Componenta’s outlook for 2012

The Board of Directors of Componenta Corporation has adjusted the Group’s outlook for 2012.

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

Operating environment

Demand outlook in all the Group’s customer segments is satisfactory.

Demand prospects in the heavy trucks industry are uncertain at the beginning of 2012, and Componenta’s order book from the heavy trucks customer business area was 5% down on the previous year. Sales of heavy trucks in Europe in 2011 were approximately 240,000 units. In 2012 sales are estimated to be between 220,000 and 240,000 trucks.

Demand for construction and mining machinery components is expected to continue to develop favorably, mainly due to the high level of activity in the mining industry and in developing markets. Componenta’s order  book from construction and mining machinery customers at the beginning of 2012 was 38% higher than in the previous year. The markets are expected to grow 10-20% this year.

Demand for agricultural machinery is estimated to rise from the previous year mainly as the result of relatively high food prices. Componenta’s order book from the agricultural machinery customer business area at the beginning of 2012 was 47% higher than in the previous year. The market is expected to grow 5-10% in 2012.

Demand in the automotive industry in Europe is expected to decrease 3-5%. Componenta’s sales to the automotive industry are expected to remain at the same level as in the previous year mainly due to the increase in market share. Componenta’s order book from the automotive industry at the beginning of 2012 was 17% lower than at the corresponding time in the previous year.

Demand in the machine building industry is expected to remain at the same level as in the previous year. Componenta’s order book from the machine building industry at the beginning of 2012 was 9% down on the previous year.

Outlook for Componenta

Componenta’s order book at the beginning of 2012 was 5% higher than in the previous year.

Full year net sales 2012 are expected to be similar to the previous year’s figure or to grow slightly. As a result of the implemented price increases and the improved cost structure, the operating profit is expected to improve clearly. The result after financial items excluding one-time items is expected to improve significantly, taking into account the low level of the corresponding figure. Net cash flow from operations is expected to improve clearly and changes in working capital should remain moderate. Investments in production facilities in 2012 are estimated at some EUR 12 million.

 Outlook for the first quarter of 2012 has not changed from those published on 24 January 2012. The net sales are expected to grow slightly from the previous year. As a result of the implemented price increases and the improved cost structure, the operating profit is expected to improve clearly. The result after financial items excluding one-time items is expected to improve.

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.