Exel Composites Plc's interim report for January 1 - June 30, 2010
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 23.7.2010 at 9.35 a.m. 1 (12)
EXEL COMPOSITES PLC'S INTERIM REPORT FOR JANUARY 1 - JUNE 30, 2010
April - June 2010 highlights
- Net sales from continuing operations were EUR 19.2 (19.3) million, down by 0.6
per cent on the previous year
- Operating profit from continuing operations was EUR 2.7 (2.4) million,
representing 13.8 (12.4) per cent of net sales
- Net operative cash flow was positive at EUR +3.3 (+3.2) million
- Fully diluted earnings per share were EUR 0.16 (0.16), of which continuing
operations accounted for EUR 0.16 (0.16)
January - June 2010 highlights and outlook
- Net sales from continuing operations were EUR 34.8 (37.8) million for the
first six months of 2010, down by 7.9 per cent on the previous year
- Operating profit from continuing operations was EUR 3.6 (4.4) million in
January - June 2010, representing 10.4 (11.6) per cent of net sales
- Net operative cash flow was positive at EUR +4.1 (+6.2) million
- Fully diluted earnings per share were EUR 0.22 (0.30), of which continuing
operations accounted for EUR 0.22 (0.29)
- Due to the market uncertainty and poor visibility, Exel Composites will not
give any profit guidance
Vesa Korpimies, President and CEO:
“An improvement could be seen in the market situation during the second quarter
of the year compared to the first quarter as a number of market segments
recovered. The Group's net sales in the second quarter of 2010 were on the same
level as in the corresponding period last year. At the same time, the Group's
profitability improved by 11 per cent and the return on capital employed
increased to 26 per cent. Sales continued to improve in electrical industry,
machine industry and the sports and leisure industry.
During the first half of 2010 our cash flow continued to be positive and our
equity ratio and net gearing continued to improve.
The challenging market environment is expected to continue in the second half of
2010. We will continue to focus on sales and on developing new applications with
our customers. Exel Composites long-term growth prospects remain favorable, as
there are many potential opportunities in for example airport products, the
electrical industry as well as in the window and door profile market. As an
international player, Exel Composites is able to provide unique service to
customers both locally and globally. Exel Composites is now well positioned to
take advantage of the growth opportunities as the markets gradually recover.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
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| | 1.4. - | 1.4. | Chang | 1.1. - | 1.1. - | Change, | 1.1. - |
| | 30.6. | - | e % | 30.6. | 30.6. | % | 31.12. |
| | 2010 | 30.6. | | 2010 | 2009 | | 2009 |
| | | 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, | 19.2 | 19.3 | -0.6 | 34.8 | 37.8 | -7,9 | 70.0 |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 2.7 | 2.4 | 11.0 | 3.6 | 4.4 | -17.2 | 8.0 |
| profit, | | | | | | | |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 13.8 | 12.4 | | 10.4 | 11.6 | | 11.4 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 1.9 | 1.9 | 2.9 | 2.6 | 3.4 | -23.2 | 5.9 |
| the | | | | | | | |
| period, | | | | | | | |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholde | 27.5 | 22.0 | 25.3 | 27.5 | 22.0 | 25.3 | 25.6 |
| rs' equity | | | | | | | |
--------------------------------------------------------------------------------
| Net | 5.6 | 13.9 | -59.6 | 5.6 | 13.9 | -59.6 | 6.1 |
| interest-b | | | | | | | |
| earing | | | | | | | |
| liabilitie | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Capital | 43.2 | 45.5 | -5.0 | 43.2 | 45.5 | -5.0 | 44.3 |
| employed | | | | | | | |
--------------------------------------------------------------------------------
| Return on | 29.7 | 38.6 | | 19.7 | 37.5 | | 31.3 |
| equity, % | | | | | | | |
--------------------------------------------------------------------------------
| Return on | 26.3 | 22.6 | | 17.5 | 20.8 | | 20.9 |
| capital | | | | | | | |
| employed, | | | | | | | |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 47.2 | 35.9 | | 47.2 | 35.9 | | 44.6 |
| ratio, % | | | | | | | |
--------------------------------------------------------------------------------
| Net | 20.4 | 63.5 | | 20.4 | 63.5 | | 23.7 |
| gearing, % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | 0.16 | 0.16 | | 0.22 | 0.30 | | 0.56 |
| per share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | 0.16 | 0.16 | | 0.22 | 0.30 | | 0.56 |
| per share, | | | | | | | |
| diluted, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 2.31 | 1.85 | | 2.31 | 1.85 | | 2.15 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
IFRS REPORTING
This interim report has been prepared in accordance with the recognition and
measurement principles of IFRS, which are the same as in the 2009 financial
statements.
