2010-10-29 08:00:00 CEST
2010-10-29 08:00:06 CEST
REGULATED INFORMATION
Exel Composites Oyj - Interim report (Q1 and Q3)
Exel Composites Plc's interim report for January 1 - September 30, 2010
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 29.10.2010 at 9.00 a.m. 1 (13) EXEL COMPOSITES PLC'S INTERIM REPORT FOR JANUARY 1 - SEPTEMBER 30, 2010 July - September 2010 highlights - Net sales from continuing operations were EUR 18.7 (15.9) million, an increase of 17.3 per cent on the previous year - Operating profit from continuing operations was EUR 2.7 (1.2) million, representing 14.3 (7.8) per cent of net sales - Net operative cash flow was positive at EUR +2.8(+2.4) million - Fully diluted earnings per share improved to EUR 0.16 (0.07), of which continuing operations accounted for EUR 0.16 (0.06) January - September 2010 highlights and outlook - Net sales from continuing operations were EUR 53.5 (53.8) million for the first nine months of 2010, down by -0.4 per cent on the previous year - Operating profit from continuing operations was EUR 6.3 (5.6) million in January - September 2010, representing 11.8 (10.5) per cent of net sales - Net operative cash flow was positive at EUR +6.9 (+8.6) million, whilst net debt was reduced to EUR 3.1 million - Fully diluted earnings per share were EUR 0.38 (0.37), of which continuing operations accounted for EUR 0.38 (0.35) - Strategic review conducted. Profitable growth strategy confirmed. - Due to the uncertain market situation and poor visibility, Exel Composites will not give any profit guidance. Vesa Korpimies, President and CEO: “Market conditions continued to improve in the third quarter 2010 driven by increasing demand especially in telecommunication, paper, electrical and machine industry and the cleaning and maintenance market. Meanwhile, building and construction industry suffered from poor demand but there is a growing interest in e.g. composite window and door profiles. The European Commission imposed an anti-dumping tariff of 43.6 per cent on imported Chinese glass fiber in September 2010. The tariff and raw material cost increases raise production costs in Europe. Exel Composites has taken actions to reduce the impact of higher production costs on the profitability, including increasing product prices, employing alternative sourcing opportunities as well as increasing production and improving efficiency in Exel's Nanjing unit in China. The rising raw material costs are not estimated to have a material impact on the profitability yet in 2010. The Group's net sales in the third quarter of 2010 increased by 17.3 per cent on the corresponding period last year to EUR 18.7 (15.9) million. The positive demand development combined with our actions to reduce cost and capital employed resulted in a strong quarter for the Group. The Group's operating profit improved from EUR 1.2 million to EUR 2.7 million and the return on capital employed increased to 25.3 (12.4) per cent. Our positive cash flow enabled us to reduce the net debt to EUR 3.1 million. We are encouraged by the development in the third quarter of 2010.However, we remain cautious in the near term, since fundamental economic uncertainties persist. Because of the comprehensive rationalization of the costs and capital, as well as our focus on sales and new applications, we are well positioned to take advantage of the growth opportunities as the markets gradually recover.” CONSOLIDATED KEY FIGURES, EUR million (unaudited) -------------------------------------------------------------------------------- | | 1.7. - | 1.7. | Chang | 1.1. - | 1.1. - | Change, | 1.1. - | | | 30.9. | - | e % | 30.9. | 30.9. | % | 31.12. | | | 2010 | 30.9. | | 2010 | 2009 | | 2009 | | | | 2009 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, | 18.7 | 15.9 | 17.3 | 53.5 | 53.8 | -0.4 | 70.0 | | continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | Operating | 2.7 | 1.2 | 116.2 | 6.3 | 5.6 | 12.2 | 8.0 | | profit, | | | | | | | | | continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | % of net | 14.3 | 7.8 | | 11.8 | 10.5 | | 11.4 | | sales | | | | | | | | -------------------------------------------------------------------------------- | Profit for | 1.9 | 0.7 | 166.8 | 4.5 | 4.1 | 9.1 | 5.9 | | the | | | | | | | | | period, | | | | | | | | | continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholde | 29.3 | 22.7 | 29.2 | 29.3 | 22.7 | 29.2 | 25.6 | | rs' equity | | | | | | | | -------------------------------------------------------------------------------- | Net | 3.1 | 11.8 | -74.0 | 3.1 | 11.8 | -74.0 | 6.1 | | interest-b | | | | | | | | | earing | | | | | | | | | liabilitie | | | | | | | | | s | | | | | | | | -------------------------------------------------------------------------------- | Capital | 42.8 | 43.3 | -1.0 | 42.8 | 43.3 | -1.0 | 44.3 | | employed | | | | | | | | -------------------------------------------------------------------------------- | Return on | 26.2 | 14.3 | | 21.8 | 29.9 | | 31.3 | | equity, % | | | | | | | | -------------------------------------------------------------------------------- | Return on | 25.3 | 12.4 | | 20.1 | 18.4 | | 20.9 | | capital | | | | | | | | | employed, | | | | | | | | | % | | | | | | | | -------------------------------------------------------------------------------- | Equity | 50.0 | 38.8 | | 50.0 | 38.8 | | 44.6 | | ratio, % | | | | | | | | -------------------------------------------------------------------------------- | Net | 10.4 | 51.8 | | 10.4 | 51.8 | | 23.7 | | gearing, % | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings | 0.16 | 0.07 | | 0.38 | 0.37 | | 0.56 | | per share, | | | | | | | | | EUR | | | | | | | | -------------------------------------------------------------------------------- | Earnings | 0.16 | 0.07 | | 0.38 | 0.37 | | 0.56 | | per share, | | | | | | | | | diluted, | | | | | | | | | EUR | | | | | | | | -------------------------------------------------------------------------------- | Equity per | 2.47 | 1.91 | | 2.47 | 1.91 | | 2.15 | | share, EUR | | | | | | | | -------------------------------------------------------------------------------- IFRS REPORTING This interim report has been prepared in accordance with the recognition and measurement principles of IFRS, which are the same as in the 2009 financial statements. FINANCIAL PERFORMANCE 1 July - 30 September 2010 The Group's net sales from continuing operations in July - September 2010 increased by 17.3 per cent to EUR 18.7 (15.9) million compared to the corresponding period last year. Net sales continued to improve in telecommunication, paper, electrical and machine industry and cleaning and maintenance. Building and construction industry still suffered from poor demand, but there is a growing interest in composite glass fiber window and door profiles because of new energy regulations. In the airport product group the quiet period continued. There have been some early signs of recovery, but the demand is still weak. Exel Composites' operating profit from continuing operations in July - September 2010 increased to EUR 2.7 (1.2) million, up by 116.2 per cent compared to the corresponding period last year. 1 January - 30 September 2010 Net sales from continuing operations in January - September 2010 decreased by 0.4 per cent to EUR 53.5 (53.8) million compared to the corresponding period in 2009. The composite profile market continued to be competitive and there was overcapacity in the market. Also, the European Commission imposed an anti-dumping tariff of 43.6 per cent on imported Chinese glass fiber. Exel Composites has taken actions to reduce the impact of the tariff, including increasing product prices, employing alternative sourcing opportunities as well as increasing production and improving efficiency in Exel's Nanjing unit in China. Exel Composites' operating profit from continuing operations in January - September 2010 increased by 12.2 per cent to EUR 6.3 (5.6) million, compared to the corresponding period last year. Operating profit as a percentage of net sales from continuing operations was 11.8 (10.5) per cent. Other operating expenses include one-off restructuring costs of EUR 1.1 million due to the corporate restructuring of the former Floorball licensee. Other operating income includes one-off Sports licensing income of EUR 1.6 million. After deduction of related costs this gives a positive net effect in operating profit of EUR 0.5 million. The Group's net financial expenses from continuing operations in January - September 2010 were EUR -0.2 (-0.1) million. The Group's profit before taxes from continuing operations was EUR 6.1 (5.6) million and profit after taxes EUR 4.5 (4.1) million. Earnings per share for continuing operations improved to EUR 0.38 (0.35) and for discontinued operations decreased to EUR 0.00 (0.03). Return on capital employed was 20.1 (18.4) per cent. BALANCE SHEET AND FINANCIAL POSITION Net cash flow from operating activities was positive at EUR 6.9 (8.6) million. Cash flow before financing, but after capital expenditure, amounted to EUR 6.0 (8.9) million. Net interest-bearing liabilities were reduced to EUR 3.1 (11.8) million, and the net gearing ratio improved to 10.4 (51.8) per cent. Interest-bearing liabilities amounted to EUR 13.5 (20.5) million, of which short term liabilities accounted for EUR 5.3 (4.2) million. Capital expenditure was financed with cash