2009-04-23 07:30:00 CEST
2009-04-23 07:30:13 CEST
REGULATED INFORMATION
Scanfil - Interim report (Q1 and Q3)
SCANFIL PLC'S INTERIM REPORT 1 JANUARY - 31 MARCH 2009
SCANFIL PLC INTERIM REPORT 23 APRIL 2009 8.30 a.m.
SCANFIL PLC'S INTERIM REPORT 1 JANUARY - 31 MARCH 2009
- Turnover for the first quarter of 2009 totalled EUR 49.6 million
(50.0 in the corresponding period 2008)
- Operating profit was EUR 4.2 (4.7) million, which is 8.5 (9.5) % of
turnover.
- Profit for the review period was EUR 1.3 (3.6) million
- Earnings per share were EUR 0.02 (0.06)
Harri Takanen, President of Scanfil plc:
”We are satisfied with the financial performance for the reporting period.
During the review period, changes in demand have been rapid and significant, and
it has been difficult to anticipate sales. The ability to respond and adapt to
changes in demand is becoming increasingly important. We believe that we have
succeeded in this respect. Customers are paying more attention to a supplier's
financial stability and are trying to reduce risks in the supplier field.
Scanfil is a well-established company and is able to guarantee continuity of
operations to its customers. We can develop our operations in accordance with
our strategy and thus further improve our competitiveness. As up to now, we will
need the input of our entire personnel in developing our operations also in the
future.
The financial situation on the market has made contract manufacturers'
operations more difficult. Also many other companies are struggling with
problems caused by financing and weakened sales. In accordance with its
strategy, Scanfil plc is prepared actively enter into business transactions,
which give possibilities to develop and increase operations.”
BUSINESS TRENDS
Scanfil plc
During the review period, Scanfil plc has mainly invested cash in hand. No
strategic investments were made during the period.
Scanfil EMS Oy's general meeting has decided on a return of equity to its parent
company Scanfil plc by decreasing the reserve for invested non-restricted equity
so that the equity ratio of the company will be approximately 40%. The return of
capital will not exceed EUR 50 million and it is executed in two instalments,
the first instalment at the second quarter and the second instalment during the
autumn of 2009.
Return of equity is an intercompany transaction; from the subsidiary to the
parent company.
Scanfil EMS Subgroup
The demand by both telecommunications and industrial electronics customers
picked up clearly at the end of the review period, and the company's turnover
remained on the level of the corresponding period last year. Operating profit
was slightly under last year's corresponding period, but the company retained
its profitability on a very satisfactory level despite the uncertainty of market
development and cost pressures caused by a global slow-down of investments.
Scanfil's development efforts to improve personnel competence levels, cost
management, flexible and effective production processes and comprehensive supply
chain management have resulted in the planned outcome.
During the review period, the company continued to invest in industrial
electronics customers and in acquiring new customers, thus aiming to balance
sales, expand the customer base and reduce customer-specific risk. New customers
have been acquired as expected, and the share of industrial electronics
customers in total sales increased during the review period accounting for 44
(37)%, whereas the telecommunications customers accounted for 56 (63)%.
Even though the demand at the end of the review period picked up, the total
demand during the review period by telecommunications customers decreased
slightly compared to the corresponding period in the previous year. The decrease
in the total demand is a result of a weakened market situation. The sales for
one customer have, however, clearly grown due to Scanfil's increased market
share.
From 9 March to 21 April 2009, the company carried out statutory
employer-employee negotiations, which covered the merger of the mechanics and
electronics plants operating in Sievi, Finland, and the partial concentration of
electronics production in lower-cost countries. The negotiations resulted in the
decision to merge the plant organisations in Sievi and concentrate part of the
electronics production in the company's plant in Pärnu, Estonia. Due to the
measures to be implemented, a total of 31 salaried employees and workers will be
made redundant. The aim of the measures is to lift the efficiency of operations,
improve cost-efficiency and maintain the company's competitiveness in the long
term.
FINANCIAL DEVELOPMENT
The Group's turnover for January-March was EUR 49.6 (50.0) million, down 1%
year-on-year. Distribution of turnover based on the location of customers was as
follows: Finland 49 (47) %, rest of Europe 18 (25) %, Asia 32 (26) %, USA 0 (1)
% and the others 1 (1) %.
During the review period, the Group's income from customers that constitutes a
minimum of 10% of the Group's income in accordance with IFRS 8 was as follows:
the biggest customer EUR 18.6 (21.4) million, 37% (43%) of the Group's turnover,
the second biggest EUR 6.5 (3.4) million, 13% (7%) of the Group's turnover and
the third biggest customer EUR 6.1 (5.9) million, 12% (12%) of the Group's
turnover.