FINANCIAL PERFORMANCE
1 April - 30 June 2010
The Group's net sales from continuing operations in April - June 2010 were on
the same level as in the corresponding period last year and were EUR 19.2 (19.3)
million.
Sales continued to improve in electrical industry, where long-term agreements
signed in 2009 materialized in new deliveries, in machine industry and in the
sports and leisure industry, where the laminate demand for winter sports
industries was on a relatively high level.
Interest in composite glass fiber window and door profiles has grown
significantly in most European countries due to new energy regulations.
The airport product group sales came to a standstill in Europe after the
financial crisis of Greece was revealed. There have been some weak positive
signals from other markets, but the outlook is still slow. In June 2010 Exel
Composites signed an agreement with a new distributor in China.
Exel Composites' operating profit from continuing operations in April - June
2010 increased to EUR 2.7 (2.4) million, compared to the corresponding period
last year.
1 January - 30 June 2010
Net sales from continuing operations in January - June 2010 decreased by 7.9 per
cent to EUR 34.8 (37.8) million compared to the corresponding period in 2009.
The cleaning and maintenance market has remained relatively steady during the
recession. New distribution channels and new markets are being searched to gain
a stronger position in the market.
The composite profile market continued to be competitive and there was
overcapacity in the market.
Exel Composites' operating profit from continuing operations in January - June
2010 decreased to EUR 3.6 (4.4) million, compared to the corresponding period
last year. Operating profit as a percentage of net sales from continuing
operations was 10.4 (11.6) per cent. Other operating expenses include one-off
restructuring costs of EUR 1.2 million due to the corporate restructuring of the
former Floorball licensee. Other operating income includes one-off licensing
income of EUR 1.2 million.
The Group's net financial expenses from continuing operations in January - June
2010 were EUR -0.1 (+0.2) million. The Group's profit before taxes from
continuing operations was EUR 3.5 (4.6) million and profit after taxes EUR 2.6
(3.4) million.
Earnings per share for continuing operations decreased to EUR 0.22 (0.29) and
for discontinued operations to EUR 0.00 (0.02). Return on capital employed was
17.5 (20.8) per cent.
BALANCE SHEET AND FINANCIAL POSITION
Net cash flow from operating activities was positive at EUR 4.1 (6.2) million.
Cash flow before financing, but after capital expenditure, amounted to EUR 3.4
(6.8) million.
Net interest-bearing liabilities were EUR 5.6 (13.9) million, and the net
gearing ratio was 20.4 (63.5) per cent.
Capital expenditure was financed with cash flow from business operations. At the
end of the period under review, the Group's liquid assets stood at EUR 10.0
(9.6) million.
The Group's consolidated total assets at the end of the review period were EUR
58.3 (61.1) million.
Equity at the end of the period under review was EUR 27.5 (22.0) million and
equity ratio 47.2 (35.9) per cent. Interest-bearing liabilities amounted to EUR
15.7 (23.5) million, of which short-term liabilities accounted for EUR 7.5 (4.2)
million.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets during the review period amounted to EUR
0.7 (0.8) million.
Total depreciation of non-current assets during the period under review amounted
to EUR 1.4 (1.6) million.
PERSONNEL
The number of Exel Composites Group employees on 30 June 2010 was 396 (442), of
whom 179 (205) worked in Finland and 217 (237) in other countries. The average
number of personnel during the reporting period was 403 (452). The decrease both
in Finland and abroad is due to the rationalization actions in the Finnish,
British and Chinese units and the divestment of Exel Sports Brands' Floorball
business.
SHARES AND SHARE CAPITAL
At the end of June 2010, Exel Composites' share capital was EUR 2,141,431.74 and
the number of shares was 11,896,843. There were no changes in the share capital
during the review period.
Based on the closing price on 30 June 2010, the market capitalization totaled
EUR 61.3 (62.5) million. During the reporting period 1,381,356 (1,559,432)
shares were traded, accounting for 11.6 (13.1) per cent of the average number of
shares outstanding.
The highest share quotation was EUR 6.79 (6.20) and the lowest EUR 5.00 (2.37).
