Vacon Plc, Stock Exchange Release, 7 August 2008 at 9.00 am EET
Very good market prospects for Vacon
April-June summary:
* Order intake totalled MEUR 83.3, growth of 38.8 % from the
corresponding period in the previous year (MEUR 60.0).
* Revenues totalled MEUR 78.0, increase of 30.4 % (MEUR 59.8).
* Operating profit was MEUR 10.4, growth of 35.1 % (MEUR 7.7).
* Cash flow from operations was MEUR 5.8 (MEUR 3.7).
* Earnings per share were EUR 0.48 (EUR 0.35), growth of 37.1 %
from the previous year.
January-June summary:
* Order intake totalled MEUR 161.5, growth of 39.1 % from the
corresponding period in the previous year (MEUR 116.1).
* Revenues totalled MEUR 143.9, increase of 28.4 % (MEUR 112.1).
* Operating profit was MEUR 18.0, growth of 28.6 % (MEUR 14.0).
* Cash flow from operations was MEUR 10.4 (MEUR 6.2).
* Earnings per share were EUR 0.82 (EUR 0.63), growth of 30.2 %
from the previous year.
The AC drive market has continued to grow during the first half of
2008. Demand for AC drives to improve the energy efficiency of
electric motor applications remains brisk and the use of AC drives in
renewable power generation is growing strongly.
The value of the orders received by Vacon in the second quarter rose
to EUR 83.3 million, and revenues totalled EUR 78.0 million.
Excluding the impact of the purchase of the AC drives business of TB
Wood's, Vacon's order intake increased 27.3 %, revenues 19.9 % and
operating profit 40.3 % from the corresponding period in the previous
year.
The relative increase in revenues was highest during the second
quarter in the Asia and Pacific region. Growth in revenues in the
Europe, Middle East and Africa region and in North and South America
was in line with expectations and clearly exceeded market growth.
The operating profit margin in the second quarter was 13.3 %,
compared to
12.9 % in the corresponding period in 2007. The operating profit
margin before amortization of intangible rights (EBITA) was 14.5 %,
which was better than one year earlier (13.7 %). Amortization of the
intangible rights generated by the acquisition of the AC drives
business of TB Wood's (EUR 0.4 million) reduced the operating profit
margin by 0.5 percentage points. The profitability of business
operations improved from the second quarter of 2007.
January - June result and equity structure
MEUR 4-6/ 4-6/ 1-6/ 1-6/ Change, 1-12/
2008 2007 2008 2007 % 2007
Revenues 78.0 59.8 143.9 112.1 28.4 232.2
EBITDA 12.2 8.9 21.5 16.3 31.9 34.0
Depreciation -
tangibles -0.8 -0.7 -1.7 -1.4 21.4 -2.8
EBITA 11.3 8.2 19.8 14.9 32.9 31.2
Amortization -
intangibles -0.9 -0.5 -1.8 -0.9 100.0 -1.9
Operating
profit 10.4 7.7 18.0 14.0 28.6 29.2
Profit before
tax 10.6 7.5 17.9 13.7 30.7 28.8
Profit for
period 7.6 5.4 12.8 9.8 30.6 21.4
Orders received by the entire Group were 39.1 % higher than in the
previous year. The order book for the acquired AC drives business of
TB Wood's at the start of the year together with the orders received
during the first half of the year totalled EUR 15.4 million.
Excluding the impact of the acquired business, the volume of orders
increased 25.8 %. The Group's order book stood at EUR 52.4 (33.7)
million at the end of June, an increase of EUR 17.6 million from the
beginning of the year.
Revenues increased 28.4% from the corresponding period in the
previous year. Growth in revenues excluding the acquisition of the TB
Wood's business was
17.6 %.
The operating profit in the first half of the year was 28.6 % higher
than one year before. The operating profit for comparable figures was
EUR 18.6 million, growth of 32.9 % from the previous year. The EBITA
margin was 13.8 %, which was better than in the previous year (13.3
%). Amortization of intangible rights generated by the acquisition of
the TB Wood's AC drives business (EUR 0.7 million) reduced the
operating profit margin by 0.5 percentage points. The earnings per
share rose to EUR 0.82, an increase from the previous year of EUR
0.19.
No change occurred during the second quarter in the final price for
the AC drives business of TB Wood's. Calculations for allocating the
goodwill and the acquisition price for the acquired business are
presented in the notes to this report.
