Espoo, Finland, 2015-10-21 08:00 CEST (GLOBE NEWSWIRE) --
EFORE PLC Interim Report October 21, 2015 at 9.00
This release is a summary of Efore's Interim Report January – September 2015. The full report is a PDF file attachment to this stock exchange release and is available on the company's website at the address www.efore.com.
July – September 2015 in brief:
- Net sales totalled EUR 22.8 million (EUR 22.1 million), up 3.2 % compared with the corresponding period last year
- Results from operating activities without one-time items resulted EUR 0.0 million (EUR 1.6 million)
- Result from operating activities resulted EUR -0.3 million (EUR 1.6 million)
- Earnings per share were EUR 0.00 (EUR 0.02)
January – September 2015 in brief:
- Net sales totalled EUR 70.1 million (EUR 63.8 million), up 9.8 % compared with the corresponding period last year
- Results from operating activities without one-time items were EUR 0.7 million (EUR 0.6 million)
- Result from operating activities were EUR 0.4 million (EUR -0.6 million)
- Earnings per share were EUR -0.01 (EUR -0.04)
| 7-9/15 | 7-9/14 | Change | 1-9/15 | 1-9/14 | Change | 1-12/14 | |
| Key indicators, EUR million | 3 mo | 3 mo | % | 9 mo | 9 mo | % | 12 mo |
| Net Sales | 22,8 | 22,1 | 3,2 | 70,1 | 63,8 | 9,8 | 85,3 |
| Telecommunication sector | 11,9 | 12,2 | -2,5 | 37,1 | 35,0 | 6,0 | 46,0 |
| Industrial sector | 10,9 | 10,0 | 9,0 | 33,0 | 28,9 | 14,2 | 39,3 |
| Results from operating activities without one-time items | 0,0 | 1,6 | 0,7 | 0,6 | 0,1 | ||
| Results from operating activities | -0,3 | 1,6 | 0,4 | -0,6 | -2,0 | ||
| Result before taxes | -0,2 | 1,2 | -0,4 | -1,5 | -3,1 | ||
| Net result | -0,1 | 1,1 | -0,6 | -1,7 | -2,6 | ||
| Earnings per share, EUR | 0,00 | 0,02 | -0,01 | -0,04 | -0,05 | ||
| Solvency ratio, % | 37,6 | 38,5 | -2,3 | 37,6 | 38,5 | -2,3 | 38,1 |
| Gearing, % | 4,1 | 7,1 | -42,3 | 4,1 | 7,1 | -42,3 | 9,0 |
| Cash flow from business operations | 0,4 | 1,0 | 4,6 | 4,6 | 3,8 | ||
| Key indicators quarterly, EUR million | Q3/2015 | Q2/2015 | Q1/2015 | Q4/2014 | Q3/2014 | Q2/2014 | |
| Net Sales | 22,8 | 23,7 | 23,5 | 21,4 | 22,1 | 22,5 | |
| Telecommunication sector | 11,9 | 12,1 | 13,1 | 11,0 | 12,2 | 13,1 | |
| Industrial sector | 10,9 | 11,6 | 10,4 | 10,4 | 10,0 | 9,5 | |
| Results from operating activities without one-time items | 0,0 | 0,0 | 0,7 | -0,5 | 1,6 | -0,4 | |
| Results from operating activities | -0,3 | 0,0 | 0,7 | -1,3 | 1,6 | -1,6 |
Financial estimate for 2015
Efore Plc lowered its financial estimate for 2015 and published a new financial estimate on October 1, 2015 as follows:
The Company estimates its net sales of financial year 2015 to be EUR 86 to 92 million and results from operating activities without one-time items to be at break-even level or mildly positive.
Heikki Viika, President and CEO:
“The third quarter net sales decreased from the previous quarter and were slightly lower than expected. Anyhow, the net sales increased by 3.2 % to EUR 22.8 million compared with the previous year. The results from operating activities were lower than expected due to too high personnel and material costs in manufacturing.
The net sales of the telecommunication sector were EUR 11.9 million decreasing slightly compared with the previous quarter. Strong demand at the end of the second quarter slowed down towards the end of the summer.
The net sales of the industrial sector were EUR 10.9 million decreasing 6.0 % compared with the previous quarter. The background for the change compared with the previous quarter was a slight recovery from the excellent second quarter, during which especially DC systems demand was at a high level. However, the net sales increased by 9 % compared with the previous year. Furthermore, the industrial sector is a focal growth area for Efore in the future.
We have developed a new strategy for Efore during the summer. We are focusing to be The Trusted Power Partner based on reliability in our products and operation. The four cornerstones of our strategy are: Efficient cost base, Empower competent employees, Evolve game changing technologies and Expand selected markets.
In September we implemented a flatter organization structure based on strong global functions. The target of the new structure is to focus the resources of the whole company to better serve our customers.
During the summer we have implemented new actions in order to further improve cost efficiency. Our manufacturing process in Suzhou has been reorganized in order to improve factory throughput time. The target is to decrease the capital tied in the manufacturing process. One of our focal development areas is cost efficiency in manufacturing. In order to secure the efficiency improvements we have restructured Group manufacturing responsibilities.
