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Componenta Oyj — Interim / Quarterly Report 2010
Jul 16, 2010
3307_rns_2010-07-16_21eb5b65-ecad-45e9-8050-0b97419c2447.pdf
Interim / Quarterly Report
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COMPONENTA
STOCK EXCHANGE RELEASE
16.7.2010 at 9.30
Componenta interim report 1 January - 30 June 2010
Result clearly improved, demand outlook for the second half of the year further improved
- Consolidated net sales in the review period totalled MEUR 209 (MEUR 159)
- Operating profit was MEUR 4.3 (MEUR -10.5)
- Result after financial items was MEUR -7.8 (MEUR -21.0)
- Result improved MEUR 13.2. The result of the first half of the year was weakened by increases in raw material prices and exchange rate losses by MEUR 8.6 in total
- Basic earnings per share was EUR -0.33 (EUR -1.43)
- Order book rose 62% and was MEUR 84 (MEUR 52)
Componenta's Q2/2010 in brief
The Group's net sales in April - June totalled EUR 117.3 million, which was 66% more than in the previous year (EUR 70.6 million). During the second quarter the capacity utilization rate was 58% (33%). The operating profit in the second quarter increased and was EUR 4.0 million, corresponding to 3.4% of the net sales. The second quarter result after financial items improved from the previous year and was EUR -2.2 (-10.1) million.
The second quarter operating profit improved from the previous year mostly due to significantly higher volumes and cost adaptation measures implemented earlier. However, the result was hurt by the rapid increase in raw material prices (EUR 4.6 million) and exchange rate losses (EUR 1.0 million).
Profit attributable to shareholders in the second quarter was EUR -1.7 (-7.5) million and basic earnings per share was EUR -0.10 (EUR -0.68).
Cash flow from operations in April - June was EUR 12.1 (5.2) million.
Interim report January - June 2010
Net sales and order book
The Group's net sales in January - June were EUR 208.5 (158.7) million. Net sales increased 31% and value of production 51%. The capacity utilization rate in the Group was 54% (36%). The order book at the end of June rose 62% compared to the same time in the previous year and was EUR 83.6 (51.7) million. The order book comprises confirmed orders for the coming two months.
Net sales of the Turkey operations rose 76% from the previous year to EUR 93.7 (53.3) million. The order book at the end of the review period was EUR 42.4 (23.3) million. Good volume improvement especially in the construction and mining machinery and automotive industries increased the order book in the review period.
Net sales of the Finland operations fell 1% from the previous year and were EUR 47.9 (48.6) million. The order book at the end of the review period was EUR 15.8 (10.4) million. Order book strengthened mostly due to increased amount of orders from the heavy trucks industry.
Net sales of the Holland operations rose 6% from the previous year and were EUR 42.1 (39.7) million. At the end of the review period, the order book was EUR 14.6 (13.4) million. The order book of the Holland operations accumulates mainly from the construction and mining, heavy trucks and machine building industries.
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COMPONENTA
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Net sales of the Sweden operations rose 86% from the previous year and were EUR 37.1 (19.9) million. The order book at the end of the review period was EUR 16.5 (6.4) million. The order book improved due to increased orders from the heavy trucks industry.
Componenta's net sales by customer industry were as follows: heavy trucks 25% (19%), construction and mining 21% (17%), machine building 20% (30%), automotive 19% (17%), agriculture 12% (13%), wind power 1% (3%), and others 1% (1%).
Result
The Group's operating profit in the review period was EUR 4.3 (-10.5) million. The Group's operating profit improved clearly from the previous year mainly due to higher production volumes and the cost adaptation measures implemented earlier. The result for the first half of the year was hurt by the rapid increase in raw material prices and by exchange rate losses totalling approximately EUR 8.6 million. Other operating income includes exchange rate differences on sales and purchases. The result does not include one-time items.
Quarterly analysis of changes in income statement:
| MEUR | Q1/10 | Q1/09 | Diff % | Q2/10 | Q2/09 | Diff % |
|---|---|---|---|---|---|---|
| Net Sales | 91,2 | 88,1 | 4 % | 117,3 | 70,6 | 66 % |
| Value of production | 94,4 | 75,3 | 25 % | 119,0 | 66,1 | 80 % |
| Materials | -34,3 | -24,1 | 43 % | -45,5 | -20,6 | 121 % |
| Direct wages and external services | -24,2 | -25,0 | -3 % | -29,3 | -21,4 | 37 % |
| Other variable and fixed costs | -32,3 | -29,3 | 10 % | -35,6 | -25,5 | 40 % |
| Costs total | -90,8 | -78,3 | 16 % | -110,4 | -67,5 | 64 % |
| EBITDA | 3,6 | -3,0 | 8,6 | -1,4 |
The Group's net financial costs in the review period totalled EUR -12.1 (-10.5) million. Net financial costs increased from the previous year due to higher interest costs and exchange rate losses.
The result after financial items in the review period was EUR -7.8 (-21.0) million.
Income taxes calculated from the result for the review period totalled EUR 2.1 (5.1) million.
The net result for the review period was EUR -5.7 (-15.8) million.
The basic earnings per share was EUR -0.33 (-1.43).
The return on investment was 3.4% (-5.7%) and return on equity -15.6% (-53.6%).
Financing and cash flow
At the end of the review period the Group had outstanding capital notes and convertible capital note, as defined in IFRS, with a combined value of EUR 27.9 million. In March the Group repaid the final instalment of EUR 7.4 million of the principal of the convertible capital notes issued in 2005, in accordance with the terms of the notes. At the end of the review period, the outstanding unconverted capital notes issued in 2006 entitled their holders to subscribe 572,800 shares.
During the review period long-term bilateral bank loans totalling EUR 28.7 million were drawn, to refinance short-term bank loans that matured in the period.
