Exel Composites PLc's Interim Report for January 1 - March 31, 2010
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 7.5.2010 at 9.00 a.m. 1 (12)
EXEL COMPOSITES PLC'S INTERIM REPORT FOR JANUARY 1 - MARCH 31, 2010
January-March 2010 highlights and outlook
- Net sales from continuing operations was EUR 15.7 (18.5) million in the first
quarter of 2010, down by 15.4 per cent on the previous year
- Operating profit from continuing operations was EUR 1.0 million in the first
quarter of 2010 compared to EUR 2.0 million in the first quarter of 2009, or 6.3
(10.8) per cent of net sales
- Net operative cash flow was positive at EUR +0.8 (+3.0) million
- Fully diluted earnings per share were EUR 0.06 (0.14), of which continuing
operations accounted for EUR 0.06 (0.13)
- Due to the market uncertainty and poor visibility, Exel Composites will not
give any profit guidance
Vesa Korpimies, President and CEO:
“The market situation continued to be difficult during the first quarter of
2010, and sales decreased with 15.4 per cent from the first quarter of 2009 and
3.6 per cent from the last quarter of 2009. The first two months of the year
were particularly challenging. Sales improved somewhat in electrical industry,
where new long-term agreements were signed in 2009, as well as in the
transportation industry, which was severely hit by the recession. In the machine
industry the order levels are slowly improving towards the level before the
downturn.
The challenging market environment is expected to continue in the short run. In
2010, productivity improvements and cost efficiency remain our priorities. We
will reinforce our focus on sales. Our new SVP Sales commenced at the beginning
of February 2010 to coordinate sales efforts and key account activities
Group-wide. The technical sales team has also been reinforced in order to boost
sales locally. We also focus on developing new applications with our customers
as the markets gradually recover. Exel Composites long-term growth prospects
remain favorable, as there are many potential opportunities in airport products,
in electrical industry as well as in the window and door profile market, where
composite materials offer e.g. superior insulation properties and good
performance in demanding conditions. Exel is now well positioned to take
advantage of increased market activities. We have reduced costs, streamlined
operations and we have reinforced our capability to accelerate growth.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
--------------------------------------------------------------------------------
| | 1.1. - | 1.1. - | Change % | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, | 15.7 | 18.5 | -15.4 | 70.0 |
| continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Operating profit, | 1.0 | 2.0 | -50.9 | 8.0 |
| continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| % of net sales | 6.3 | 10.8 | | 11.4 |
--------------------------------------------------------------------------------
| Profit for the | 0.7 | 1.5 | -55.5 | 5.9 |
| period, continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 24.6 | 18.7 | 31.6 | 25.6 |
| equity | | | | |
--------------------------------------------------------------------------------
| Net | 5.6 | 17.1 | -67.2 | 6.1 |
| interest-bearing | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 41.3 | 43.3 | -4.4 | 44.3 |
--------------------------------------------------------------------------------
| Return on equity, | 10.8 | 37.5 | | 31.3 |
| % | | | | |
--------------------------------------------------------------------------------
| Return on capital | 9.8 | 24.0 | | 20.9 |
| employed, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 42.9 | 32.0 | | 44.6 |
--------------------------------------------------------------------------------
| Net gearing, % | 22.8 | 91.4 | | 23.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.06 | 0.14 | | 0.56 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.06 | 0.14 | | 0.56 |
| share, diluted, | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, | 2.07 | 1.57 | | 2.15 |
| 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.
1 JANUARY - 31 MARCH 2010
FINANCIAL PERFORMANCE
The Group's net sales from continuing operations for the first quarter of 2010
decreased by 15.4 per cent to EUR 15.7 (18.5) million compared to the
corresponding period in 2009 and 3.6 percent from the last quarter of 2009. Net
sales continued to decrease in almost all geographical markets. However, sales
improved somewhat in electrical industry, where new long-term agreements were
signed in 2009 as well as in the transportation industry, which was severely hit
by the recession. Also, sales to the sports and leisure market segment increased
on the previous year due to good weather conditions. In the machine industry the
order levels are slowly improving towards the level before the downturn.
However, customers are still very cautious.