The share price closed at EUR 5.15 (5.25). The average share price during the
review period was EUR 5.93 (2.90).
Own shares
Exel Composites did not hold any of its own shares during the period of review.
SHAREHOLDERS AND DISCLOSURES
Exel Composites had a total of 2,071 shareholders on 30 June 2010. Information
on Exel Composites' shareholders is available on the Company website at
www.exelcomposites.com.
Exel Composites received no flagging notifications during the period under
review.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to the general
economic development and a possible new financial crisis in the Euro area as
well as to market demand in certain market segments. The market visibility is
weak and the second half of 2010 may still be challenging. The raw material
prices, energy cost and other cost increases may put pressure on profitability.
The possible European Community's anti-dumping tariffs on Chinese glass fiber
may have a negative effect on the result. Currency rate changes, especially a
strengthening of the U.S. dollar and price competition may also have a negative
effect on the result. The poor availability of financing may continue to have
effect on the demand and increase the credit loss risk.
MARKET OUTLOOK FOR 2010
The Group has a cautious stance on the economy for 2010 and expects the market
conditions to remain challenging although there are signals that the markets are
improving. Exel Composites is prepared to take further prompt actions, but also
to capture opportunities due to the economic down-turn. Even though the
short-term market outlook is challenging, the long-term growth opportunities
remain favorable.
EXEL COMPOSITES' OUTLOOK FOR 2010
Due to the market uncertainty and poor visibility, Exel Composites will not give
any profit guidance.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
(unaudited)
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| EUR | 1.4. - | 1.4.- | Change | 1.1.-30 | 1.1.-30 | Change, | 1.1. - |
| thousand | 30.6. | 30.6. | , % | .6. | .6. | % | 31.12. |
| | 2010 | 2009 | | 2010 | 2009 | | 2009 |
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| Continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 19,173 | 19,28 | -0.6 | 34,843 | 37,814 | -7.9 | 70,005 |
| | | 5 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials | -7,189 | -7,98 | 10.0 | -13,252 | -15,335 | 13.6 | -28,430 |
| and | | 8 | | | | | |
| services | | | | | | | |
--------------------------------------------------------------------------------
| Employee | -4,892 | -4,76 | -2.7 | -9,274 | -9,590 | 3.3 | -17,994 |
| benefit | | 3 | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Depreciati | -763 | -748 | -2.0 | -1,438 | -1,567 | 8.2 | -3,028 |
| on and | | | | | | | |
| impairment | | | | | | | |
--------------------------------------------------------------------------------
| Other | -4,229 | -3,84 | -10.0 | -9,052 | -7,679 | -17.9 | -13,859 |
| operating | | 3 | | | | | |
| expenses | | | | | | | |
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| Other | 553 | 448 | 23.4 | 1,809 | 748 | 141.8 | 1,296 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 2,653 | 2,390 | 11.0 | 3,636 | 4,391 | -17.2 | 7,990 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | -10 | 185 | -105.4 | -96 | 238 | -140.3 | -20 |
| financial | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | 2,643 | 2,575 | 2.6 | 3,540 | 4,629 | -23.5 | 7,970 |
| before tax | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income | -706 | -693 | -1.9 | -925 | -1,223 | 24.4 | -2,025 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/los | 1,937 | 1,882 | 2.9 | 2,615 | 3,406 | -23.2 | 5,945 |
| s for the | | | | | | | |
| period | | | | | | | |
| from | | | | | | | |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinu | | | | | | | |
| ed | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Profit/los | 0 | 80 | 100.0 | 0 | 213 | 100.0 | 662 |
| s for the | | | | | | | |
| period | | | | | | | |
| from | | | | | | | |
| discontinu | | | | | | | |
| ing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/los | 1,937 | 1,962 | 1.3 | 2,615 | 3,619 | 27.7 | 6,607 |
| s for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | | | | |
| comprehens | | | | | | | |
| ive | | | | | | | |
| income: | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Exchange | 1,008 | 1,331 | -24.3 | 2,303 | 1,663 | 38.5 | 2,293 |
| difference | | | | | | | |
| s on | | | | | | | |
| translatin | | | | | | | |
| g foreign | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Income tax | 0 | 0 | 0.0 | 0 | 0 | 0.0 | 0 |
| relating | | | | | | | |
| to | | | | | | | |
| components | | | | | | | |
| of other | | | | | | | |
| comprehens | | | | | | | |
| ive income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 1,008 | 1,331 | -24.3 | 2,303 | 1,663 | 38.5 | 2,293 |
| comprehens | | | | | | | |
| ive | | | | | | | |
| income, | | | | | | | |
| net of tax | | | | | | | |
--------------------------------------------------------------------------------
| Total | 2,946 | 3,293 | -10.5 | 4,918 | 5,283 | -6.9 | 8,900 |
| comprehens | | | | | | | |
| ive income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/los | | | | | | | |
| s | | | | | | | |
| attributab | | | | | | | |
| le to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 1,937 | 1,962 | 0.0 | 2,615 | 3,619 | 0.0 | 6,607 |
