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2012-05-14 13:00:00 CEST 2012-05-14 13:00:09 CEST REGULATED INFORMATION Neo Industrial Oyj - Interim report (Q1 and Q3)NEO INDUSTRIAL´S INTERIM REPORT FOR JANUARY-MARCH 2012 (Q1/2011)Neo Industrial Plc INTERIM REPORT 14 May 2012 at 2 pm The Cable segment improved its operating result, but working capital financing remained a challenge for the Group. - The Neo Industrial Group´s net sales decreased by 17 percent to EUR 26.3 (31.6) million. - Its operating result improved by 72 percent to EUR -2.0 (-7.2) million. - Its profit for the period improved by 67 percent to EUR -2.4 (-7.5) million. The Cable segment´s sales were EUR 24.3 million (24.5 million). Sales developed favourably in Finland and other Nordic countries, while decreasing slightly in Russia and the Baltic countries. The segment´s operating result turned to positive to EUR 0.1 million (-0.3 million). The Viscose Fibres segment´s net sales decreased 72 percent to EUR 2.0 million. Avilon´s (under corporate restructuring program) Valkeakoski plant continued to be shutdown throughout the whole review period due to difficult market conditions. The segment´s operating result was EUR -2.0 million (-6.6 million). The figures of Finndomo, which constitutes the Single Family Housing segment, are not yet available due to filing a petition for corporate restructuring. After the review period, Finndomo has signed an agreement on selling its major prefabricated home business in Sonkajärvi on 20 April 2012. At the end of the review period, the balance sheet total stood at EUR 102.5 million (117.1 million). The Group´s cash position remained tight. With increased demand, working capital management presented challenges for the Cable Segment. In the Viscose Fibres, the resumption of production will require additional working capital financing. KEY FIGURES Q1/ 2012 Q1/ 2011 Change Net sales, EUR million 26.3 31.6 -17 % Operating result, EUR million -2.0 -7.2 72 % Profit, EUR million -2.4 -7.5 67 % Earnings per share -0.38 -1.26 ROI, % 0.0 -11.1 Equity ratio, % 10.3 22.7 MANAGING DIRECTOR MARKKU E. RENTTO: despite the improved outlook for the Cable segment, the first quarter of 2012 was challenging for the Neo Industrial Group. The management focused on ensuring sufficient working capital financing for the Group. On the positive side, the market for the Cable segment has strengthened and demand has increased particularly in Finland and other Nordic countries, improving the segment's operating profitability. However, raw material prices rose at the same time, which has resulted in an additional need for working capital with increased demand. The Viscose Fibres segment continues to face challenges. Avilon filed its corporate restructuring program on 7 May 2012, and viscose production is still under shutdown because of unprofitability. However, the segment has continued its development activities and decided to launch the production of antimicrobial special fibres. In addition, it signed a new agreement on the sales and marketing of licences for its PPV technology in the first quarter. In other words, the Viscose Fibres segment is investing in the future. Finndomo Ltd - which constitutes the Single Family Housing segment and of which Neo Industrial owns 30 percent - is in financial difficulty. Finndomo sold its production plant in Sonkajärvi on 20 April 2012. The company is in the process of preparing its corporate rstructuring program. NEAR-TERM OUTLOOK In the Cable segment, the strong order backlog and good demand for ground cable products make the outlook favourable for the rest of the year. The segment expects to record a positive result in 2012. In the Viscose Fibres segment, antimicrobial post-production will be launched during the summer. Unsecured debts will be cut when Avilon's corporate restructruring program is confirmed. The effects of the restructuring on the result will be reported in the second quarter, provided that the planned schedule remains unchanged. In the Single Family Housing segment, the draft restructuring program for Finndomo is under preparation. DISCLOSURE POLICY OF INTERIM REPORT Neo Industrial follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority, and discloses relevant information related to its Interim Report with this Stock Exchange Release. Neo Industrial's Interim Report Q1/2012 is attached to this release and is also available on company's website at www.neoindustrial.fi. Helsinki, 14 May 2012 Neo Industrial Plc Board of Directors Further information: Markku E. Rentto, Managing Director, tel. +358 207 209 191 Sari Tulander, CFO, tel. +358 207 209 192 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, Viscose Fibers and Single Family Housing. ENCL: Neo Industrial's Interim Report Q1/2012 |
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