Vacon Plc, Stock Exchange Release, 2 August 2007 at 10.00 am High energy prices boost AC drive sales April-June summary: * Order intake totalled MEUR 60.0, growth of 21.2 % from the corresponding period in the previous year (MEUR 49.5). * Revenues totalled MEUR 59.8, growth of 32.9 % (MEUR 45.0). * Operating profit was MEUR 7.7, an increase of 35.1 % (MEUR 5.7). * Cash flow from operations was MEUR 3.7(MEUR 4.2). * Earnings per share was EUR 0.35 (EUR 0.26), growth from the previous year of 34.6 %. January-June summary: * Order intake totalled MEUR 116.1, growth of 24.0 % from the corresponding period in the previous year (MEUR 93.6). * Revenues totalled MEUR 112.1, growth of 27.5 % (MEUR 87.9). * Operating profit was MEUR 14.0, an increase of 23.9 % (MEUR 11.3). * Cash flow from operations was MEUR 6.2 (MEUR 6.7). * Earnings per share was EUR 0.63 (EUR 0.51), growth from the previous year of 23.5 %. The AC drive market continued to grow in the second quarter of 2007. Demand for AC drives was strong in Europe and Asia. Demand in North America, which had been weaker at the end of last year and the start of this year, started to pick up during the second quarter. Market prospects for the second half of the year are encouraging in all market areas. High energy prices are boosting investments in energy-saving equipment, and AC drives are one of the most important of these. Vacon's order intake, revenues and operating profit all increased strongly in the second quarter compared to the corresponding period in the previous year. Sales grew fastest in Europe and Asia. Sales in North America fell short of its targets but performed better than in the first quarter. Direct sales and OEM were the distribution channels showing strongest growth. Earnings per share rose to EUR 0.35, an increase of EUR 0.09 on the previous year. The company improved its profitability through the strong growth in revenues, even though the US dollar, important for the company's markets, weakened against the euro. In June Vacon launched the new Vacon 10 drive family. It is the first product family of Vacon third product generation. Vacon 10 is one of the smallest micro drives in size on the market. It can be flexibly adapted to customer needs. The Vacon 10 gives excellent opportunities to win new customers in the highly competitive and rapidly growing micro drive market. The Vacon 10 supports the core issues in our product leadership strategy: a wide product range, outstanding drives knowhow, customer relations management, the latest technology and mass customization. Prospects AC drives are one of the most significant means of enhancing the efficient use of energy. Improving energy efficiency is an important factor in restricting greenhouse gas emissions, and AC drives play a key role in this. The long-term demand factors for AC drives are positive. Vacon's market prospects for the final half of the year are good. Based on market surveys Vacon estimates that the AC drive market is currently growing at an annual rate of 7-9 %. Vacon is growing at a much faster rate than the market. Vacon considers that potential risks to its financial performance in 2007 are problems that material suppliers may have with capacity, difficulties with the availability of key components, and the weakening of the dollar. Vacon forecasts that revenues in 2007 will grow by about 20 per cent and profitability will improve from 2006. Following interim reports Vacon will publish its 2007 January-September interim report on Thursday, 25 October 2007 at 10.00 am. Formal statement This release contains certain forward-looking statements that reflect the current views of the company's management. Due to the nature of these statements, they contain risks and uncertainties and are subject to changes in the general economic situation and in the company's business sector. The interim report is unaudited. Vacon was established in 1993 from a passion to create, develop and produce unique AC drives for demanding needs, globally. We are driven by a burning desire to serve our customers as they look for ever more efficient, reliable and easy to use options to save energy and costs. Vacon provides AC drives in the power range 0.25 kW - 5 MW. Vaasa, 2 August 2007 VACON PLC Board of Directors For more information please contact: Mr Vesa Laisi, President, phone: +358 (0)40 8371 510, email: vesa.laisi(at)vacon.com Mr Mika Leppänen, Vice President, Finance & Control, phone: +358 (0)40 8371 235, email: mika.leppanen(at)vacon.com Conference for the media and analysts Vacon will hold a briefing for analysts and the media on 2 August 2007 at 11.30 am in the Neptun meeting room at the Scandic Marski Hotel, Mannerheimintie 10, Helsinki. Dial-in conference for investors and investment analysts A dial-in conference in English for investors and investment analysts will be held on 2 August 2007 at 3.00 pm. President Vesa Laisi and Mika Leppänen, Vice President, Finance and Control, will participate in the conference. Lines can be booked ten minutes before the conference by calling the service number +44 207 162 0025. The conference ID code is "Vacon Oyj". Conference link: http://wcc.webeventservices.com/view/wl/r.htm?e=36279&s=1&k=0911B13C1544BBFA738DF86B924445F7&cb=genesys To hear a recording of the conference, available for two working days, call +44 207 031 4064, ID code 735873. Distribution: Helsinki Exchanges Financial Supervision Authority Main media
VACON PLC FINANCIAL BULLETIN 1 January - 30 June 2007
| Source: Vacon.