| holders of | | | | | | | |
| the parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehens | | | | | | | |
| ive income | | | | | | | |
--------------------------------------------------------------------------------
| attributab | | | | | | | |
| le to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 2,946 | 3,293 | 0.0 | 4,918 | 5,283 | 0.0 | 8,900 |
| holders of | | | | | | | |
| the parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | | | | | | | |
| per share, | | | | | | | |
| diluted | | | | | | | |
| and | | | | | | | |
| undiluted, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| From | 0.16 | 0.16 | 0.0 | 0.22 | 0.29 | 0.0 | 0.50 |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| From | 0.00 | 0.01 | 0.0 | 0.00 | 0.02 | 0.0 | 0.06 |
| discontinu | | | | | | | |
| ed | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Total | 0.16 | 0.16 | 0.0 | 0.22 | 0.30 | 0.0 | 0.56 |
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CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| EUR thousand | 30.6.2010 | 30.6.2009 | Change | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 10,294 | 9,374 | 920 | 9,686 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,975 | 2,539 | 436 | 2,460 |
--------------------------------------------------------------------------------
| Tangible assets | 10,904 | 11,494 | -590 | 10,835 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1,737 | 3,186 | -1,449 | 2,315 |
--------------------------------------------------------------------------------
| Other non-current assets | 62 | 60 | 2 | 64 |
--------------------------------------------------------------------------------
| Non-current assets total | 25,972 | 26,653 | -681 | 25,642 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 9,671 | 10,666 | -995 | 8,782 |
--------------------------------------------------------------------------------
| Trade and other | 12,617 | 14,223 | -1,606 | 10,281 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Cash at bank and in hand | 10,044 | 9,571 | 473 | 12,597 |
--------------------------------------------------------------------------------
| Current assets total | 32,331 | 34,461 | -2,130 | 31,661 |
--------------------------------------------------------------------------------
| Total assets | 58,303 | 61,114 | -2,811 | 57,303 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders´ equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
--------------------------------------------------------------------------------
| Other reserves | 37 | 5 | 32 | 37 |
--------------------------------------------------------------------------------
| Invested unrestricted | 8,488 | 8,488 | 0 | 8,488 |
| equity fund | | | | |
--------------------------------------------------------------------------------
| Translation differences | 2,204 | -730 | 2,934 | -100 |
--------------------------------------------------------------------------------
| Retained earnings | 12,039 | 8,440 | 3,599 | 8,407 |
--------------------------------------------------------------------------------
| Profit for the period | 2,615 | 3,619 | -1,004 | 6,607 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity | 27,524 | 21,963 | 5,561 | 25,580 |
| attributable to equity | | | | |
| holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Total equity | 27,524 | 21,963 | 5,561 | 25,580 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 8,162 | 19,319 | -11,157 | 16,346 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-free | 321 | 367 | -46 | 330 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 206 | 329 | -123 | 248 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 7,510 | 4,195 | 3,315 | 2,324 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 14,580 | 14,940 | -360 | 12,476 |
| non-current liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 30,779 | 39,151 | -8,372 | 31,723 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | 58,303 | 61,114 | -2,811 | 57,303 |
| liabilities | | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR | Share | Share | Other | Investe | Transla | Retaine | Total |
| thousand | Capit | Pre | Reserv | d | tion | d | |
| | al | mium | es | Unrestr | Differe | Earning | |
| | | Reser | | icted | nces | s | |
| | | ve | | Equity | | | |
| | | | | Fund | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 5 | 8,488 | -2,393 | 8,440 | 16,680 |
| 1 January | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehen- | 0 | 0 | 0 | 0 | 1,663 | 3,619 | 5,283 |
| sive | | | | | | | |
| result | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 5 | 8,488 | -730 | 12,059 | 21,963 |
| 30 June | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 37 | 8,488 | -100 | 15,013 | 25,580 |
| 1 January | | | | | | | |
| 2010 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehen- | 0 | 0 | 0 | 0 | 2,303 | 2,615 | 4,918 |
| sive | | | | | | | |
| result | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | -2,974 | -2,974 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 37 | 8,488 | 2,204 | 14,654 | 27,524 |
| 30 June | | | | | | | |
| 2010 | | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - |
| | 30.6. | 30.6. | | 31.12. |
| | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | 2,615 | 3,619 | -1,004 | 6,607 |
--------------------------------------------------------------------------------
