EXEL OYJ STOCK EXCHANGE RELEASE 2 May 2008 at 1.30 pm 1 (13)
EXEL INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2008
Summary
- Net sales decreased to EUR 24.1 (28.8) million or in the first quarter of 2008 or were 16% lower than for the corresponding period in 2007
- Operating profit was EUR 1.4 million compared to EUR 3.5 million in the first quarter of 2007, representing 5.6% (12.2%) of net sales
- Weaker market conditions in Exel Composites resulted in a decline in operating profit to EUR 2.9 (4.3) million
- Unsatisfactory performance in Exel Sports Brands continued, with an operating loss of EUR -1.4 (-0.7) million
- Fully diluted earnings per share were EUR -0.01 (0.19)
- Agreement signed after the reporting period to transfer of the outdoor business of Exel Sports Brands to Karhu Sports
- For the full-year 2008, the profit before taxes is expected to be negative for the Group
Vesa Korpimies, President and CEO:
“The reduction in sales and increased price competition had a negative impact on the operating profit in Exel Composites during the first quarter. Weaker sales were mainly due to changes in procurement practices in the wind energy segment and divestment of the Plastics business in Germany. In addition, we faced some softness in the building and construction segment, where some projects were delayed.”
“Sales in Exel Sports Brands were in line with our expectations, but lower than in 2007. Exel Sports Brands continued to suffer from a high cost level causing a significant operating loss. We have today signed an agreement with Karhu Sports, one of the leading Finnish sports equipment manufacturers, to transfer the outdoor business of Exel Sports Brands. The agreement secures the continued presence and distribution of Exel branded poles in the sports equipment market in a model that strengthens Exel’s profitability. Exel can now sharpen the focus on its core business, namely Exel Composites.”
The whole interim report can be read in the attached PDF file:
http://investor.exel.net/attachments/exel_q1_2008_english.pdf