The airport product group performed slightly better during the review period
compared to the previous year with wind direction indicators delivered to Malaga
Airport in Spain, antenna towers to Baltimore Washington International Airport
in the US and approach masts to Mt. Pleasant Airport on the Falkland Islands, to
mention a few typical projects.
The cleaning and maintenance market has remained relatively steady during the
recession. New distribution channels and new markets are being searched to gain
a stronger position in the market.
We have identified many potential opportunities in airport products, electrical
industry as well as in the window and door profile market, where composite
materials offer e.g. superior insulation properties and good performance in
demanding conditions.
The pultrusion market continued to be competitive and there was overcapacity in
the market.
Exel Composites' operating profit from continuing operations for the first
quarter of 2010 decreased to EUR 1.0 (2.0) million, compared to the
corresponding period last year due to the declining sales. Operating profit as a
percentage of net sales from continuing operations was 6.3 (10.8) per cent.
Other operating expenses include one-off restructuring costs of EUR 1.0 million
due to the corporate restructuring of the former Floorball licensee. Other
operating income includes one-off licensing income of EUR 0.9 million.
The Group's net financial expenses from continuing operations in the first
quarter of 2010 were EUR -0.1 (0.1) million. The Group's profit before taxes
from continuing operations was EUR 0.9 (2.1) million and profit after taxes EUR
0.7 (1.5) million.
Earnings per share for continuing operations decreased to EUR 0.06 (0.13) and
for discontinued operations to EUR 0.00 (0.01). Return on capital employed was
9.8 (24.0) per cent.
BALANCE SHEET AND FINANCIAL POSITION
Cash flow from business operations was positive at EUR 0.8 (3.0) million. Cash
flow before financing, but after capital expenditure, amounted to EUR 0.5 (3.6)
million.
Net interest-bearing liabilities were EUR 5.6 (17.1) million, and the net
gearing ratio was 22.8 (91.4) per cent.
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 11.2
(7.5) million.
The Group's consolidated total assets at the end of the review period were EUR
57.3 (58.4) million.
Equity at the end of the period under review was EUR 24.6 (18.7) million and
equity ratio 42.9 (32.0) per cent. The dividend liability as per the AGM
resolution of 31 March 2010, EUR 2.9 million, is included in other non-current
liabilities. The dividend was paid on 14 April 2010. Bank loans were further
installed with EUR 1.8 million during the first quarter. Interest-bearing
liabilities amounted to EUR 16.8 (24.6) million, of which short-term liabilities
accounted for EUR 7.7 (4.4) million.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets during the review period amounted to EUR
0.3 (0.4) million.
Total depreciation of non-current assets during the period under review amounted
to EUR 0.7 (0.8) million.
PERSONNEL
The number of Exel Composites Group employees on 31 March 2010 was 402 (447), of
whom 207 (239) worked in Finland and 196 (241) in other countries. The average
number of personnel during the reporting period was 408 (461). The decrease both
in Finland and abroad is due to the rationalization actions in the Finnish,
British and Chinese units and the divestments of Exel Sports Brands' Outdoor and
Floorball businesses.
ANNUAL GENERAL MEETING
The Annual General Meeting of Exel Composites Plc was held on 31 March 2010. The
financial accounts of the Group were approved and the members of the Board of
Directors and the President were discharged from their liabilities for the
financial year 2009. THE AGM approved the Board's proposal to distribute a
dividend of EUR 0.25 per share for the financial period that ended on 31
December 2009. The AGM decided to amend Section 10 of the Articles of
Association to comply with the Finnish Companies Act.
The Annual General Meeting authorized the Board of Directors to acquire the
Company's own shares by using unrestricted equity. The maximum amount to be
acquired is 600,000 shares. The authorization is valid until the next Annual
General Meeting.
The Annual General Meeting authorized the Board of Directors to issue a maximum
of 2,400,000 new shares and convey a maximum of 600,000 own shares. By virtue of
the authorization, the Board of Directors also has the right to grant option
rights, convertible bonds and/or special rights referred to in Chapter 10,
Section 1 of the Companies Act. The authorization is valid until 31 March 2013.
The AGM confirmed the number of the members of the Board of Directors as five
and elected a new Board. All the members of the Board of Directors were
re-elected: Peter Hofvenstam, Göran Jönsson, Vesa Kainu, Reima Kerttula and
Heikki Mairinoja. At the formative meeting of the Board of Directors held after
the AGM, the Board of Directors elected from among its members Peter Hofvenstam
as its Chairman.