The purpose of the human resource strategy is to secure our current high competency level when implementing the new strategy. We have started to review our competencies both for the present and target status.
Basis for our product strategy is reliability in all our products and in our operation. Analysis of the product lines is ongoing in order to secure our growth strategy in the best possible way.
Our growth strategy is based on high customer satisfaction in conjunction with our added value as well as growth especially in industrial sector. We strive to seek a high market positioning based on added value, for example in the LED lighting market.
Efore's long term target is to reach 10% EBIT level and an average annual net sales growth of 5-10%. In the short term Efore is focusing to improve the profitability.
Our previous target to reach at least 6% EBIT level by the end of 2015 will not materialize.
July - September net sales and financial development
The third quarter net sales totalled EUR 22.8 million (EUR 22.1 million) decreasing EUR 0.9 million compared with the previous year.
The net sales of the telecommunication sector were EUR 11.9 million (EUR 12.2 million) decreasing 1.7 % compared with the previous quarter.
The net sales of industrial sector were EUR 10.9 million (EUR 10.0 million) decreasing 6 % from the previous quarter.
Results from the operating activities went down clearly compared with the last year resulting EUR 0.0 million (EUR 1.6 million). The results from the operating activities included one-time items EUR 0.3 million (EUR 0.0 million) caused by the structural changes of the organization.
January – September net sales and financial development
Net sales totalled EUR 70.1 million (EUR 63.8 million).
The net sales of the telecommunication sector were EUR 37.1 million (EUR 35,0 million) increasing 6.0 % compared with the previous year.
The net sales of industrial sector were EUR 33.0 million (EUR 28.9 million) increasing 14.2 % from the previous year.
Results from the operating activities before one-time items improved slightly compared with the last year resulting EUR 0.7 million (EUR 0.6 million). Results from the operating activities including one-time items were EUR 0.4 million (EUR -0.6 million). Previous year results from the operating activities included one-time items EUR 1.3 million related mainly to the structural changes of Italian organization as a result of manufacturing transfer to Tunisia. The result of the previous year was inflated by certain costs relating to the whole year but not recorded until the fourth quarter of 2014.
Business development
The third quarter net sales decreased from the previous quarter and were slightly lower than expected. Anyhow, the net sales increased by 3.2 % to EUR 22.8 million compared with the previous year. The results from operating activities were lower than expected due to too high personnel and material costs.
The net sales of the telecommunication sector were EUR 11.9 million decreasing slightly compared with the previous quarter. Strong demand at the end of the second quarter slowed down towards the end of the summer.
The net sales of the industrial sector were EUR 10.9 million decreasing 6.0 % compared with the previous quarter. The background for the change compared with the previous quarter was a slight recovery from the excellent second quarter of the year, during which especially the demand of DC systems was at a high level. Anyhow, the net sales increased by 9 % compared with the previous year. Furthermore, the industrial sector is a focal growth area for Efore in the future.
Efore’s new strategy was developed during the summer. According to the new strategy the focus is to be The Trusted Power Partner based on reliability in all products and operation. The four cornerstones of the strategy are: Efficient cost base, Empower competent employees, Evolve game changing technologies and Expand selected markets.
Efore has invested in several R&D projects and especially in the telecom product portfolio a significant renewal has started. The products for the small base stations will be ready for production in 2016. In addition to the current customers Efore is focusing on new marketing channels and new customer acquisition in order to increase volume mainly in the industrial sector.
The key target for Efore is to continue to develop the company structure in order to improve profitability.
Outlook
During the last years the group has reached in to new markets enabling better opportunities for growth. The products based on the LTE (4G) technology are in a key role in network expansions and Efore has a strong position in this development. Large network roll-outs have been published creating a base for the stability of the demand. There is a trend towards smaller base stations where Efore also focuses product development investments.
Power supplies for LED lighting, instrumentation, medical equipment and infrastructure offer several growth areas for Efore in the industrial sector. Efore focuses on expanding its product selection especially in the segments where high reliability is required, where market fluctuations are lower and product life-cycles are longer.
Long-term targets
Efore Group's long term target is to reach 10% EBIT level and an average annual net sales growth of 5-10%. Target is to grow especially in industrial the sector. Market driven product platforms and efficient R&D investment utilization are key factors to support group's target to improve profitability.
Efore does not consider the long term targets as market guidance for any given year. The Group will issue separate financial estimate.
EFORE PLC
Board of Directors
Further information
For further information please contact Heikki Viika, President and CEO, on October 21, 2015 at 10 – 11 a.m., tel. +358 9 4784 6312.
DISTRIBUTION
Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding power products. Efore's head office is based in Finland and its production units are located in China and Tunisia. Sales and marketing operations are located in Europe, United States and China. In the fiscal year ending in December 2014, consolidated net sales totalled EUR 85,3 million and the Group's personnel averaged 914. The company's share is quoted on the Nasdaq OMX Helsinki Ltd. www.efore.com
ENCL. Interim Report January – September 2015 including tables (pdf)
