EXEL OYJ STOCK EXCHANGE RELEASE 30.10.2007 at 11.00 1 (12)
EXEL INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2007
Summary
Group
- Net sales in the first nine months increased to EUR 85.4 million, up 4.1 per
cent over the corresponding period previous year
- Net sales in the third quarter were EUR 27.9 (28.5) million
- Operating profit in the first nine months was EUR 4.1 (-0.3) million or 4.8
(-0.3) per cent of net sales
- Operating loss in the third quarter was EUR -2.1 (-1.0) million or -7.4 (-3.6)
per cent of net sales
- A negative impact of EUR 4.2 million in write-offs and impairment of assets
was recorded in the third quarter
- Earnings per share in the first nine months were EUR 0.17 (-0.06), adjusted
for full dilution
Industry
- The Industry Division's net sales in the first nine months increased to EUR
79.5 (77.7) million, up 2.4 per cent from the previous year
- Operating profit in the first nine months was EUR 11.3 (6.2) million
- Good development in the transportation segment
- Strong sales in the cleaning and maintenance business as a result of the
introduction of a new product line
- Continued positive effects from the integration of Pacific Composites
Sport
- The Sport Division's net sales in the first nine months decreased to EUR 9.7
(14.3) million, down 32.0 per cent from the previous year
- Operating loss in the first nine months was EUR -7.6 (-7.1) million
- Continued problems with delayed deliveries from China, as well as lack of
delivery capacity in Finland
- Measures are taken to reduce inventory level
- Sales organization changed to improve selling capacity
Göran Jönsson, President and CEO:
“Sales to the transportation, energy and building/construction markets developed
well during the quarter. The profitability in the Industry division was good
throughout the organization and in particular it is worth mentioning the
improvement in our UK and Belgian operations as well as the good development in
our Chinese operations. The sales have, however, suffered from the slowdown in
the sports industry and the antenna radome market.
The Sport Division's sales in the first nine months were down 32 per cent
compared to last year due to difficult market conditions, delivery problems and
quality issues. Profitability was not acceptable, mainly due to the lower than
anticipated sales, but also due to the fact that we were faced with substantial
extra costs connected with the continued delays in the deliveries from China and
lack of delivery capacity in Finland. The lower than anticipated sales have also
resulted in increased inventories. Increased efforts in sales as well as
improved ordering routines are being implemented to remedy the situation. The
quality problems seen in the first half of 2007 have now been resolved.
We expect that the problems in the Sport Division will continue in the last
quarter while measures are taken to improve the supply situation and to align
the organization to the current activity level.
The focus will remain on rationalizing the Sport Division and improving the
profitability of the Group.”
CONSOLIDATED KEY FINANCIAL FIGURES
(Figures are unaudited)
--------------------------------------------------------------------------------
| | 1.7. - | 1.7. - | | 1.1. - | 1.1. | | 1.1. - |
| | | | | | - | | |
--------------------------------------------------------------------------------
| | 30.9. | 30.9. | Change | 30.9. | 30.9. | Change | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 27.9 | 28.5 | -2.2 | 85.4 | 82.0 | 4.1 | 112.4 |
--------------------------------------------------------------------------------
| Operating | -2.1 | -1.0 | -103.8 | 4.1 | -0.3 | 1724.1 | 0.4 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| % of net | -7.4 | -3.6 | | 4.8 | -0.3 | | 0.3 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | -2.2 | -1.0 | | 2.044 | -0.71 | | -0.733 |
| the period | | | | | 5 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 23.8 | 24.2 | -1.8 | 23.8 | 24.2 | -1.8 | 24.4 |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Net | 32.8 | 30.9 | 6.2 | 32.8 | 30.9 | 6.2 | 27.5 |
| interest-bear | | | | | | | |
| ing | | | | | | | |
| liabilities | | | | | | | |
--------------------------------------------------------------------------------
| Capital | 61.1 | 59.9 | 1.9 | 61.1 | 59.9 | 1.9 | 58.1 |
| employed | | | | | | | |
--------------------------------------------------------------------------------
| Return on | -35.3 | -16.5 | | 11.3 | -3.7 | | -2.9 |
| equity, % | | | | | | | |
--------------------------------------------------------------------------------
| Return on | -17.0 | -6.0 | | 8.9 | -0.3 | | 1.2 |
| capital | | | | | | | |
| employed, % | | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio, | 28.8 | 29.4 | | 28.8 | 29.4 | | 29.9 |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Net gearing, | 138.1 | 127.7 | | 138.1 | 127.7 | | 112.8 |
| % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | -0.19 | -0.09 | | 0.17 | -0.06 | | -0.06 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | -0.19 | -0.09 | | 0.17 | -0.06 | | -0.06 |
| share, EUR, | | | | | | | |
| diluted | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 2.00 | 2.04 | | 2.00 | 2.04 | | 2.05 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
IFRS REPORTING
Exel has applied IFRS reporting since the beginning of 2005. This interim report
has been prepared in accordance with the recognition and measurement principles
of IFRS, which are the same as in the 2006 financial statements.