SHARES AND SHARE CAPITAL
At the end of March 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 31 March 2010, the market capitalization totaled
EUR 70.4 (40.0) million. During the reporting period 765,035 (1,391,068) shares
were traded, accounting for 6.4 (11.7) per cent of the average number of shares
outstanding.
The highest share quotation was EUR 6.20 (3.35) and the lowest EUR 5.19 (2.37).
The share price closed at EUR 5.92 (3.35). The average share price during the
review period was EUR 5.82 (2.66).
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 1,895 shareholders on 31 March 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.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to the general
economic development and a possible new financial crisis in the euro area as
well as to market demand in certain market segments. The market sentiment is
still utmost vulnerable and 2010 still seems challenging. The raw material
prices, energy cost and other cost increases may put pressure on profitability.
Currency rate changes, especially a strengthening of the U.S. dollar and price
competition may also have a negative effect on the result. The poor availability
of financing may weaken the demand in Exel's market and increases the credit
loss risk.
MARKET OUTLOOK FOR 2010
The Group has a cautious stance on the economy for 2010 and expects the market
conditions to remain challenging although there are signals that the markets are
improving. Exel Composites is prepared to take further prompt actions, but also
to capture opportunities due to the economic down-turn. Even though the
short-term market outlook is challenging, the long-term growth opportunities
remain favorable.
EXEL COMPOSITES' OUTLOOK FOR 2010
Due to the market uncertainty and poor visibility, Exel will not give any profit
guidance.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
(unaudited)
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1.- 31.3. | Change, % | 1.1. - |
| | 31.3. | 2009 | | 31.12. |
| | 2010 | | | 2009 |
--------------------------------------------------------------------------------
| Continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Net sales | 15,671 | 18,530 | -15.4 | 70,005 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials and | -6,062 | -7,347 | 17.5 | -28,430 |
| services | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -4,381 | -4,827 | 9.2 | -17,994 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -675 | -820 | 17.7 | -3,028 |
| impairment | | | | |
--------------------------------------------------------------------------------
| Other operating | -4,824 | -3,836 | -25.8 | -13,859 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other operating | 1,255 | 300 | 318.3 | 1,296 |
| income | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 983 | 2,001 | -50.9 | 7,990 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial items | -86 | 53 | 262.3 | -20 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before tax | 897 | 2,054 | -56.3 | 7,970 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -219 | -530 | 58.7 | -2,025 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for the | 678 | 1,524 | -55.5 | 5,945 |
| period from | | | | |
| continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the | 0 | 133 | 100.0 | 662 |
| period from | | | | |
| discontinuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for the | 678 | 1,658 | 59.1 | 6,607 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | | | | |
| income: | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Exchange | 1,295 | 332 | 290.1 | 2,293 |
| differences on | | | | |
| translating foreign | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Income tax relating | 0 | 0 | 0.0 | 0 |
| to components of | | | | |
| other comprehensive | | | | |
| income | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | 1,295 | 332 | 290.1 | 2,293 |
| income, net of tax | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | 1,972 | 1,990 | -0.9 | 8,900 |
| income | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | | | | |
| attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 678 | 1,658 | 0.0 | 6,607 |
| the parent company | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive | | | | |
| income | | | | |
--------------------------------------------------------------------------------
| attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 1,972 | 1,990 | 0.0 | 8,900 |
| the parent company | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | | | | |
| diluted and | | | | |
| undiluted, EUR | | | | |
--------------------------------------------------------------------------------
| From continuing | 0.06 | 0.13 | 0.0 | 0.50 |
| operations | | | | |
--------------------------------------------------------------------------------
| From discontinued | 0.00 | 0.01 | 0.0 | 0.06 |
| operations | | | | |
--------------------------------------------------------------------------------
| Total | 0.06 | 0.14 | 0.0 | 0.56 |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| EUR thousand | 31.3.2010 | 31.3.2009 | Change | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 10,624 | 8,694 | 1,930 | 9,686 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,488 | 2,483 | 5 | 2,460 |
--------------------------------------------------------------------------------
| Tangible assets | 10,878 | 11,713 | -835 | 10,835 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1,873 | 3,009 | -1,136 | 2,315 |
--------------------------------------------------------------------------------
