Espoo, Finland, 2015-02-13 08:00 CET (GLOBE NEWSWIRE) --
EFORE PLC Financial Statements February 13, 2015 at 9.00
This release is a summary of Efore's Financial Statements 2014. The full financial Statements 2014 is a PDF file attachment to this stock exchange release and is available on the company's website at the address www.efore.fi.
As a result of changing Efore’s financial year, FY 2013 figures in brackets have been changed to match with the periods of the financial year 2014. When comparing the figures it should be noticed that the acquired ROAL Electronics S.p.a. has been consolidated into Efore Group from the beginning of July 2013. FY 2013 Income Statements figures are shown at the end of this release in a separate table.
October - December 2014 in brief:
- Net sales totalled EUR 21,4 million (EUR 23,3 million), down 8,0 % compared with the corresponding period last year
- Results from operating activities without one-time items were EUR – 0,5 million (EUR -1,1 million)
- Results for the period including one-time items were EUR -1,3 million (EUR 0,2 million)
- Earnings per share were EUR -0,02 (EUR -0,03)
Financial year 2014 in brief:
- Net sales totalled EUR 85,3 million (EUR 74,5 million), up 14,5 % compared with the corresponding period last year
- Results from operating activities without one-time items were EUR 0,1 million (EUR -4,3 million)
- Results for the period including one-time items were EUR -2,0 million (EUR -4,5 million)
- Earnings per share were EUR -0,05 (EUR -0,12)
| 10-12/14 | 10-12/13 | Change | 1-12/14 | 1-12/13 | Change | 11/12-12/13 | |
| Key indicators, EUR million | 3 mo | 3 mo | % | 12 mo | 12 mo | % | 14 mo |
| Net Sales | 21,4 | 23,3 | -8,0 | 85,3 | 74,5 | 14,5 | 82,5 |
| Telecommunication sector | 11,0 | 12,1 | -9,2 | 46,0 | 43,1 | 6,8 | 48,6 |
| Industrial sector | 10,4 | 11,2 | -6,7 | 39,3 | 31,4 | 25,0 | 33,9 |
| Results from operating activities without one-time items | -0,5 | -1,1 | 0,1 | -4,3 | -4,3 | ||
| Results from operating activities | -1,3 | 0,2 | -2,0 | -4,5 | 56,4 | -5,8 | |
| Result before taxes | -1,6 | 0,0 | -3,1 | -4,8 | 34,5 | -6,1 | |
| Net result | -0,9 | -0,4 | -2,6 | -5,0 | 47,2 | -6,2 | |
| Earnings per share, EUR | -0,02 | -0,03 | -0,05 | -0,12 | -0,15 | ||
| Solvency ratio, % | 38,1 | 39,7 | -4,0 | 38,1 | 39,7 | -4,0 | 39,7 |
| Gearing, % | 9,0 | 14,3 | 37,1 | 9,0 | 14,3 | 37,1 | 14,3 |
| Cash flow from business operations | -0,8 | 3,7 | 3,8 | 3,2 | 1,4 |
| Key indicators quarterly, EUR million | Q4/2014 | Q3/2014 | Q2/2014 | Q1/2014 |
| Net Sales | 21,4 | 22,1 | 22,5 | 19,2 |
| Telecommunication sector | 11,0 | 12,2 | 13,1 | 9,7 |
| Industrial sector | 10,4 | 10,0 | 9,5 | 9,5 |
| Results from operating activities without one-time items | -0,5 | 1,6 | -0,4 | -0,6 |
| Results from operating activities | -1,3 | 1,6 | -1,6 | -0,6 |
Financial estimate for the 2015
The Company estimates its net sales of financial year 2015 to be EUR 86-96 million and results from operating activities without one-time items to be EUR 2-5 million.
Vesa Vähämöttönen, Efore’s President and CEO:
“Net sales and results of the fourth quarter were lower than expected. At the end of the third quarter the demand grew rapidly but decreased in the beginning of the fourth quarter. The demand improved again at the end of the year. Write-offs related to end of life products and provisions related to projects had a negative impact of EUR 0,8 million on the EBIT of last quarter although accumulated throughout the year. The fourth quarter did not include invoicing for R&D work.
The fourth quarter demand of telecommunication sector was lower than expected and amounted to EUR 11,0 million. This was partly due to delay in some new product introductions because of external reasons .
