Change of functional currency at Turkish subsidiary

Componenta’s Board of Directors has decided to change the functional currency of the Turkish subsidiary, Componenta Dökümcülük A.S, to the euro as of 1 March 2012. The euro has become the main currency for Componenta Dökümcülük A.S both for its sales and its purchases. One result of changing the functional currency to the euro is to reduce the risk from exchange rate fluctuations, and for example the translation risk arising from exchange rate differences for the Group’s shareholders’ equity will be eliminated entirely for the Turkish lira in the future.

On 31 December 2011, the cumulative exchange rate difference in the Group’s equity, including the share of non-controlling interest, resulting from the weakening of the Turkish lira was EUR -41.9 million. During January and February 2012 this figure was reduced by EUR 5.5 million, therefore a cumulative exchange rate loss of EUR -36.4 million resulting from the weakening of the Turkish lira will remain in the consolidated balance sheet.

Helsinki, 20 March 2012

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO

For further information, please contact:

Heikki Lehtonen
President and CEO
tel. +358 10 403 2200

Mika Hassinen
CFO
tel. +358 10 403 2723

 
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 576 million in 2011 and its share is listed on the NASDAQ OMX Helsinki. The Group employs approx. 4,700 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.