| Adjustments | 3,125 | 907 | 2,218 | 4,829 |
--------------------------------------------------------------------------------
| Change in working capital | -515 | 1,421 | -1,936 | 2,309 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow Generated by | 5,255 | 5,947 | -722 | 13,745 |
| Operations | | | | |
--------------------------------------------------------------------------------
| Interest paid | -273 | -650 | 377 | -1,015 |
--------------------------------------------------------------------------------
| Interest received | 154 | 126 | 28 | 292 |
--------------------------------------------------------------------------------
| Other financial items | 64 | 825 | -761 | 770 |
--------------------------------------------------------------------------------
| Income taxes paid | -1,071 | -88 | -983 | 427 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Cash Flow from Operating | 4,099 | 6,160 | -2,061 | 14,219 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities | | | |
--------------------------------------------------------------------------------
| Disposal of business | 0 | 1,000 | -1,000 | 1,225 |
--------------------------------------------------------------------------------
| Capital expenditure | -695 | -819 | 124 | -1,440 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed | 0 | 410 | -410 | 410 |
| assets | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing | -695 | 591 | -1,286 | 195 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing | | | | |
--------------------------------------------------------------------------------
| Installments of long-term | -2,157 | -4,752 | 2,595 | -7,623 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Change in short-term loans | 0 | -264 | 264 | -1,823 |
--------------------------------------------------------------------------------
| Installments of finance | -826 | -199 | -627 | -406 |
| lease liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -2,974 | 0 | -2,974 | 0 |
--------------------------------------------------------------------------------
| Net Cash Flow from Financing | -5,957 | -5,215 | -742 | -9,852 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in Liquid Funds | -2,553 | 1,536 | -4,089 | 4,562 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the | 12,597 | 8,035 | 4,562 | 8,035 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | -2,553 | 1,536 | -4,089 | 4,562 |
--------------------------------------------------------------------------------
| Liquid funds at the end of | 10,044 | 9,571 | 473 | 12,597 |
| period | | | | |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | II/ | 1/ | IV/ | III/ | II/ | I/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 19,173 | 15,671 | 16,248 | 15,942 | 19,285 | 18,530 |
--------------------------------------------------------------------------------
| Materials and | -7,189 | -6,062 | -6,393 | -6,702 | -7,988 | -7,347 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | -4,892 | -4,381 | -4,071 | -4,332 | -4,763 | -4,827 |
| benefit | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -763 | -675 | -712 | -748 | -748 | -820 |
| and impairment | | | | | | |
--------------------------------------------------------------------------------
| Operating | -4,229 | -4,824 | -3,080 | -3,101 | -3,843 | -3,836 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Other | 553 | 1,255 | 367 | 180 | 448 | 300 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 2,653 | 983 | 2,360 | 1,239 | 2,390 | 2,001 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -10 | -86 | 30 | -288 | 185 | 53 |
| items | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before | 2,643 | 897 | 2,390 | 951 | 2,575 | 2,054 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -706 | -219 | -550 | -252 | -693 | -530 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 1,937 | 678 | 1,840 | 699 | 1,882 | 1,524 |
| for the period | | | | | | |
| from | | | | | | |
| continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 0 | 0 | 351 | 97 | 80 | 133 |
| for the period | | | | | | |
| from | | | | | | |
| discontinuing | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 1,937 | 678 | 2,191 | 796 | 1,962 | 1,658 |
| for the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.16 | 0.06 | 0.18 | 0.07 | 0.16 | 0.14 |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.16 | 0.06 | 0.18 | 0.07 | 0.16 | 0.14 |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
| Average number | | | | | | |
| of shares, | | | | | | |
| undiluted, | | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number | | | | | | |
| of shares, | | | | | | |
| diluted, | | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number | 397 | 408 | 414 | 425 | 452 | 461 |
| of personnel | | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| EUR thousand | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | | | |
--------------------------------------------------------------------------------
| Mortgages | 2,783 | 2,783 | 2,783 |
--------------------------------------------------------------------------------
| Corporate mortgages | 12,500 | 12,500 | 12,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Lease liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - in next 12 months | 384 | 573 | 516 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 1,411 | 1,453 | 1,328 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 182 | 178 | 235 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
