Exel Composites records impairment in the Australian and UK business units, and publishes preliminary Q4 and financial year 2012 results
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 6.2.2013 at 8.00 a.m.
EXEL COMPOSITES RECORDS IMPAIRMENT IN THE AUSTRALIAN AND UK BUSINESS UNITS, AND PUBLISHES PRELIMINARY Q4 AND FINANCIAL YEAR 2012 RESULTS
Exel Composites Plc has carried out annual group and cash generating unit level goodwill impairment tests according to IAS36 in relation with the closing of the accounts.
The financial performance of the Australian and UK business units weakened during the fourth quarter 2012 in spite of corrective action undertaken. The market conditions remain challenging in 2013. As an impairment test result, an impairment of EUR 2.5 million will be recorded in the results of the fourth quarter of 2012 in the Australian and UK business units. Impairment will be recorded as EUR 1.0 million in goodwill and EUR 1.5 million in other non-current assets. Business plans and corrective actions have been developed to improve the profitability in both units.
The impairment will not have an effect on the cash flow. As a result of this impairment the annual depreciations will be reduced in following years.
Exel Composites’ fourth quarter 2012 preliminary operating profit excluding the impairment for the fourth quarter will be EUR 0.9 million and preliminary operating profit excluding the impairment for the financial year 2012 EUR 5.9 million. Preliminary operating loss including the impairment for the fourth quarter 2012 will be EUR 1.6 million. Preliminary operating profit including the impairment for the financial year 2012 will be EUR 3.4 million.
Exel Composites will disclose its fourth quarter and financial year 2012 results on 15 February 2013.
Certain statements in this report, which are not historical facts, including, without limitation, those regarding expectations for general economic development and market situation; regarding customer industry profitability and investment willingness; regarding Company growth, development and profitability; regarding cost savings; regarding fluctuations in exchange rates and interest levels; regarding the success of pending and future acquisitions and restructurings; and statements preceded by "believes," "expects," "anticipates," "foresees" or similar expressions are forward-looking statements.
These statements are based on current expectations and currently known facts. Therefore, they involve risks and uncertainties that may cause actual results to differ materially from results currently expected by the Company.
Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Exel Composites does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
Vantaa, 6 February 2013
Exel Composites Plc
President and CEO
Vesa Korpimies, President and CEO, Exel Composites Plc,
tel. +358 50 590 6754, or email firstname.lastname@example.org
Ilkka Silvanto, CFO, Exel Composites Plc, tel. +358 50 598 9553, or email email@example.com
NASDAQ OMX Helsinki Ltd.
Main news media
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.