Martela Oyj - Interim report (Q1 and Q3)

MARTELA CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2011

MARTELA CORPORATION          INTERIM REPORT         26.10.2011 at 8.30 a.m.



MARTELA CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2011

Consolidated revenue up, operating result slightly better than previous year

Key figures:



                              Q3    Q3   Jan-Sep  Jan-Sep       
EUR mill.                    2011  2010   2011     2010     2010
- Revenue                    33.8  26.1   91.7     74.4    108.4
- Change in revenue, %       29.7   0.9   23.4      4.6     13.7
- Operating result            2.4   2.0    0.7      0.4     1.3 
- Operating result, %         7.0   7.5    0.8      0.5     1.2 
- Earnings/share, EUR        0.45  0.30   0.02     -0.07    0.16
- Return on investment, %    26,3  20,2    2.1      1.5     3.7 
- Return on equity, %        24,3  15,7    0.4     -1.3     2.0 
- Equity-to-assets ratio, %               55.5     56.9     55.6
- Gearing, %                              -4.9     -17.9   -14.1



The Martela Group expects to post year-on-year revenue growth for 2011, and an
operating result at or above the previous year's level. 

Market

The uncertainties affecting the global economy have not yet had a discernible
impact on the demand for office furniture in the Nordic countries. The demand
has in fact increased in Finland, Sweden and Poland this year. In Denmark,
however, demand is still weak. 

Statistics on office construction are available for the first half of 2011, and
these show that in Finland 17 per cent less office space, in square metres, was
built than in the first half of 2011. However, significantly more building
permits (+41%) were granted and there were more new office building starts
(+15%) in the first half of 2011 compared with the same period a year earlier. 

Consolidated revenue and result

Consolidated revenue for the third quarter was EUR 33.8 million (26.1), an
increase of 29.7 per cent on the previous year. Revenue for January-September
rose to EUR 91.7 million (74.4), a growth of 23.4 per cent. The increase in
revenue was attributable in part to the positive performance of the traditional
sales channels in Finland and Sweden and also Poland, where the increase was
particularly strong. Other factors boosting revenue included the Martela Outlet
sales channel that was acquired and launched in June 2010, and the Danish
importer acquired in November. Comparable revenue growth (without the
acquisitions) was 23.8 per cent in the third quarter and 18.5 per cent in
January-September. 

The third-quarter operating result improved and was EUR 2.4 million (2.0). For
January-September, the operating result was up slightly to EUR 0.7 million
(0.4). The Group has invested strongly in the development and growth of its
business by hiring new personnel and opening new sales points. This investment
has focused particularly on strengthening the Group's service business and
sales channels. Due to this expenditure, the improvement in the consolidated
operating result did not match the improvement in revenue. 

The result before taxes for January-September was EUR 0.2 million (0.1), and
the result after taxes was EUR 0.1 million (-0.3). 

Martela's full interim report for January-September 2011 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-September 2011


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

Attachments:

Interim Report Q3 2011.pdf