Componenta Corporation Interim report 1 January 31 March 2010 - - PowerPoint PPT Presentation

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Componenta Corporation Interim report 1 January 31 March 2010 - - PowerPoint PPT Presentation

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Componenta Corporation Interim report 1 January 31 March 2010 `~=c=p 1 22.4.2010 Q1/2010 in brief Net sales increased 4% to MEUR 91 (88). Value of production rose 25% and was MEUR 94 (75).

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Componenta Corporation Interim report 1 January – 31 March 2010

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Q1/2010 in brief

  • Net sales increased 4% to MEUR 91 (88).
  • Value of production rose 25% and was MEUR 94 (75).
  • Operating profit was MEUR 0.3 (-6.1).
  • Result after financial items was MEUR -5.6 (-10.9).
  • Basic earnings per share was EUR -0.24 (-0.75).
  • Order book rose 47% and was MEUR 68 (46).
  • Operating profit improved from the previous year due to higher production

volumes and cost adaptation measures implemented earlier.

  • The first quarter result was weakened by rapid increase in raw material

prices and by the exceptional peaks in the energy prices in the Nordic countries, with the total impact of some EUR 3 million.

  • Unused, committed credit facilities and cash in bank at the end of the review

period were MEUR 39.5.

  • Cash flow from operations was positive, MEUR 3.5 (5.3).
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Income statement

MEUR 2010 2009 2009 1 - 3 1 - 3 1 - 12 Net sales 91.2 88.1 299.6 Operating profit 0.3

  • 6.1
  • 15.4

Financial income and expenses

  • 5.9
  • 4.7
  • 21.8

Result after financial items

  • 5.6
  • 10.9
  • 37.2

Net result

  • 4.1
  • 8.3
  • 28.7

Earnings per share, EUR

  • 0.24
  • 0.75
  • 2.30
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20 40 60 80 100 120 140 160 180 200 220

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10

MEUR

Quarterly net sales development 2004 – Q1/2010

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Key ratios

MEUR

31.3.2010 31.3.2009 31.12.2009

Equity ratio, % (preferred capital note in equity) 23.6 23.0 26.5 Return on equity, %

  • 23.5
  • 53.4
  • 45.1

Return on investment, % 1.1

  • 6.6
  • 4.1

Net interest bearing debt, MEUR (preferred capital note in equity) 214.9 223.4 206,5 Net gearing, % (preferred capital note in equity) 218.2 232.9 200.8 Order book, MEUR 68.0 46.2 58.8 Investments in production facilities, MEUR 0.8 5.2 15.5 Personnel at the end of period (incl. leased personnel) 3,845 3,858 3,698

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Cash flow statement

MEUR 2010 1 – 3 2009 1 – 3 2009 1 – 12 Cash flow from operations before change in net working capital, financing and taxes 4.9

  • 2.8
  • 2.5

Change in net working capital 3.1 11.2 37.5 Cash flow from operations before financing and taxes 8.0 8.4 35.0 Cash flow from operations 3.5 5.3 14.2 Cash flow from investments

  • 3.2
  • 4.4
  • 12.6

Cash flow from financing activities 5.4 8.5 0.9 Change in liquid assets 5.6 9.4 2.5

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Cash flow from operations

  • 5

5 10 15 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 MEUR

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Wvstahl Sorte 8/package recycled metal (EUR/Ton)

Source: WV Stahl

429,30 320,20 175,60 209,70 228,90 233,40 161,50 214,10 135,90 279,20 253,30 248,80 166,60 159,60 133,30 267,50 252,13 316,91 200,98 212,50 238,90 186,60 131,61 217,79

100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440

2003 2 3 4 5 6 7 8 9 10 11 12 2004 2 3 4 5 6 7 8 9 10 11 12 2005 2 3 4 5 6 7 8 9 10 11 12 2006 2 3 4 5 6 7 8 9 10 11 12 2007 2 3 4 5 6 7 8 9 10 11 12 2008 2 3 4 5 6 7 8 9 10 11 12 2009 2 3 4 5 6 7 8 9 10 11 12 2010 2 3 4

WV Stahl Sorte 8 (EUR / Ton) WV Stahl Sorte 8 Yearly average (EUR / Ton)