FINANCIAL PERFORMANCE
Exel's consolidated net sales for the first nine months grew by 4.1 per cent
over the previous year to EUR 85.4 (82.0) million. Net sales in the third
quarter declined by 2.2 per cent to EUR 27.9 (28.5) million. Exel Sports has
experienced delays in deliveries from its Chinese pole suppliers and in addition
had quality problems linked to the production transfer. Furthermore, a weak
sporting goods market has impacted sales negatively.
This, in combination with high costs to overcome late deliveries from suppliers
as well as domestic forwarders, has led to a continued negative result. The
lower than expected sales has also led to an overstock situation which has
required write-offs of inventory in the third quarter as well as impairment of
intangible and tangible assets. In addition, related manufacturing equipment has
been written down. A negative impact of EUR 4.2 million has been recorded in the
third quarter results of which EUR 3.5 million relates to the Sport Division.
Exel's operating profit for the first nine months increased to EUR 4.1 million
(including non-recurring items of EUR -4.2 million), compared to EUR -0.3
million (including non-recurring items of EUR -6.3 million) in the corresponding
period last year. Operating profit as a percentage of net sales was 4.8 (-0.3)
per cent. Operating profit for the third quarter decreased to EUR -2.1 million
(including non-recurring items of EUR -4.2 million), compared to EUR -1.0
million (including non-recurring items of EUR -2.3 million) last year. The
improvement of the underlying operating profit has been a result of the
restructuring measures taken in the problem units in 2006, especially
Mäntyharju, Belgium and the German Sport unit, and the contribution of the
Pacific Composites acquisition.
The Group's net financial expenses were EUR 1.4 (0.7) million. The Group's
pre-tax profit was EUR 2.7 (-1.0) million, and profit for the reporting period
totaled EUR 2.0 (-0.7) million.
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet total at the end of the reporting period stood at
EUR 82.7 (82.6) million.
At the end of the reporting period, equity was EUR 23.8 (24.2) million, and the
equity ratio was 28.8 (29.4) per cent. Interest-bearing liabilities were EUR
37.8 (35.7) million, of which short-term liabilities accounted for EUR 16.4
(9.7) million. Net interest-bearing liabilities were EUR 32.8 (30.9) million,
and the net gearing was 138.1 (127.7) per cent.
The cash flow from business operations in the reporting period was EUR -2.9
(+1.7) million. At the end of the reporting period, the Group had liquid assets
of EUR 5.0 million, compared with EUR 6.2 million at the end of 2006.
CAPITAL EXPENDITURE
The Group's capital expenditure totaled EUR 1.7 (2.4) million, used mainly for
maintenance and replacement purposes. During the third quarter a production
building in Clacton, UK was sold. The value of the disposals was EUR 1.3 million
in total.
PERSONNEL
The number of people employed by the Exel Group on 30 September 2007 was 554
(612). Of these 233 (311) worked in Finland and 321 (301) abroad. The number of
employees averaged 566 (611). The increase from last year outside Finland is
mainly due to the acquisition of Pacific Composites. At the same time, there was
a reduction of personnel due to the restructuring of the Sport activities and
the divestment of Plastics operations in Germany.
BUSINESS SEGMENTS
The Group's operations are divided into two primary segments: the Industry
Division and the Sport Division. The Industry Division includes all production
activities in the company as from 1 January 2007. Therefore the Sport Industry
business and Mäntyharju operations in Finland, which earlier was part of the
Sport Division, were transferred to the Industry Division. The comparative
divisional figures from 2006 have been changed correspondingly.