| Other non-current assets | 63 | 67 | -4 | 64 |
--------------------------------------------------------------------------------
| Non-current assets total | 25,926 | 25,966 | -40 | 25,642 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 9,191 | 11,307 | -2,116 | 8,782 |
--------------------------------------------------------------------------------
| Trade and other | 11,001 | 13,558 | -2,557 | 10,281 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in hand | 11,161 | 7,524 | 3,637 | 12,597 |
--------------------------------------------------------------------------------
| Current assets total | 31,353 | 32,389 | -1,036 | 31,661 |
--------------------------------------------------------------------------------
| Total assets | 57,279 | 58,356 | -1,077 | 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 | 1,195 | -2,060 | 3,225 | -100 |
--------------------------------------------------------------------------------
| Retained earnings | 12,039 | 8,440 | 3,599 | 8,407 |
--------------------------------------------------------------------------------
| Profit for the period | 678 | 1,658 | -980 | 6,607 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity | 24,578 | 18,670 | 5,906 | 25,580 |
| attributable to equity | | | | |
| holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Total equity | 24,578 | 18,670 | 5,908 | 25,580 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 9,025 | 20,159 | 11,134 | 16,346 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-free | 317 | 353 | -36 | 330 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 680 | 365 | 315 | 248 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 7,731 | 4,426 | 3,305 | 2,324 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 14,948 | 14,383 | 565 | 12,476 |
| non-current liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 32,701 | 39,686 | -6,985 | 31,723 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | 57,279 | 58,356 | -1,07 | 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 | 332 | 1,658 | 1,990 |
| sive | | | | | | | |
| result | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 5 | 8,488 | -2,061 | 10,098 | 18,670 |
| 31 March | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 37 | 8,488 | -100 | 15,013 | 25,580 |
| 1 January | | | | | | | |
| 2010 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehen- | 0 | 0 | 0 | 0 | 1,295 | 678 | 1,973 |
| sive | | | | | | | |
| result | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | -2,974 | -2,974 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 37 | 8,488 | 1,195 | 12,717 | 24,579 |
| 31 March | | | | | | | |
| 2010 | | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | 678 | 1,658 | -980 | 6,607 |
--------------------------------------------------------------------------------
| Adjustments | 1,667 | 248 | 1,419 | 4,829 |
--------------------------------------------------------------------------------
| Change in working capital | -522 | 1,495 | -2,017 | 2,309 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow Generated by | 1,823 | 3,401 | -1,578 | 13,745 |
| Operations | | | | |
--------------------------------------------------------------------------------
| Interest paid | -93 | -398 | 305 | -1,015 |
--------------------------------------------------------------------------------
| Interest received | 69 | 28 | 41 | 292 |
--------------------------------------------------------------------------------
| Other financial items | 64 | 10 | 0 | 770 |
--------------------------------------------------------------------------------
| Income taxes paid | -1,047 | -33 | -1,014 | 427 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Cash Flow from Operating | 816 | 3,008 | -2,246 | 14,219 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities | | | |
--------------------------------------------------------------------------------
| Disposal of business | 0 | 1,000 | 0 | 1,225 |
--------------------------------------------------------------------------------
| Capital expenditure | -348 | -386 | 38 | -1,440 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed | 0 | 0 | 0 | 410 |
| assets | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing | -348 | 614 | 38 | 195 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing | | | | |
--------------------------------------------------------------------------------
| Instalments of long-term | -1,800 | -4,038 | 2,238 | -7,623 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Change in short-term loans | 0 | 4 | -4 | -1,823 |
--------------------------------------------------------------------------------
| Instalments of finance lease | -104 | -99 | -5 | -406 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Net Cash Flow from Financing | -1,904 | -4,133 | 2,229 | -9,852 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in Liquid Funds | -1,436 | -511 | 21 | 4,562 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the | 12,597 | 8,035 | 4,562 | 8,035 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | -1,436 | -511 | -925 | 4,562 |
--------------------------------------------------------------------------------
| Liquid funds at the end of | 11,161 | 7,524 | 3,637 | 12,597 |
| period | | | | |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | 1/ | IV/ | III/ | II/ | I/ |
| | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Net sales | 15,671 | 16,248 | 15,942 | 19,285 | 18,530 |
--------------------------------------------------------------------------------