The Chinese subsidiaries' sales accounted for 37% (32%) of the Group's sales
during the review period including deliveries to the Group's other plants.
Operating profit during the review period was at very satisfactory level EUR 4.2
(4.7) million, representing 8.5 (9.5)% of turnover. Earnings for the review
period amounted to EUR 1.3 (3.6) million. Earnings per share were EUR 0.02
(0.06) and return on investment was 9.1 (14.2)%.
FINANCING AND CAPITAL EXPENDITURE
The Group enjoys a strong financial position.
The consolidated balance sheet totalled EUR 197.7 (185.8) million. Liabilities
amounted to EUR 56.5 (50.0) million, EUR 44.5 (38.0) million of which were
non-interest-bearing and EUR 12.0 (12.0) million interest-bearing. The equity
ration was 71.4 (73.1)% and gearing -46.4 (-26.5)%.
Financial assets totalled EUR 77.5 (62.1) million, of which EUR 41.0 (43.0)
million has been deposited in bank accounts and in time deposits with maturity
of three months or less. Deposits of over three months amounted to EUR 11.7
(5.0) million. An additional EUR 24.9 (14.1) million has been invested in
financial instruments, mainly in bonds, credit linked notes as well as bond and
index funds; of this, EUR 17.1 million will mature in less than a year. These
are secondary market investments. These are secondary market investments. In
compliance with the IFRS, the investments have been measured at fair value, and
due to the market uncertainty, an impairment loss of EUR 1.3 million was
recorded on the investments on 31 March 2009.
In line with the Group's investment policy, half of the investment portfolio is
in risk-free interest rate investments and around one third in low-risk
investments, while around one fifth can be invested in non-capital guaranteed
moderate risk investments. No strategic investments were made in the accounting
period.
Cash flow from operating activities in the review period was positive at EUR
10.6 (8.5) million. Change in working capital during the financial period was
EUR 6.1 (4.3) million
Gross investments in fixed assets totalled EUR 0.4 (0.3) million, which is 0.8
(0.6)% of turnover. Depreciations were EUR 1.3 (1.6) million.
DECISIONS BY THE ANNUAL GENERAL MEETING AND BOARD OF DIRECTORS' AUTHORISATION
Scanfil plc's Annual General Meeting held on 26 March 2009 confirmed the
Financial Statements for 2008 and discharged the Board of Directors and the
President from liability.
According to Board of Directors' proposal The Annual General Meeting decided to
distribute a dividend total of EUR 0.12 per share on the market or a total of
EUR 7,005,180.24. The record date for the payment of dividend was 31 March 2009
and the date of payment of the dividend was 7 April 2009.
The Meeting resolved that the Board of Directors consists of five members.
Asa-Matti Lyytinen, Jorma J. Takanen, Reijo Pöllä, Jarkko Takanen and Tuomo
Lähdesmäki were re-elected as members of the Board of Directors. In it's
meeting, held after the General Meeting, the Board of Directors elected Jorma J.
Takanen as the Chairman of the Board of Directors and Asa-Matti Lyytinen as Vice
Chairman of the Board of Directors.
The Meeting decided according to the Board of Directors' proposal to authorize
the Board of Directors to decide on the acquisition of the Company's own shares
with distributable assets and transfer of the Company's own shares.
OWN SHARES
On 31 March 2009, the company owned a total of 2,337,768 of its own shares which
represented 3.9% of the company's share capital and votes.
During the review period, the company disposed of 5,687 of its own shares in
conjunction with the share-based profit-sharing scheme of the Group's Management
Team.
SHARE TRADING AND SHARE PERFORMANCE
The highest trading price during the review period was EUR 2.20 and the lowest
EUR 1.91, the closing price for the period standing at EUR 2.00. A total of
1,076,041 shares were traded during the period, corresponding to 1.8% of the
total number of shares. The market value of the shares on 31 March 2009 was EUR
118.4 million.
PERSONNEL
Scanfil Group's personnel averaged 2,035 (2,074) employees during the review
period and the company employed 2,032 (2,116) employees at the end of the review
period, of whom 1,487 (1,571) were employed in the company's foreign plants.
FUTURE PROSPECTS
Scanfil plc
Scanfil plc will operate as an investment company with an objective to look for
new growth possibilities by, for example, making strategic investments in
companies operating in different business sectors. The continuing economic
uncertainty gives a strong company a good basis for various restructuring
measures.