Industry Division
The Industry Division's key financial figures for the reporting period were as
follows:
--------------------------------------------------------------------------------
| | 1.7.- | 1.7. - | | 1.1. - | 1.1.- | | 1.1.- |
--------------------------------------------------------------------------------
| | 30.9. | 30.9. | Change | 30.9. | 30.9. | Change | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 25.3 | 27.7 | -8.8 | 79.5 | 77.7 | 2.4 | 105.0 |
--------------------------------------------------------------------------------
| Operating | 2.6 | 2.0 | 28.8 | 11.3 | 6.2 | 83.7 | 9.0 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 10.1 | 7.2 | | 14.2 | 7.9 | | 8.5 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Average | 500 | 566 | -11.7 | 502 | 518 | -3.1 | 510 |
| number of | | | | | | | |
| personnel | | | | | | | |
--------------------------------------------------------------------------------
The Industry Division's net sales in the first nine months increased to EUR 79.5
(77.7) million, up 2.4 per cent from the previous year. The telecommunication
segment continued to be slow. The transportation, energy and
building/construction and cleaning and maintenance markets, in particular, were
strong. Growth was mainly due to the acquisition of the Pacific Composites Group
and new profile applications in the European units. The market for the new
custom-shape composite profiles is growing and with its market leading position
in this area, Exel is well placed to take advantage of this growth.
The Industry Division's operating profit grew by 83.7 per cent to EUR 11.3
million (including EUR -0.7 of non-recurring items), up from 6.2 million
(including EUR -4.1 million of non-recurring items) last year. The profitability
was good in all units. The restructuring of the Belgian operations gave good
results even in the traditionally slower summer months. In addition, the
development in the Chinese unit has also been positive during the first nine
months. The positive effects from the integration of Pacific Composites
continue.
There are continued signs of improvement in the carbon fibre situation. At
present there is shortage only of some special types of carbon fibre.
Sport Division
The Sport Division's key financial figures for the reporting period were as
follows:
--------------------------------------------------------------------------------
| | 1.7.- | 1.7. - | | 1.1. - | 1.1.- | | 1.1.- |
--------------------------------------------------------------------------------
| | 30.9. | 30.9. | Change | 30.9. | 30.9. | Change | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 3.8 | 4.5 | -14.5 | 9.7 | 14.3 | -32.0 | 19.3 |
--------------------------------------------------------------------------------
| Operating | -5.2 | -3.6 | | -7.6 | -7.1 | | -9.4 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| % of net | -135.4 | -80.5 | | -78.7 | -49.6 | | -48.8 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Average | 48 | 72 | -33.3 | 49 | 73 | -32.9 | 69 |
| number of | | | | | | | |
| personnel | | | | | | | |
--------------------------------------------------------------------------------
The Sport Division's net sales in the first nine months decreased to EUR 9.7
(14.3) million, down 32.0 per cent from the previous year. The lower sales
figure is partly due to the mild winter, which also had a negative impact on
reorders. In addition, the Exel Sport Division still had logistics problems and
was unable to deliver floorball pre-orders in time to its customers.
The Sport Division's operating loss was EUR -7.6 million (-4.1 before
non-recurring items) compared with EUR -7.1 million (-4.9 before non-recurring
items) last year. Lower sales due to a poor delivery performance and low priced
sales of old inventory had a negative impact on the margins. During the third
quarter the sales organization of Exel Sports was restructured. Now Central
European sales are taken care of by Exel GmbH and Nordic and Baltic sales by
Exel Sports Oy. At the same time restructuring of logistics has started in order
to improve the service and distribution globally. A project to reduce capital
tied up in inventory was started in the third quarter, but the effects have not
yet materialized.
Exel has reviewed different structural alternatives and concluded the Sport
Division is no longer a core activity within the Exel Group. Exel continues to
see a strategic partner with a long-term interest in developing Exel Sports
Brands business.
SHARES
At the end of September, Exel's share capital was EUR 2,141,431.74 and the
number of shares was 11,896,843. There were no changes in the share capital
during the period.
Based on the closing price in the reporting period, market capitalization
totaled EUR 182.0 (155.8) million.
SHARES TRADED ON THE OMX HELSINKI STOCK EXCHANGE
During the reporting period 4,223,618 (4,327,316) shares were traded, accounting
for 35.5 (36.6) per cent of the average number of outstanding shares.
The highest share quotation during the reporting period was EUR 17.45 (15.13)
and the lowest EUR 12.50 (10.50). The share price closed at EUR 15.30 (13.00).
