April - June 2012 in brief
- Net sales in the April - June period were similar to those in the previous year at EUR 156 (156) million.
- Second quarter operating profit excluding one-time items declined from the previous year standing at EUR 8.9 (10.7) million and after one-time items at EUR 8.7 (10.1) million.
- The result for the quarter after financial items excluding one-time items declined from the previous year to EUR 1.4 (4.1) million and after one-time items to EUR 1.3 (3.5) million.
- Second quarter operating profit declined from the previous year mainly due to strengthening of Turkish lira and increased regional raw material prices in Turkey.
- The profit attributable to shareholders for the second quarter excluding one-time items was EUR -0.5 (2.9) million, or EUR -0.04 (0.16) per share. Earnings per share are diminished by withholding tax of EUR 1.4 million on the dividend of EUR 9.4 million paid by the Turkish subsidiary.
- The net cash flow from business operations in the April - June period was EUR 0.3 (5.3) million. The net cash flow from business operations was burdened by the increase in working capital, the withholding tax paid over subsidiary dividend, and paid interest expenses.
January - June 2012 in brief
- Net sales in the review period rose 2% to MEUR 307 (MEUR 301).
- EBITDA excluding one-time items was MEUR 27.3 (MEUR 28.8).
- Operating profit excluding one-time items was MEUR 19.1 (MEUR 19.2) and after one-time items MEUR 18.8 (MEUR 16.1).
- The result after financial items excluding one-time items was MEUR 4.3 (MEUR 7.3) and after one-time items MEUR 4.0 (MEUR 4.2).
- Earnings per share excluding one-time items was EUR 0.07 (EUR 0.29) and after one-time items EUR 0.06 (EUR 0.15).
- The Group’s order book declined from the previous year, standing at MEUR 100 (MEUR 111) at the end of June.
- Cash funds and committed unused credit facilities totalled MEUR 38 (MEUR 57) at the end of the review period.
Business environment 2012
The demand outlook in all the Group’s customer sectors is satisfactory. The recent increase in uncertainty in the financial markets, however, weakens predictability and confidence in the economy.
Demand prospects in the heavy trucks industry continue to be uncertain at the beginning of the third quarter.
At the end of June, the order book for Componenta’s heavy trucks customer sector was 10% higher than at the same time in the previous year. Demand is expected to develop positively during the second half of 2012 and in 2013 because low level of registrations of new heavy trucks during the past years has resulted in ageing fleet of heavy trucks. In addition, new environmental regulations coming into force in Europe at the beginning of 2014 are expected to increase demand.
The order book for Componenta’s construction and mining customer sector was 34% lower at the end of the period than in the previous year. Major customers have started to minimize the stock levels, but the production is expected to normalize towards the year end. Anyhow, the total market is expected to grow this year.
At the end of the review period, the order book for Componenta’s machine building customer sector was 4% higher than at the same 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 for Componenta’s agricultural machinery customer sector was 9% higher at the end of the review period compared to the same time in the previous year. Demand for agricultural machinery is estimated to rise from its 2011 level mainly due to relatively high food prices. The market is expected to grow 5-10% in 2012.
The order book for Componenta’s automotive customer sector was 33% lower at the end of the review period than at the same time in the previous year. Demand in the automotive industry is estimated to decline 3-10% in 2012.
Outlook for Componenta 2012
Componenta’s order book at the end of the review period was 10% lower level compared with the same time in the previous year.
Full year net sales in 2012 are expected to remain at the same level as in the previous year or to rise slightly.
As the result of the price rises that have been implemented and the closing down of three loss-making units, the operating profit is expected to show a clear improvement. Even though the operating profit for the review period was similar to the previous year, the remaining part is anticipated to be better than in the previous year. Previous year operating profit was burdened by the quality defects in Orhangazi, Turkey, and by the increase in non-surcharged raw material prices. The result after financial items excluding one-time items is expected to improve significantly, bearing in mind the low level of the figure for comparison. Net cash flow from operations is expected to improve clearly and changes in working capital should continue to be moderate. Investments in production facilities in 2012 are expected to be some EUR 15 million.
Key figures
| 1-6/2012 | 1-6/2011 | 1-12/2011 | |
| Order book at end of review period, MEUR | 100 | 111 | 100*) |
| Net sales, MEUR | 307 | 301 | 576 |
| Operating profit before one-time items, MEUR | 19.1 | 19.2 | 29.8 |
| Operating profit before one-time items, % | 6.2 | 6.4 | 5.2 |
| Result after financial items excl. one-time items, MEUR | 4.3 | 7.3 | 3.9 |
| One-time items, MEUR | -0.2 | -3.1 | -7.3 |
| Taxes, MEUR | -1.8 | -0.9 | 0.3 |
| Net result for the period, MEUR | 2.3 | 3.3 | -3.1 |
| Earnings per share excl. one time items, EUR | 0.07 | 0.29 | 0.09 |
| Net gearing, preferred capital notes as equity, % | 167.0 | 208.8 | 271.2 |
| Return on investment, excl. one-time items, % | 12.2 | 13.1 | 10.2 |
| Return on equity, excl. one-time items, % | 7.0 | 18.7 | 5.1 |
| Number of personnel at period end, incl. leased personnel | 4,842 | 4,815 | 4,665 |
*) 12 January 2012
Heikki Lehtonen, President and CEO:
”Considering the economical situation Componenta’s first half of the year has been satisfactory. The Group’s net sales in January - June was 2% higher than in the corresponding period last year and the operating profit was on the same level as in the previous year. Net sales of the Turkey operations, Holland operations and Sweden operations increased slightly compared to the same period in the previous year. Net sales of the Finland operations declined from the previous year, but the operating profit was clearly better due to closing down two loss-making business units.
In the demanding business environment we have paid special attention to development of fixed costs, and during the second part of the year our intention is to achieve further savings in fixed costs.
Componenta’s order book at the end of June was 10% lower than a year ago. At the beginning of the third quarter the demand outlook in all the Group’s customer sectors is satifactory, even though there are big differences in the customer business areas. The order book of our biggest customer business area, heavy trucks, increased during the review period and the future outlook is positive. The order book in the second largest customer area, construction and mining industry, declined clearly when customers decreased their stocks. Thanks to the strong demand for agricultural machines we believe our order book to grow also in the future.”
Componenta’s interim report for the period January - June 2012 as a PDF is as an attachment of this release. The interim report is also available on the Componenta’s website at www.componenta.com.
Helsinki, 13 July 2012
COMPONENTA CORPORATION
Heikki Lehtonen
President and CEO
ENCL. Interim report 1 January - 30 June 2012
For further information, please contact:
Heikki Lehtonen Mika Hassinen
President and CEO CFO
tel. +358 10 403 2200 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.
