Exel Interim Report for 1 January - 30 September 2007
EXEL OYJ STOCK EXCHANGE RELEASE 30.10.2007 at 11.00
EXEL INTERIM REPORT FOR 1 JANUARY – 30 SEPTEMBER 2007
Summary
Group
- Net sales in the first nine months increased to EUR 85.4 million, up 4.1 per cent over the corresponding period previous year
- Net sales in the third quarter were EUR 27.9 (28.5) million
- Operating profit in the first nine months was EUR 4.1 (-0.3) million or 4.8 (-0.3) per cent of net sales
- Operating loss in the third quarter was EUR -2.1 (-1.0) million or -7.4 (-3.6) per cent of net sales
- A negative impact of EUR 4.2 million in write-offs and impairment of assets was recorded in the third quarter
- Earnings per share in the first nine months were EUR 0.17 (-0.06), adjusted for full dilution
Industry
- The Industry Division’s net sales in the first nine months increased to EUR 79.5 (77.7) million, up 2.4 per cent from the previous year
- Operating profit in the first nine months was EUR 11.3 (6.2) million
- Good development in the transportation segment
- Strong sales in the cleaning and maintenance business as a result of the introduction of a new product line
- Continued positive effects from the integration of Pacific Composites
Sport
- The Sport Division’s net sales in the first nine months decreased to EUR 9.7 (14.3) million, down 32.0 per cent from the previous year
- Operating loss in the first nine months was EUR -7.6 (-7.1) million
- Continued problems with delayed deliveries from China, as well as lack of delivery capacity in Finland
- Measures are taken to reduce inventory level
- Sales organization changed to improve selling capacity
Göran Jönsson, President and CEO:
“Sales to the transportation, energy and building/construction markets developed well during the quarter. The profitability in the Industry division was good throughout the organization and in particular it is worth mentioning the improvement in our UK and Belgian operations as well as the good development in our Chinese operations. The sales have, however, suffered from the slowdown in the sports industry and the antenna radome market.
The Sport Division’s sales in the first nine months were down 32 per cent compared to last year due to difficult market conditions, delivery problems and quality issues. Profitability was not acceptable, mainly due to the lower than anticipated sales, but also due to the fact that we were faced with substantial extra costs connected with the continued delays in the deliveries from China and lack of delivery capacity in Finland. The lower than anticipated sales have also resulted in increased inventories. Increased efforts in sales as well as improved ordering routines are being implemented to remedy the situation. The quality problems seen in the first half of 2007 have now been resolved.
We expect that the problems in the Sport Division will continue in the last quarter while measures are taken to improve the supply situation and to align the organization to the current activity level.
The focus will remain on rationalizing the Sport Division and improving the profitability of the Group.”
Further information:
Mr. Göran Jönsson, President & CEO, tel. +46 708 430 110, or email goran.jonsson@exel.fi
Mr. Ilkka Silvanto, CFO, tel. +358 50 598 9553, or email ilkka.silvanto@exel.fi
The Interim Report in its entirety can be read in the attached PDF file.