The average share price during the reporting period was EUR 14.36 (12.82).
DISCLOSURES OF CHANGES IN HOLDINGS
No shareholders´ disclosures of changes in holdings in the company were received
by Exel.
OUTLOOK
Lower than expected sales in the Sport division have resulted in write-offs of
inventory as well as related fixed assets. Corrective actions have been
implemented to reduce the negative impact, and the focus will be on restoring
the profitability of the Sport Division for the rest of the year. However, the
reorder situation for some product areas continues to suffer from the delivery
problems.
It is expected that the Industry Division will continue on a good level
throughout the year, despite the downturn in the antenna radomes market and
still some lack of carbon fibre for certain types of applications.
The main risks in the remainder of the year lie in the market demand in the
Sport Division and in specific segments in the Industry Division, i.e. antenna
radomes and wind energy. The sourcing from China and the logistics situation for
Sports in Finland is still a risk. There may as well be a shortage of certain
types of carbon fibre.
In the interim report for the second quarter released on 25 July 2007, Exel
expected the full year profit before taxes to improve compared with the 2006
profit before taxes and non-recurring items. Due to the write-offs and
impairment losses of EUR 4.2 million, Exel now expects the profit before taxes
for 2007 to be lower than the 2006 profit before taxes and non-recurring items
(EUR 6.0 million). Still, the profit before taxes and non-recurring items is
expected to be better than the comparable figure in 2006.
NEWS CONFERENCE FOR ANALYSTS AND THE PRESS
A news conference for investment analysts and the press will be arranged on 30
October 2007 at 12.30 in the Espa Conference Room of Hotel Scandic Simonkenttä
in Helsinki, Simonkatu 9, Finland.
Vantaa, 30 October 2007
Exel plc Göran Jönsson
Board of Directors President & CEO
Further information:
Mr. Göran Jönsson, President & CEO, tel. +46 708 430 110, or email
goran.jonsson@exel.fi
Mr. Ilkka Silvanto, CFO, tel. +358 50 598 9553, or email ilkka.silvanto@exel.fi
DISTRIBUTION
Helsinki Stock Exchange
Main news media
www.exel.net
INTERIM REPORT 1.1. - 30.9.2007
CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED INCOME STATEMENT, EUR thousand (unaudited)
--------------------------------------------------------------------------------
| | 1.7.-3 | 1.7.-30 | Change | 1.1.-30 | 1.1-30. | Change | 1.1.-3 |
| | 0.9. | .9. | | .9. | 9. | | 1.12. |
--------------------------------------------------------------------------------
| | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 27,912 | 28,527 | -2.2 | 85.430 | 82,034 | 4.1 | 112,39 |
| | | | | | | | 5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 276 | 30 | 820.0 | 732 | 81 | 803.7 | 145 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Operating | -28,56 | -27,261 | -4.8 | -78,209 | -77,054 | -1.5 | -10604 |
| expenses | 3 | | | | | | 7 |
--------------------------------------------------------------------------------
| Depreciati | -1,704 | -2,316 | 26.4 | -3,845 | -5,314 | 27.6 | -6,108 |
| on and | | | | | | | |
| impairment | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | -2,079 | -1,020 | -103.8 | 4,109 | -253 | 1724.1 | 386 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | -842 | -258 | -226.4 | -1,371 | -736 | -86.3 | -1,067 |
| financial | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | -2,921 | -1,278 | -128.6 | 2,737 | -988 | 377.0 | -681 |
| before tax | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income | 714 | 258 | -176.7 | -693 | 273 | 353.8 | -52 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/los | -2,206 | -1,020 | -116.3 | 2,044 | -715 | 385.9 | -733 |
| s for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | -2,206 | -1,021 | | 2,044 | -709 | | -724 |
| holders of | | | | | | | |
| the parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 1 | | 0 | -6 | | -10 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | -0.19 | -0.09 | | 0.17 | -0.06 | | -0.06 |
| per share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | -0.19 | -0.09 | | 0.17 | -0,06 | | -0.06 |
| per share, | | | | | | | |
| EUR, | | | | | | | |
| diluted | | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET, EUR thousand
--------------------------------------------------------------------------------
| | 30.9.2007 | 30.9.2006 | Change | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 10,091 | 13,183 | -3,092 | 10,107 |
--------------------------------------------------------------------------------
| Other intangible assets | 3,446 | 638 | 2,802 | 3,158 |
--------------------------------------------------------------------------------
| Tangible assets | 15,333 | 19,561 | -4,228 | 18,766 |
--------------------------------------------------------------------------------
| Deferred tax assets | 3,920 | 2,122 | 1,798 | 2,200 |
--------------------------------------------------------------------------------
| Other non-current assets | 77 | 73 | 4 | 76 |
--------------------------------------------------------------------------------