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Development in exchange rates Turkish lira

Source: Reuters

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Development in exchange rates Great Britain pound

Source: Reuters

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Development in exchange rates Swedish krona

Source: Reuters

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10 20 30 40 50 60 70 80 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10

Quarterly development of order book (includes orders for coming two months)

MEUR +47%

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Quarterly operating profit and result after financial items

  • 10
  • 5

5

I II III IV

  • 10
  • 5

5

2009 2010 2009 % 2010 %

  • 15
  • 10
  • 5

5 10

I II III IV

2009 2010

Operating profit Result after financial items

MEUR MEUR

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Equity ratio

5 10 15 20 25 30 35

31.3.2009 31.12.2009 31.3.2010 mêÉÑÉêêÉÇ=Å~éáí~ä=åçíÉ=áå=Éèìáíó mêÉÑÉêêÉÇ=Å~éáí~ä=åçíÉ=áå=ÇÉÄí

B

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Personnel by country including leased personnel

Finland 1,167 1,046 The Netherlands 700 643 Turkey 1,600 1,834 Sweden 391 322

31.3.2009 31.3.2010

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Distribution of sales

10 20 30 40 50 Turkey Finland Holland Sweden Other 1-3 2009 1-3 2010

Sales by operations

MEUR

Sales by market area Q1/2010

Germany 17% UK 11% Turkey 16% Sweden 17% Finland 12% France 7% Italy 4% USA 4% Other countries 5% Benelux 8%

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Manufacturing Purchasing Manager indices

below 50=contraction

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Source: IFO

IFO expectations

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Investors confidence index

Source: SSaA

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Weekly QITEXO5Y=

20/05/2007 - 06/06/2010 (G M T) Line, Q ITE XO 5Y=, Last Q uote(Last) 18/04/2010, 390.5 P rice E U R .123 300 400 500 600 700 800 900

1,000

J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J

Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

CDS index

Lehman Brothers’ bankruptcy Source: Reuters

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Agriculture

13% (14%)

Construction & mining

21% (13%)

Wind power

1% (5%)

Machine building

21% (36%)

Automotive

20% (13%)

Comparable sales to customer industries

Note: Other sales 1% (1%)

Heavy trucks

24% (18%)

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5 10 15 20 25 Q1 Q2 Q3 Q4 MEUR 2009 2010

Comparable sales to heavy trucks industry quarterly

+35%

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Development of supply chain in heavy trucks industry

Componenta’s deliveries to heavy trucks industry during Q1 Volvo Trucks’ deliveries to distributors in January – February Registrations

  • f new heavy

trucks in Europe in January – February +35%

  • 39%
  • 42%

Sources: Volvo web pages, ACEA

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24 2008/Jan 2008/Mar 2008/May 2008/July 2008/Sep 2008/Nov 2009/Jan 2009/Mar 2009/May 2009/Jul 2009/Sep 2009/Nov 2010/Jan 2010/Mar

Order Intake Sales Orderbook

Development of order book and sales in heavy trucks industry

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Registrations of new heavy trucks in Europe (EU27)

Source: ACEA

M R=MMM NM=MMM NR=MMM OM=MMM OR=MMM PM=MMM PR=MMM

g^k MUJMV cb_ MUJMV j^o MUJMV ^mo MUJMV j^v MUJMV grk MUJMV gri MUJMV ^rd MUJMV pbm MUJMV l`q MUJMV kls MUJMV ab` MUJMV g^k MVJNM cb_ MVJNM

JTM=B JSM=B JRM=B JQM=B JPM=B JOM=B JNM=B M=B

2009 Change

  • %

2010 2008

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5 10 15 20 25 30 35 Q1 Q2 Q3 Q4 MEUR 2009 2010

Comparable sales to machine building industry quarterly

  • 39%
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27 2 8 / J a n 2 8 / M a r 2 8 / M a y 2 8 / J u l y 2 8 / S e p 2 8 / N

  • v

2 9 / J a n 2 9 / M a r 2 9 / M a y 2 9 / J u l 2 9 / S e p 2 9 / N

  • v

2 1 / J a n 2 1 / M a r

Order intake Sales Orderstock

Development of order book and sales in machine building industry

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5 10 15 20 Q1 Q2 Q3 Q4 MEUR 2009 2010

