January - December 2011 in brief
- The order book increased 5% to MEUR 100 (MEUR 95).
- Consolidated net sales in the financial year totalled MEUR 576 (MEUR 452).
- Operating profit excluding one-time items was MEUR 29.8 (MEUR 13.6) and after one-time items MEUR 22.5 (MEUR 13.5).
- Result after financial items excluding one-time items was MEUR 3.9 (MEUR -9.9) and after one-time items MEUR -3.4 (MEUR -10.0).
- Earnings per share excluding one-time items was EUR 0.09 (EUR -0.45) and after one-time items EUR -0.25 (EUR -0.45).
- Capacity utilization rate improved to 68% (57%).
- Net cash flow from operations was MEUR 3.6 (MEUR 25.2).
- Cash funds totalled MEUR 42 at the end of the year.
- The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2011 financial year.
January - October 2011 in brief
Net sales in October – December totalled EUR 141.7, which was 8% more than in the same period in the previous year (EUR 130.7 million). The value of production rose 6% in the October - December period to EUR 136.5 million (EUR 128.3 million). The Group’s capacity utilization rate in the fourth quarter was 60% (66%).
The fourth quarter operating profit excluding one-time items rose to EUR 6.8 million, or 4.8 % of net sales (EUR 5.9 million; 4.5 %). The operating profit after one-time items which were mainly related to business operations that were terminated or sold off was EUR 3.3 million, or 2.3 % of net sales (EUR 5.8 million; 4.5 %). The fourth quarter operating profit was boosted from the previous year due to higher production volumes. However, the operating profit was weakened by some EUR 3 million by the sharp increase in prices of non-surcharged raw materials and by additional quality costs of approximately EUR 3 million relating to the Orhangazi unit in Turkey.
The fourth quarter result after financial items excluding one-time items was similar to that in the previous year at EUR 0.1 million (EUR 0.0 million), even though interest costs increased. The result after financial items after one-time items was EUR -3.4 million (EUR -0.1 million).
The loss attributable to shareholders for the fourth quarter excluding one-time items was EUR -1.0 million (EUR -0.4 million) or EUR -0.07 (EUR -0.03) per share, and after one-time items EUR -3.8 million (EUR -0.5 million) or EUR -0.23 (EUR -0.03) per share.
The net cash flow from operations in the October - December period was EUR 6.7 million (EUR 18.2 million).
Market outlook
The Group’s demand outlook is satisfactory at the beginning of 2012.
Demand prospects in the heavy trucks industry are uncertain at the beginning of 2012. The order book was 5% down on the previous year.
Demand for construction and mining machinery components is expected to continue to develop favorably mainly due to the high level of activity in the mining industry and in developing markets. The order book at the beginning of 2012 was 38% higher than in the previous year.
Demand for agricultural machinery is estimated to rise from the previous year mainly as the result of relatively high food prices. The order book at the beginning of 2012 was 47% higher than in the previous year.
Demand in the automotive industry is expected to remain at the same level as in the previous year mainly due to the increase in market share. The order book at the beginning of 2012 was 17% lower than at the corresponding time in the previous year.
Demand in the machine building industry is expected to remain at the same level as in the previous year. The order book at the beginning of 2012 was 9% down on the previous year.
Demand in the wind power sector is expected to remain on low level in Europe. In the future, outlook for the wind power sector will include in the demand outlook on Machine building industry.
Outlook for Componenta
Componenta’s prospects for 2012 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta’s order intake and order book.
Componenta’s order book at the beginning of the 2012 was 5% higher than in the previous year.
Net sales in the first quarter of 2012 are expected to be similar to that in the previous year. As a result of the implemented price increases and the improved cost structure, the operating profit and result after financial items excluding one-time items are expected to improve from previous year.
Net cash flow from operations in 2012 is expected to improve clearly and changes in working capital should remain moderate, due to the sale of trade receivables. Investments in production facilities in 2012 are estimated at some EUR 12 million.
Key figures
| 1-12/2011 | 1-12/2010 | |
| Order book at end of review period, MEUR | 99.5**) | 94.6*) |
| Net sales, MEUR | 576.4 | 451.6 |
| Operating profit excl. one-time items, MEUR | 29.8 | 13.6 |
| Operating profit % excl. one-time items | 5.2 | 3.0 |
| Result after financial items excl. one-time items, MEUR | 3.9 | -9.9 |
| Net result for the period, MEUR | -3.1 | -7.5 |
| Earnings per share excl. one time items, EUR | 0.09 | -0.45 |
| Net gearing, % (preferred capital notes as equity) | 271.2 | 170.5 |
| Return on investment, excl. one-time items, % | 10.2 | 5.0 |
| Return on equity, excl. one-time items, % | 5.1 | -10.2 |
| Number of personnel at period end, incl. leased personnel | 4,665 | 4.414 |
*) order book on 10 Jan 2011
**) order book on 12 Jan 2012
President and CEO Heikki Lehtonen comments on 2011:
“Componenta’s net sales in 2011 rose 28% and were EUR 576 million. The Group’s operating profit improved from the previous year mainly due to higher production volumes and also in part due to measures taken earlier to adjust costs. One factor having a negative impact on operating profit in the period was the sharp rise in the prices of non-surcharged raw materials, estimated at EUR -11 million.
The Group’s capacity utilization rate during the year was 68%. Production volumes and net sales grew most in the Turkish and Swedish units. The best result development was seen in Turkey. Componenta’s order book at the beginning of 2012 was EUR 100 million which was 5% higher than at the same time in the previous year,
Componenta’s key figures have developed favourably during the past years, and in addition in 2011 we carried out many measures to further improving profitability. In addition to that when demand outlook is satisfactory we are starting the year 2012 with expectations for results.”
Dividend proposal
The Board of Directors proposes to the Annual General Meeting to be held on 23 February 2012 that, in accordance with the current dividend policy, no dividend be paid for the 1 January - 31 December 2011 financial period. On 31 December 2011 the parent company had distributable equity of EUR 80.3 million.
Componenta’s Financial statements 2011 as a PDF format is available as an attachment to this release. It is also available on the Componenta’s website at www.componenta.com.
Press conference to analysts, media representatives and the largest shareholders at 10.00 (EET)
A press conference will be arranged in Käpylä, in auditorium of the Sato house, at the address Panuntie 4, 00610 Helsinki starting at 10.00 (EET). The press conference will be webcast simultaneously via internet. Link can be found on Componenta’s Internet pages at www.componenta.com.
Helsinki, 24 January 2012
COMPONENTA CORPORATION
Heikki Lehtonen
President and CEO
ENCL. Financial statements 2011
For further information, please contact:
Heikki Lehtonen
President and CEO
tel. +358 10 403 2200
Mika Hassinen
CFO
tel. +358 10 403 2723
Componenta is a metal sector company with international operations and production plants located in Finland, Turkey, the Netherlands and Sweden. The net sales of Componenta were EUR 576 million in 2011 and its share is listed on the NASDAQ OMX Helsinki. The Group employs approx. 4,700 people. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers who are manufacturers of vehicles, machines and equipment.