flow from business operations. At the end of the period under review, the Group's liquid assets stood at EUR 10.4 (8.8) million. The Group's consolidated total assets at the end of the review period were EUR 58.6 (58.6) million. Equity at the end of the period under review was EUR 29.3 (22.7) million and equity ratio 50.0 (38.8) per cent. CAPITAL EXPENDITURE AND DEPRECIATION The capital expenditure on fixed assets during the review period amounted to EUR 1.0 (1.1) million. Total depreciation of non-current assets during the period under review amounted to EUR 2.2 (2.3) million. PERSONNEL The number of Exel Composites Group employees on 30 September 2010 was 408 (409), of whom 188 (175) worked in Finland and 220 (234) in other countries. The average number of personnel during the reporting period was 402 (443). The decrease of average number of personnel is due to the rationalization actions in the Finnish, British and Chinese units and the divestment of Exel Sports Brands' Floorball business. SHARES AND SHARE CAPITAL At the end of September 2010, Exel Composites' share capital was EUR 2,141,431.74 and the number of shares was 11,896,843. There were no changes in the share capital during the review period. Based on the closing price on 30 September 2010, the market capitalization totaled EUR 65.6 (66.4) million. During January - September 2010 1,831,394 (3,195,810) shares were traded, accounting for 15.4 (26.9) per cent of the average number of shares outstanding. The highest share quotation in January - September 2010 was EUR 6.79 (6.20) and the lowest EUR 5.00 (2.37). The share price closed at EUR 5.51 (5.58). The average share price during the review period was EUR 5.81 (3.91). Own shares Exel Composites did not hold any of its own shares during the period of review. SHAREHOLDERS AND DISCLOSURES Exel Composites had a total of 2,186 shareholders on 30 September 2010. Information on Exel Composites' shareholders is available on the Company website at www.exelcomposites.com. Exel Composites received no flagging notifications during the period under review. STRATEGIC REVIEW CONDUCTED Exel Composites' Board of Directors has conducted a review of the strategic options available to enhance shareholder value. Exel Composites has a strong financial position and is the market leader in the fragmented pultrusion industry. The Board confirmed the strategy to continue focusing on profitable growth by pursuing organic growth opportunities and bolt-on acquisitions. MAJOR NEAR-TERM RISKS AND UNCERTAINTIES The most significant near-term business risks are related to the general economic development, government regulations and a possible new financial crisis in the Euro area as well as to market demand in certain market segments. The general market visibility is still uncertain. Raw material prices, energy cost and other cost increases may put pressure on profitability. The European Commission's anti-dumping tariffs imposed on Chinese glass fiber will have a negative effect on the profitability in case the rising costs of glass fiber can only be transferred partially to product prices. In case the measures taken in the Chinese unit to improve efficiency prove to be unsuccessful, this may have an effect on the result of the company. Currency rate changes and price competition may also have a negative effect on the result. The availability of financing may continue to have an effect on the demand and increase the risk of credit loss. MARKET OUTLOOK Due to the worldwide business slowdown, demand has been weak in several geographical markets and market segments. The market conditions have gradually improved in 2010. Exel Composites recorded a strong third quarter of 2010, but maintains its cautious stance in the near term, since market uncertainties persist. Exel Composites is well positioned to take advantage of the growth opportunities as the markets gradually recover. EXEL COMPOSITES' OUTLOOK FOR 2010 Due to the uncertain market situation and poor visibility, Exel Composites will not give any profit guidance. CONSOLIDATED COMPREHENSIVE INCOME STATEMENT (unaudited) -------------------------------------------------------------------------------- | EUR | 1.7. - | 1.7.- | Change | 1.1.-30 | 1.1.