As expected, the fourth quarter net sales of industrial sector increased slightly compared to previous quarters in 2014.
Efore's long term financial 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 its profitability. The target is to reach at least 6% EBIT level at the end of 2015. “
October – December net sales and financial development
The fourth quarter net sales totalled EUR 21,4 million (EUR 23,3 million). Net sales of the telecommunication sector was EUR 11,0 million decreasing 9,8 % compared to the previous quarter. The net sales of industrial sector was EUR 10,4 million and improved 4,0 % compared with the previous quarter.
Results from operating activities without one-time items were EUR -0,5 million (EUR -1,1 million). Write-offs related to end of life products and provisions related to projects had a negative impact of EUR 0,8 million on the EBIT of last quarter although accumulated throughout the year. The fourth quarter did not include invoicing for R&D work
Net sales and financial development of the financial year
Net sales totalled 85,3 million (EUR 74,5 million). Results from operating activities without one-time items were EUR 0,1 million (EUR -4,3 million). Results included EUR 2,0 million one-time items related to organizational changes in Italy and Finland.
During the period under review the total expenditure on R&D activities was EUR 8,9 million (EUR 7,7 million) of which EUR 2,8 million were capitalized. The total R&D expenditure represented 10,5 % of net sales (10,3 %).
The investment level in the telecommunication sector remained still low which together with slower-than-anticipated growth of industrial sector had an impact on lower-than expected net sales development in 2014.
Business development
The demand in the telecommunication sector was lower than expected in the fourth quarter amounting to EUR 11,0 million. This was partly due to delay in some new product introductions because of external reasons .
The major part of the t elecom sector PCB assembly manufacturing was transferred to an EMS partner during the financial year. By utilizing the capabilities of an EMS company Efore can access the latest manufacturing technology and capacity in a flexible way and can continue to investing in R&D and expanding the sales network.
The fourth quarter net sales of the industrial sector was slightly better than previous quarters in 2014 amounting to EUR 10,4 million.
Since 2012 Efore has made efforts to develop a profitable business model for design and manufacturing of Electric Vehicles (EV) power products. However, significantly slower than expected market development has made this unsustainable. The company has therefore decided to discontinue investments in EV business. As a result of this decision no major costs have been recognized during the financial year.
Efore sold its real estate in Italy on October 27, 2014 according to the option agreement, which was made at the same time with the acquisition last year. The sales price of the facility was EUR 1,5 million and it is leased at least for three years. The realization gain was EUR 0,1 million.
Outlook
During the last two years the group has expanded to new markets enabling better opportunities for the growth. LTE (4G) technology is in a key role in network expansions and Efore has a strong position in this development. Several large network roll-outs have been published creating a base for demand growth. Power supplies for LED lighting, instrumentation, medical equipment and infrastructure offer several growth areas for Efore in the industrial sector.
Efore has invested in several product development projects and especially telecom product portfolio will be renewed significantly. New products expand Efore’s product portfolio, which is expected to bring sales growth and stabilize demand fluctuations. Efore’s main customers are well positioned in the developing wireless network markets.
Introducing new products into volume deliveries as forecasted is essential for the growth and profitability improvement of the company.
In the near future, Efore focuses on introducing new products into volume production and on necessary actions to improve the competitiveness.
Long-term targets
Efore Group's long term financial target is to reach 10% EBIT level and an average annual net sales growth of 5-10%. Target is to grow especially in industrial sector. Market driven product platforms and efficient R&D investment utilization are key factors to support group's target to improve profitability.
In the short term Efore is focusing to improve its profitability. The target is to reach at least 6% EBIT level at the end of 2015.
Efore does not consider the long term targets as market guidance for any given year. It will issue separate financial estimate.
Events after the period under review
In June 2014, Efore announced to dissolve the share ownership system of the management and in the same connection Efore Management Oy, a company owned by the members of the Efore Group Executive Management Team decided to dissolve. Liquidation of Efore Management Oy was made after the period under review, on January 19, 2015.
Riitta Järnstedt has been appointed as acting President and CEO of the company starting on March 1, 2015. New President and CEO Heikki Viika will start in the position on June 1, 2015.
EFORE PLC
Board of Directors
Further information
For further information please contact Mr.Vesa Vähämöttönen, President and CEO, on February 13, 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 Tunis. Sales and marketing operations are located in Europe, United States and China. In the fiscal year ending in December 2014, consolidated net sales totaled 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