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COMPONENTA
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Componenta’s liquidity situation has remained satisfactory. At the end of June, cash in bank and hand was MEUR 14.7. Unused, committed credit facilities at the end of June were EUR 23.0 million. In addition, the Group has a EUR 150 million commercial paper programme, from which the company had no debt at the end of the review period.
The Group’s interest-bearing net debt, excluding the outstanding capital notes of EUR 27.9 million, stood at EUR 206.9 (221.3) million. The company’s net debt as a proportion of shareholders’ equity, including the capital notes in the shareholders’ equity, was 192.4% (232.9%).
Componenta’s net cash flow from operations during the review period was EUR 15.6 (10.5) million, and of this the change in net working capital was EUR 10.9 (22.2) million. Componenta is making more efficient use of capital with a programme to sell its trade receivables. Under this arrangement, some of the trade receivables are sold without any right of recourse. By the end of June the company had sold trade receivables totalling EUR 57.6 (27.2) million. Mainly because of selling of trade receivables, only moderate changes in the net working capital are expected regardless the significantly increasing sales.
At the end of the review period the Group’s equity ratio was 18.2% (13.3%). The Group’s shareholders’ equity on 30 June 2010, including the capital notes in shareholders’ equity, as a proportion of the balance sheet total was 24.5% (24.1%).
Investments
Investments in production facilities in the review period were EUR 3.4 (7.1) million, of which finance lease investments accounted for EUR 0.0 (1.7) million. The cash flow from investments was EUR -5.5 (-6.8) million, which includes the cash flow from the Group’s investments in tangible and intangible assets, the cash flow from shares sold and purchased, and from tangible assets sold.
Componenta has clearly limited the number of investments in production facilities due to current low utilization rate of capacity. Investments in production facilities in 2010 are expected to halve from the previous year.
Performance of operations
Componenta’s reporting structure was changed on 1 February 2010 when the Group organized its divisions into country-based operations. The figures for the first half of the year 2010 have been reported in accordance with the new structure, and all figures for comparison for country-based operations for 2009 have been adjusted to bring them in line with this reporting structure.
Turkey operations
The operations in Turkey comprise the iron foundry and machine shop in Orhangazi and the aluminium foundry and production unit for aluminium wheels in Manisa.
Net sales in the review period rose 76% and were EUR 93.7 (53.3) million, and the operating profit was EUR 6.5 million, corresponding to 6.9% of net sales (EUR -0.0 million, -0.1%). The good improvement in volumes especially in the construction and mining machinery and automotive industries boosted the operating profit in the review period. However, the operating profit was hurt by the rapid increase in raw material prices (EUR 3.1 million) and exchange rate losses (EUR 1.1 million).
Net sales in the second quarter were EUR 53.1 (28.4) million and operating profit EUR 3.3 million, corresponding to 6.2% of net sales (EUR 0.4 million, 1.3%). Increases in raw material prices and exchange rate losses weakened the operating profit by EUR 2.8 million.
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COMPONENTA
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16.7.2010 at 9.30
The order book for the Turkey operations at the end of June increased 82% and was EUR 42.4 (23.3) million.
Finland operations
The operations in Finland consist of the iron foundries in Iisalmi, Karkkila, Pietarsaari and Pori and the machine shops in Lempäälä and Pietarsaari. The operations also include the production unit for pistons in Pietarsaari.
Net sales in the review period were EUR 47.9 (48.6) million, and the operating profit was EUR 0.1 million, corresponding to 0.2% of net sales (EUR -0.7 million, -1.4%). The operating profit for the review period improved due to cost adaptation measures that were implemented during the second half of 2009 and rapidly increased production volumes especially in the heavy trucks industry. However, the operating profit was burdened by the rapid increase in raw material prices (MEUR 1.8).
Net sales in the second quarter were EUR 27.0 (19.5) million and operating profit EUR 0.7 million, corresponding to 2.5% of net sales (EUR -1.2 million, -6.1%). Increases in raw material prices affected the result by EUR -1.3 million.
The order book for the operations in Finland at the end of June was EUR 15.8 (10.4) million.
Holland operations
The operations in the Netherlands comprise the iron foundries in Heerlen and Weert, the machine shop operations in Weert and the pattern shop in Tegelen.
Net sales for the Holland operations were EUR 42.1 (39.7) million, and the operating profit was EUR 0.0 million, corresponding to 0.0% of net sales (EUR -6.8 million, -17.2%). The improvement in the operating profit for the review period from the previous year was particularly due to cost adaptation measures implemented earlier and increased production volumes. However, the operating profit was affected by MEUR -1.5 due to a rapid increase in raw material prices.
Second quarter net sales were EUR 23.4 (15.8) million and operating profit EUR 0.2 million, corresponding to 0.7% of net sales (EUR -2.7 million, -16.9%). Increases in raw material prices affected the result by EUR -1.1 million.
The order book for the Holland operations at the end of June was EUR 14.6 (13.4) million.
Sweden operations
The operations in Sweden comprise the Frammestad machine shop and the Wirsbo forge.
Net sales for operations in Sweden in the review period rose 86% and totalled EUR 37.1 (19.9) million, and the operating profit was EUR -1.4 million, corresponding to -3.8% of net sales (EUR -4.9 million, -24.3%). The operating loss for the operations in Sweden in the review period decreased from previous year due to reductions in operative costs and markedly higher production volumes especially in the heavy trucks industry. The operating profit was burdened by the exceptional peaks in energy prices during the first quarter.
Net sales in the second quarter were EUR 21.3 (9.5) million and operating profit was EUR 0.0 million, corresponding to 0.2% of net sales (EUR -1.7 million, -17.6%).
The order book for the operations in Sweden at the end of June was EUR 16.5 (6.4) million.
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COMPONENTA
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16.7.2010 at 9.30
Other business
Other business comprises the sales and logistics company Componenta UK Ltd in the UK, service and real estate companies in Finland, the Group's administrative functions and associated company Kumsan A.S. in Turkey. Other business recorded an operating profit of EUR -0.9 (1.6) million in the review period.