Scanfil EMS Subgroup
The situation in the telecommunications technology and industrial electronics
markets where Scanfil operates remains so unstable that it is unfounded to make
predictions on their future development during the current year. Scanfil's aim,
however, is to achieve at least the 2008 turnover level and maintain the
operating profit on a satisfactory level.
The new customers in the industrial electronics sector have had a positive
effect on sales, but it is very difficult to predict how the financial crisis
will affect demand in the sector as a whole in 2009.
Scanfil believes it will maintain its market share in the telecommunications
technology sector at least on last year's level. The decline in the market, as
forecasted by telecommunications customers, is expected to decrease Scanfil's
sales of telecommunications products from last year.
Scanfil's strong financial position gives the company a good competitive
position on the market. The market has confidence in a financially sound and
cost-effective company being capable of long-term cooperation also in uncertain
financial and demand circumstances.
OPERATIONAL RISKS AND UNCERTAINTIES
The ongoing uncertainty in the global financial situation and the constant
strong fluctuations in demand in Scanfil's business sectors pose a risk to the
company's business area that is difficult to estimate. The sales and
profitability of Scanfil may weaken as demand decreases due to low investment
levels.
In other respects, the risks facing Scanfil's business have remained essentially
the same. Risks and risk management are described in greater detail on the
company's website under Corporate Governance and in the notes to the
consolidated financial statements.
ACCOUNTING PRINCIPLES
Interim reports have been prepared in accordance with the recognition and
measurement principles of the IAS 34 Interim reports standard.
As of January 1, 2009, the Group has applied the following new and revised
standards: IFRS 8 Operating Segments and IAS 1 Presentation of Financial
Statements. IFRS 8 has an effect on the segment information in the notes and
IAS 1 has an effect on the presentation of the income statement. The company
reports the operating segments according to geographical locations, which are
Europe and Asia. The company follows profits according to geographical
locations. Otherwise the same accounting principles have been applied as in the
2008 Financial Statement. Calculation principles and formulas of the Key
Financial Indicators remain unchanged and have been presented in the 2008
Financial Statements.
Individual figures and grand totals of tables have been rounded to the nearest
million euros, so they will not always add up. The figures are unaudited.
CONSOLIDATED INCOME STATEMENT
EUR million
2009 2008 2008
1 - 3 1 - 3 1 - 12
TURNOVER 49.6 50.0 218.9
Changes in inventories of finished
goods and work in progress - 0.6 - 0.7 - 0.1
Other operating income 0.2 0.2 2.5
Expenses - 43.7 - 43.2 - 193.4
Depreciation - 1.3 - 1.6 - 6.8
Operating profit 4.2 4.7 21.1
Financial income 1.0 0.5 2.8
Financial expenses - 2.9 - 0.4 - 4.6
PROFIT BEFORE TAXES 2.3 4.9 19.4
Income taxes - 1.0 - 1.3 - 3.7
NET PROFIT FOR THE PERIOD 1.3 3.6 15.6
Attributable to:
Equity holders of the parent 1.3 3.6 15.6
Earnings/share (EPS), EUR 0.02 0.06 0.27
The company does not have items that might dilute the earnings per share.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million
2009 2008 2008
1 - 3 1 - 3 1 - 12
NET PROFIT FOR THE PERIOD 1.3 3.6 15.6
Other comprehensive income
Translation differences 0.8 - 1.4 4.6
Other comprehensive income, net of tax 0.8 - 1.4 4.6
TOTAL COMPREHENSIVE INCOME 2.1 2.2 20.2
Attributable to:
Equity holders of the parent 2.1 2.2 20.2
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 31.3. 31.3. 31.12.
