Review by the President & CEO

President and CEO Riku Kytömäki


“Strong improvement in profitability”

Business Review January – September 2019


In the third quarter of 2019 order intake continued to be at a good level and revenue improved slightly compared to previous year. We have continued the efforts in our growth initiatives within the wind energy, construction and transportation industries, and our order intake grew by 9.7%. Strong revenue growth continued in Construction & Infrastructure supported by wind energy. Revenue growth in Other Applications was good. Increased volumes in both these customer segments compensated for the decrease in Industrial Applications, which continued to reflect the challenges of our telecommunications customers.

Adjusted operating profit in the third quarter more than tripled in comparison to the previous year. The main factor behind this improvement was the improved profitability of Exel USA. The cost savings program, which was launched in 2018, has lowered fixed costs and thereby improved profitability. According to current estimates the annual savings target of EUR 3 million, expected to be fully effective in 2020, will be reached. During the third quarter, we started production at a new manufacturing location in China near the city of Nanjing, where both of the previous factories are located. The new site that we have leased is better suited for composite production than the previous ones. In the new site there is enough space to accommodate, if need be, all production capacity of the old factories.

The construction of a new manufacturing facility in Austria is progressing according to the plan. The construction is expected to be completed in the second half of 2020 at an estimated total cost of EUR 7 million. At the end of the third quarter, Exel Composites signed EUR 20 million worth of revolving credit facilities under which the financing of the project is secured.


Video interviews



Exel Composites Oyj, Vantaa head office, Mäkituvantie 5, FI-01510 Vantaa, Finland