Componenta's prospects for 2012 weakened

The continuous uncertainty of European and the world economy has decreased the demand for investment goods in Componenta’s customer industries. Componenta’s order book on 31 August 2012 was EUR 92 (104) million. Based on the order book and production estimates given by customers, Componenta’s net sales in 2012 are expected to remain on the same level as in the previous year or decrease slightly. The change in prospects is especially caused by weakened outlook in the construction and mining industry and the machine building industry. The demand is expected to continue on low level in a prevailing economic situation.

The operating profit excluding one-time items is expected be in the range of EUR 26 - 32 million. Change in the expected operating profit is based on the lower net sales and weakened Euro with respect to other currencies. The result after financial items, excluding one-time items is expected to be between EUR -3 and 3 million.

Due to weakened prospects, actions to adapt capacity and costs to the current situation have already been started. The actions also include adaptation of personnel, mainly by reducing leased employees and temporary lay-offs. On 30 June 2012 Componenta employed 4,842 persons, including 514 leased persons. 

Previous prospects for 2012 were:

Full year net sales in 2012 are expected to remain at the same level as in the previous year or rise slightly. As the result of the price rises that have been implemented and the closing down of three loss-making units, the operating profit is expected to show a clear improvement. Even though the operating profit for the review period was similar to the previous year, the remaining part is anticipated to be better than in the previous year. Previous year operating profit was burdened by the quality defects in Orhangazi, Turkey, and by the increase in non-surcharged raw material prices.

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 15 million.

Helsinki, 7 September 2012

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO

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.