The balance sheet total was EUR 141.7 (98.4) million. The balance
sheet total shows the impact of the acquired business and the
increase in the Group's net working capital. Net working capital rose
EUR 10.5 million from the start of the year, and EUR 6.0 million of
this was due to the acquired business. The equity ratio was 46.6 %.
The Group's cash flow from operations for the January- June period
was EUR 10.4 (6.2) million.
The Group's equity structure and liquidity remained strong.
Interest-bearing net debt at the end of the period totalled EUR 14.2
(-2.0) million, and gearing was
22.0 % (-3.9 %). The debt comprises long-term loans used to finance
the purchase of the TB Wood's AC drives business.
The Annual General Meeting was held in March, and the dividend paid
(EUR 0.75 per share) has been entered, based on the decision of the
AGM, as a dividend payment liability in the interim financial
statement for the first quarter. The dividend was paid on 7 April
2008 in accordance with the decision of the AGM.
Market position
Vacon Group revenues by market area were as follows
MEUR 4-6/ % 4-6/ % 1-6/ % 1-6/ % 1-12/ %
2008 2007 2008 2007 2007
Europe,
Middle
East,
Africa 57.2 73.3 45.1 75.4 104.3 72.5 85.7 76.5 172.6 74.3
North
and
South
America 14.0 18.0 10.3 17.2 27.0 18.8 18.4 16.4 42.1 18.1
Asia
and
Pacific 6.8 8.7 4.4 7.4 12.6 8.7 8.0 7.1 17.5 7.6
Total 78.0 100.0 59.8 100.0 143.9 100.0 112.1 100.0 232.2 100.0
During the first half of 2008 Vacon strengthened its position in all
main market areas. Based on market surveys, the company estimates
that the AC drive market is currently growing at a rate of at least
10 % a year and that it has about four per cent of the global market.
Vacon's revenues by region increased during the first half of the
year as follows: Europe, Middle East and Africa in total 21.7 %,
North and South America 46.7 %, and Asia and Pacific 57.5 %.
Excluding the impact of the AC drives business of TB Wood's, growth
in revenues during the first half of the year was 20.1 % in North and
South America and 13.7 % in Europe. The corresponding figures for the
second quarter were 10.7 % in North and South America and 18.8 % in
Europe.
Breakdown of Vacon Group revenues by distribution channel
MEUR 4-6/ % 4-6/ % 1-6/ % 1-6/ % 1-12/ %
2008 2007 2008 2007 2007
Direct
sales 38.1 48.8 24.6 41.1 67.1 46.6 47.2 42.1 99.0 42.6
Distribu-
tors 9.5 12.2 7.7 12.9 18.2 12.7 15.1 13.5 31.3 13.5
OEM 17.7 22.7 16.1 26.9 34.7 24.1 29.1 25.9 56.4 24.3
Brand
label 12.6 16.2 11.4 19.1 23.8 16.5 20.7 18.5 45.5 19.6
Total 78.0 100.0 59.8 100.0 143.9 100.0 112.1 100.0 232.2 100.0
Group revenues by distribution channel compared to those of the
previous year increased during the first six months as follows: OEM
19.2 %, direct sales 42.2 %, distributors 20.5 % and brand label
customers 15.0 %.
On 26 May 2008 Vacon signed a global framework agreement with Veolia
Water Solutions & Technologies, world leading specialist in water
treatment. Veolia Water Solutions & Technologies (VWS), which is
headquartered in France, has chosen Vacon to be one of its preferredsuppliers of AC drives.
On 28 May 2008 Vacon signed a cooperation agreement with Voith Paper
Automation. Voith Paper Automation, which has global operations, is
one of the seven divisions of Voith Paper, supplying comprehensive
automation solutions to the paper industry. Voith Paper Automation,
headquartered in Germany, has chosen Vacon as its preferred AC drive
supplier for its paper machine deliveries worldwide.
Vacon Group Structure
In May 2008 Vacon set up a subsidiary in the Czech Republic. No other
changes took place in the Group structure during the second quarter.
Research and Development
R&D expenditure during the first half of the year totalled EUR 8.3
(6.6) million, and EUR 0.7 (0.7) million of this was capitalized as
development costs. R&D costs accounted for 5.8 % (5.9 %) of Group
revenues.
Work on developing new products continued during the review period in
accordance with the company's plans. The new product generation is
being developed to make it more competitive in terms of features and
costs. The first new generation products are already on the market.
During the first half of the year Vacon has increased the number of
personnel at its R&D units in Finland and China. Following the
acquisition of the TB Wood's business, Vacon also has R&D in the USA
and Italy. Plans for developing these units were drawn up during the
second quarter.