-30 | Change, | 1.1. - | | thousand | 30.9. | 30.9. | , % | .9. | .9. | % | 31.12. | | | 2010 | 2009 | | 2010 | 2009 | | 2009 | -------------------------------------------------------------------------------- | Continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 18,692 | 15,94 | 17.3 | 53,534 | 53,757 | -0.4 | 70,005 | | | | 2 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Materials | -7,451 | -6,70 | -11.2 | -20,703 | -22,038 | 6.1 | -28,430 | | and | | 2 | | | | | | | services | | | | | | | | -------------------------------------------------------------------------------- | Employee | -4,577 | -4,33 | -5.7 | -13,851 | -13,922 | 0.5 | -17,994 | | benefit | | 2 | | | | | | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Depreciati | -724 | -748 | 3.2 | -2,162 | -2,316 | 6.6 | -3,028 | | on and | | | | | | | | | impairment | | | | | | | | -------------------------------------------------------------------------------- | Other | -3,856 | -3,10 | -24.3 | -12,908 | -10,779 | -19.8 | -13,859 | | operating | | 1 | | | | | | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Other | 595 | 180 | 230.6 | 2,403 | 928 | 158.9 | 1,296 | | operating | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating | 2,679 | 1,239 | 116.2 | 6,315 | 5,630 | 12.2 | 7,990 | | profit | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net | -152 | -288 | 47.2 | -248 | -50 | -396.0 | -20 | | financial | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | 2,527 | 951 | 165.7 | 6,067 | 5,580 | 8.7 | 7,970 | | before tax | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income | -662 | -252 | -162.7 | -1,587 | -1,475 | -7.6 | -2,025 | | taxes | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/los | 1,865 | 699 | 166.8 | 4,480 | 4,105 | 9.1 | 5,945 | | s for the | | | | | | | | | period | | | | | | | | | from | | | | | | | | | continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Discontinu | | | | | | | | | ed | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | Profit/los | 0 | 97 | -100.0 | 0 | 310 | -100.0 | 662 | | s for the | | | | | | | | | period | | | | | | | | | from | | | | | | | | | discontinu | | | | | | | | | ing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/los | 1,865 | 796 | 134.3 | 4,480 | 4,415 | 1.5 | 6,607 | | s for the | | | | | | | | | period | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other | | | | | | | | | comprehens | | | | | | | | | ive | | | | | | | | | income: | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Exchange | -43 | -42 | -2.4 | 2,260 | 1,621 | 39.4 | 2,293 | | difference | | | | | | | | | s on | | | | | | | | | translatin | | | | | | | | | g foreign | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | Income tax | 0 | 0 | 0.0 | 0 | 0 | 0.0 | 0 | | relating | | | | | | | | | to | | | | | | | | | components | | | | | | | | | of other | | | | | | | | | comprehens | | | | | | | | | ive income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other | -43 | -42 | -2.4 | 2,260 | 1,621 | 39.4 | 2,293 | | comprehens | | | | | | | | | ive | | | | | | | | | income, | | | | | | | | | net of tax | | | | | | | | -------------------------------------------------------------------------------- | Total | 1,823 | 754 | 141.8 | 6,741 | 6,036 | 11.7 | 8,900 | | comprehens | | | | | | | | | ive income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/los | | | | | | | | | s | | | | | | | | | attributab | | | | | | | | | le to: | | | | | | | | -------------------------------------------------------------------------------- | Equity | 1,865 | 796 | | 4,480 | 4,415 | | 6,607 | | holders of | | | | | | | | | the parent | | | | | | | | | company | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehens | | | | | | | | | ive income | | | | | | | | -------------------------------------------------------------------------------- | attributab | | | | | | | | | le to: | | | | | | | | -------------------------------------------------------------------------------- | Equity | 1,823 | 754 | | 6,741 | 6,036 | | 8,900 | | holders of | | | | | | | | | the parent | | | | | | | | | company | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings | | | | | | | | | per share, | | | | | | | | | diluted | | | | | | | | | and | | | | | | | | | undiluted, | | | | | | | | | EUR | | | | | | | | -------------------------------------------------------------------------------- | From | 0.16 | 0.06 | | 0.38 | 0.35 | | 0.50 | | continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | From | 0.00 | 0.01 | | 0.0 | 0.0 | | 0.06 | | discontinu | | | | | | | | | ed | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | Total | 0.16 | 0.07 | | 0.38 | 0.37 | | 0.56 | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET -------------------------------------------------------------------------------- | EUR thousand | 30.9.2010 | 30.9.2009 | Change | 31.12.2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Goodwill | 11,020 | 9,698 | 1,322 | 9,686 | -------------------------------------------------------------------------------- | Other intangible assets | 2,360 | 2,497 | -137 | 2,460 | -------------------------------------------------------------------------------- | Tangible