Transcript Document

Exel Oyj
Interim Report January – March 2006
8.5.2006
Exel Oyj Interim Report January-March 2006
Key figures of the Industry Division
Q1/2006
Q1/2005 Change
Net sales, M€
17.3
12.5
38.4%
Oper. profit, M€
2.7
1.8
49.1%
% of net sales
15.7% 14.5%
Average personnel 292
214
36.4%
2004
56.8
10.8
19.0%
236
Exel Oyj Interim Report January-March 2006
Industry Division
•
•
Industry Division’s net sales grew by 38 per cent on those posted a
year earlier to EUR 41.7 (36.7) million
–
EUR 3.2 million arose from the acquisition of Pacific Composites and
Faserprofil
–
EUR 1.6 million organic growth
The Group’s strategic focus area, the Industry Division, continued its
expansion
–
At the end of February the Australian company Pacific Composites Pty.
Ltd was acquired with production operations in Australia, Great Britain and
China
–
The acquisition further enables Exel to serve international customers
globally
–
Exel’s establishment in China and the Far East markets will be
accelerated and the range of product offerings broadened
Exel Oyj Interim Report January-March 2006
Industry Division
•
•
As a result of the acquisition of Pacific Composites, the Industry
Division’s European production strategy is being reassessed,
currently 8 production plants in Europe
–
Exel is looking at consolidating its factories in Great Britain
–
The production of profiles that is currently subcontracted in Spain will be
transferred to other units in Europe
–
Rationalisation of production will create non-recurring costs of
approximately EUR 0.5 million
Industry’s operating profit grew to EUR 2.7 (1.8) million
–
•
Increased sales and better usage of the production capacity
Carbon fibre raw materials remain in short supply; limits the
development of new applications and could impact sales of some
product groups towards the end of the year. Shortage expected to
continue into the beginning of 2007.
Exel Oyj Interim Report January-March 2006
Key figures of the Sport division
Q1/2006 Q1/2005 Change
Net sales, M€
8.3
Oper. profit, M€
-2.1
% of net sales
-25.5%
Non-recurr. costs 1.9
Average personnel 227
9.2
0.4
4.2%
-10.2%
-58.4%
220
3.2%
2005
34.5
2.6
4.6%
231
Exel Oyj Interim Report January-March 2006
Sport Division
•
Sport’s net sales decreased by 10% from the previous year’s level
–
The decrease in sales stems entirely from the Nordic Walking market
segment
–
Heavy investments to open up new markets in North America and China
–
Floorball and laminate increased sales over last year
–
In January the decision was taken to subcontract the surface treatment,
assembly and packaging operations for Nordic Walking and floorball
products to China. The goal is that all these operations are handled
completely in China by the beginning of 2007. Restructuring of operations
at the Mäntyharju factory; as a result of personnel negotiations 54
employment contracts to be terminated. In addition, approx. 20 nonpermanent employees on fixed-term contracts will not have their contracts
renewed. The restructuring is expected to generate savings on the level of
2 millions from 2007 onwards.
Exel Oyj Interim Report January-March 2006
Sport Division
•
Sport’s operating loss before restructuring costs EUR -0.2 (+0.4)
million
•
The strong focus on opening new NW markets, the strengthening of
the Exel Sports Oy organisation, and the launch of the NFS concept
continued to negatively impact the division’s operating profit
•
In addition, non-recurring costs amounting to EUR 1.9 million were
recorded stemming from the transfer of production operations, out of
which EUR 1.7 million were write-offs
Exel Oyj Interim Report January-March 2006
Group net sales January-March 2006
M€
Industry
Sport
Total
1-3/2006
1-3/2005
Change, %
2005
17.3
8.3
12.5
9.2
38.4
-10.2
56.8
34.5
25.6
21.7
17.8
91.3
Net sales 1-3/2006
Sport
32%
Industry
68%
Exel Oyj Interim Report January-March 2006
Group operating profit January-March 2006
M€
Industry
Sport
Total
1-3/2006
1-3/200
Change, %
2005
2.7
-2.1
1,8
0.4
49.1%
-648.3%
10.8
1.6
0.6
2.2
-72.6
12.4
Exel Oyj Interim Report January-March 2006
Net sales and profit performance
•
Consolidated net sales for Jan-March grew by 17.8 per cent over the
previous year to EUR 25.6 (21.7) million
– Net sales include the operations of Pacific Composites for the
month of March; a contribution of EUR 2.2 million of the net
sales
•
Operating profit EUR 0.6 (2.2) million
– Operating profit before restructuring costs was EUR 2.5 million,
which is higher than previous year
•
Net financial expenses EUR 0.2 (0.1) million
•
Group’s pre-tax profit EUR 0.5 (2.1) million and profit for the period
EUR 0.3 (1.5) million
Exel Oyj Interim Report January-March 2006
Consolidated key figures
1.1.-31.3.2006
Net sales
Operating profit
% of net sales
Profit for the period
Equity
Interest-bearing net liabilities
Invested capital
Return on equity, %
Return on investment, %
Solvency ratio, %
Net gearing
Earnings per share, EUR, dil.