Investments
Gross investments by the Group during the first six months of the
year, excluding the purchase of the TB Wood's AC drives business,
totalled EUR 4.1 (3.0) million. Expenditure focused on increasing and
maintaining production capacity, on tools needed in the manufacture
of new products, and on information systems.
Work on expanding Vacon's factory in Finland has progressed on
schedule and the first section of the extension has been taken into
use. In June 2008 a letter of intent was signed for building the
company's new factory in China. Vacon will be a tenant in this
factory. Both factory extensions will help ensure the company has
sufficient production capacity for the new future.
Organization and personnel
The number of Vacon personnel has increased by 268 since the start of
the year, including 149 new people that came with the acquisition of
the TB Wood's AC drives business. At the end of June the Group
employed 1,137 (762) people, of whom 635 (494) were in Finland and
502 (268) in other countries. These figures do not include contract
personnel. Vacon has reduced the use of contract personnel by
increasing the number of permanent employees. The table below shows
the average number of Vacon employees during the review period:
1-6/2008 1-6/2007 1-12/2007
Office personnel 652 493 512
Factory personnel 435 232 260
TOTAL 1,087 725 772
Shares and shareholders
Vacon had a market capitalization at the end of June of EUR 391.7
million. The closing share price on 30 June 2008 was EUR 25.75. The
lowest share price during the January-June period was EUR 20.02 and
the highest EUR 30.01. A total of 2,409,922 Vacon shares (15.8 % of
the share stock) were traded during the January-June period, in
monetary terms EUR 65.9 million.
Vacon's main shareholders on 30 June 2008:
Number of shares Holding, %
Ahlström Capital Oy 2,297,996 15.0
Tapiola Mutual Pension Insurance
Company 584,500 3.8
Vaasa Engineering Oy 424,433 2.8
Koskinen Jari 360,670 2.4
Holma Mauri 347,171 2.3
Ehrnrooth Martti 330,000 2.2
Tapiola Group companies 325,300 2.1
Niemelä Harri 309,840 2.0
OP-Delta fund 262,607 1.7
Karppinen Veijo 209,349 1.4
Nominee registered and
in foreign ownership 4,889,896 32.0
Others 4,953,238 32.4
Total 15,295,000 100.0
Vacon Plc's own shares -43,312
Shares outstanding 15,251,688
On 30 June 2008 members of Vacon's Board of Directors, the President
and CEO, and the Deputy to the CEO held directly a total of 574,276
shares or 3.8 % of Vacon's share stock.
Own shares
In accordance with the terms of the company's share bonus scheme, on
8 April 2008 altogether 19,500 shares were allocated as a bonus to
the personnel in the scheme.
On 30 June 2008 Vacon Plc held a total of 43,312 of its own shares,
which it had acquired at an average price of EUR 12.45. The shares
have a nominal value of EUR 0.20. The shares held by the company are
0.3 % of the share capital and voting rights so they have no
significant impact on the distribution of ownership or voting rights
in the company.
Risks and factors causing uncertainty in the near future
There is uncertainty about where the global economy is heading. Any
slowdown in investments by industry is also a risk for Vacon, but on
the other hand the high price of energy forms an incentive to invest
in solutions that improve energy efficiency such as AC drives.
Vacon estimates that other risks and uncertainty factors affecting
the near future for Vacon relate to the availability of raw materials
(metals) and components and developments in their prices. Another
significant risk is the weakening of the US dollar. Purchase
agreements for raw materials and components are mainly annual
agreements that contain price and exchange rate clauses relating to
changes in the global market prices for raw materials and other
materials. For Vacon, a decline in the value of the US dollar of 10 %
against the euro would cut the company's operating profit margin by
about 0.5 percentage points.
More information about risks and risk management at Vacon are given
in Vacon's 2007 annual report and consolidated financial statements.
Prospects for 2008
Developments in the AC drive market are expected to remain strong in
2008. The need to improve the energy consumption of electric motors
and the intensive investments in energy production based on renewable
energy sources are increasing the market for AC drives.
Based on market surveys Vacon estimates that the AC drive market is
growing at an annual rate of at least 10 %. Growth in North America
is slightly lower than the average market growth and in Asia it is
higher, with China and India the engines of growth. Vacon's
investments in the growing markets in North America, Asia and Russia
will reinforce Vacon's global market position. The purchase of TB
Wood's AC drives business boosts Vacon's growth potential. Market
surveys indicate that Vacon's market share is rising in all major
market areas.