Shares and share capital
The shares of Componenta Corporation are quoted on the NASDAQ OMX Exchange in Helsinki. At the end of the review period the company had a total of 17,457,798 shares. The company's share capital at the end of the review period stood at EUR 21.9 (21.9) million. The quoted price on 30 June 2010 stood at EUR 4.77 (4.01). The average price during the review period was EUR 4.96, the lowest quoted price was EUR 4.02 and the highest EUR 6.23. At the end of the review period the share capital had a market capitalization of EUR 83.3 (43.9) million, and the volume of shares traded during the period was equivalent to 40.6% (9.1%) of the share stock.
Personnel
The Group had on average 3,938 (3,872) employees during the review period, including 212 (134) leased employees. The number of Group personnel at the end of the review period was 4,261 (3,776), which includes 402 (109) leased employees. At the end of the second quarter 50% (43%) of the personnel were in Turkey, 25% (30%) in Finland, 17% (18%) in the Netherlands and 8% (10%) in Sweden.
Changes in Group management
The Group's Corporate Executive Team was expanded during the review period by appointing Pauliina Rannikko as General Counsel and a member of the Corporate Executive Team at Componenta as from 22 June 2010.
Lawsuits
On 9 June 2010 Componenta B.V. received a writ of summons of Wärtsilä Finland Oy in which Wärtsilä Finland Oy claims that Componenta B.V. shall pay compensations to Wärtsilä Finland Oy amounting to EUR 8.5 million due to certain defects discovered in components delivered to Wärtsilä Finland Oy by Componenta B.V. in 2008. Componenta B.V. considers the claims of Wärtsilä Finland Oy to be unfounded and Componenta B.V. will deny the claims.
Risks and business uncertainties
The most significant risks for Componenta are risks related to the business environment (competition and price risk, commodity and environmental risks), operational risks (customer and supplier risks, productivity, production and process risks, labour market disruptions, contract and product liability risks, personnel risks, and data security risks) as well as financial risks (financing and liquidity risk, currency, interest rate and credit risks).
In order to manage the Group's business operations it is essential to secure the availability of certain raw materials, such as recycled metal and pig iron, and energy, at competitive prices. The cost risk relating to raw materials is mainly managed with price agreements, and under these agreements the prices of products are adjusted in line with the changes in raw material prices. Increases in prices for raw materials may tie up more funds in working capital than estimated.
The financial risks relating to Componenta's business operations are managed in accordance with the treasury policy approved by the Board of Directors. The objective is to protect the Group against unfavourable changes in the finance markets and to secure the Group's financial performance and financial position.
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COMPONENTA
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16.7.2010 at 9.30
More information related to Componenta's risks and risk management is given in the 2009 annual report and on the company's website at www.commonenta.com.
Prospects
Componenta's prospects for 2010 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta's order intake and order book.
The demand outlook in all of the Group's customer industries have further improved compared to the beginning of the year 2010. Customers' production volumes have improved also due to the fact that their inventory levels have normalized.
The demand for components of construction and mining industry has developed well during the first half of the year. This development is expected to continue in the second half of 2010 due to recent rise in raw material prices and economic recovery.
The demand for agricultural machinery has started to increase during the first half of the year especially in emerging markets.
Componenta's deliveries for the heavy trucks industry have significantly increased from the previous year. Volumes have increased due to normalized customer inventory levels and the good demand in the emerging markets. The good development is expected to continue during the second half of the year.
The number of passenger cars registered in Europe in January - June stayed at the same level as in the previous year. The registrations in 2010 are expected to remain below the level of 2009. Due to the increase in export of Turkish automotive industry and the good volume development in the demand for aluminium wheels, Componenta's deliveries to the automotive industry are expected to increase in the last part of 2010.
The demand in the wind power industry turned positive during the second quarter of the year. The demand is expected to continue good in the second half of 2010.
The demand in the machine building industry is expected to recover gradually during 2010.
Componenta's order book at the end of the second quarter in 2010 was 62% higher than at the same time in the previous year.
Exceptionally fast increases in raw material prices that took place during the first half of 2010 affected the result negatively by EUR 6.6 million. Those raw material prices however started to decrease at the end of the second quarter and are therefore expected to improve the Group's third quarter result.
Componenta Group's net sales in 2010 are expected to increase significantly and the result after financial items is expected to improve clearly from the previous year. The Group's cash flow from operations is expected to remain positive. Regardless the significantly increasing sales, only moderate changes in the net working capital are expected.
Interim report tables
Componenta has applied the same accounting principles in this interim report as in the financial statements for 2009. In addition, it has applied the revised standards IFRS 3 and IAS 27 as from 1 January 2010. Applying the revised standards has not affected the Group's reported result or its financial position. The financial statement tables in this unaudited interim report have been prepared in accordance with IAS 34 accounting principles.
