Componenta changes its prospects for 2014

Componenta Corporation Stock Exchange Release 16.10.2014 at 18.15


The uncertainty in the European economy has increased mainly due to the economic sanctions by EU and Russia. This has decreased the demand for investment goods in Componenta’s customer industries. Componenta’s order book on 30 September 2014 was 5% lower than at the same time in the previous year, at EUR 79 (84) million.

The order book has declined in many customer segments after the summer vacation period. Based on the order book and production estimates given by customers, Componenta’s net sales in 2014 are expected to stay behind previous year level. In addition, the exchange rate rates have developed unfavourably from the Group’s point of view, which have impacted the exchange rate differences arising from the balance sheet items.

Due to the before mentioned reasons Componenta expects the operating profit excluding one-time items to decline from the previous year despite of the efficiency improvement program.

The Board of Directors decided earlier in the review period to change the currency transaction risk policy so that the balance sheet items in Turkish lira can be left without hedging.  By means of this decision Componenta aims to decrease cash flow based hedging expenses which during the past five years have exceeded more than EUR 10 million in total. Based on this decision the fair value differences of balance sheet items arising from exchange rate changes can vary, but in the long term their impact on both cash flow and result are expected to be positive. Due to this change the prospects in the future will be given excluding one-time items and exchange rate differences of balance sheet items.

New prospects for 2014 are as follows:

Componenta expects the operating profit for 2014 excluding one-time items and exchange rates differences of balance sheet items to improve from the previous year due to efficiency improvement program being carried out.

Earlier prospects for 2014 were:

In consequence of the structural efficiency measures being carried out, the full year operating profit excluding one-time items is expected to improve from the previous year.

Helsinki, 16 October 2014

COMPONENTA CORPORATION
 

Heikki Lehtonen
President and CEO

 

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 511 million in 2013 and its share is listed on the NASDAQ OMX Helsinki. The Group employs approx. 4,400 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.  


Attachments

release_16102014_componenta changes prospects.pdf