Revenues in 2008 are forecast to rise by close to 30 % (by close to
20 % on comparable figures) and profitability to remain at the same
level as in 2007. Earnings per share are forecast to be above EUR 1.6
in 2008.
Financial reports in 2008
Vacon will publish its next interim report for January-September on
Thursday 23 October 2008 at 9.00 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.
Vacon in brief
Vacon was established in 1993 from a passion to develop and produce
AC drives globally. It is a matter of honour for Vacon to offer
customers efficient, reliable and easy to use means for improving
process control and saving energy and costs. Vacon's solutions
represent clean technology. They can be used to control the speed of
electric motors used by industry and municipal engineering, and in
power generation using renewable energy. Vacon provides AC drives in
the power range 0.25 kW - 5 MW. Revenues in 2007 totalled EUR 232.2
million.
Vaasa, 7 August 2008
VACON PLC
Board of Directors
For more information please contact:
Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510
Mr Mika Leppänen, CFO and Vice President, Finance & Control, phone:
+358 (0)40 8371 235
Conference for media and analysys
Vacon will hold a briefing for analysts and the media at 11.30 am on
7 August 2008 at the Radisson SAS Plaza Hotel, Mikonkatu 23, Helsinki
Dial-in conference for investors and investment analysts
A dial-in conference in English for investors and investment analysts
will be held at 3.00 pm on 7 August 2008. President and CEO Vesa
Laisi and Mika Leppänen, CFO and 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". To hear a recording of the
conference, available for three working days, call +44 207 031 4064,
ID code 782084.
Conference link:
http://wcc.webeventservices.com/view/wl/r.htm?e=103015&s=1&k=69FE799D838052784D75851A47632443&cb=genesys
Distribution
Helsinki Exchanges
Financial Supervision Authority
Main media
Summary of financial statements and notes
Accounting principles
This interim report has been prepared in accordance with IFRS
(International Financial Reporting Standards) standard IAS 34 on
Interim Financial Reporting.
Vacon has prepared this interim report applying the same accounting
principles as those decribed in detail in its 2007 consolidated
financial statements
The interim report is unaudited.
Consolidated income statement, IFRS, MEUR
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2008 2007 2008 2007 2007
Revenues 78.0 59.8 143.9 112.1 232.2
Other operating
income 0.0 0.0 0.1 0.1 0.2
Change in inventories of
finished goods and work
in progress 0.2 -0.3 2.3 1.4 1.4
Materials and services -41.1 -31.8 -76.3 -60.5 -123.0
Employee benefit costs -12.7 -9.3 -25.4 -18.4 -38.9
Other operating expenses -12.3 -9.6 -23.1 -18.3 -37.7
Depreciation -0.8 -0.7 -1.7 -1.4 -2.8
EBITA 11.3 8.2 19.8 14.9 31.2
Amortization -0.9 -0.5 -1.8 -0.9 -1.9
Operating profit 10.4 7.7 18.0 14.0 29.2
Financial income 0.3 0.1 0.8 0.2 0.6
Financial expenses -0.1 -0.3 -0.9 -0.4 -1.0
Profit before taxes 10.6 7.5 17.9 13.7 28.8
Income taxes -3.0 -2.1 -5.1 -3.9 -7.4
Profit for period 7.6 5.4 12.8 9.8 21.4
Attributable to:
Equity holders
of the parent 7.3 5.3 12.4 9.6 20.9
Minority interest 0.3 0.1 0.4 0.2 0.5
Earnings per share,
euro 0.48 0.35 0.82 0.63 1.37
Earnings per share
diluted, euro 0.48 0.35 0.82 0.63 1.37
Consolidated balance sheet, IFRS, MEUR
30.6.2008 30.6.2007 31.12.2007
ASSETS
Intangible assets 23.8 8.4 9.6
Tangible assets 17.4 12.9 14.7
Investments 2.1 1.8 1.9
Loans receivable and other receivables 0.4 0.5 0.4
Deferred tax assets 2.1 1.5 1.5
Total non-current assets 45.8 25.1 28.2
Inventories 22.2 13.7 14.7