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COMPONENTA
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Consolidated income statement
| MEUR | 1.1.-30.6.2010 | 1.1.-30.6.2009 | 1.4.-30.6.2010 | 1.4.-30.6.2009 | 1.1.-31.12.2009 |
|---|---|---|---|---|---|
| Net sales | 208.5 | 158.7 | 117.3 | 70.6 | 299.6 |
| Other operating income | -0.4 | 1.3 | -0.2 | -0.2 | 2.4 |
| Operating expenses | -195.9 | -164.4 | -108.6 | -71.8 | -305.2 |
| Depreciation, amortization and write-downs | -8.0 | -6.1 | -4.7 | -2.9 | -12.5 |
| Share of the associated companies' result | 0.1 | 0.0 | 0.1 | 0.0 | 0.2 |
| Operating profit | 4.3 | -10.5 | 4.0 | -4.3 | -15.4 |
| % of net sales | 2.1 | -6.6 | 3.4 | -6.2 | -5.1 |
| Financial income and expenses | -12.1 | -10.5 | -6.2 | -5.7 | -21.8 |
| Result after financial items | -7.8 | -21.0 | -2.2 | -10.1 | -37.2 |
| % of net sales | -3.7 | -13.2 | -1.9 | -14.3 | -12.4 |
| Income taxes | 2.1 | 5.1 | 0.6 | 2.6 | 8.5 |
| Net profit | -5.7 | -15.8 | -1.6 | -7.5 | -28.7 |
| Allocation of net profit for the period | |||||
| To equity holders of the parent | -5.8 | -15.6 | -1.7 | -7.5 | -28.3 |
| To non-controlling interest | 0.2 | -0.2 | 0.1 | -0.1 | -0.3 |
| -5.7 | -15.8 | -1.6 | -7.5 | -28.7 | |
| Earning per share calculated on the profit attributable to equity holders of the parent | |||||
| Earnings per share, EUR | -0.33 | -1.43 | -0.10 | -0.68 | -2.30 |
| Earnings per share with dilution, EUR *) | -0.33 | -1.43 | -0.10 | -0.68 | -2.30 |
*) Earnings per share with dilution has been restated for the financial year 2009, for the first half and the second quarter of the year 2009. The effect of the dilution was erroneously taken into account although the dilution decreased the loss of earnings per share.
Consolidated statement of comprehensive income
| MEUR | 1.1.-30.6.2010 | 1.1.-30.6.2009 | 1.4.-30.6.2010 | 1.4.-30.6.2009 | 1.1.-31.12.2009 |
|---|---|---|---|---|---|
| Net profit | -5.7 | -15.8 | -1.6 | -7.5 | -28.7 |
| Other comprehensive income | |||||
| Translation differences | 16.3 | 0.0 | 9.6 | 4.9 | -1.0 |
| Cash flow hedges | 1.5 | 0.7 | 1.2 | 1.7 | 2.1 |
| Income tax on other comprehensive income | -0.4 | -0.2 | -0.3 | -0.5 | -0.5 |
| Other comprehensive income, net of tax | 17.4 | 0.5 | 10.5 | 6.1 | 0.5 |
| Total comprehensive income | 11.7 | -15.3 | 8.9 | -1.4 | -28.1 |
| Allocation of total comprehensive income | |||||
| To equity holders of the parent | 10.7 | -15.1 | 8.3 | -1.6 | -27.8 |
| To non-controlling interest | 1.0 | -0.2 | 0.6 | 0.2 | -0.3 |
| 11.7 | -15.3 | 8.9 | -1.4 | -28.1 |
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COMPONENTA
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Consolidated statement of financial position
| MEUR | 30.6.2010 | (Restated*) 30.6.2009 | 31.12.2009 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 6.8 | 5.8 | 6.4 |
| Goodwill | 35.2 | 31.7 | 31.5 |
| Investment properties | 1.8 | 1.8 | 1.8 |
| Tangible assets | 252.3 | 241.4 | 244.2 |
| Investment in associates | 1.3 | 1.0 | 1.1 |
| Receivables | 6.0 | 4.4 | 4.9 |
| Other investments | 0.4 | 0.4 | 0.4 |
| Deferred tax assets | 19.5 | 13.2 | 16.6 |
| Total non-current assets | 323.5 | 299.6 | 307.0 |
| Current assets | |||
| Inventories | 53.9 | 50.3 | 41.0 |
| Receivables | 45.6 | 40.1 | 32.7 |
| Tax receivables | 0.3 | 0.2 | 0.2 |
| Cash and cash equivalents | 14.7 | 4.9 | 7.6 |
| Total current assets | 114.5 | 95.5 | 81.4 |
| Total assets | 438.0 | 395.1 | 388.4 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | |||
| Share capital | 21.9 | 21.9 | 21.9 |
| Other equity | 50.2 | 24.1 | 39.4 |
| Equity attributable to equity holders of the parent company | 72.1 | 46.0 | 61.3 |
| Non-controlling interest | 7.5 | 6.6 | 6.5 |
| Shareholders' equity | 79.6 | 52.6 | 67.8 |
| Liabilities | |||
| Non-current | |||
| Capital loan | 27.9 | 27.1 | 27.7 |
| Interest bearing | 199.9 | 178.0 | 165.3 |
| Interest free | - | - | - |
| Provisions | 8.1 | 6.1 | 6.7 |
| Deferred tax liability | 7.5 | 6.2 | 6.1 |
| Current | |||
| Capital loan | - | 15.4 | 7.4 |
| Interest bearing | 21.7 | 48.2 | 48.8 |
| Interest free | 91.3 | 59.8 | 57.5 |
| Tax liabilities | 0.1 | 0.0 | 0.1 |
| Provisions | 1.8 | 1.8 | 1.1 |
| Total liabilities | 358.4 | 342.5 | 320.6 |
| Total shareholders' equity and liabilities | 438.0 | 395.1 | 388.4 |
*) More information about the restatement can be found on the Annual Report 2009 page 39.