| Non-current assets total | 32,866 | 35,576 | -2,710 | 34,307 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 22,136 | 20,347 | 1,789 | 19,975 |
--------------------------------------------------------------------------------
| Trade and other receivables | 22,443 | 21,914 | 529 | 20,695 |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in hand | 4,995 | 4,765 | 230 | 6,199 |
--------------------------------------------------------------------------------
| Current assets total | 49,574 | 47,026 | 2548 | 46,869 |
--------------------------------------------------------------------------------
| Non-current assets held for | 214 | 0 | 214 | 748 |
| sale | | | | |
--------------------------------------------------------------------------------
| Total assets | 82,654 | 82,602 | 52 | 81,924 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Share premium reserve | 8,492 | 8,492 | 0 | 8,492 |
--------------------------------------------------------------------------------
| Retained earnings | 11,093 | 14,293 | -3,200 | 14,453 |
--------------------------------------------------------------------------------
| Profit for the period | 2,044 | -709 | 2,753 | -724 |
--------------------------------------------------------------------------------
| Equity attributable to | 23,771 | 24,217 | -447 | 24,363 |
| equity holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority share | 0 | 4 | -4 | 0 |
--------------------------------------------------------------------------------
| Total equity | 23,771 | 24,221 | -450 | 24,363 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 21,480 | 25,958 | -4,478 | 25,752 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 647 | 192 | 455 | 1,091 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 16,353 | 9,730 | 6,623 | 7,934 |
--------------------------------------------------------------------------------
| Trade and other non-current | 20,403 | 22,501 | -2,098 | 22,782 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 58,883 | 58,381 | 502 | 57,561 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 82,654 | 82,602 | 52 | 81,924 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR thousand
--------------------------------------------------------------------------------
| | Share | Share | Share | Retaine | Minority | Total |
| | | | premium | d | | |
--------------------------------------------------------------------------------
| | Capital | Issue | Reserve | Earning | Interest | |
| | | | | s | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1 | 2,070 | 287 | 5,142 | 19,530 | 10 | 27,039 |
| January 2006 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 71 | -287 | 3,350 | 0 | 0 | 3,134 |
--------------------------------------------------------------------------------
| Exchange rate | 0 | 0 | -517 | 0 | -518 |
| differences | | | | | |
| 0 | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Dividend | | | -4,720 | | -4,720 |
--------------------------------------------------------------------------------
| Profit for the | | | -709 | -7 | -715 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 30 | 2,141 | 0 | 8,492 | 13,584 | 4 | 24,221 |
| September 2006 | | | | | | |
--------------------------------------------------------------------------------
| | | | | 0 | | |
--------------------------------------------------------------------------------
| Balance at 1 | 2,141 | 0 | 8,492 | 13,729 | 0 | 24,363 |
| January 2007 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Exchange rate | 0 | 0 | -257 | 0 | -257 |
| differences 0 | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Dividend | | | -2,379 | | -2,379 |
--------------------------------------------------------------------------------
| Profit for the | | | 2,044 | 0 | 2,044 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 30 | 2,141 | 0 | 8,492 | 13,138 | 0 | 23,771 |
| September 2007 | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT, EUR thousand
--------------------------------------------------------------------------------
| | 1.1.-30. | 1.1-30.9. | Change | 1.1.-31.1 |
| | 9. | | | 2. |
--------------------------------------------------------------------------------
| | 2007 | 2006 | | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| Profit for the period | 2,044 | -715 | 2,759 | -733 |
--------------------------------------------------------------------------------
| Adjustments | 6,383 | 6,666 | -283 | 9,330 |
--------------------------------------------------------------------------------
| Change in working capital | -6,725 | -710 | -6,015 | 245 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow generated by | | |
--------------------------------------------------------------------------------
| operations | 1,702 | 5,241 | -3,539 | 8,842 |
--------------------------------------------------------------------------------
| Interest paid | -1,467 | -807 | -660 | -998 |
--------------------------------------------------------------------------------
| Interest received | 88 | 102 | -14 | 195 |
--------------------------------------------------------------------------------
| Other financial items | -232 | 25 | -257 | 8 |
--------------------------------------------------------------------------------
