Espoo, Finland, 2015-08-12 08:00 CEST (GLOBE NEWSWIRE) --
EFORE PLC Interim Report August 12, 2015 at 9.00
This release is a summary of Efore's Interim Report January – June 2015. The full report is a PDF file attachment to this stock exchange release and is available on the company's website at the address www.efore.com.
April – June 2015 in brief:
- Net sales totalled EUR 23.7 million (EUR 22.5 million), up 5.3 % compared with the corresponding period last year
- Results from operating activities without one-time items resulted in break-even EUR 0.0 million (EUR -0.4 million)
- Result from operating activities resulted in break-even EUR 0.0 million (EUR -1.6 million)
- Earnings per share were EUR 0.00 (EUR -0.04)
January – June 2015 in brief:
- Net sales totalled EUR 47.2 million (EUR 41.7 million), up 13.3 % compared with the corresponding period last year
- Results from operating activities without one-time items were EUR 0.7 million (EUR -0.9 million)
- Result from operating activities were EUR 0.7 million (EUR -2.2 million)
- Earnings per share were EUR -0.01 (EUR -0.06)
|
4-6/ 2015 |
4-6/ 2014 |
Change |
1-6/ 2015 |
1-6/ 2014 |
Change |
1-12/ 2014 |
|
| Key indicators, EUR million | 3 mo | 3 mo | % | 6 mo | 6 mo | % | 12 mo |
| Net Sales | 23,7 | 22,5 | 5,3 | 47,2 | 41,7 | 13,3 | 85,3 |
| Telecommunication sector | 12,1 | 13,1 | -7,6 | 25,2 | 22,8 | 10,5 | 46,0 |
| Industrial sector | 11,6 | 9,5 | 22,1 | 22,0 | 18,9 | 16,4 | 39,3 |
| Results from operating activities without one-time items | 0,0 | -0,4 | 0,7 | -0,9 | 0,1 | ||
| Results from operating activities | 0,0 | -1,6 | 0,7 | -2,2 | -2,0 | ||
| Result before taxes | 0,0 | -1,8 | -0,2 | -2,7 | -3,1 | ||
| Net result | -0,1 | -1,9 | -0,4 | -2,8 | -2,6 | ||
| Earnings per share, EUR | 0,00 | -0,04 | -0,01 | -0,06 | -0,05 | ||
| Solvency ratio, % | 37,2 | 36,3 | 2,5 | 37,2 | 36,3 | 2,5 | 38,1 |
| Gearing, % | -0,4 | 8,4 | 104,8 | -0,4 | 8,4 | 104,8 | 9,0 |
| Cash flow from business operations | 2,3 | 2,0 | 4,2 | 3,6 | 3,8 | ||
| Key indicators quarterly, EUR million |
Q2/ 2015 |
Q1/ 2015 |
Q4/ 2014 |
Q3/ 2014 |
Q2/ 2014 |
||
| Net Sales | 23,7 | 23,5 | 21,4 | 22,1 | 22,5 | ||
| Telecommunication sector | 12,1 | 13,1 | 11,0 | 12,2 | 13,1 | ||
| Industrial sector | 11,6 | 10,4 | 10,4 | 10,0 | 9,5 | ||
| Results from operating activities without one-time items | 0,0 | 0,7 | -0,5 | 1,6 | -0,4 | ||
| Results from operating activities | 0,0 | 0,7 | -1,3 | 1,6 | -1,6 |
Financial estimate for 2015 remains unchanged
The Company estimates its net sales of financial year 2015 to be EUR 86-96 million and results from operating activities without one-time items to be EUR 2-5 million.
Heikki Viika, President and CEO:
“The second quarter net sales were in line with the expectations. Net sales increased by 5.3 % to EUR 23.7 million compared with the previous year and were at the same level with the previous quarter. There was a clear improvement in results from operating activities compared with the previous year but due to higher than anticipated personnel costs in manufacturing and material costs, results from operating activities were lower than expected.