Trade and other receivables 59.4 46.3 45.8
Cash and cash equivalents 14.3 13.2 34.4
Total current assets 95.9 73.2 94.9
Total assets 141.7 98.4 123.2
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent company 63.7 51.8 62.9
Minority interest 1.0 0.9 1.1
Total equity 64.7 52.7 64.0
Deferred tax liabilities 3.1 1.4 1.6
Employee benefits 1.4 0.8 0.8
Interest-bearing liabilities 17.4 1.7 19.1
Total non-current liabilities 21.9 3.9 21.6
Trade and other payables 39.9 29.5 30.9
Income tax liabilities 2.6 1.9 1.6
Provisions 1.3 0.9 0.8
Interest-bearing liabilities 11.2 9.5 4.3
Total current liabilities 55.0 41.8 37.6
Total equity and liabilities 141.7 98.4 123.2
Q2/2007 Calculation of changes in shareholders' equity, IFRS, MEUR
Minor- Total
Attributable to equity holders of the parent ity equity
inter-
est
Share Share Own Transla- Revalu Re- Total
capital pre- shares tion ation tained
mium differ- fund earn-
reserve rence ings
Shareholders'
equity
31.12.2006 3.1 5.0 -1.2 -0.1 0.1 45.2 52.0 1.0 53.0
Cash flow
hedging:
Hedging
result
allocated to
equity 0.0 0.0 0.0
Transferred
as
adjustment to
revenues -0.1 -0.1 -0.1
Translation
difference 0.0 0.0 0.0
Other changes 0.1 0.1 0.1
Net income
recorded
directly in
equity 0.0 0.0 0.0 0.1 -0.1 0.1 0.1 0.0 0.1
Profit for
period 9.6 9.6 0.2 9.8
Income and
expenses
recorded
during
period,
total 0.0 0.0 0.0 0.1 -0.1 9.7 9.7 0.2 9.9
Dividend paid -9.9 -9.9 -0.3 -10.2
Shareholders'
equity
30.6.2007 3.1 5.0 -1.2 0.0 0.0 45.0 51.8 0.9 52.7
Q2/2008 Calculation of changes in shareholders' equity, IFRS, MEUR
Minor Total
-ity equity
Attributable to equity holders of the parent inter-
est
Share Share Own Transla- Revalu- Re- Total
capital Pre- shares Tion ation tained
mium diffe- fund earn-
Rence ings
Shareholders'
equity
31.12.2007 3.1 5.0 -1.2 -0.5 0.0 56.5 62.9 1.1 64.0
Cash flow
hedging:
Hedging
result
allocated to
equity 0.0 0.0 0.0
Transferred
as
adjustment to
revenues 0.0 0.0 0.0
Translation
difference -0.4 -0.4 -0.4
Other changes 0.2 0.2 0.0 0.2
Net income
recorded
directly in
equity 0.0 0.0 0.0 -0.4 0.0 0.2 -0.3 0.0 -0.3
Profit for
period 12.4 12.4 0.4 12.8
Income and
expenses
recorded
during
period,
total 0.0 0.0 0.0 -0.4 0.0 12.6 12.2 0.4 12.5
Dividend paid -11.4 -11.4 -0.4 -11.8
Shareholders'
equity
30.6.2008 3.1 5.0 -1.2 -0.9 0.0 57.7 63.7 1.0 64.7
Consolidated cash flow statement, IFRS, MEUR
30.6.2008 30.6.2007 31.12.2007
Profit for the period 12.8 9.8 21.4
Depreciation 3.4 2.3 4.8
Financial income and expenses 0.1 0.2 0.5
Taxes 5.1 3.9 7.4
Other adjustments 0.4 0.2 0.1
Change in working capital -6.6 -6.4 -5.5
Cash flow from financial items
and tax -4.8 -3.8 -7.5
Cash flow from operating
activities 10.4 6.2 21.1
Investments in tangible and
intangible assets -23.6 -2.6 -8.6
Proceeds from disposal of
tangible and intangible assets 0.0 0.0 0.4
Loans granted 0.0 0.0 0.0
Other investments -0.2 -0.2 -0.6
Repayment of loan receivables 0.0 0.0 0.2
Proceeds from disposal of other
investments 0.0 0.0 0.0
Cash flow from investing
activities -23.8 -2.8 -8.6
Share issue 0.0 0.0 0.0
Proceeds from long-term
borrowings 0.0 0.0 21.9
Repayment of long-term loans -1.2 -0.1 -0.2
Proceeds from short-term
borrowings 7.2 9.3 1.0
Repayment of short-term loans -0.3 -2.0 -2.2
Financial leasing payments 0.0 -0.3 -0.3
Dividends paid -11.9 -10.2 -10.2
Cash flow from financial activities -6.1 -3.3 10.0
Change in liquid funds -19.5 0.2 22.5
Liquid funds at start of period 34.4 13.0 13.0
Translation differences for liquid
funds -0.6 0.0 -1.2
Liquid funds at end of period 14.3 13.2 34.4
Segment information
Reporting on Vacon Group's operations is firstly by business segment
and secondly by geographical segment.