| Income taxes paid | -3,024 | -2,855 | -169 | -2,819 |
--------------------------------------------------------------------------------
| Net cash flow from | | |
--------------------------------------------------------------------------------
| operating activities | -2,933 | 1,706 | -4,382 | 5,228 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Acquisitions | 0 | -18,687 | 18,687 | -18,279 |
--------------------------------------------------------------------------------
| Disposal of business | 672 | 0 | 672 | 0 |
--------------------------------------------------------------------------------
| Capital expenditure | -1,745 | -2,373 | 628 | -2,655 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed | 1,306 | 0 | 1,274 | 0 |
| assets | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing | 233 | -21,028 | 21,261 | -20,934 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 3,134 | -3,134 | 3,134 |
--------------------------------------------------------------------------------
| Proceeds from long-term | 0 | 18,000 | -18,000 | 18,000 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Instalments of long-term | -1,600 | -1,583 | -17 | -1,991 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Change in short-term loans | 5,760 | 3,759 | 2,001 | 2,079 |
--------------------------------------------------------------------------------
| Instalments of finance lease | -285 | -281 | -4 | -375 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -2,379 | -4,720 | 2,341 | -4,720 |
--------------------------------------------------------------------------------
| Net cash flow from financing | 1,496 | 18,309 | -16,813 | 16,127 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | -1,204 | -1,013 | -191 | 421 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the beginning | 6,199 | 5,778 | 421 | 5,778 |
| of period | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | -1,204 | -1,013 | -191 | 421 |
--------------------------------------------------------------------------------
| Liquid funds at the end of | 4,995 | 4,765 | 230 | 6,199 |
| period | | | | |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES, EUR thousand
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | III/ | II/200 | I/200 | IV/2006 | III/2006 | II/2006 | I/2006 |
| | 2007 | 7 | 7 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by segment | | | | | |
--------------------------------------------------------------------------------
| Industry | 25,2 | 27,577 | 26,69 | 27,260 | 27,691 | 26,869 | 23,130 |
| | 59 | | 7 | | | | |
--------------------------------------------------------------------------------
| Sport | 3,82 | 2,166 | 3,727 | 4,972 | 4,475 | 3,913 | 5,910 |
| | 7 | | | | | | |
--------------------------------------------------------------------------------
| Intra | -1,1 | -1,022 | -1,62 | -1,871 | -3,638 | -2,875 | -3,440 |
| Group | 73 | | 8 | | | | |
| sales | | | | | | | |
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| Net sales, | 27,9 | 28,721 | 28,79 | 30,361 | 28,527 | 27,907 | 25,600 |
| total | 12 | | 7 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit by | | | | | |
| segment | | | | | |
--------------------------------------------------------------------------------
| Industry | 2,55 | 4,478 | 4,283 | 2,790 | 1,984 | 2,101 | 2,075 |
| | 6 | | | | | | |
--------------------------------------------------------------------------------
| Sport | -5,1 | -1,760 | -704 | -2,311 | -3,602 | -1,912 | -1,573 |
| | 82 | | | | | | |
--------------------------------------------------------------------------------
| Intra | 547 | -56 | -53 | 160 | 597 | -23 | 100 |
| Group | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Operating | -2,0 | 2,662 | 3,526 | 639 | -1,020 | 164 | 603 |
| profit, | 79 | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | -842 | -190 | -340 | -331 | -258 | -327 | -151 |
| financial | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Profit | -2,9 | 2,472 | 3,186 | 307 | -1,278 | -162 | 452 |
| before | 21 | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Income | 714 | -526 | -882 | -325 | 258 | 144 | -129 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | -2,2 | 1,946 | 2,304 | -18 | -1,020 | -18 | 323 |
| the period | 06 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | -0.1 | 0.16 | 0.19 | 0.00 | -0.09 | 0.00 | 0.03 |
| per share, | 9 | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | -0.1 | 0.16 | 0.19 | 0.00 | -0.09 | 0.00 | 0.03 |
| per share, | 9 | | | | | | |
| EUR, | | | | | | | |
| diluted | | | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares | | | | | |
--------------------------------------------------------------------------------
| undiluted, | 11,8 | 11,897 | 11,89 | 11,897 | 11,897 | 11,873 | 11,652 |
| 1,000 | 97 | | 7 | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares | | | | | |
--------------------------------------------------------------------------------
| diluted, | 11,8 | 11,897 | 11,89 | 11,897 | 11,897 | 11,873 | 11,896 |
| 1,000 | 97 | | 7 | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Average | 569 | 566 | 576 | 556 | 644 | 652 | 518 |
| number of | | | | | | | |
| personnel | | | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES, EUR thousand