Comparable sales to construction & mining industry quarterly

+79%

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Development of order book and sales in construction & mining industry

2008/Jan 2008/Mar 2008/May 2008/July 2008/Sep 2008/Nov 2009/Jan 2009/Mar 2009/May 2009/Jul 2009/Sep 2009/Nov 2010/Jan 2010/Mar

Order intake Sales Orderstock

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5 10 15 20 Q1 Q2 Q3 Q4 MEUR 2009 2010

Comparable sales to automotive industry quarterly

+60%

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Registrations of new passenger cars in Europe(Total EU27+EFTA)

Source: ACEA

300 000 600 000 900 000 1 200 000 1 500 000 1 800 000

JAN 08-09 FEB 08-09 MAR 08-09 APR 08-09 MAY 08-09 JUN 08-09 JUL 08-09 AUG 08-09 SEP 08-09 OCT 08-09 NOV 08-09 DEC 08-09 JAN 09-10 FEB 09-10 MAR 09-10

  • 30 %
  • 20 %
  • 10 %

0 % 10 % 20 % 30 %

Change +% 2009 Change

  • %

2010 2008

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Development of order book and sales in automotive industry

2008/Jan 2008/Mar 2008/May 2008/July 2008/Sep 2008/Nov 2009/Jan 2009/Mar 2009/May 2009/Jul 2009/Sep 2009/Nov 2010/Jan 2010/Mar

Order intake Sales Orderstock

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5 10 15 Q1 Q2 Q3 Q4 MEUR 2009 2010

Comparable sales to agriculture industry quarterly

  • 1%
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Development of order book and sales in agriculture industry

2008/Jan 2008/Mar 2008/May 2008/July 2008/Sep 2008/Nov 2009/Jan 2009/Mar 2009/May 2009/Jul 2009/Sep 2009/Nov 2010/Jan 2010/Mar

Order intake Sales Orderstock

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1 2 3 4 5 Q1 Q2 Q3 Q4 MEUR 2009 2010

Comparable sales to wind power industry quarterly

  • 86%
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36 2008/Jan 2008/Mar 2008/May 2008/July 2008/Sep 2008/Nov 2009/Jan 2009/Mar 2009/May 2009/Jul 2009/Sep 2009/Nov 2010/Jan 2010/Mar

Order Intake Sales Orderbook

Development of order book and sales in wind power industry

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Analysis of changes in income statement Q1/2010 vs. Q1/2009

MEUR Q1/10 Q1/09 Diff % Net sales 91,2 88,1 4 % Value of production 94,4 75,3 25 % Materials

  • 34,3
  • 24,1

43 % Direct wages and external services

  • 24,2
  • 25,0
  • 3 %

Other variable and fixed costs

  • 32,3
  • 29,3

10 % Costs total

  • 90,8
  • 78,3

16 % EBITDA 3,6

  • 3,0
  • 221 %
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Offers and new sales

  • The offers

submitted by the Group have stayed at high level also in Q1/2010.

  • Componenta’s new

sales have developed well during Q1/2010.

Offers > 100 keur 20 000 40 000 60 000 80 000 100 000 120 000 140 000 2006 2007 2008 2009 Q1/2010 Other Machining Castings Monthly average EUR 1000

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5 10 15 20 25 30 35 40 45 I II III IV 2009 2010

Operating profit Net sales

Turkey operations

MEUR MEUR

  • 15
  • 10
  • 5

5 10 15 20

f ff fff fs

  • 15
  • 10
  • 5

5 10 15 20 2009 2010 2009 % 2010 %

%

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Performance of the Turkey operations

  • The Turkey operations 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 were MEUR

40.6 (24.9) and operating profit MEUR 3.2, corresponding 7.9%

  • f net sales

(MEUR -0.4;

  • 1.6%).
  • The significant improvement in volumes and implemented cost

adjustment measures were major factors in boosting the operating profit of operations in Turkey in the review period.