assets | 10,295 | 10,981 | -686 | 10,835 | -------------------------------------------------------------------------------- | Deferred tax assets | 1,875 | 3,288 | -1,413 | 2,315 | -------------------------------------------------------------------------------- | Other non-current assets | 64 | 62 | 2 | 64 | -------------------------------------------------------------------------------- | Non-current assets total | 25,613 | 26,525 | -912 | 25,642 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Inventories | 9,782 | 10,040 | -258 | 8,782 | -------------------------------------------------------------------------------- | Trade and other | 12,849 | 13,250 | -401 | 10,281 | | receivables | | | | | -------------------------------------------------------------------------------- | Cash at bank and in hand | 10,399 | 8,767 | 1,632 | 12,597 | -------------------------------------------------------------------------------- | Current assets total | 33,029 | 32,057 | 972 | 31,661 | -------------------------------------------------------------------------------- | Total assets | 58,643 | 58,582 | 61 | 57,303 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | | -------------------------------------------------------------------------------- | Shareholders´ equity | | | | | -------------------------------------------------------------------------------- | Share capital | 2,141 | 2,141 | 0 | 2,141 | -------------------------------------------------------------------------------- | Other reserves | 37 | 5 | 32 | 37 | -------------------------------------------------------------------------------- | Invested unrestricted | 8,488 | 8,488 | 0 | 8,488 | | equity fund | | | | | -------------------------------------------------------------------------------- | Translation differences | 2,161 | -772 | 2,933 | -100 | -------------------------------------------------------------------------------- | Retained earnings | 12,039 | 8,440 | 3,599 | 8,407 | -------------------------------------------------------------------------------- | Profit for the period | 4,480 | 4,415 | 65 | 6,607 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity | 29,347 | 22,717 | 6,629 | 25,580 | | attributable to equity | | | | | | holders of the parent | | | | | | company | | | | | -------------------------------------------------------------------------------- | Total equity | 29,347 | 22,717 | 6,630 | 25,580 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Interest-bearing | 8,158 | 16,329 | -8,171 | 16,346 | | liabilities | | | | | -------------------------------------------------------------------------------- | Interest-free | 335 | 389 | -54 | 330 | | liabilities | | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 316 | 342 | -26 | 248 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Interest-bearing | 5,299 | 4,210 | 1,089 | 2,324 | | liabilities | | | | | -------------------------------------------------------------------------------- | Trade and other | 15,188 | 14,596 | 592 | 12,476 | | non-current liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 29,296 | 35,866 | -6,570 | 31,723 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and | 58,643 | 58,582 | 61 | 57,303 | | liabilities | | | | | -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY -------------------------------------------------------------------------------- | EUR | Share | Share | Other | Investe | Transla | Retaine | Total | | thousand | Capit | Pre | Reserv | d | tion | d | | | | al | mium | es | Unrestr | Differe | Earning | | | | | Reser | | icted | nces | s | | | | | ve | | Equity | | | | | | | | | Fund | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 2,141 | 0 | 5 | 8,488 | -2,393 | 8,440 | 16,680 | | 1 January | | | | | | | | | 2009 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehen- | 0 | 0 | 0 | 0 | 1,621 | 4,415 | 6,036 | | sive | | | | | | | | | result | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | 0 | | 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 2,141 | 0 | 5 | 8,488 | -772 | 12,855 | 22,717 | | 30 | | | | | | | | | September | | | | | | | | | 2009 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 2,141 | 0 | 37 | 8,488 | -100 | 15,013 | 25,580 | | 1 January | | | | | | | | | 2010 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehen- | 0 | 0 | 0 | 0 | 2,260 | 4,480 | 6,740 | | sive | | | | | | | | | result | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | | -2,974 | -2,974 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 2,141 | 0 | 37 | 8,488 | 2,161 | 16,519 | 29,347 | | 30 | | | | | | | | | September | | | | | | | | | 2010 | | | | | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED CASH FLOW STATEMENT -------------------------------------------------------------------------------- | EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - | | | 30.9. | 30.9. | | 31.12. | | | 2010 | 2009 | | 2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Operating Activities | | | | -------------------------------------------------------------------------------- | Profit for the period | 4,480 | 4,415 | 65 | 6,607 | -------------------------------------------------------------------------------- | Adjustments | 4,976 | 2,994 | 1,982 | 4,829 | -------------------------------------------------------------------------------- | Change in working capital | -958 | 1,486 | -2,444 | 2,309 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow Generated by | 8,498 | 8,895 | -397 | 13,745 | | Operations | | | | | -------------------------------------------------------------------------------- | Interest paid | -328 | -822 | 494 | -1,015 | -------------------------------------------------------------------------------- | Interest received | 143 | 136 | 7 | 292 | -------------------------------------------------------------------------------- | Other financial items | -44 | 743 | -787 | 770 | -------------------------------------------------------------------------------- | Income taxes paid | -1,345 | -364 | -981 | 427 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net Cash Flow from Operating | 6,924 | 8,588 | -1,664 | 14,219 | | Activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Investing Activities | | | | -------------------------------------------------------------------------------- | Disposal of business | 0 | 1,000 | -1,000 | 1,225 | -------------------------------------------------------------------------------- | Capital expenditure | -919 | -1,080 | 161 | -1,440 | -------------------------------------------------------------------------------- | Proceeds from sale of fixed | 0 | 410 | -410 | 410 | | assets | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Investing | -919 | 330 | -1,249 | 195 | | Activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Financing | | | | | -------------------------------------------------------------------------------- | Installments of long-term | -4,357 | -7,623 | 3,266 | -7,623 | | borrowings | | | | | -------------------------------------------------------------------------------- | Change in short-term loans | 0 | -264 | 264 | -1,823 | -------------------------------------------------------------------------------- | Installments of finance | -872 | -299 | -573 | -406 | | lease liabilities | | | | | -------------------------------------------------------------------------------- | Dividends paid | -2,974 | 0 | -2,974 | 0 | -------------------------------------------------------------------------------- | Net Cash Flow from Financing | -8,203 | -8,186 | -17 | -9,852 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in Liquid Funds | -2,198 | 732 | -2,904 | 4,562 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds in the | 12,597 | 8,035 | 4,562 | 8,035 | | beginning of period | | | | | -------------------------------------------------------------------------------- | Change in liquid funds | -2,198 | 732 | -2,930 | 4,562 | -------------------------------------------------------------------------------- | Liquid funds at the end of | 10,399 | 8,767 | 1,632 | 12,597 | | period | | | | | -------------------------------------------------------------------------------- QUARTERLY KEY FIGURES -------------------------------------------------------------------------------- | EUR thousand | III/ | II/ | 1/ | IV/ | III/ | II/ | I/ | | | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 18,692 | 19,173 | 15,671 | 16,248 | 15,942 | 19,285 | 18,530 | -------------------------------------------------------------------------------- | Materials | -7,451 | -7,189 | -6,062 | -6,393 | -6,702 | -7,988 | -7,347 | | and services | | | | | | | | -------------------------------------------------------------------------------- | Employee | -4,577 | -4,892 | -4,381 | -4,071 | -4,332 | -4,763 | -4,827 | | benefit | | | | | | | | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Depreciation | -724 | -763 | -675 | -712 | -748 | -748 | -820 | | and | | | | | | | | | impairment | | | | | | | | -------------------------------------------------------------------------------- | Operating | -3,856 | -4,229 | -4,824 | -3,080 | -3,101 | -3,843 | -3,836 | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Other | 595 | 553 | 1,255 | 367 | 180 | 448 | 300 | | operating | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating | 2,679 | 2,653 | 983 | 2,360 | 1,239 | 2,390 | 2,001 | | profit | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net | -152 | -10 | -86 | 30 | -288 | 185 | 53 | | financial | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | 2,527 | 2,643 | 897 | 2,390 | 951 | 2,575 | 2,054 | | before taxes | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income taxes | -662 | -706 | -219 | -550 | -252 | -693 | -530 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/loss | 1,865 | 1,937 | 678 | 1,840 | 699 | 1,882 | 1,524 | | for the | | | | | | | | | period from | | | | | | | | | continuing | | | | | | | | | operations | | | | | | | | -------------------------------------------------------------------------------- | Profit/loss | 0 | 0 | 0 | 351 | 97 | 80 | 133 | | for the | | | | | | | | | period from | | | | | | | | | discontinuin | | | | | | | | | g activities | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/loss | 1,865 | 1,937 | 678 | 2,191 | 796 | 1,962 | 1,658 | | for the | | | | | | | | | period | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | 0.16 | 0.16 | 0.06 | 0.18 | 0.07 | 0.16 | 0.14 | | share, EUR | | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.16 | 0.16 | 0.06 | 0.18 | 0.07 | 0.16 | 0.14 | | share, EUR, | | | | | | | | | diluted | | | | | | | | -------------------------------------------------------------------------------- | Average | | | | | | | | | number of | | | | | | | | | shares, | | | | | | | | | undiluted, | | | | | | | | -------------------------------------------------------------------------------- | 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | -------------------------------------------------------------------------------- | Average | | | | | | | | | number of | | | | | | | | | shares, | | | | | | | | | diluted, | | | | | | | | -------------------------------------------------------------------------------- | 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | -------------------------------------------------------------------------------- | Average | 402 | 397 | 408 | 414 | 425 | 452 | 461 | | number of | | | | | | | | | personnel | | | | | | | | -------------------------------------------------------------------------------- COMMITMENTS AND CONTINGENCIES -------------------------------------------------------------------------------- | EUR thousand | 30.9.2010 | 30.9.2009 | 31.12.2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | On own behalf | | | | -------------------------------------------------------------------------------- | Mortgages | 2,783 | 2,783 | 2,783 | -------------------------------------------------------------------------------- | Corporate mortgages | 12,500 | 12,500 | 12,500 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Lease liabilities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | - in next 12 months | 253 | 554 | 516 | -------------------------------------------------------------------------------- | - in next 1-5 years | 1,416 | 1,403 | 1,328 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other commitments | 154 | 157 | 235 | -------------------------------------------------------------------------------- DERIVATIVE FINANCIAL INSTRUMENTS -------------------------------------------------------------------------------- | Nominal values | 30.9.2010 | 30.9.2009 | 31.12.2009 | | EUR thousand | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Foreign exchange derivatives | | | | -------------------------------------------------------------------------------- | Forward contracts | 0 | 689 | 341 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest rate derivatives | | | | -------------------------------------------------------------------------------- | Interest rate swaps | 10,000 | 9,286 | 10,000 | -------------------------------------------------------------------------------- | Purchased interest rate options | | 5,000 | 0 | -------------------------------------------------------------------------------- CONSOLIDATED KEY FIGURES -------------------------------------------------------------------------------- | EUR thousand | 1.1. - | 1.1. - | Change % | 1.1.-31.12 | | | 30.9. | 30.9. | | . | | | 2010 | 2009 | | 2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing operations | | | | | -------------------------------------------------------------------------------- | Net sales | 53,534 | 53,757 | -0.4 | 70,005 | -------------------------------------------------------------------------------- | Operating profit | 6,315 | 5,630 | 12.2 | 7,990 | -------------------------------------------------------------------------------- | % of net sales | 11.8 | 10.5 | | 11.4 | -------------------------------------------------------------------------------- | Profit before tax | 6,067 | 5,580 | 8.7 | 7,970 | -------------------------------------------------------------------------------- | % of net sales | 11.3 | 10.4 | | 11.4 | -------------------------------------------------------------------------------- | Profit for the period | 4,480 | 4,105 | 9.1 | 5,945 | -------------------------------------------------------------------------------- | % of net sales | 8.4 | 7.6 | | 8.