ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE Oct. 31, 2002,8:00 AM 1(9)ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2002
JULY – SEPTEMBER (Comparable figures, 4-6/2002)
– Net sales for the third quarter grew by 6.2% compared with the
second quarter and totaled EUR 44.8 million (EUR 42.2 million).
– Operating profit totaled EUR 1.6 million (EUR -1.4 million).
– Operative cash flow was EUR 3.7 million (EUR 9.1 million).
– Earnings per share were EUR 0.36 (EUR -0.12).JANUARY – SEPTEMBER (Comparable figures, 1-9/2001)
– Net sales for the period totaled EUR 131.3 million (EUR 167.8
million).
– Operating loss was EUR 28.0 million (loss of EUR 12.2 million).
– Operating profit without Aspocomp S.A.S was EUR 0.5 million.
– Earnings per share were EUR -2.37 (EUR -1.21).
– Equity ratio was 60.0% (56.5%) and equity per share EUR 10.46 (EUR
14.39).BUSINESS REVIEW
Production
Aspocomp’s capacity utilization rate for the third quarter was better
than in the first half of 2002. Printed wiring board (PWB) demand is
growing most rapidly in Asia, especially in China. Aspocomp has two
subsidiaries in Asia, P.C.B. Center in Thailand and ACP Electronics
in China, which is located in Suzhou, near Shanghai. During the third
quarter period, approximately 10 new customers, including Nokia,
Kyocera, BenQ and LG Electronics, have already audited and accepted
Aspocomp’s plant in China as their supplier. The production in Asian
units has grown during the period almost 40% compared to the same
period in the previous year.Product Development
The joint venture companies Asperation Oy (jointly founded with
Perlos) and Imbera Electronics Oy (jointly founded with Elcoteq),
have started their operations during the period under review and
progressed according to plan.BUSINESS ENVIRONMENT
The outlook for Aspocomp’s main business sector, telecommunications,
remains divided. Handsets have shown moderate signs of recovery, but
infrastructure business is still stagnant. Automotive electronics
proceed with applying HDI technology as reliability and prices
approach the required level.Price pressures and the uncertainty of end demand are causing
fluctuations in the value chains of communication infrastructure
construction. This fluctuation is amplified towards the upstream end
of the chain, i.e., electronics component manufacturing. In addition
to cost efficiency as a factor of competitiveness, the significance
2(9)of flexibility and short production throughput times will increase.
Even if price pressures are relieved, shorter delivery lead times
have come to stay in the PWB business.As was forecast at the end of second quarter, capacity cuts have
continued throughout the third quarter. Furthermore, the earlier
forecast of a positive growth rate of 5% for 2002 has been revised to
negative. Only Southeast Asia will grow in terms of net sales. Due to
prevailing price pressure, growth will also be concentrated in this
region during 2003.GROUP NET SALES AND PROFIT, JULY – SEPTEMBER (Comparable figures 4-6/
2002)Third-quarter net sales grew by 6.2% and totaled EUR 44.8 million
(EUR 42.2 million, 4-6/2002).Third-quarter EBITDA increased by 47.7% and totaled EUR 8.9 million
(EUR 6.0 million). EBIT totaled EUR 1.6 million or 3.6% of net sales
(EUR -1.4 million; -3.3%). Earnings per share totaled EUR 0.36 (EUR –
0.12). The increase of tax asset, EUR 2.1 million, recorded for the
period improves EPS. Operative cash flow was EUR 3.7 million (EUR 9.1
million).GROUP NET SALES AND PROFIT, JANUARY – SEPTEMBER (Comparable figures
1-9/2001)Net sales totaled EUR 131.3 million for the period from January 1 to
September 30, 2002, compared with EUR 167.8 million during the same
period in the previous year. Other operating income totaled EUR 0.1
million (EUR 0.6 million, 1-9/2001). The share in net sales of the
company’s five biggest customers, Nokia, Sanmina-SCI, Siemens,
Tellabs and Ericsson, was 67%. Net sales by region were as follows:
Finland 35% (58%), rest of Europe 24% (31%), Asia 14% (3%), and the
Americas 27% (8%).Operating loss for the period totaled EUR 28.0 million or -21.4% of
