Componenta Corporation’s Half-Year Financial Report 1 January - 30 June 2018: Net sales increased and result improved
Componenta Corporation Stock Exchange Release on 9 August 2018 at 8.00
The information presented in this half-year financial report relates to the development of continued operations of Componenta Group in January-June 2018 and in the corresponding period in 2017, unless otherwise stated. Continued operations in the reporting period were the foundry operations in Pori and Karkkila, Finland, and the machine shop in Främmestad, Sweden. In alternative performance measures, certain value adjustment items not related to ordinary business, items related to the sold and discontinued operations and other items with impact on comparability have been adjusted. The net sales for 2017 include service fees charged from companies that were divested in 2017, namely the forges that filed for bankruptcy in Sweden.
January – June, H1 2018
- Net sales increased by 1% to EUR 66.1 million (EUR 65.4 million). The adjusted net sales in the reporting period were EUR 66.1 million and the comparable adjusted net sales in the comparison period amounted to EUR 65.2 million.
- EBITDA increased to EUR 2.7 million (EUR -1.9 million). The adjusted EBITDA in the reporting period was EUR 3.4 million while the comparable adjusted EBITDA in the comparison period amounted to EUR 2.7 million.
- Operating result was EUR 1.7 million (EUR -3.1 million). The adjusted operating result was EUR 2.4 million, while the comparable adjusted operating result in the comparison period amounted to EUR 1.5 million.
April – June, Q2 2018
- Net sales decreased by 1% to EUR 32.8 million (EUR 33.1 million). The adjusted net sales in the reporting period were EUR 32.8 million and the comparable adjusted net sales in the comparison period amounted to EUR 33.0 million.
- EBITDA increased to EUR 1.3 million (EUR -2.3 million). The adjusted EBITDA was in the reporting period EUR 1.9 million while the comparable adjusted EBITDA in the comparison period amounted to EUR 1.6 million.
- Operating result was EUR 0.8 million (EUR -2.8 million). The adjusted operating was EUR 1.4 million, while the comparable adjusted operating result in the comparison period amounted to EUR 1.0 million.
Guidance for 2018 intact
Componenta expects continued operations to have net sales of EUR 110 - 130 million in 2018 and adjusted EBITDA excluding items affecting comparability is expected to be EUR 4 - 6 million. Net sales for continued operations in 2017 were EUR 122.4 million and adjusted EBITDA EUR 4.8 million. Componenta’s business outlook is based on the business outlook of its largest customers and the market outlook of the industry. Potential fluctuations in exchange rates, higher raw material prices and the general competitive climate may affect the business outlook.
Harri Suutari, CEO:
The demand for Componenta products continued as viable in the first half of the year. Profitability increased due to cost reducing activities.
We aim to change operations in Componenta, particularly in Componenta Främmestad AB in order to engage less working capital and financial requirements in the operations. The changes in operation models are being negotiated with customers. The objective of these actions is to decrease invested capital and increase profitability. The possible changes are not anticipated to have effect on net sales or the result on the current year. The progress of this subject will be reported in the future business reviews and financial statement.
The restructuring program is proceeding according to plan and liquidity has remained on a good level. There are no restructuring debts left, which fall due in 2018.
Key figures
| MEUR | IFRS 1-6/2018 | IFRS 1-6/2017* | Change-% | IFRS 1-12/2017 |
| Net sales, continued operations | 66.1 | 65.4 | 1% | 122.4 |
| EBITDA, continued operations | 2.7 | -1.9 | - | 29.8 |
| Operating result, continued operations | 1.7 | -3.1 | - | 26.3 |
| Operating result, continued operations, % | 2.6 | -4.7 | - | 21.5 |
| Result after financial items, continued operations | 1.6 | -3.3 | - | 128.3 |
| Items affecting comparability after financial items, continued operations | -0.7 | -4.8 | - | 120.4 |
| Net result, continued operations | 1.4 | -3.2 | - | 128.8 |
| Basic earnings per share, EUR | 0.01 | -0.04 | - | 0.70 |
| Interest bearing net debt, continued operations ** | -4.6 | 90.4 | - | -3.0 |
| Return on equity, % | 15.3 | n/a | - | - |
| Return on investment, % | 16.2 | n/a | - | - |
| Equity ratio, % | 35.8 | -209.2 | - | 34.8 |
| Gross investment incl. finance leasing, continued operations | 0.9 | 0.2 | 350% | 1.6 |
| Cash flow from operations, continued operations | 3.7 | -0.2 | - | 2.8 |
| Group’s restructuring debt | 16.1 | 150.3 | -89% | 19.0 |
| Average number of personnel during reporting period, incl. leased personnel, continued operations | 710 | 671 | 5% | 680 |
| Number of personnel at end of quarter, incl. leased personnel, continued operations | 728 | 687 | 6% | 691 |
| Order book, continued operations | 16.2 | 15.9 | 1% | 23.6 |
*) The comparative figures from 2017 have been adjusted because the Wirsbo sub-group operations have been classified as discontinued operations
**) Only interest-bearing restructuring debts included
Alternative performance measures
Componenta publishes alternative performance figures to describe the financial development of its business and to improve the comparability between reporting periods. Management has evaluated which alternative performance measures gives the best presentation and has decided to report adjusted net sales, adjusted EBITDA and adjusted operating result as alternative performance measures.
| Continued operations, MEUR | 1-6/2018 | Comparable adjusted 1-6/2017 | Change-% |
| Adjusted net sales | 66.1 | 65.2 | 1% |
| Adjusted EBITDA | 3.4 | 2.7 | 25% |
| Adjusted operating result | 2.4 | 1.5 | 69% |
*) Reconciliation of IFRS figures are presented in the end of this half-year financial report.
Componenta’s Half-Year Financial Report 1 January – 30 June 2018 in pdf format is in the appendix to this release. It is also available on the company’s website at .
COMPONENTA CORPORATION
Harri Suutari
President and CEO
For further information, please contact:
Harri Suutari
President and CEO
tel. 0
Marko Karppinen
CFO
tel. 01
Componenta is an international technology company. Componenta specializes in supplying cast and machined components to its global customers, who are manufacturers of vehicles, machines and equipment. The company’s share is listed on Nasdaq Helsinki.
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