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COMPONENTA
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Condensed consolidated cash flow statement
| MEUR | 1.1.-30.6.2010 | 1.1.-30.6.2009 | 1.1.-31.12.2009 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Result after financial items | -7.8 | -21.0 | -37.2 |
| Depreciation, amortization and write-downs | 8.0 | 6.1 | 12.5 |
| Net financial income and expenses | 12.1 | 10.5 | 21.8 |
| Other income and expenses, adjustments to cash flow | 2.2 | 0.3 | 0.5 |
| Change in net working capital | 10.9 | 22.2 | 37.5 |
| Cash flow from operations before financing and income taxes | 25.4 | 18.1 | 35.0 |
| Interest received and paid and dividends received | -9.8 | -10.5 | -23.5 |
| Taxes paid | -0.1 | 2.9 | 2.8 |
| Net cash flow from operating activities | 15.6 | 10.5 | 14.2 |
| Cash flow from investing activities | |||
| Capital expenditure in tangible and intangible assets | -5.2 | -6.7 | -12.5 |
| Proceeds from tangible and intangible assets | 0.0 | 0.0 | 0.4 |
| Other investments and loans granted | -0.3 | -0.1 | -0.5 |
| Proceeds from other investments and repayments of loan receivables | - | - | 0.0 |
| Net cash flow from investing activities | -5.5 | -6.8 | -12.6 |
| Cash flow from financing activities | |||
| Dividends paid | - | -3.3 | -3.3 |
| Proceeds from share issue | - | 0.0 | 13.3 |
| Repayment of finance lease liabilities | -0.9 | -0.8 | -1.6 |
| Draw-down (+)/ repayment (-) of current loans | -27.7 | -5.4 | -5.1 |
| Draw-down of non-current loans | 41.0 | 23.5 | 38.3 |
| Repayment of non-current loans and other changes | -15.9 | -18.0 | -40.7 |
| Net cash flow from financing activities | -3.5 | -4.0 | 0.9 |
| Change in liquid assets | 6.5 | -0.3 | 2.5 |
| Cash and cash equivalents at the beginning of the period | 7.6 | 5.2 | 5.2 |
| Effects of exchange rate changes on cash | 0.6 | 0.0 | -0.1 |
| Cash and cash equivalents at the period end | 14.7 | 4.9 | 7.6 |
| Change during the financial period | 6.5 | -0.3 | 2.5 |
Statement of changes in consolidated shareholders' equity
| MEUR | Share capital | Share premium account | Other reserves | Fair value reserve | Translation differences | Retained earnings | Total | Non-con trolling interest | Share holders' equity total |
|---|---|---|---|---|---|---|---|---|---|
| Shareholders' equity 1.1.2009 | 21.9 | 15.0 | 6.5 | -2.8 | -23.5 | 47.3 | 64.3 | 6.8 | 71.1 |
| Net profit | -15.6 | -15.6 | -0.2 | -15.8 | |||||
| Translation differences | 0.0 | 0.0 | 0.0 | 0.0 | |||||
| Cash flow hedges | 0.5 | 0.5 | 0.5 | ||||||
| Total comprehensive income | 0.5 | 0.0 | -15.6 | -15.1 | -0.2 | -15.3 | |||
| Dividends paid | -3.3 | -3.3 | -3.3 | ||||||
| Shareholders' equity 30.6.2009 | 21.9 | 15.0 | 6.5 | -2.3 | -23.5 | 28.4 | 46.0 | 6.6 | 52.6 |
COMPONENTA
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| MEUR | Share capital | Share premium account | Other reserves | Fair value reserve | Translation differences | Retained earnings | Total | Non-controlling interest | Share holders' equity total |
|---|---|---|---|---|---|---|---|---|---|
| Shareholders' equity 1.1.2010 | 21.9 | 15.0 | 34.6 | -1.3 | -24.5 | 15.6 | 61.3 | 6.5 | 67.8 |
| Net profit | -5.8 | -5.8 | 0.2 | -5.7 | |||||
| Translation differences | 15.5 | 15.5 | 0.8 | 16.3 | |||||
| Cash flow hedges | 1.1 | 1.1 | 1.1 | ||||||
| Total comprehensive income | 1.1 | 15.5 | -5.8 | 10.7 | 1.0 | 11.7 | |||
| Shareholders' equity 30.6.2010 | 21.9 | 15.0 | 34.6 | -0.2 | -8.9 | 9.8 | 72.1 | 7.5 | 79.6 |
Key ratios
| 30.6.2010 | 30.6.2009 | 31.12.2009 | |
|---|---|---|---|
| Equity ratio, % *) | 18.2 | 13.3 | 17.5 |
| Equity per share, EUR *) | 4.13 | 4.20 | 3.51 |
| Invested capital at period end *) | 329.1 | 321.2 | 316.9 |
| Return on investment, % *) | 3.4 | -5.7 | -4.1 |
| Return on equity, % *) | -15.6 | -53.6 | -45.1 |
| Net interest bearing debt, preferred capital note in debt, MEUR | 234.8 | 263.7 | 241.6 |
| Net gearing, %, preferred capital note in debt *) | 295.0 | 501.7 | 356.4 |
| Order book, MEUR | 83.6 | 51.7 | 58.8 |
| Investments in non-current assets without finance leases, MEUR | 3.4 | 6.9 | 13.4 |
| Investments in non-current assets incl. finance leases, MEUR | 3.4 | 8.6 | 17.9 |
| Investments in non-current assets, % of net sales | 1.6 | 5.4 | 6.0 |
| Average number of personnel during the period | 3,726 | 3,738 | 3,684 |
| Average number of personnel during the period, incl. leased personnel | 3,938 | 3,872 | 3,798 |
| Number of personnel at period end | 3,859 | 3,667 | 3,614 |