Equity per share, EUR
25.,6
0.6
2.4%
0.3
29.4
25.5
62. 6
4.6%
5.0%
35.1%
86.7%
0.3
2.49
1.1.-31.3.2005
21.7
22
10.1%
1.5
22.2
9.7
36.0
28.8%
25.6%
46.0%
43.8%
0.13
1.84
2005
91.3
12.4
13.5%
8.9
27.0
8.2
41.0
37.3%
34.0%
50.0%
30.2%
0.76
2.34
Exel Oyj Interim Report January-March 2006
Balance sheet and financial position
•
Consolidated balance sheet at the end of the reporting period EUR
83.9 (48.5) million
•
EUR 28 million from Australian acquisition and EUR 2
million from Austrian acquisition
•
Solvency ratio 35.1 (46.0) per cent
•
Cash flow from business operations EUR +1.3 (-1.7) million
•
Capital expenditure was financed with cash flow from business
operations and acquisition with a long-term loan and issue of share
capital
•
At the end of the reporting period, liquid assets were EUR 7.7 million,
compared with EUR 5.8 million at the end of 2005
Exel Oyj Interim Report January-March 2006
Shares
Exel Oyj 6/2005-5/2006
•
Share turnover 1-3/2006
22.3% of the average
number of outstanding
shares
•
Market capitalization on 31
March 2006 EUR 168.8
million
•
Highest share price EUR
14.84 and closing price
EUR 14.59
Exel Oyj Interim Report January-March 2006
Principal shareowners on 3 May 2006
Shareowner
Number of
shares
Share %
Nordstjernan AB
Ilmarinen Mutual Pension
Insurance Company
Varma Mutual Pension
Insurance Company
Veikko Laine Oy
Berling Capital Oy
Ulkomarkkinat Oy
OP Suomi Kasvu
Investment Fund
Suutarinen Matti
Nordea Bank Finland
(nominee reg.)
Lemarne Corporation Ltd
3 496 506
29.69
814 400
6.90
503 600
418 800
412 000
341 600
4.26
3.54
3.49
2.89
335 000
294 400
2.83
2,49
236 538
230 743
2,00
1,95
Exel Oyj Interim Report January-March 2006
Outlook
•
Pacific integrated with the Group during 2006 – will significantly increase net
sales for the Industry Division
•
The acquisition strengthens and accelerate the growth of the Industry division,
especially in Far East markets already in 2006
•
Industry’s production strategy is being assessed in Europe – rationalisation will
create non-recurring costs of approx. EUR 0.5 million
•
Carbon fibre in short supply also in 2006 – limits growth opportunities and could
impact sales of some product groups towards the end of the year
•
The main markets for NW in Central Europe remain leveled as retail chains sell
out existing stocks. The chains are expected to focus on the leading pole
brands, including Exel.
•
Efforts to open new NW markets continue
Exel Oyj Interim Report January-March 2006
Outlook
•
The transfer of pole and floorball assembly and finishing combined
with outsourcing logistics, will improve the Sport Division’s profitability
beginning in 2007
•
Group net sales are expected to increase significantly
•
Due to the considerable reorganisation of the Sport Division’s
production and the integration of Pacific composites, the result will be
impacted by non-recurring items, as a result of which the pre-tax profit
is expected to be lower than in 2005.