2009 2008 2008
ASSETS
Non-current assets
Property, plant and equipment 32.2 34.8 33.7
Goodwill 2.1 2.5 2.4
Other intangible assets 1.4 1.0 1.4
Available-for-sale investments 0.0 0.3 0.0
Financial assets at fair value
through profit or loss 7.8 4.6 7.7
Receivables 0.2 0.2 0.2
Deferred tax assets 1.3 0.3 1.0
Total non-current assets 45.0 43.6 46.4
Current assets
Inventories 28.7 32.0 30.2
Trade and other receivables 49.6 48.1 50.5
Advance payments 0.1 0.1 0.1
Financial assets at fair value
through profit or loss 17.1 9.5 12.2
Available-for-sale investments, liquid assets 11.7 5.0 3.2
Available-for-sale investments,
cash equivalents 29.9 19.1 34.0
Cash and cash equivalents 11.1 23.9 11.1
Total current assets 148.1 137.6 141.2
Non-current assets held for sale 4.6 4.6 4.6
TOTAL ASSETS 197.7 185.8 192.2
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity
Share capital 15.2 15.2 15.2
Share premium account 16.1 16.1 16.1
Treasury shares - 7.6 - 6.9 - 7.4
Translation differences 2.8 - 4.0 2.0
Other reserves 4.0 3.2 3.5
Retained earnings 110.7 112.2 116.9
Total equity 141.2 135.8 146.2
Non-current assets
Deferred tax liabilities 1.0 1.1 1.0
Provisions 5.7 6.7 6.0
Interest bearing liabilities 12.0 12.0
Total non-current liabilities 6.8 19.8 19.1
Current liabilities
Trade and other liabilities 36.4 29.1 25.9
Current tax 1.3 1.1 1.0
Interest bearing liabilities 12.0 0.0 0.0
Total current liabilities 49.7 30.2 26.9
Total liabilities 56.5 50.0 46.0
TOTAL SHAREHOLDERS' EQUITY
AND LIABILITIES 197.7 185.8 192.2
CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
EUR million
A = Share capital
B = Share premium account
C = Treasury shares
D = Translation differences
E = Other reserves
F = Retained earnings
G = Equity total
SHAREHOLDER'S EQUITY A B C D E F G
1.1.2008 15.2 16.1 - 6.9 - 2.6 2.6 109.3 133.6
TOTAL COMPREHENSIVE INCOME - 1.4 3.6 2.3
Transfer to funds 0.6 - 0.6 0
Distribution of treasury shares 0.0 0.0
SHAREHOLDER' EQUITY
31.3.2008 15.2 16.1 - 6.9 - 4.0 3.2 112.2 135.8
SHAREHOLDER'S EQUITY A B C D E F G
1.1.2009 15.2 16.1 - 7.4 2.0 3.6 116.9 146.2
TOTAL COMPREHENSIVE INCOME 0.8 1.3 2.1
Payment of dividends - 7.0 - 7.0
Transfer to funds 0.4 - 0.4 0
Distribution of treasury shares 0.0 0.0
Acquisition of treasury shares - 0.1 - 0.1
SHAREHOLDER' EQUITY
31.3.2009 15.2 16.1 - 7.6 2.8 4.0 110.7 141.2
CONSOLIDATED CASH FLOW STATEMENT
EUR million
2009 2008 2008
1 - 3 1 - 3 1 - 12
Cash flow from operating activities
Net profit 1.3 3.6 15.6
Adjustments for the net profit 3.4 2.3 10.2
Change in net working capital 6.1 4.3 2.3
Paid interests and other financial expenses - 0.2 - 0.2 - 0.8
Interests received 1.0 0.4 2.1
Taxes paid - 0.9 - 1.9 - 5.5
Net cash from operating activities 10.6 8.5 23.9
Cash flow from investing activities
Investments in tangible and
Intangible assets - 0.4 - 0.4 - 3.4
Sale of tangible and intangible assets 0.0 0.2 2.2
Investments in other investments - 14.6 - 14.3 - 25.6
Repayment of loan receivables 0.0
Dividends received 0.0 0.0 0.0
Net cash from investing activities - 14.9 - 14.5 - 26.8
Cash flow from financing activities
Purchase of treasury shares - 0.2 - 0.5
Raising of long term loans 12.0 12.0
Repayment of short term loans - 7.5 - 7.5
Dividends paid - 7.0
Net cash from financing activities - 0.2 4.5 - 3.1
Net decrease in cash and
Cash equivalents - 4.5 - 1.5 - 6.0
Cash and cash equivalents
at beginning of period 45.1 50.0 50.0
Changes in exchange rates 0.4 - 0.5 1.0
Cash and cash equivalents
at end of period 41.0 48.0 45.1
KEY FINANCIAL INDICATORS 2009 2008 2008
1 - 3 1 - 3 1 - 12
Return on equity, % 3.6 11.0 11.2
Return on investment, % 9.1 14.2 13.7
Interest bearing liabilities, EUR million 12.0 12.0 12.0
Gearing, % - 46.4 - 26.5 - 38.4
Equity ratio, % 71.4 73.1 76.1
Gross investments in fixed assets, EUR million 0.4 0.3 3.9
% of turnover 0.8 0.6 1.8
Personnel, average 2 035 2 074 2 132
Earnings per share, EUR 0.02 0.06 0.27
Equity per share, EUR 2.42 2.31 2.50
Number of shares at end of
period, 000's 60 714 60 714 60 714
- not counting own shares 58 377 58 721 58 443
- weighted average 58 408 58 716 58 696
The company does not have any liabilities resulting from derivative instruments.
