Componenta's interim report 1 January - 30 September 2011; Result improved, demand outlook for the final quarter remains satisfactory
July - September 2011 in brief (corresponding period in the previous year in brackets)
The Group’s order book rose 21%, standing at MEUR 104 (MEUR 86) at the end of September.
- Net sales in the July - September period rose 19% totalling to MEUR 134.1 (MEUR 112.3).
- Operating profit excluding one-time items rose to MEUR 3.8 (MEUR 3.4)
- The Group’s capacity utilization rate was 65% (55%).
- Result after financial items excluding one-time items declined from the previous year to EUR -3.5 (-2.1) million.
- The loss attributable to shareholders for the third quarter excluding one-time items was EUR -2.1 (-1.3) million, or EUR -0.14 (-0.09) per share.
- The net cash flow from operations in the July - September period was EUR -1.9 (-8.6) million.
The third quarter operating profit excluding one-time items was boosted by higher production volumes than in the previous year and by measures taken earlier to adjust costs. The operating profit was weakened EUR -3.2 million by a rise in the prices of raw materials not covered by raw material surcharges.
January - June 2011 in brief (corresponding period in the previous year in brackets)
- Consolidated net sales in the review period increased 35% to MEUR 434.7 (MEUR 320.9).
- Capacity utilization rate in the review period was 71% (52%).
- Operating profit excluding one-time items was MEUR 23.0 (MEUR 7.7) and after one-time items MEUR 19.1 (MEUR 7.7).
- The result after financial items excluding one-time items was MEUR 3.8 (MEUR -9.9) and after one-time items MEUR -0.1 (MEUR -9.9).
- Earnings per share excluding one-time items was EUR 0.16 (EUR -0.42) and after one-time items EUR -0.02 (EUR -0.42).
- Unused committed credit facilities and cash funds totalled MEUR 48 at the end of the period.
Market outlook in 2011
The demand outlook in all the Group’s customer sectors is satisfactory at the beginning of the fourth quarter of 2011. The recent rise in uncertainty on the financial markets may weaken the confidence in the economy, which could then affect demand for the components manufactured by Componenta.
End of year demand in the heavy trucks customer sector is expected to remain satisfactory.
Demand for mining machinery components is expected to stay at good level towards the end of the year, mainly because of the high prices of raw materials. Demand for construction machinery is expected to continue to rise in developing countries.
End of year demand for agricultural machinery is estimated to stay at good level as a result of increased prices for agricultural products and positive developments in the Russian markets.
Market developments in the European automotive industry are expected to decline in the final quarter of the year. Demand for aluminium wheels is however estimated to develop favourably in the last quarter of 2011.
Demand prospects in the wind power sector are weak.
Demand in the machine building industry is expected to remain stabile in northern and central Europe in the final part of the year.
Outlook for Componenta in 2011
Componenta’s prospects for 2011 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta’s order intake and order book.
Componenta’s order book at the end of September was 21% higher than at the same time in the previous year. In 2011 the Group’s net sales are expected to rise some 30% and the result after financial items excluding one-time items is expected to be positive. Net cash flow from operations for the full year is expected to be positive. Investments in production facilities in 2011 are estimated to be approximately EUR 20 million.
Key figures
| 1-9/2011 | 1-9/2010 | 1-12/2010 | |
| Order book at end of review period, MEUR | 103.7 | 85.8 | 94.6 |
| Net sales, MEUR | 434.7 | 208.5 | 451.6 |
| Operating profit excl. one-time items, MEUR | 23.0 | 4.3 | 13.6 |
| Operating profit % excl. one-time items | 5.3 | 2.4 | 3.0 |
| Result after financial items excl. one-time items, MEUR | 3.8 | -7.8 | -9.9 |
| Net result for the period, MEUR | 0.7 | -5.7 | -7.5 |
| Earnings per share excl. one time items, EUR | 0.16 | -0.42 | -0.45 |
| Net gearing, % (preferred capital notes as equity) | 248.1 | 179.4 | 170.5 |
| Return on investment, excl. one-time items, % | 10.6 | 3.9 | 5.0 |
| Return on equity, excl. one-time items, % | 8.8 | -12.7 | -10.2 |
| Number of personnel at period end, incl. leased personnel | 4,726 | 4,363 | 4,414 |
President and CEO Heikki Lehtonen comments on the review period:
“Componenta’s net sales of the nine months period in 2011 was 35% higher than in the same time in the previous year. Operating profit excluding one-time items was clearly better than in the previous year due to higher production volumes and measures taken earlier to adjust costs. However, the operating profit was burdened by increases of raw material prices, especially in the prices of raw materials not covered by raw material surcharges. Total impact of the rise both in raw material prices not covered by surcharges and iron raw materials was in the review period EUR -8.5 million.
The Group’s average capacity utilization rate in the review period was 71%. Increase in business operations continued in all those countries where we have operations, and further the growth was strongest in Turkey and Sweden. Order books by country have developed favourably except in Finland, and the Group’s order book at the end of September was 21% higher than at the same time in the previous year.”
Componenta’s complete Interim Report for the period January - September 2011 as a PDF format is available as an attachment to this release. The interim report is also available on the Componenta’s website at www.componenta.com.
Press conference to analysts, media representatives and the largest shareholders at 10.00 (EEST)
A press conference will be arranged in Käpylä, in auditorium of the Sato house, at the address Panuntie 4, 00610 Helsinki starting at 10.00 (EEST). The press conference will be webcast simultaneously via internet. Link can be found on Componenta’s Internet pages at www.componenta.com
Helsinki, 18 October 2011
COMPONENTA CORPORATION
Heikki Lehtonen
President and CEO
ENCLOSURE. Componenta’s Interim Report January - September 2011
Further information:
Heikki Lehtonen
President and CEO
tel. +358 10 403 00
Mika Hassinen
CFO
tel. +358 10 403 00
Componenta is a metal sector company with international operations and production plants located in Finland, Turkey, the Netherlands and Sweden. The net sales of Componenta were EUR 452 million in 2010 and its share is listed on the NASDAQ OMX Helsinki. The Group employs approx. 4,400 people. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers who are manufacturers of vehicles, machines and equipment.