Componenta Corporation Interim Report 1 January - 31 March 2015: Order book and net sales increased, operating profit declined from previous year because of strengthening of Turkish lira

January - March 2015 in brief

• Order book at the beginning of April was 2% higher than in the previous year, standing at MEUR 92 (MEUR 91).
• Net sales in the review period increased 1% from the previous year to MEUR 133 (MEUR 132).
• EBITDA excluding one-time items and exchange rate differences of balance sheet items declined from the previous year to MEUR 10.3 (MEUR 12.1). Impact of the Turkish lira and local cost inflation was -3.5 MEUR compared to the previous year.
• Operating profit excluding one-time items and exchange rate differences of balance sheet items (operating profit from business operations) declined from the previous year to MEUR 5.8 (MEUR 7.4). The decline in the operating profit from the previous year was mainly due to the strengthening of the Turkish lira and local cost inflation.
• Result after financial items excluding one-time items and exchange rate differences of operative balance sheet items was MEUR 0.5 (MEUR -0.1).
• One-time items and exchange rate differences of operative balance sheet items that had an impact on the result for the January - March period totalled MEUR -1.4 (MEUR -0.9).
• Result for the period was EUR -1.7 (-1.3) million and basic earnings per share EUR -0.02 (EUR -0.09).
• New contracts obtained by Componenta in the first quarter had a value of EUR 33.5 million which was the highest in the company’s history.

Componenta’s guidance for 2015 unchanged

The prospects for Componenta in 2015 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta’s order intake and order book.

Componenta’s order book at the beginning of April stood at MEUR 92.3 (MEUR 90.7). Componenta expects the 2015 operating profit excluding one-time items and exchange rate differences of operative balance sheet items to improve from the previous year, as a result of the efficiency improvement program being carried out.

President and CEO Heikki Lehtonen comments on the review period:

”Componenta’s development projects in 2015 focus on improving productivity and cost-efficiency as well as improving performance in operations and operating methods. By carrying them out we safeguard the Group’s competitiveness and ensure closer cooperation with customers resulting in an increased sales.

Componenta’s group-wide efficiency improvement program made progress in accordance with plans in the first quarter of 2015. The Group has already carried out cost saving measures corresponding to EUR 39 million of the targeted cost savings in the program. EUR 29 million out of them are already visible at the end of first quarter and remaining EUR 10 million will become visible during next 12 months. The measures to improve quality and to utilize product development projects have also made progress in our production units in accordance with plans.

Componenta’s first quarter realized in line with expectations. The order book rose 2% from the previous year to EUR 92 million. Net sales increased slightly, but operating profit was down from the previous year due to the strengthening of the Turkish lira and local cost inflation. The strengthening of the Turkish lira started last year during the second quarter and due to that the negative impact of the Turkish lira is expected to decrease in the future.

Although overall economic development in the first quarter was somewhat sluggish, the economic outlook towards the end of the year is brighter. Thanks to the active measures taken by the European Central Bank in the financial markets, low interest rates and the weaker euro, Europe’s competitiveness has improved. Similar developments are also forecast by the European Purchasing Managers’ Index published in April, which forecasts that economic growth will gain pace towards the end of the year.

In line with general forecasts about developments, we also expect demand to follow this development and pick up in Componenta’s heavy trucks, machine building and automotive customer segments.”

Key figures

*) Excluding one-time items and exchange rate differences of balance sheet operating items

Componenta’s Interim Report 1 January - 31 March 2015 in PDF format is attached to this release. The report is also available on the Componenta website at www.componenta.com.

News conference for analysts, investors and media representatives at 10.30 am

Componenta is holding a news conference for analysts, investors and media representatives at 10.30 am on 27 April 2015 in the Satotalo auditorium in Käpylä, at Panuntie 4, 00610 Helsinki. The event can also be watched in a direct webcast on the internet. The link to the webcast is given on Componenta’s website at www.componenta.com.

Helsinki, 27 April 2015

COMPONENTA CORPORATION
 

Heikki Lehtonen
President and CEO

ENCL. Interim Report 1 January - 31 March 2015

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 495 million in 2014 and its share is listed on Nasdaq Helsinki. The Group employs approx. 4,250 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.