Componenta weakens prospects for 2012
The continuous uncertainty of European and the world economy has further decreased the demand for investment goods in Componenta’s customer industries. Componenta’s order book on 30 September 2012 was EUR 87 (104) million. The order book has declined in almost all customer segments and the decrease of the order book during the last quarter of the year will be impacted significantly by adaptations of production and stocks started by many customers. Based on the order book and production estimates given by customers, Componenta’s net sales in 2012 are expected to decline from the previous year.
The operating profit excluding one-time items is expected to decline clearly from the previous year. Remarkable change in prospects during the third quarter is caused by clearly lower net sales estimate, weakness of Euro with respect to Turkish lira and Swedish krona and structural ineffectiveness in the Orhangazi foundry in Turkey, operations in the Netherlands and the Främmestad machine shop in Sweden. The result after financial items, excluding one-time items is expected to show a clear loss. The result is burdened by exceptionally high financial expenses in addition to the already mentioned other cost items. The new syndicated credit facility of EUR 90 million, released on 12 October 2012 and accomplished on 17 October 2012 is estimated to decrease Componenta’s financial costs in the future.
Componenta net sales in January - September 2012 were EUR 427 (435) million and preliminary operating profit excluding one-time items was EUR 13.6 (23.0) million.
Previous prospects for 2012 were:
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.
Helsinki, 18 October 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.