| Number of personnel at period end, incl. leased personnel | 4,261 | 3,776 | 3,698 |
| Share of export and foreign activities in net sales, % | 88.2 | 79.6 | 82.7 |
| Contingent liabilities, MEUR | 222.2 | 223.8 | 221.1 |
| Earnings per share (EPS), EUR | -0.33 | -1.43 | -2.30 |
| --- | --- | --- | --- |
| Earnings per share, with dilution (EPS), EUR **) | -0.33 | -1.43 | -2.30 |
| Cash flow per share, EUR | 0.89 | 0.96 | 1.16 |
) 30 June 2009 restated
*) 31 December 2009 and 30 June 2009 restated
Changes in tangible assets and goodwill
| MEUR | 1-6/2010 | 1-6/2009 | 1-12/2009 |
|---|---|---|---|
| Changes in tangible assets | |||
| Acquisition cost at the beginning of the period | 531.1 | 553.2 | 553.2 |
| Translation differences | 29.4 | 0.2 | 1.9 |
| Additions | 2.2 | 6.6 | 14.5 |
| Disposals | -1.2 | -0.2 | -38.6 |
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COMPONENTA
STOCK EXCHANGE RELEASE
16.7.2010 at 9.30
| Acquisition cost at the end of the period | 561.5 | 559.8 | 531.1 |
|---|---|---|---|
| Accumulated depreciation at the beginning of the period | -286.9 | -313.0 | -313.0 |
| Translation differences | -15.8 | -0.2 | -1.2 |
| Accumulated depreciation on disposals | 0.8 | 0.0 | 38.1 |
| Depreciation during the period | -7.3 | -5.3 | -10.8 |
| Accumulated depreciation at the end of the period | -309.2 | -318.5 | -286.9 |
| Book value at the end of the period | 252.3 | 241.3 | 244.2 |
| Goodwill | |||
| Acquisition cost at the beginning of the period | 31.5 | 31.7 | 31.7 |
| Translation difference | 3.7 | 0.0 | -0.2 |
| Book value at the end of the period | 35.2 | 31.7 | 31.5 |
Group development
Net sales by market area
| MEUR | 1-12/2009 | 1-6/2009 | 1-6/2010 |
|---|---|---|---|
| Germany | 58.6 | 29.6 | 36.2 |
| Finland | 51.8 | 33.2 | 24.6 |
| Turkey | 49.4 | 24.3 | 33.4 |
| Sweden | 39.8 | 19.0 | 37.3 |
| UK | 31.2 | 15.6 | 21.9 |
| France | 20.2 | 12.1 | 13.2 |
| Benelux countries | 19.2 | 9.3 | 16.5 |
| Italy | 12.1 | 7.3 | 8.0 |
| Other European countries | 5.5 | 2.6 | 4.4 |
| Other countries | 11.7 | 5.7 | 13.0 |
| Total | 299.6 | 158.7 | 208.5 |
Quarterly development by market area
| MEUR | Q1/09 | Q2/09 | Q3/09 | Q4/09 | Q1/10 | Q2/10 |
|---|---|---|---|---|---|---|
| Germany | 16.9 | 12.7 | 14.4 | 14.5 | 15.2 | 20.9 |
| Finland | 21.4 | 11.8 | 9.0 | 9.6 | 11.0 | 13.6 |
| Turkey | 9.0 | 15.3 | 10.2 | 14.9 | 14.3 | 19.1 |
| Sweden | 11.0 | 8.0 | 8.7 | 12.1 | 15.5 | 21.9 |
| UK | 7.6 | 7.9 | 7.8 | 7.8 | 9.9 | 12.0 |
| France | 6.2 | 5.9 | 3.6 | 4.6 | 6.1 | 7.1 |
| Benelux countries | 6.8 | 2.6 | 5.0 | 4.9 | 7.1 | 9.4 |
| Italy | 4.4 | 2.9 | 1.6 | 3.2 | 3.8 | 4.2 |
| Other European countries | 1.0 | 1.6 | 0.8 | 2.1 | 2.2 | 2.2 |
| Other countries | 3.8 | 1.9 | 3.7 | 2.3 | 6.1 | 6.9 |
| Total | 88.1 | 70.6 | 64.8 | 76.1 | 91.2 | 117.3 |
Group development
| MEUR | 1-12/2009 | 1-6/2009 | 1-6/2010 |
|---|---|---|---|
| Net sales | 299.6 | 158.7 | 208.5 |
| Operating profit | -15.4 | -10.5 | 4.3 |
| Net financial items *) | -21.8 | -10.5 | -12.1 |
| Profit after financial items | -37.2 | -21.0 | -7.8 |
*) Net financial items are not allocated to business segments
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COMPONENTA
STOCK EXCHANGE RELEASE
16.7.2010 at 9.30
Group development by business segment
| Net sales, MEUR | 1-12/2009 | 1-6/2009 | 1-6/2010 |
|---|---|---|---|
| Turkey | 116.2 | 53.3 | 93.7 |
| Finland | 80.4 | 48.6 | 47.9 |
| Holland | 69.5 | 39.7 | 42.1 |
| Sweden | 41.5 | 19.9 | 37.1 |
| Other business | 49.9 | 25.0 | 30.4 |
| Internal items | -57.9 | -27.9 | -42.7 |
| Componenta total | 299.6 | 158.7 | 208.5 |
| Operating profit, MEUR | 1-12/2009 | 1-6/2009 | 1-6/2010 |
| --- | --- | --- | --- |
| Turkey | 2.2 | 0.0 | 6.5 |
| Finland | -3.9 | -0.7 | 0.1 |
| Holland | -10.2 | -6.8 | 0.0 |
| Sweden | -8.8 | -4.9 | -1.4 |
| Other business | 4.6 | 1.6 | -0.9 |
| One-time items | 0.0 | 0.0 | 0.0 |
| Internal items | 0.7 | 0.3 | 0.0 |
| Componenta total | -15.4 | -10.5 | 4.3 |
| Order book, MEUR | 12/2009*) | 6/2009 | 6/2010 |
| --- | --- | --- | --- |
| Turkey | 28.1 | 23.3 | 42.4 |
| Finland | 11.8 | 10.4 | 15.8 |
| Holland | 12.5 | 13.4 | 14.6 |
| Sweden | 10.5 | 6.4 | 16.5 |
| Internal items | -4.1 | -1.9 | -5.7 |
| Componenta total | 58.8 | 51.7 | 83.6 |
*) Order book on 15 January 2010
Group development by quarter
| MEUR | Q1/09 | Q2/09 | Q3/09 | Q4/09 | Q1/10 | Q2/10 |
|---|---|---|---|---|---|---|
| Net sales | 88.1 | 70.6 | 64.8 | 76.1 | 91.2 | 117.3 |
| Operating profit | -6.1 | -4.3 | -3.2 | -1.7 | 0.3 | 4.0 |
