Componenta Corporation Interim report 1 Jan - 31 Mar 2011 Componenta's result improved clearly, demand outlook for rest of year still encouraging
January – March 2011 in brief (corresponding period in the previous year in brackets)
- The Group’s order book rose 53% and was at the end of March MEUR 104 (MEUR 68).
- Consolidated net sales in the review period increased 58% and totalled MEUR 144 (MEUR 91).
- Capacity utilization rate during the review period was 71% (50%)
- Operating profit excluding one-time items was MEUR 8.5 (MEUR 0.3). Operating profit after one-time items was MEUR 6.0 (MEUR 0.3).
- Result after financial items excluding one-time items was MEUR 3.2 (MEUR -5.6). Result after financial items and after one-time items was MEUR 0.7 (MEUR -5.6).
- Earnings per share excluding one-time items was EUR 0.13 (EUR -0.24). Earnings per share after one-time items was EUR 0.03 (EUR -0.24).
- Unused committed credit facilities and cash in bank at the end of review period were MEUR 67.
Market outlook
Demand outlook in the Group’s all customer segments is good in the beginning of the second quarter of 2011. Demand in the heavy trucks customer industry is expected to continue at good level, in particular because of market development in Europe. Demand for construction and mining machinery components is expected to continue developing favourably, mainly because of the rise in mining material prices and the recovery in the economy. Demand for agricultural machinery is estimated to rise from the previous year as the result of higher food prices and developments in demand in European and North American markets. As a result of growing exports by Turkey’s automotive industry and encouraging developments in demand for aluminium alloy wheels, demand in the automotive industry is estimated to pick up favourably in 2011. Demand in the wind power industry is expected to remain at a low level in Europe during the first half of year 2011. Demand in the machine building industry is expected to continue to pick up gradually.
Outlook for Componenta
In 2011 the Group’s net sales are expected to rise clearly and the result after financial items excluding one-time items to be positive. Full year net cash flow from operations is expected to remain positive and changes in working capital should be moderate, due to the sale of trade receivables. Investments in production facilities in 2011 are expected to increase from EUR 15 million to some EUR 20 million, due to good development in new sales and transfer of the Pietarsaari machining operations mainly to Främmestad in Sweden.
Key figures
| 1-3/2011 | 1-3/2010 | 1-12/2010 | |
| Order book at end of review period, MEUR | 104.3 | 68.0 | 94.6 |
| Net sales, MEUR | 144.1 | 91.2 | 451.6 |
| Operating profit before one-time items, MEUR | 8.5 | 0.3 | 13.6 |
| Operating profit % before one-time items | 5.9 | 0.4 | 3.0 |
| Result after financial items excl. one-time items, MEUR | 3.2 | -5.6 | -9.9 |
| Net result for the period, MEUR | 0.8 | -4.1 | -7.5 |
| Earnings per share excl. one time items, EUR | 0.13 | -0.24 | -0.45 |
| Net gearing, % (preferred capital notes as equity) | 192.3 | 218.2 | 170.5 |
| Return on investment, excl. one-time items, % | 11.5 | 1.1 | 5.0 |
| Return on equity, excl. one-time items, % | 15.8 | -23.5 | -10.2 |
| Number of personnel at period end, incl. leased personnel | 4727 | 3845 | 4414 |
President and CEO Heikki Lehtonen:
”Componenta’s net sales during the first review period of year 2011 increased 58% and the value of production 59% compared to the corresponding period in the previous year. The demand in all our customer segments has strengthened and our capacity utilization rate rose to 71%. Increase can be seen in the Group’s all operations, but in Turkey and Sweden the growth has been extremely strong. Due to higher production volumes and adjustments made earlier the Group’s EBITDA and operating profit have clearly improved. At the end of March Componenta’s liquidity position was good.
Market outlook is good in all our customer industries. We have invested in development of customer service and wide offering and our goal is to grow together with our customers. Investments in production facilities are expected to increase due to good development in new sales and transfer of the Pietarsaari machining operations.”
New disclosure procedure
As from the first interim report in 2011 Componenta Corporation is adopting the new disclosure procedure enabled by the Standard 5.2b published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Componenta’s Interim Report for the period January - March 2011 and the complete report as a PDF is available as an attachment of this release. The interim report is also available on the Componenta’s website at www.componenta.com.
Press conference to analysts and media representatives 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, 20 April 2011
COMPONENTA CORPORATION
Heikki Lehtonen
President and CEO
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. The Group employs approx. 4,400 people. Componenta's shares are quoted on the NASDAQ OMX Helsinki. 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.
Componenta Corporation
Panuntie 4
FI-00610 Helsinki, Finland
Tel. +358 10 403 00
Fax +358 10 403 2721
www.componenta.com