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Operating profit Net sales

Finland operations

5 10 15 20 25 30 f ff fff fs 2009 2010

  • 12
  • 8
  • 4

4 8

I II III IV

  • 12
  • 8
  • 4

4 8

2009 2010 2009 % 2010 %

MEUR MEUR %

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Performance of the Finland operations

  • The operations in Finland include 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 MEUR

20.8 (29.1) and operating profit MEUR

  • 0.6 or
  • 2.8%
  • f net sales

(MEUR 0.5; 1.7%).

  • Lower capacity usage than in the previous year had a negative impact
  • n the operating profit.
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Operating profit Net sales

Holland operations

5 10 15 20 25 30 f ff fff fs 2009 2010

  • 20
  • 16
  • 12
  • 8
  • 4

4

I II III IV

  • 20
  • 16
  • 12
  • 8
  • 4

4

2009 2010 2009 % 2010 %

MEUR MEUR %

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Performance of the Holland operations

  • The operations in Holland consist of the iron foundries in Weert

and Heerlen, the machine shop operations in Weert and pattern shop in Tegelen.

  • Net sales in the review period were MEUR

18.7 (23.9) and operating profit was MEUR

  • 0.1 or
  • 0.5%
  • f net sales

(MEUR -4.1;

  • 17.2%).
  • The improvement in the operating profit for the review period from the

previous year was particularly due to the largescale cost adjustment measures taken in 2009.

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2 4 6 8 10 12 14 16 18 I II III IV OMMV OMNM

Operating profit Net sales

Sweden operations

  • 7,0
  • 6,0
  • 5,0
  • 4,0
  • 3,0
  • 2,0
  • 1,0

0,0 1,0

f ff fff fs

  • 35
  • 30
  • 25
  • 20
  • 15
  • 10
  • 5

5 2009 2010 2009 % 2010 %

MEUR MEUR %

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Performance of the Sweden operations

  • The operations comprise the Främmestad machine shop and the

Wirsbo forge.

  • Net sales in the review period were MEUR

15.8 (10.5) and the

  • perating profit was MEUR
  • 1.4, or
  • 8.9%
  • f net sales

(MEUR -3.2;

  • 30.5%).
  • The operating loss of the Swedish operations decreased from the

previous year due to higher volumes and reductions of operative costs.

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Prospects for 2010

  • Componenta’s prospects for the remainder of 2010 are based on

general external economic indicators, order forecasts given by customers, and on Componenta’s order intake and order book.

  • The demand outlook in most of the Group’s customer industries have

improved during the beginning of 2010. The production volumes of the customers have in the beginning of the year improved also due to the fact that destocking has come to an end.

  • The slowdown in construction in the USA and Europe reduced demand

for construction machinery in 2009. Many countries initiated infrastructure projects in 2009 because of the recession, and these are expected to increase demand for construction machinery in 2010.

  • The recent strong rise in raw materials prices is expected to increase

the demand for mining machinery in 2010.

  • The demand for agricultural machinery is expected to remain at the

same level as in the previous year.

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Prospects for 2010 (cont.)

  • Componenta’s deliveries for the heavy truck industry are expected to

increase significantly from the previous year. Delivery volumes have increased as inventory levels have returned to normal, despite the low level of new registrations of heavy trucks.

  • The number of passenger cars registered in Europe in January –

March increased 9.2% from the previous year. However, the figures for the registration of passenger cars in 2010 are expected to remain below those for 2009.

  • Demand in the wind power industry is expected to pick up at the

earliest in the second half of 2010.

  • Demand in the machine building industry is expected to recover

gradually during 2010.

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Prospects for 2010 (cont.)

  • Componenta’s order book at the end of the first quarter in 2010 was

47% higher than at the same time in the previous year.

  • Due to the exceptionally rapid increase in raw material prices,

Componenta is having to speed up the updating of customer prices as from the beginning of May 2010. Despite this step, the rise in raw material prices will have negative effect on the result for the second quarter.

  • Componenta Group’s net sales in 2010 are expected to increase and

the result after financial items is expected to improve clearly from the previous year.

  • Componenta’s investments in production facilities in 2010 are expected

to halve from the previous year (EUR 16 million in 2009).

  • The Group’s cash flow from operations is expected to remain positive.

Should the raw material prices continue to rise, this may tie up more funds in working capital than previously estimated.