

The Cable segment improved its result considerably in the third quarter when
compared to the corresponding period of the previous year. Its positive
operating result was boosted by increased demand in Finland and other Nordic
countries. This is significant for the stability of the Group's finances.
Working capital management continued to present challenges and require
considerable attention from the management. 

The Group prepared reorganisation programmes for the Viscose Fibres and Single
Family Housing segments during the review period, and the programme for the
Viscose Fibres segment was confirmed. In June, Neo Industrial decided to write
off its shares in Finndomo Ltd and discontinue its Single Family Housing
segment. 

The Neo Industrial Group's Board of Directors signed a demerger plan in August.
The Board believes that the demerger will streamline business structures,
improve transparency and help create more value for shareholders over the long
term. 

In the Viscose Fibres segment, Avilon's corporate reorganisation programme was
confirmed in June, which improved the company's debt structure and future
prospects. The segment made an investment that enables the manufacture of
antimicrobial products and continued to market the PPV technology and the
related licences. It also signed a letter of intent with a major Chinese fibre
manufacturer and continued negotiations towards its first licensing contract. 

NEAR-TERM OUTLOOK

The Cable segment is expected to record a positive result also in the second
half of 2012. The outlook for the main markets of the Cable segment is
uncertain for the rest of the year. Many significant investments will be
postponed in the Nordic countries because of economic uncertainty. The Finnish
construction industry seems to be slowing more than expected towards the
winter. Several underground cabling projects are being planned in Finland and
Sweden, but their implementation will not begin for the most part until the
spring of 2013. The Norwegian cable market is expected to develop favourably in
2013. 

In the Viscose Fibres segment, the first deliveries in Avilon's new product
category, antimicrobial fibres, will be small, and growth in volumes depends on
customers' schedules, decision-making processes and the results of test runs.
Procurement logistics must also be developed to ensure continuous and stable
production volumes in different situations. Antimicrobial products have been
manufactured for stock, and post-processing runs will be carried out as
customer volumes increase in the future. Costs and operations will be adjusted
depending on the situation. 

Viscose production will be launched after operating conditions, the appropriate
product mix and funding have been secured. Preparations for the winter are in
progress, which means that the viscose fibre production lines will not be
launched during 2012. 

Negotiations related to the PPV technology will continue with selected target
companies. The first agreement is expected to be concluded in the fourth
quarter of 2012. 

DISCLOSURE POLICY OF INTERIM REPORT

Neo Industrial discloses relevant information related to its Interim Report
with this Stock Exchange Release. Neo Industrial's Interim Report Q3/ 2012 is
attached to this release and is also available on company's website at
www.neoindustrial.fi. 



Helsinki, 7 November 2012


Neo Industrial Plc

Board of Directors



More information:
Jari Salo, Managing Director, tel. +358 20 720 9196
Markku E. Rentto, Managing Director during the review period, tel. +358 20 720
9191 
Sari Tulander, CFO, tel. +358 20 720 9192



www.neoindustrial.fi

Neo Industrial's strategy is to invest mainly in industrial companies with
similar synergic benefits. The aim of investments is with active ownership to
develop the purchased companies and establish additional value. Returns are
sought through both dividend flow and an increase in value. Neo Industrial's
class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange. Neo
Industrial's business segments are Cable and Viscose Fibres. 

ENCL: Neo Industrial's Interim Report Q3/2012

Attachments:

Neo Industrial Interim Report Q3 2012.pdf