Exel Oyj's financial statements bulletin 2008
EXEL OYJ’S FINANCIAL STATEMENTS BULLETIN 2008
January-December 2008 highlights and outlook for 2009
- Net sales for the financial year decreased to EUR 94.9 (113.5) million or 16.4 per cent over the previous year
- Operating profit for the financial year was EUR -0.4 (4.8) million,
representing -0.4 (4.2) per cent of net sales including EUR -7.8 (-5.3) million of non-recurring items
- Net operative cash flow was positive at EUR +11.1 (+2.6) million
- Earnings per share for the full year were EUR -0.25 (0.17), adjusted for full dilution
- The Board of Directors proposes that no dividend be paid for the financial year 2008
October-December 2008 highlights
- Exel Group net sales in the fourth quarter were EUR 22.1 (28.1) million
- Operating profit in the fourth quarter was EUR 1.4 (0.7) million or 6.4 (2.4) per cent of net sales including EUR –0.7 (-1.1) million of non-recurring items related to the Sports restructuring measures
- Exel Composites’ net sales decreased by 16.8 per cent to EUR 20.6 (24.7) million; the operating profit was on a good level 14.2 (15.6) per cent of net sales
- Exel Sports Brands’ restructuring continued and co-determination process was finalized in November
Vesa Korpimies, President and CEO:
“2008 was an eventful year for Exel and a year of structural change. The Outdoor business of Exel Sports Brands was divested and the Group could sharpen its focus on the core business, namely Exel Composites.
During 2008, the financial crisis has escalated markedly, affecting also market demand in the pultrusion business negatively, especially in the building and construction and transportation segments. In addition, Exel Composites experienced a change in the procurement model in the wind energy business, which had a negative impact on both sales and profitability. To address this, actions were initiated to adapt Exel’s cost base globally. Strong focus was also given on operative working capital reduction in all units in the Group to safeguard cash flow and improve financial position.
The restructuring of the Group has now been completed to a large extent. Exel Sports Brands was divided in two businesses: Outdoor and Floorball. In June 2008 the outdoor business was sold to ESB Sports. The remaining floorball business was organized as a separate operation within Exel Group. Whole year profit level was still unsatisfactory and measures were taken to restore profitability of the unit.
The net sales of Exel Group decreased by 16.4 per cent to EUR 94.9 (113.5) million. Excluding non-recurring items the operating profit for the financial year also decreased to EUR 7.4 (10.1) million. However, the strong focus on cash flow generation was productive. Operative cash flow increased to EUR 11.1 (2.6) million and net debt was reduced to EUR 20.7 (27.9) million.
By the actions taken we are now in a position where we can concentrate on developing our core business Exel Composites. However, as we enter 2009, market demand is uncertain and we are preparing for the weakening trend to continue. Further actions will be taken to control costs and streamline the operating working capital and to amortize debt. We are determined to weather this down-turn. We will also have a strong focus on sales to current and new customers and seek synergies between production sites to ensure critical mass in sales and technical sales.
Exel has a diverse customer base. Our products are used in numerous market segments and Exel’s market position is strong. We are also excited by the prospects of new applications for example in the electrical industry. By the actions taken and our devotion to develop leading-edge applications, I believe that we are well positioned to take advantage of a more challenging business environment and to capture growth opportunities.”
The financial statements bulletin 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 5754
Mr. Ilkka Silvanto, CFO, Exel Oyj, tel. +358 50 598 9553