| Materials and | -6,062 | -6,393 | -6,702 | -7,988 | -7,347 |
| services | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -4,381 | -4,071 | -4,332 | -4,763 | -4,827 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -675 | -712 | -748 | -748 | -820 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating | -4,824 | -3,080 | -3,101 | -3,843 | -3,836 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Other operating | 1,255 | 367 | 180 | 448 | 300 |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 983 | 2,360 | 1,239 | 2,390 | 2,001 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -86 | 30 | -288 | 185 | 53 |
| items | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before | 897 | 2,390 | 951 | 2,575 | 2,054 |
| taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -219 | -550 | -252 | -693 | -530 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for | 678 | 1,840 | 699 | 1,882 | 1,524 |
| the period from | | | | | |
| continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for | 0 | 351 | 97 | 80 | 133 |
| the period from | | | | | |
| discontinuing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for | 678 | 2,191 | 796 | 1,962 | 1,658 |
| the period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.06 | 0.18 | 0.07 | 0.16 | 0.14 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 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 |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares, diluted, | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number of | 408 | 414 | 425 | 452 | 461 |
| personnel | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| EUR thousand | 31.3.2010 | 31.3.2009 | 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 | 485 | 551 | 516 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 1,394 | 1,493 | 1,328 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 209 | 180 | 235 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
| Nominal values | 31.3.2010 | 31.3.2009 | 31.12.2009 |
| EUR thousand | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | | | |
--------------------------------------------------------------------------------
| Forward contracts | 0 | 1,412 | 341 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 10,000 | 9,726 | 10,000 |
--------------------------------------------------------------------------------
| Purchased interest rate options | 0 | 5,000 | 0 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change % | 1.1.-31.12 |
| | 31.3. | 31.3. | | . |
| | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| Net sales | 15,671 | 18,530 | -15.4 | 70,005 |
--------------------------------------------------------------------------------
| Operating profit | 983 | 2,001 | -50.9 | 7,990 |
--------------------------------------------------------------------------------
| % of net sales | 6.3 | 10.8 | | 11.4 |
--------------------------------------------------------------------------------
| Profit before tax | 897 | 2,054 | -56.3 | 7,970 |
--------------------------------------------------------------------------------
| % of net sales | 5.7 | 11.1 | | 11.4 |
--------------------------------------------------------------------------------
| Profit for the period | 678 | 1,524 | -55.5 | 5,945 |
--------------------------------------------------------------------------------
| % of net sales | 4.3 | 8.2 | | 8.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 24,578 | 18,670 | 31.6 | 25,580 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 16,756 | 24,585 | -31.8 | 18,669 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 11,161 | 7,524 | 48.3 | 12,597 |
--------------------------------------------------------------------------------
| Net interest-bearing | 5,595 | 17,061 | -67.2 | 6,072 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 41,335 | 43,255 | -4.4 | 44,250 |
--------------------------------------------------------------------------------
| Return on equity, % | 10.8 | 37.5 | | 31.3 |
--------------------------------------------------------------------------------
| Return on capital employed, | 9.8 | 24.0 | | 20.9 |
| % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 42.9 | 32.0 | | 44.6 |
--------------------------------------------------------------------------------
| Net gearing, % | 22.8 | 91.4 | | 23.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 348 | 386 | -9.8 | 1,440 |
--------------------------------------------------------------------------------
| % of sales | 2.2 | 2.1 | | 2.1 |
--------------------------------------------------------------------------------
| Research and development | 400 | 438 | -8.7 | 1,407 |
| costs | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.6 | 2.4 | | 2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 10,860 | 12,891 | -15.8 | 8,827 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.06 | 0.14 | -59.1 | 0.56 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.06 | 0.14 | -59.1 | 0.56 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2.07 | 1.57 | 31.8 | 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 | 408 | 461 | -11.5 | 436 |
--------------------------------------------------------------------------------
PRESS CONFERENCE
Exel Composites will hold a press conference for the media and analysts
regarding the interim report today Friday 7 May 2010 at 12.30 p.m. in the
Tapiola Cabinet of the Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki,
Finland.
Vantaa, 7 May 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.