The net sales of the telecommunication sector were EUR 12.1 million decreasing 7.6 % compared with the previous quarter. The roll-out of 4G technology in China and USA has been delayed to the latter part of current fiscal year, having a negative effect on the second quarter net sales. As a result of the new products the portfolio in telecommunication sector has expanded and the products have been successful.
The positive development of the net sales in the industrial sector was in line with the expectations. Net sales increased by 11.5 % to EUR 11.6 million being the 6th growth quarter in succession. In new industrial R&D projects Efore has been able to utilize technology and finished product platforms developed for the telecommunication sector.
Efore's long term target is to reach 10% EBIT level and an average annual net sales growth of 5-10%. In the short term Efore is focusing to improve the profitability. The target is to reach at least 6% EBIT level at the end of 2015.”
April – June net sales and financial development
The second quarter net sales totalled EUR 23.7 million (EUR 22.5 million).
Net sales of the telecommunication sector were EUR 12.1 million decreasing 7.6 % compared with the previous quarter.
The net sales of industrial sector were EUR 11.6 million increasing 11.5 % from the previous quarter.
Results from the operating activities improved clearly compared with the last year resulting EUR 0.0 million (EUR -1.6 million including one-time items EUR -1,2 million ) being anyhow lower than expected due to higher than anticipated personnel costs in manufacturing and material costs. There were no one-time items in the second quarter.
January – June net sales and financial development
Net sales totalled EUR 47.2 million (EUR 41.7 million).
Results from the operating activities improved clearly compared with the last year resulting EUR 0.7 million (EUR -2.2 million including one-time items EUR -1,3 million) being anyhow lower than expected due to higher than anticipated personnel costs in manufacturing and material costs. There were no one-time items during the period under review.
Business development
The roll-out of 4G technology in China and USA has been delayed to second half of current fiscal year, having a negative effect on the 2nd quarter net sales. As a result of the new products the portfolio in telecommunication sector has expanded and the products have been successful.
The transfer of PCB assembly to EMS partner has been concluded as originally planned. Direct cost savings were not achieved as planned but flexibility increased with this operations model and avoiding direct investments creates a good basis to respond changing market demands in the future.
The positive development of the net sales in the industrial sector was in line with the expectations. Net sales increased by 11.5 % to EUR 11.6 million being the 6th growth quarter in succession. In new industrial R&D projects Efore has been able to utilize technology and finished product platforms developed for the telecommunication sector.
The key target for Efore is to develop the company structure in order to improve profitability.
Outlook
During the last years the group has expanded in to new markets enabling better opportunities for growth. The LTE (4G) technology is in a key role in network expansions and Efore has a strong position in this development. Several large network roll-outs have been published creating a base for the stability of the demand.
Power supplies for LED lighting, instrumentation, medical equipment and infrastructure offer several growth areas for Efore in the industrial sector.
Efore has invested in several R&D projects and especially in the telecom product portfolio a significant renewal has started. The network markets in Asia and in the U.S.A. are expected to develop positively although somewhat later than predicted and Efore’s main customers are expected to be successful in these markets.
Long-term targets
Efore Group's long term target is to reach 10% EBIT level and an average annual net sales growth of 5-10%. Target is to grow especially in industrial the sector. Market driven product platforms and efficient R&D investment utilization are key factors to support group's target to improve profitability.
In the short term Efore is focusing to improve the profitability. The target is to reach at least 6% EBIT level at the end of 2015.
Efore does not consider the long term targets as market guidance for any given year. The Group will issue separate financial estimate.
EFORE PLC
Board of Directors
For further information please contact Heikki Viika, President and CEO, on August 12, 2015 at 10 – 11 a.m., tel. +358 9 4784 6312.
DISTRIBUTION
Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding power products. Efore's head office is based in Finland and its production units are located in China and Tunisia. Sales and marketing operations are located in Europe, United States and China. In the fiscal year ending in December 2014, consolidated net sales totalled EUR 85,3 million and the Group's personnel averaged 914. The company's share is quoted on the Nasdaq OMX Helsinki Ltd. www.efore.com
ENCL. Interim Report January – June 2015 including tables (pdf)
