NEO INDUSTRIAL PLC INTERIM REPORT 1 August 2013 at 2.00 pm
The Cable segment’s operating result was on a par with the previous year, cable manufacturing companies were sold in Russia.
January–June: - The Neo Industrial Group’s net sales decreased by 18.2% to EUR 45.5 million (55.6 million). - Its operating result decreased by 164.2% to EUR -0.7 million (-0.2 million). - The Cable segment’s operating result was EUR 0.3 million (0.4 million). - The Group’s result for the period decreased by 87.9% to EUR 0.2 million (1.6 million). The comparable result includes EUR 1.9 million from discontinued operations. - The company divested OAO Expokabel and ZAO Reka Kabel, its cable manufacturing companies in Russia.
KEY FIGURES
| 1–6/2013 | 1–6/2012 | Change | 1–12/2012 | |
| Net sales (EUR million) | 45.5 | 55.6 | -18.2% | 106.2 |
| Operating result (EUR million) | -0.7 | -0.2 | -164.2% | 0.8 |
| Result for the period (EUR million) | 0.2 | 1.6 | -87.9% | -6.3 |
| Earnings per share, EUR | 0.04 | 0.13 | -71.5% | -1.25 |
| Return on investment, ROI | 2.1% | 5.7% | 1.9% | |
| Equity ratio | 13.8% | 19.3% | 13.8% |
With regard to the income statement, the figures in parentheses relate to continuing operations in the corresponding period of the previous year.
MANAGING DIRECTOR JARI SALO:
The Cable segment’s result for the first half of 2013 was on a par with the corresponding period of the previous year. Net sales decreased, mainly due to reduced demand in the main markets in the Nordic countries in the end of the period.
In May, Neo Industrial sold its cable manufacturing companies in Russia. Export to Russia still continues through its sales company.
The divestment of the cable manufacturing companies in Russia improved Neo Industrial’s liquidity situation, but its working capital situation continued to be challenging due to an increase in stock levels higher than expected in the summer.
NEAR-TERM OUTLOOK
The outlook for the Cable segment weakened during the spring and early summer. Construction is not likely to pick up in Finland and Sweden in the autumn, contrary to what was expected in early 2013. Ground cabling volumes in Finland are likely to be lower than expected. The lower-than-expected volumes in Reka Cables’ main markets in the Nordic countries create pressures for more intense price competition. Contrary to earlier expectations, the cable market in Finland and Sweden will not see year-on-year growth in the third quarter. Many significant investments and ground cabling projects will be postponed in the Nordic countries because of economic uncertainty until 2014.
In spite of the challenging market situation, the Cable segment is expected to record a positive operating result for the second half of 2013.
DISCLOSURE POLICY OF INTERIM REPORT
Neo Industrial discloses relevant information related to its Interim Report with this Stock Exchange Release. The entire Interim Report for January-June 2013 is attached to this release and available on company's website at www.neoindustrial.fi.
Helsinki, 1 August 2013
Neo Industrial Plc Board of Directors
Further information: Jari Salo, Managing Director, tel. +358 20 720 9196 Sari Tulander, CFO, tel. +358 20 720 9192
www.neoindustrial.fi
Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange. Neo Industrial's business segment is Cable Industry.
ENCL. Neo Industrial Interim Report January-June 2013
