Vacon Plc, Stock Exchange Release, 25 April 2012 at 9.30 am
In this stock exchange release Vacon is publishing information included in the
interim report that has a significant impact on the value of securities. The
full interim report is in the appendix to this release and can be downloaded
from the company's website in Finnish at www.vacon.fi and in English at
www.vacon.com.
January-March summary:
* Order intake totalled MEUR 96.9 (MEUR 100.7). The order intake declined by
3.8 % from the corresponding period in the previous year, but increased by
26.1 % from the final quarter of 2011.
* Revenues totalled MEUR 84.2. (MEUR 95.0).
* Operating profit was MEUR 6.4, or 7.6 % of revenues. (MEUR 8.9 and 9.3 %).
* Net cash flow from operating activities was MEUR 18.3 (MEUR -6.4).
* Earnings per share were EUR 0.28 (EUR 0.35).
* The AGM adopted the proposal of the Board of Directors to pay a dividend of
EUR 0.90 per share.
Key indicators
+----------------------------------------+--------+--------+---------+---------+
|MEUR |1-3/2012|1-3/2011|Change, %|1-12/2011|
+----------------------------------------+--------+--------+---------+---------+
|Order intake | 96.9| 100.7| -3.8 %| 365.3|
+----------------------------------------+--------+--------+---------+---------+
|Order book | 49.3| 57.8| -14.8 %| 36.6|
+----------------------------------------+--------+--------+---------+---------+
|Revenues | 84.2| 95.0| -11.4 %| 380.9|
+----------------------------------------+--------+--------+---------+---------+
|Operating profit | 6.4| 8.9| -28.4 %| 24.7|
+----------------------------------------+--------+--------+---------+---------+
|% of revenues | 7.6 %| 9.3 %| | 6.5 %|
+----------------------------------------+--------+--------+---------+---------+
|Operating profit excluding one-time | | | | |
|items | 4.9| 8.9| | 34.8|
+----------------------------------------+--------+--------+---------+---------+
|% of revenues | 5.8 %| 9.3 %| | 9.1 %|
+----------------------------------------+--------+--------+---------+---------+
|Profit before taxes | 6.1| 8.5| | 27.0|
+----------------------------------------+--------+--------+---------+---------+
| | | | | |
|Net cash flow from operating activities | 18.3| -6.4| | 26.8|
+----------------------------------------+--------+--------+---------+---------+
|Earnings per share, EUR | 0.28| 0.35| | 1.10|
+----------------------------------------+--------+--------+---------+---------+
| | | | | |
|Interest-bearing net liabilities | -3.0| 20.7| | 12.4|
+----------------------------------------+--------+--------+---------+---------+
|Gearing, % | -3.4 %| 19.1 %| | 12.7 %|
+----------------------------------------+--------+--------+---------+---------+
|Gross capital expenditure | 3.1| 5.1| -38.4 %| 18.7|
+----------------------------------------+--------+--------+---------+---------+
General review
According to Vacon's assessment, the AC drive market grew during the first
quarter of the year. Demand for AC drives to control electric motors increased
in all market areas, but the market for renewable energy did not grow in the
first part of the year.
Orders received by Vacon showed an encouraging increase in January-March
compared to the final quarter of 2011. Orders received totalled EUR 96.9 (100.7)
million. Orders in the final quarter of 2011 totalled EUR 76.9 million. Orders
for AC drives to control electric motors increased sharply, whereas orders for
products used in the generation of renewable energy remained at a low level.
Vacon's revenues declined 11.4 % in January-March from the corresponding period
in the previous year to EUR 84.2 (95.0) million. Factors in the decline in
revenues were poor sales of products for renewable energy generation and the low
order intake in the final quarter of 2011. Revenues in the final quarter of
2011 were EUR 87.6 million.