Vacon has one business segment, AC drives. The figures for the
primary segment are identical with the figures for the whole Group.
Vacon's operations are organized in the following functions: Products
and Markets, Production, Research & Development, Finance and
Administration, Human Resources, IT and Process Development. To
ensure that the organisation is customer-oriented, operations are
controlled by customer segments that are called business areas. These
business areas are: Component Customers, Solutions Customers, OEM and
Brand Label Customers, and Service and After-Market Services.
The secondary, geographical segment is divided into three sales
areas: EMEA (Europe, Middle East and Africa), Americas (North and
South America) and APAC (Asia and Pacific).
Acquired business operations
On 1 January 2008 the Group acquired the AC drives business of TB
Wood's, part of US-based Altra Holdings Inc. The estimated final
price is USD 29.2 million. According to initial calculations, the
acquisition of TB Wood's generates goodwill of EUR 6.4 million, which
is based on the anticipated opportunities for expansion and synergy
benefits.
MEUR
Acquisition cost
Cash price 19.7
Direct costs relating to acquisition 1.3
Total acquisition cost 21.0
Fair value of net assets acquired 14.7
Goodwill 6.4
Allocation of goodwill:
Europe, Middle East and Africa 2.7
North and South America 3.7
Asia and Pacific 0.0
Impact on cash flow was as follows:
Total acquisition cost -21.0
Loans raised 19.4
Cash funds received 0.7
Net payment for acquisition from cash
funds -0.8
Carrying amount Fair value Useful
commercial
life in years
Identified intangible assets
Customer relations 4.4 5
Technology developed 4.2 5
Tangible assets 1.8 2.2
Inventories 5.4 5.6
Receivables, total 2.9 2.8
Cash and bank balances 0.7 0.7
Assets, total 10.9 19.9
Non-current liabilities 0.3 0.3
Current liabilities 3.5 3.5
Deferred tax liabilities 1.5
Liabilities, total 3.8 5.2
Net assets 14.7
Acquisition cost 19.7
Direct costs relating to
acquisition 1.3
Goodwill 6.4
Key indicators
30.6.2008 30.6.2007 31.12. 2007
Order intake, MEUR 161.5 116.1 237.2
Increase in order intake, % 39.1 24.0 20.2
Revenues, MEUR 143.9 112.1 232.2
Increase in revenues, % 28.4 27.5 24.6
Operating profit, MEUR 18.0 14.0 29.2
Increase in operating
profit, % 28.6 23.9 26.4
Operating profit, % of
revenues 12.5 12.5 12.6
Equity per share, EUR 4.17 3.40 4.13
Equity ratio, % 46.6 54.2 52.9
Gross capital expenditure
(excluding acquisition of
TB Wood's) MEUR 4.1 3.0 9.1
Gross capital expenditure,
% of revenues 2.8 2.7 3.9
Net interest-bearing
liabilities MEUR 14.2 -2.0 -11.0
Net gearing, % 22.0 -3.9 -17.1
Net working capital 36.5 26.5 26.0
Order book, MEUR 52.4 33.7 34.8
Adjusted number of
shares during the period 15,241,188 15,221,720 15,226,997
Number of shares at end
of period 15,251,688 15,232,188 15,232,188
Personnel at end of period 1,137 762 869
Commitments and contingencies, MEUR
30.6.2008 30.6.2007 31.12.2007
Commitments and contingencies 2.7 1.2 1.1
Financing commitments 0.8 1.1 1.0
Calculation of financial ratios
Profit for the financial year attributable to equity
holders of the parent company
Earnings per ---------------------------------------------------
share =
Adjusted average number of shares
Equity attributable to the equity holders
of the parent company
Equity per ----------------------------------------------------
share =
Adjusted average number of shares at year end
Shareholders' equity (incl. minority interest) x 100
Equity ratio = ------------------------------------------------------
Balance sheet total - advances received
(Interest-bearing liabilities - cash, bank balances
and financial assets) x 100
Net gearing = --------------------------------------------------
Shareholders' equity (incl. minority interest)
Net working Stocks + non-interest-bearing current receivables -
capital =
non-interest-bearing current liabilities
Vacon Plc Interim Report 1 January - 30 June 2008
| Source: Vacon.
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