| Nominal values | 30.6.2010 | 30.6.2009 | 31.12.2009 |
| EUR thousand | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | | | |
--------------------------------------------------------------------------------
| Forward contracts | | 716 | 341 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 10,000 | 9,369 | 10,000 |
--------------------------------------------------------------------------------
| Purchased interest rate options | | 5,000 | 0 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change % | 1.1.-31.12 |
| | 30.6. | 30.6. | | . |
| | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| Net sales | 34,843 | 37,814 | -7.9 | 70,005 |
--------------------------------------------------------------------------------
| Operating profit | 3,636 | 4,391 | -17.2 | 7,990 |
--------------------------------------------------------------------------------
| % of net sales | 10.4 | 11.6 | | 11.4 |
--------------------------------------------------------------------------------
| Profit before tax | 3,540 | 4,629 | -23.5 | 7,970 |
--------------------------------------------------------------------------------
| % of net sales | 10.2 | 12.2 | | 11.4 |
--------------------------------------------------------------------------------
| Profit for the period | 2,615 | 3,406 | -23.2 | 5,945 |
--------------------------------------------------------------------------------
| % of net sales | 7.5 | 9.0 | | 8.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 27,524 | 21,963 | 25.3 | 25,580 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 15,672 | 23,514 | -33.4 | 18,669 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 10,044 | 9,571 | 4.9 | 12,597 |
--------------------------------------------------------------------------------
| Net interest-bearing | 5,628 | 13,943 | -59.6 | 6,072 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 43,196 | 45,477 | -5.0 | 44,250 |
--------------------------------------------------------------------------------
| Return on equity, % | 19.7 | 37.5 | | 31.3 |
--------------------------------------------------------------------------------
| Return on capital employed, | 17.5 | 20.8 | | 20.9 |
| % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 47.2 | 35.9 | | 44.6 |
--------------------------------------------------------------------------------
| Net gearing, % | 20.4 | 63.5 | | 23.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 695 | 819 | -15.1 | 1,440 |
--------------------------------------------------------------------------------
| % of sales | 2.0 | 2.2 | | 2.1 |
--------------------------------------------------------------------------------
| Research and development | 702 | 781 | -10.1 | 1,407 |
| costs | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.0 | 2.1 | | 2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 12,353 | 12,241 | 0.9 | 8,827 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.22 | 0.30 | -27.7 | 0.56 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.22 | 0.30 | -27.7 | 0.56 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2.31 | 1.85 | 24.9 | 2.15 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | | | | |
--------------------------------------------------------------------------------
| - cumulative | 11,897 | 11,897 | 0.0 | 11,897 |
--------------------------------------------------------------------------------
| - cumulative, diluted | 11,897 | 11,897 | 0.0 | 11,897 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees | 403 | 452 | -10.8 | 436 |
--------------------------------------------------------------------------------
Vantaa, 23 July 2010
EXEL COMPOSITES PLC Vesa Korpimies
Board of Directors President and CEO
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for general
economic development and the market situation, expectations for company growth,
development and profitability, and statements preceded by “expects” or
“estimates” or similar expressions, are forward-looking statements. These
statements are based on current decisions and plans and currently known facts.
They involve risks and uncertainties which may cause the actual results to
materially differ from the results currently expected by the company.
FURTHER INFORMATION:
Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email
vesa.korpimies@exelcomposites.com
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email
ilkka.silvanto@exelcomposites.com
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main news media
www.exelcomposites.com
EXEL COMPOSITES IN BRIEF
Exel Composites (www.exelcomposites.com) is a technology company which designs,
manufactures and markets composite profiles and tubes for industrial
applications. The Group is the leading composite profile manufacturer in the
world and concentrates on growing niche segments.
The core of the operations is based on own, internally developed composite
technology, product range based on it and a strong market position in selected
segments with a strong quality and brand image. Profitable growth is pursued by
a relentless search for new applications and development in co-operation with
customers. The personnel's expertise and high level of technology play a major
role in Exel Composites' operations.
The Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX
Helsinki Ltd.