| Net financial items *) | -4.7 | -5.7 | -6.5 | -4.9 | -5.9 | -6.2 |
| Profit after financial items | -10.9 | -10.1 | -9.7 | -6.5 | -5.6 | -2.2 |
*) Net financial items are not allocated to business segments
Quarterly development by business segment
| Net sales, MEUR | Q1/09 | Q2/09 | Q3/09 | Q4/09 | Q1/10 | Q2/10 |
|---|---|---|---|---|---|---|
| Turkey | 24.9 | 28.4 | 27.4 | 35.6 | 40.6 | 53.1 |
| Finland | 29.1 | 19.5 | 15.4 | 16.4 | 20.8 | 27.0 |
| Holland | 23.9 | 15.8 | 15.4 | 14.4 | 18.7 | 23.4 |
| Sweden | 10.5 | 9.5 | 8.7 | 12.9 | 15.8 | 21.3 |
| Other business | 12.9 | 12.1 | 12.3 | 12.5 | 14.3 | 16.2 |
| Internal items | -13.1 | -14.7 | -14.4 | -15.7 | -19.0 | -23.7 |
| Componenta total | 88.1 | 70.6 | 64.8 | 76.1 | 91.2 | 117.3 |
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COMPONENTA
STOCK EXCHANGE RELEASE
16.7.2010 at 9.30
| Operating profit, MEUR | Q1/09 | Q2/09 | Q3/09 | Q4/09 | Q1/10 | Q2/10 |
|---|---|---|---|---|---|---|
| Turkey | -0.4 | 0.4 | 1.1 | 1.1 | 3.2 | 3.3 |
| Finland | 0.5 | -1.2 | -1.5 | -1.7 | -0.6 | 0.7 |
| Holland | -4.1 | -2.7 | -1.9 | -1.5 | -0.1 | 0.2 |
| Sweden | -3.2 | -1.7 | -2.1 | -1.9 | -1.4 | 0.0 |
| Other business | 0.8 | 0.8 | 1.0 | 2.1 | -0.7 | -0.2 |
| One-time items | 0.0 | 0.1 | 0.1 | 0.0 | 0,0 | 0.0 |
| Internal items | 0.4 | 0.0 | 0.1 | 0.3 | 0.0 | 0.0 |
| Componenta total | -6.1 | -4.3 | -3.2 | -1.7 | 0.3 | 4.0 |
| Order book at period end, MEUR | Q1/09 | Q2/09 | Q3/09 | Q4/09*) | Q1/10 | Q2/10 |
| --- | --- | --- | --- | --- | --- | --- |
| Turkey | 17.1 | 23.3 | 22.2 | 28.1 | 32.6 | 42.4 |
| Finland | 11.4 | 10.4 | 9.9 | 11.8 | 13.6 | 15.8 |
| Holland | 13.8 | 13.4 | 10.6 | 12.5 | 13.4 | 14.6 |
| Sweden | 6.0 | 6.4 | 9.3 | 10.5 | 13.3 | 16.5 |
| Internal items | -2.3 | -1.8 | -2.9 | -4.1 | -5.0 | -5.7 |
| Componenta total | 46.2 | 51.7 | 49.0 | 58.8 | 68.0 | 83.6 |
*) Order book on 15 January 2010
Business segments
| MEUR | 30.6.2010 | 30.6.2009 | 31.12.2009 |
|---|---|---|---|
| Turkey | |||
| Assets | 218.4 | 191.1 | 183.9 |
| Liabilities | 33.2 | 19.4 | 20.3 |
| Investments in non-current assets (incl. finance leases) | 2.4 | 3.1 | 5.4 |
| Depreciation | 2.4 | 1.7 | 3.8 |
| Finland | |||
| Assets | 81.1 | 76.3 | 81.2 |
| Liabilities | 24.7 | 17.3 | 19.4 |
| Investments in non-current assets (incl. finance leases) | 0.8 | 2.1 | 4.8 |
| Depreciation | 2.2 | 2.0 | 3.7 |
| Holland | |||
| Assets | 51.1 | 51.7 | 47.6 |
| Liabilities | 14.9 | 5.6 | 7.7 |
| Investments in non-current assets (incl. finance leases) | 0.1 | 0.4 | 0.6 |
| Depreciation | 0.7 | 0.7 | 1.4 |
| Sweden | |||
| Assets | 46.6 | 37.8 | 42.1 |
| Liabilities | 21.3 | 9.8 | 13.3 |
| Investments in non-current assets (incl. finance leases) | 0.1 | 0.4 | 2.9 |
| Depreciation | 1.4 | 0.5 | 1.2 |
| Other business | |||
| Assets | 54.4 | 53.3 | 53.4 |
| Liabilities | 28.3 | 27.3 | 21.9 |
| Investments in non-current assets (incl. finance leases) | 0.1 | 2.6 | 4.3 |
| Depreciation | 1.3 | 0.9 | 2.5 |
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COMPONENTA
STOCK EXCHANGE RELEASE
16.7.2010 at 9.30
Fair values of derivative instruments
| MEUR | 30.6.2010 | 30.6.2009 | 31.12.2009 | ||
|---|---|---|---|---|---|
| Fair value, positive | Fair value, negative | Fair value, net | Fair value, net | Fair value, net | |
| Currency derivatives | |||||
| Foreign exchange forwards | 0.1 | -0.1 | 0.0 | - | 0.1 |
| Currency swaps | 0.0 | -0.3 | -0.3 | -0.1 | 0.1 |
| Interest rate derivatives | |||||
| Interest rate options | 0.6 | -0.6 | -0.1 | 0.8 | 0.4 |
| Interest rate swaps | - | -1.2 | -1.2 | -2.2 | -2.0 |
| Commodity derivatives | |||||
| Electricity price forwards | 0.6 | -0.1 | 0.5 | -1.0 | -0.4 |
| Total | 1.2 | -2.3 | -1.1 | -2.6 | -1.8 |
Nominal values of derivative instruments
| MEUR | 30.6.2010 | 30.6.2009 | 31.12.2009 |
|---|---|---|---|
| Nominal value | Nominal value | Nominal value | |
| Currency derivatives *) | |||
| Foreign exchange forwards | 26.4 | - | 6.0 |
| Currency swaps | 40.7 | 40.9 | 43.1 |
| Interest rate derivatives | |||
| Interest rate options | 28.0 | 42.0 | 42.0 |
| Interest rate swaps | |||
| Maturity in less than a year | 38.0 | 31.0 | 24.0 |
| Maturity after one year and less than five years | 35.0 | 52.0 | 28.0 |
| Commodity derivatives | |||
| Electricity price forwards | |||
| Maturity in less than a year | 2.0 | 1.7 | 3.9 |
| Maturity after one year and less than five years | 6.9 | 6.0 | 4.2 |
| Total | 177.0 | 173.6 | 151.1 |
*) Currency derivatives mature in less than a year.
