EXEL OYJ STOCK EXCHANGE RELEASE 24 July 2008 at 11.00 pm
EXEL INTERIM REPORT FOR JANUARY 1 – JUNE 30, 2008
Summary
- Net sales in the first six months decreased to EUR 48.9 (57.5) million, 15.0 per cent below the corresponding period previous year
- Net sales in the second quarter were EUR 24.8 (28.7) million
- Operating loss in the first six months was EUR -4.3 (operating profit 6.2) million or -8.8 (+10.8) per cent of net sales, including EUR -7.3 million non-recurring items
- Operating loss in the second quarter was EUR -5.6 (+2.7) million or -22.7 (+9.3) per cent of net sales, including EUR -7.3 million non-recurring items
- Weaker market conditions in Exel Composites resulted in a decline in the second quarter operating profit to EUR 1.8 (4.5) million, including EUR -1.1 million non-recurring items
- Unsatisfactory performance in Exel Sports Brands continued, with an operating loss of EUR -7.6 (-1.8) million in the second quarter, including EUR -6.6 million non-recurring items
- Outdoor business of Exel Sports Brands was transferred per 1 June 2008
- Fully diluted earnings per share were EUR -0.31 (0.36)
- For the full-year 2008, the Group’s profit before taxes is expected to be negative. Profit before taxes in the second half of the year is expected to be positive.
Vesa Korpimies, President and CEO:
“During the second quarter 2008 Exel has focused on the restructuring of the operations including the selling of Exel Sports Brands’ Outdoor business. The transaction was completed on 1 June 2008. We are pleased that Exel branded poles found a good home. The licensing agreement secures the continued presence and distribution of Exel branded poles in the sports equipment market. Exel can now focus fully on its core business, namely Exel Composites.
The expected decline in the sales of wind energy business, as well as weaker conditions in the building and construction and standard composite profile market had a negative impact on the operating profit in Exel Composites during the second quarter.
Long-term, composite materials are still expected to gain market share from other materials such as metals and wood. We are strongly focusing on sales and developing new applications for the advanced composite profile market. At the same time a cost reduction program and stringent cost control have been introduced in all the Group’s units to restore profitability. With all these measures we believe we will have a positive profitability development and are able to make positive result during the latter half of the year.”
Further information:
Mr. Vesa Korpimies, President and CEO, tel. +358 50 590 6754
The interim report can be read in full in the following address:
http://investor.exel.net/attachments/exel_q2_2008_eng.pdf
Link to Q3 2008 presentation:http://investor.exel.net/attachments/q308_presentation_301008.ppt