Owing to the nature of the sector, the company's order book covers only a short
period of time and does not give an accurate picture of future development.
SEGMENT INFORMATION
EUR million
2009 2008 2008
1 - 3 1 - 3 1 - 12
TURNOVER
Europe 33.7 36.8 152.3
Asia 19.0 16.9 89.7
Turnover between segments - 3.2 - 3.6 - 23.1
Total 49.6 50.0 218.9
OPERATING PROFIT
Europe 0.8 3.0 10.0
Asia 3.4 1.8 11.1
Total 4.2 4.7 21.1
ASSETS
Europe 106.2 122.4 104.0
Asia 56.3 46.7 51.0
Goodwill 2.0 2.3 2.3
Unallocated assets 33.3 14.4 34.9
Total 197.7 185.8 192.2
CHANGES IN TANGIBLE NON CURRENT ASSETS
EUR million
2009 2008 2008
1 - 3 1 - 3 1 - 12
Book value at the beginning of the period 33.7 36.5 36.5
Additions 0.4 0.3 3.3
Deductions - 0.0 0.0 - 0.3
Depreciations - 1.2 - 1.5 - 6.4
Exchange rate differences - 0.6 - 0.5 0.6
Book value at the end of the period 32.2 34.8 33.7
CONTINGENT LIABILITIES
EUR million 2009 2008 2008
1 - 3 1 - 3 1 - 12
Given real estate mortgages 3.4 3.4
Given business mortgages 18.8 16.4 18.8
Pledged guarantees 0.1 0.1 0.1
Rental liabilities 0.4 0.6 0.5
Scanfil Oyj has arranged a EUR 6.0 million bank guarantee to secure the payment
of contributions related to Scanfil NV's restructuring. Scanfil NV's balance
sheet includes a corresponding provision.
Scanfil EMS Oy has given a 12.0 million counter guarantee for Scanfil Oü's
equal size bank loan guarantee.
KEY INDICATORS QUARTERLY
EUR million
Q1/09 Q4/08 Q3/08 Q2/08 Q1/08 Q4/07 Q3/07 Q2/07
Turnover MEUR 49.6 54.2 56.0 58.7 50.0 54.4 59.1 58.9 Operating profit, MEUR 4.2 4.5 5.2 6.6 4.7 5.5 5.6 4.0
Operating profit, % 8.5 8.3 9.3 11.3 9.5 10.2 9.4 6.7
Net income, MEUR 1.3 2.3 3.5 6.2 3.6 3.4 4.5 3.2
EPS, EUR 0.02 0.04 0.06 0.11 0.06 0.06 0.08 0.05
SCANFIL PLC
Harri Takanen
President
Additional information:
President Harri Takanen
Tel +358 8 4882 111
Distribution OMX Nordic Exchanges, Helsinki
Major Media
www.scanfil.com
Scanfil plc is a global contract manufacturer and systems supplier for
communication and industrial electronics with over 30 years experience in
demanding contract manufacturing
Scanfil offers contract-manufacturing services as a systems supplier to the
telecommunication industry, mainly to wireless communication sector, as well as
to the industrial electronics industry. Main telecommunication products are
among others integrated enclosure systems for mobile phone and ADSL networks and
assembly and testing of modules related to enclosure systems. Examples of
industrial electronics products include box-built tested devices, various
electronic modules, backplanes and assembled circuit boards as well as cable
assemblies. Production plants are situated in China, Hungary, Estonia and
Finland.
Not for release over US newswire services. Forward looking statements: certain
statements in this stock exchange release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements of Scanfil
Oyj to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. When used
in this stock exchange release, such statements use such words as "may,""will,""expect,""anticipate,""project,""believe,""plan" and other similar
terminology. New risk factors may arise from time to time and it is not possible
for management to predict all of those risk factors or the extent to which any
factor or combination of factors may cause actual results, performance and
achievements of Scanfil Oyj to be materially different from those contained in
forward-looking statements. Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a prediction of
actual results. The forward-looking information contained in this stock exchange
release is current only as of the date of this stock exchange release. There
should not be an expectation that such information will in all circumstances be
updated, supplemented or revised, except as provided by the law or obligatory
regulations, whether as a result of new information, changing circumstances,
future events or otherwise.
© 2024 Nasdaq, Inc. All Rights Reserved |