Contingent liabilities
| MEUR | 30.6.2010 | 30.6.2009 | 31.12.2009 |
|---|---|---|---|
| Real-estate mortgages | |||
| For own debts | 15.2 | 15.2 | 15.2 |
| Business mortgages | |||
| For own debts | - | 0.3 | - |
| Pledges | |||
| For own debts | 197.2 | 197.0 | 198.1 |
| Other leasing commitments | 5.2 | 3.5 | 3.5 |
| Other commitments | 4.6 | 7.8 | 4.4 |
| Total | 222.2 | 223.8 | 221.1 |
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COMPONENTA
STOCK EXCHANGE RELEASE
16.7.2010 at 9.30
Key exchange rates
| One Euro is | Closing rate | Average rate | ||
|---|---|---|---|---|
| 30.6.2010 | 31.12.2009 | 30.6.2010 | 31.12.2009 | |
| SEK | 9.5259 | 10.2520 | 9.7888 | 10.6191 |
| USD | 1.2271 | 1.4406 | 1.3268 | 1.3948 |
| GPB | 0.8175 | 0.8881 | 0.8700 | 0.8909 |
| TRY (Turkish central bank) | 1.9217 | 2.1603 | 2.0154 | 2.1508 |
Calculation of key financial ratios
Return on equity -% (ROE) = $\frac{\text{Profit after financial items} - \text{income taxes} \times 100}{\text{Shareholders' equity without preferred capital notes} + \text{minority interest (quarterly average)}}$
Return on investment -% (ROI) = $\frac{\text{Profit after financial items} + \text{interest and other financial expenses} \times 100}{\text{Shareholders' equity} + \text{interest bearing liabilities (quarterly average)}}$
Equity ratio, % = $\frac{\text{Shareholders' equity, preferred capital notes excluded} + \text{minority interest} \times 100}{\text{Balance sheet total} - \text{advances received}}$
Earnings per share, EUR (EPS) = $\frac{\text{Profit after financial items} - \text{income taxes +/- minority interest}}{\text{Average number of shares during the financial period}}$
Earnings per share with dilution, EUR = As above, the number of shares has been increased with the warrants outstanding. When calculating the dilution effect of warrants, the number of shares has been adjusted with the number of own shares which the company could have acquired, if it would have used the funds generated from the warrants to buy back of own shares at market price (= average trading price). After tax interest expense of the convertible loan has been added to the profit of the period. Number of shares that can be subscribed by the loan, has been added to the number of total shares.
Cash flow per share, EUR = $\frac{\text{Net cash flow from operating activities}}{\text{Average number of shares during the financial period}}$
Equity per share, EUR = $\frac{\text{Shareholders' equity, preferred capital notes excluded}}{\text{Number of shares at period end}}$
Net interest bearing debt = Interest bearing liabilities + preferred capital notes - cash and bank accounts
Net gearing, % = $\frac{\text{Net interest bearing liabilities} \times 100}{\text{Shareholders' equity, preferred capital notes excluded} + \text{minority interest}}$
15 (16)
COMPONENTA
STOCK EXCHANGE RELEASE
16.7.2010 at 9.30
Largest registered shareholders on 30 June 2010
| Shareholder | Shares | Share of total voting rights, % |
|---|---|---|
| 1 Lehtonen Heikki | 5,311,340 | 30.42 |
| Cabana Trade S.A. | 3,501,988 | |
| Oy Högfors-Trading Ab | 1,806,052 | |
| Lehtonen Heikki | 3,300 | |
| 2 Etra Capital Oy | 4,347,464 | 24.90 |
| 3 Varma Mutual Pension Insurance Company | 978,968 | 5.61 |
| 4 Ilmarinen Mutual Pension Insurance Company | 724,266 | 4.15 |
| 5 Finnish Industry Investment Ltd | 666,666 | 3.82 |
| 6 Finnish Cultural Foundation | 236,000 | 1.35 |
| 7 Bergholm Heikki | 230,516 | 1.32 |
| 8 Laakkonen Mikko | 200,000 | 1.15 |
| 9 Lehtonen Anna-Maria | 178,823 | 1.02 |
| 10 Kukkonen Jorma | 127,000 | 0.73 |
| Nominee-registered shares | 463,418 | 2.65 |
| Other shareholders | 3,993,337 | 22.87 |
| Total | 17,457,798 | 100.00 |
The members of the Board of Directors own 32.4 % of the shares. All shares have equal voting rights. If all the warrants were converted to shares, the holding of shares by the members of the Board of Directors would decrease to 31.4 %.
Helsinki, 16 July 2010
COMPONENTA CORPORATION
Board of Directors
Heikki Lehtonen
President and CEO
Further information:
Heikki Lehtonen
President and CEO
tel. +358 10 403 00
Mika Hassinen
CFO
tel + 358 10 403 00
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 300 million in 2009. The Group employs approx. 4,300 people (end June 2010). Componenta's shares are quoted on the NASDAQ OMX Helsinki. 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.
Componenta Corporation
Panuntie 4
FI-00610 Helsinki, Finland
Tel. +358 10 403 00, Fax +358 10 403 2721
www.componenta.com
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