--------------------------------------------------------------------------------
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | | |
--------------------------------------------------------------------------------
| Mortgages | 2,783 | 2,953 | 2,953 |
--------------------------------------------------------------------------------
| Corporate mortgages | 12,500 | 12,500 | 12,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Lease liabilities | | |
--------------------------------------------------------------------------------
| - in next 12 months | 496 | 463 | 554 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 2,281 | 2,128 | 2,246 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 890 | 43 | 805 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS, nominal values, EUR thousand
--------------------------------------------------------------------------------
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | |
--------------------------------------------------------------------------------
| Forward contracts | 8,717 | 8,470 | 8,269 |
--------------------------------------------------------------------------------
| Purchased currency options | 3,650 | 2,383 | 3,086 |
--------------------------------------------------------------------------------
| Sold currency options | 3,617 | 1,179 | 1,922 |
--------------------------------------------------------------------------------
| Currency swaps | 952 | 0 | 0 |
--------------------------------------------------------------------------------
| Interest rate derivatives | |
--------------------------------------------------------------------------------
| Interest rate swaps | 333 | 1,221 | 860 |
--------------------------------------------------------------------------------
| Purchased interest rate options | 4,667 | 4,667 | 4,667 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES, EUR thousand
--------------------------------------------------------------------------------
| | 1.1.-30. | 1.1-30.9 | Change % | 1.1.-31.12 |
| | 9. | . | | . |
--------------------------------------------------------------------------------
| | 2007 | 2006 | | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 85,430 | 82,034 | 4.1 | 112,395 |
--------------------------------------------------------------------------------
| Operating profit | 4,109 | -253 | -1724.1 | 386 |
--------------------------------------------------------------------------------
| % of net sales | 4.8 | -0.3 | | 0.3 |
--------------------------------------------------------------------------------
| Profit before tax | 2,737 | -988 | -377.0 | -681 |
--------------------------------------------------------------------------------
| % of net sales | 3.2 | -1.2 | | -0.6 |
--------------------------------------------------------------------------------
| Profit for the period | 2,044 | -715 | -385.9 | -733 |
--------------------------------------------------------------------------------
| % of net sales | 2.4 | -0.9 | | -0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | 23,771 | 24,217 | -1.8 | 24,363 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 37,833 | 35,687 | 6.0 | 33,687 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 4,995 | 4,765 | 4.8 | 6,199 |
--------------------------------------------------------------------------------
| Net interest-bearing | 32,838 | 30,922 | 6.2 | 27,488 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 61,064 | 59,908 | 1.9 | 58,050 |
--------------------------------------------------------------------------------
| Return on equity, % | 11.3 | -3.7 | | -2.9 |
--------------------------------------------------------------------------------
| Return on capital employed, % | 8.9 | -0.3 | | 1.2 |
--------------------------------------------------------------------------------
| Equity ratio, % | 28.8 | 29.4 | | 29.9 |
--------------------------------------------------------------------------------
| Net gearing, % | 138.1 | 127.7 | | 112.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 1,745 | 18,926 | -90.8 | 19,863 |
--------------------------------------------------------------------------------
| % of net sales | 2.0 | 23.1 | | 17.7 |
--------------------------------------------------------------------------------
| Research and development | 2,196 | 1,731 | 26.9 | 2,169 |
| costs | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.6 | 2.1 | | 1.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 14,011 | 16,965 | -17.4 | 15,040 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.17 | -0.06 | | -0.06 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.17 | -0.06 | | -0.06 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2.00 | 2.04 | | 2.05 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | | |
--------------------------------------------------------------------------------
| - cumulative | 11,897 | 11,808 | | 11,830 |
--------------------------------------------------------------------------------
| - cumulative, diluted | 11,897 | 11,814 | | 11,847 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees | 571 | 611 | -6.5 | 600 |
--------------------------------------------------------------------------------