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders´ equity | 29.347 | 22,717 | 29.2 | 25,580 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 13,457 | 20,539 | -34.5 | 18,669 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 10,399 | 8,767 | 18.6 | 12,597 | -------------------------------------------------------------------------------- | Net interest-bearing | 3,058 | 11,772 | -74.0 | 6,072 | | liabilities | | | | | -------------------------------------------------------------------------------- | Capital employed | 42,804 | 43,255 | -1.0 | 44,250 | -------------------------------------------------------------------------------- | Return on equity, % | 21.8 | 29.9 | | 31.3 | -------------------------------------------------------------------------------- | Return on capital employed, | 20.1 | 18.4 | | 20.9 | | % | | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 50.0 | 38.8 | | 44.6 | -------------------------------------------------------------------------------- | Net gearing, % | 10.4 | 51.8 | | 23.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital expenditure | 919 | 1,080 | -14.9 | 1,440 | -------------------------------------------------------------------------------- | % of sales | 1.7 | 2.0 | | 2.1 | -------------------------------------------------------------------------------- | Research and development | 962 | 1,158 | -16.9 | 1,407 | | costs | | | | | -------------------------------------------------------------------------------- | % of net sales | 1.8 | 2.2 | | 2.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order stock | 13,568 | 10,123 | 34.0 | 8,827 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR | 0.38 | 0.37 | 1.5 | 0.56 | -------------------------------------------------------------------------------- | Earnings per share, EUR, | 0.38 | 0.37 | 1.5 | 0.56 | | diluted | | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 2.47 | 1.91 | 29.2 | 2.15 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of shares | | | | | -------------------------------------------------------------------------------- | - cumulative | 11,897 | 11,897 | 0.0 | 11,897 | -------------------------------------------------------------------------------- | - cumulative, diluted | 11,897 | 11,897 | 0.0 | 11,897 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of employees | 402 | 443 | -9.3 | 436 | -------------------------------------------------------------------------------- PRESS CONFERENCE Exel Composites will hold a press conference for financial analysts and the media regarding the interim report today Friday 29 October 2010 at 12.30 p.m. in the Pavilion Cabinet of the Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland. Vantaa, 29 October 2010 EXEL COMPOSITES PLC Vesa Korpimies Board of Directors President and CEO It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for company growth, development and profitability, and statements preceded by “expects” or “estimates” or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known facts. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company. FURTHER INFORMATION: Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email vesa.korpimies@exelcomposites.com Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email ilkka.silvanto@exelcomposites.com DISTRIBUTION NASDAQ OMX Helsinki Ltd. Main news media www.exelcomposites.com EXEL COMPOSITES IN BRIEF Exel Composites (www.exelcomposites.com) is a technology company which designs, manufactures and markets composite profiles and tubes for industrial applications. The Group is the leading composite profile manufacturer in the world and concentrates on growing niche segments. The core of the operations is based on own, internally developed composite technology, product range based on it and a strong market position in selected segments with a strong quality and brand image. Profitable growth is pursued by a relentless search for new applications and development in co-operation with customers. The personnel's expertise and high level of technology play a major role in Exel Composites' operations. The Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX Helsinki Ltd.
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