The operating profit declined in the January-March period to EUR 6.4 million, or
7.6 % of revenues (EUR 8.9 million and 9.3 %). The January-March operating
profit excluding one-time items was EUR 4.9 million, or 5.8 % of revenues (EUR
8.9 million and 9.3 %). The operating profit improved as the company reversed
part of the provision made in December 2011 in connection with a receivable from
a solar energy customer. The company reversed EUR 1.4 million of the provision
after it managed during the first quarter of 2012 to safeguard and collect some
of the receivables. The company is continuing to take steps to safeguard and
collect the remainder of the receivables, but is still retaining part of the
provision in case of a credit loss. Factors contributing to the weakening of
profitability were the decline in sales in the first quarter and the costs for
reorganizing the Group's operations and raising efficiency.
During the first quarter of 2012 the company completed the measures to
reorganize and raise the efficiency of the Group's operations that it began in
the final quarter of 2011. In the new model for allocating responsibility,
Vacon's operations are divided into three main areas, namely Market Operations,
Product Operations and Support Functions. The main objectives of the changes are
to streamline the Group's management model, clarify roles and responsibilities
in the global organization, and raise efficiency.
As part of the measures to reorganize and raise efficiency in the company, on
19 December 2011 Vacon began statutory personnel negotiations concerning white
collar personnel working in Finland. These were concluded on 15 February 2012,
resulting in a decision to make savings corresponding to approximately 45 man-
years.
Vacon brought new products on the market during the first quarter. At the
beginning of March the company launched new versions of its Vacon NXP AC drives.
The changes bring improvements to air and liquid cooled Vacon NXP products in
the full power range 0.55-5300 kW.
Prospects for 2012
Vacon considers that there are still uncertainties relating to general growth
prospects in the economy, and these may affect demand for AC drives especially
in Europe and possibly globally as well. However, Vacon expects demand for
products to control electric motors to increase in 2012. Orders for products for
wind power generation are not expected to pick up significantly in the first
half of 2012.
Market guidelines for 2012
Vacon is retaining the market guidelines for 2012 that it published earlier.
Vacon estimates that its revenues will increase and the operating profit
percentage excluding one-time items will improve from 2011. In 2011 revenues
were EUR 380.9 million and the operating profit percentage excluding one-time
items was 9.1 %.
Vacon's target is to achieve revenues of EUR 500 million in 2014. The
profitability targets for 2014 are an operating profit of 14 % and a return on
equity of more than 30 %.
Financial reports in 2012
Vacon is publishing two more interim reports in 2012 as follows:
* January-June: 1 August 2012
* January-September: 24 October 2012
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 is driven by a passion to develop, manufacture and sell the best AC drives
and inverters in the world - and to provide customers with efficient product
life-cycle services. Our AC drives offer optimum process control and energy
efficiency for electric motors. Vacon inverters play a key role when energy is
produced from renewable sources. Vacon has production and R&D facilities in
Europe, Asia and North America, and sales and service operations in nearly 90
countries. In 2011, Vacon's revenues amounted to EUR 380.9 million, and the
company employed globally approximately 1,500 people. The shares of Vacon Plc
(VAC1V) are quoted on the main list of the Helsinki stock exchange (NASDAQ OMX
Helsinki).
www.vacon.com
Vantaa, 25 April 2012
VACON PLC
Board of Directors
For more information please contact:
* Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510
* Ms Eriikka Söderström, CFO and Vice President, Finance & Control, phone:
+358 (0)40 8371 445
Conference for media and analysts
Vacon will hold a briefing for analysts and the media at 11.30 am on 25 April
2012 at the Scandic Simonkenttä Hotel, Simonkatu 9, 00100 Helsinki. The briefing
will be in Finnish.
Dial-in conference for investors and investment analysts
An international dial-in conference for investors and investment analysts will
be held at 3.00 pm on 25 April 2012. President and CEO Vesa Laisi and Eriikka
Söderström, 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 +358 (0)9 6937 9543 (Finland) or +44 (0)20 3364 5381 (UK). The
conference ID code is 6987142. To hear a recording of the conference, available
for seven working days, call +358 (0)9 2310 1650 (Finland) or +44 (0)20
7111 1244 (UK), ID code 6987142.
* Conference link: http://www.media-server.com/m/p/d466e62a
The presentation material will be available before the media briefing on Vacon's
website at: www.vacon.com > Investors
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority
Main Media
[HUG#1605716]
Vacon Plc Interim Report 1 January - 31 March 2012
| Source: Vacon.
Attachments
