Exel Oyj Interim Report January 1 - September 30, 2008

EXEL OYJ INTERIM REPORT 30 October, 2008 at 11.00 am

EXEL INTERIM REPORT FOR JANUARY 1 – SEPTEMBER 30, 2008
Profit of the Group improved during Q3

January-September 2008 highlights

- Net sales decreased to EUR 72.8 (85.4) million, 14.7 per cent below the corresponding period previous year
- Operating profit was EUR -1.8 (4.1) million, or -2.5 (4.8) per cent of net sales, including EUR -7.1 (-4.2) million non-recurring items
- Fully diluted earnings per share were EUR -0.24 (+0.17)
- Cash flow from operations was EUR +4.9 (-2.9) million

July-September 2008 highlights

- Net sales were EUR 23.9 (27.9) million, 14.3 per cent below previous year
- Operating profit was EUR 2.5 (-2.1) million, or 10.4 (-7.4) per cent of net sales, including EUR +0.2 (-4.2) million non-recurring items
- Fully diluted earnings per share EUR +0.07 (-0.19)


Comments by Vesa Korpimies, President and CEO:

“The restructuring of the Group has now been completed and we concentrate on developing our core business Exel Composites. The effects of the restructuring program can be seen in the profit and cash flow development of the past quarter. However, we are not satisfied with the current profitability and continue to focus on improving the operating margins and to drive more efficient use of working capital. A cost reduction program has been reinforced to restore profitability to satisfactory levels.

The pultrusion market is affected by a global financial crisis. The magnitude of the impact on our customer base is still difficult to estimate. As disclosed in the second quarter interim report Exel expects the Group´s profit before taxes for the full year to be negative. Due to the present challenging market conditions, the fourth quarter profit before taxes could also be negative.”

The Interim Report can be read in its entirety in the attached PDF file.

Further information:
Mr. Vesa Korpimies, President and CEO, Exel Oyj, tel. +358 50 590 6754 or email vesa.korpimies@exel.net