Exel Composites Plc's Interim Report for January 1 - March 31, 2010
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.”
Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email
The interim report can be read in full in the attached PDF file.