Componenta interim report 1 January - 31 March 2012: Operating profit improved clearly, high financial expenses burdened result, full year outlook remains the same
January - March 2012 in brief
- The Group’s order book at the end of March was on the same level as in the previous year, MEUR 106 (MEUR 104).
- Consolidated net sales in the review period rose 4% to MEUR 150 (MEUR 144).
- EBITDA excluding one-time items was MEUR 14.5 (MEUR 13.3).
- Operating profit excluding one-time items was MEUR 10.2 (MEUR 8.5) and after one-time items MEUR 10.1 (MEUR 6.0).
- The result after financial items excluding one-time items was MEUR 2.8 (MEUR 3.2) and after one-time items MEUR 2.7 (MEUR 0.7).
- Earnings per share excluding one-time items was EUR 0.13 (EUR 0.13) and after one-time items EUR 0.13 (EUR 0.03).
- Cash funds and committed unused credit facilities totalled MEUR 66 (MEUR 67) at the end of the review period.
Business environment 2012
The demand outlook in all the Group’s customer sectors is satisfactory. Demand prospects in the heavy trucks industry are uncertain in the early part of 2012. At the end of the review period, the order book for
Componenta’s heavy trucks customer sector was 2% higher than at the same time in the previous year. Demand for construction and mining machinery components is expected to continue to develop favourably, mainly because of the high level of activity in the mining industry and in developing markets. The order book for Componenta’s construction and mining customer sector was 4% higher at the end of the period than in the previous year. Demand for agricultural machinery is estimated to rise from its 2011 level mainly due to relatively high food prices. The order book for Componenta’s agricultural machinery customer sector was 33% higher at the end of March than at the same time in the previous year. Demand in the automotive industry is estimated to decline 3-5%. The order book for Componenta’s automotive customer sector was 24% lower at the end of the period than at the same time in the previous year. Demand in the machine building industry is expected to remain at the same level as in the previous year. At the end of March, the order book for Componenta’s machine building customer sector was 5% higher than at the same time in the previous year.
Outlook for Componenta 2012
Componenta’s order book at the end of March was at a similar level to that at the same time in the previous year.
Full year net sales in 2012 are expected to remain at the same level as in the previous year or to rise slightly. As a result of the implemented price rises and closure of three unprofitable business units, the operating profit is expected to show a clear improvement. The result after financial items excluding one-time items is expected to improve significantly, bearing in mind the low level of the figure for comparison. Net cash flow from operations is expected to improve clearly and changes in working capital should continue to be moderate. Investments in production facilities in 2012 are expected to be some EUR 12 million.
Key figures
| 1-3/2012 | 1-3/2011 | 1-12/2011 | |
| Order book at end of review period, MEUR | 105.9 | 104.3 | 99.5*) |
| Net sales, MEUR | 150.4 | 144.1 | 576.4 |
| Operating profit before one-time items, MEUR | 10.2 | 8.5 | 29.8 |
| Operating profit before one-time items, % | 6.8 | 5.9 | 5.2 |
| Result after financial items excl. one-time items, MEUR | 2.8 | 3.2 | 3.9 |
| Net result for the period, MEUR | 2.5 | 0.8 | -3.1 |
| Earnings per share excl. one time items, EUR | 0.13 | 0.13 | 0.09 |
| Net gearing, preferred capital notes as equity, % | 158.9 | 192.3 | 271.2 |
| Return on investment, excl. one-time items, % | 12.8 | 11.5 | 10.2 |
| Return on equity, excl. one-time items, % | 16.9 | 15.8 | 5.1 |
| Number of personnel at period end, incl. leased personnel | 4,790 | 4,727 | 4,665 |
*) 12 January 2012
Heikki Lehtonen, President and CEO:
”Componenta’s order book at the end of March was on the same level as in the previous year. Net sales rose 4% compared to the same period in the previous year and operating profit improved 20% as estimated. The Group’s average capacity utilisation rate was 70% or nearly on the same level as a year ago. Development of the net sales and order book in the Turkey and Holland operations was good, when development in the Finland and Sweden operations was milder.
The Group’s result during the first quarter of the year was burdened by increased financing expenses. Net financing expenses rose from the previous year due to fair valuation loss of interest rate hedges, foreign exchange losses and increased arrangement fees of long-term financing. Due to the share issue and hybrid bond issued in March the Group’s equity ratio improved and net gearing decreased compared to the year end.
Componenta’s new sales during the review period developed well and offers submitted have stayed on high level. After the stable first quarter of the year, the demand prospects in all customer sectors are satisfactory.”
Componenta’s interim report for the period January - March 2012 as a PDF is 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 14.30 (EEST)
A press conference will be arranged in Käpylä, in auditorium of the Sato house, at the address Panuntie 4, 00610 Helsinki starting at 14.30 (EEST). The press conference will be webcast simultaneously via internet. Link can be found on Componenta’s Internet pages at www.componenta.com.
Helsinki, 24 April 2012
COMPONENTA CORPORATION
Heikki Lehtonen
President and CEO
ENCL. Interim report 1 January - 31 March 2012
For further information, please contact:
Heikki Lehtonen Mika Hassinen
President and CEO CFO
tel. +358 10 403 2200 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.