net sales (EUR 12.2 million; -7.3%). The operating profit for the
period, net of the write-downs and losses related to the French
subsidiary Aspocomp S.A.S. in the first quarter, totaled EUR 0.5
million. Net financial costs totaled EUR 2.3 million (EUR 1.8
million).The loss before extraordinary items was EUR 30.3 million (loss of EUR
14.0 million). The loss before taxes was EUR 30.3 million (loss of
EUR 14.0 million), and the net loss for the period was EUR 23.7
million (loss of EUR 12.3 million). Earnings per share totaled EUR –
2.37 (EUR -1.21).BUSINESS UNITS, JULY – SEPTEMBER
Printed Wiring Boards (PWB)
3(9)
The third-quarter net sales for the PWB business unit increased by
3.8% compared with the second quarter and totaled EUR 36.1 million
(EUR 34.8 million, 4-6/2002). Despite the summer vacation period, the
net sales for the Mobile segment reached EUR 19.1 million (EUR 18.8
million). The net sales for the Telecom segment totaled EUR 5.6
million (EUR 6.8 million). There were no essential changes in the
demand of the Telecom segment PWBs. The net sales for Auto & Industry
totaled EUR 11.3 million (EUR 9.1 million). The growth of the segment
was gained by the Asian production units.Electronics Manufacturing Services (EMS)
Net sales for the EMS business unit increased by 17.7% and totaled
EUR 8.8 million (EUR 7.4 million). The growth was due to deliveries
in the second quarter which were transferred to the third quarter
period. There were no essential changes in the total demand.BUSINESS UNITS, JANUARY – SEPTEMBER
Printed Wiring Boards (PWB)
The downturn in net sales for the PWB business unit was 20.6%
compared to the same period in the previous year. The net sales for
the PWB business unit were EUR 106.2 million (EUR 133.7 million, 1-
9/2001). The net sales of the Mobile segment decreased by 12.0% and
totaled EUR 53.9 million (EUR 61.2 million). The net sales of the
Telecom segment declined by 47.4% and totaled EUR 20.1 million (EUR
38.1 million). The downturn in net sales for the Auto & Industry
segment was 6.1% and they totaled EUR 32.3 million (EUR 34.4
million).ELECTRONICS MANUFACTURING SERVICES (EMS)
The net sales of the EMS business unit decreased by 26.4% and totaled
EUR 25.0 million (EUR 34.0 million, 1-9/2001).FINANCING, INVESTMENTS AND EQUITY RATIO
The Group’s liquidity during the period under review was good. Net
interest-bearing debt for the nine months period totaled EUR 56.2
million, including EUR 31.7 million in financial leasing liabilities.
Gross investments for the period totaled EUR 14.5 million (EUR 51.5
million) or 11.0% of net sales (30.8%). The investments were
primarily in Asia (EUR 10.2 million). Investments in Finland totaled
EUR 4.3 million, including the share capital in the joint venture
companies Asperation Oy and Imbera Electronics Oy as well as share
buybacks totaling EUR 2.0 million. Net financial costs as a
percentage of net sales totaled 1.7% (1.1%). The equity ratio at the
end of September was 60.0% (56.5%) and 56.5% at the end of 2001.SHARES AND SHARE CAPITAL
The number of Aspocomp’s issued shares on September 30 was 10,041,026
and the share capital was EUR 10,041,026. 100,000 shares of the total4(9)
issued number were in the possession of the company. The average
number of shares, adjusted by buybacks, was 9,999,356. During the
period extending from January 1 to September 30, a total of 1,712,775
shares with a value of EUR 13,583,496.00 were traded on the Helsinki
Stock Exchange. The nominee-registered proportion of stockholdings
was 16.74% and non-domestic share 0.76% at the end of the period. The
share price reached a high of EUR 13.25 and a low of EUR 4.22 between
January 1 and September 30, 2002. The average price was EUR 7.93. The
closing price on September 30, 2002, was EUR 6.18 and the market
capitalization of the company was EUR 61,435,540.00.On May 7, 2002, the Board of Directors decided to exercise the
authorization regarding share buybacks by acquiring 100,000 company
shares on the market by the end of June 2002. Information on share
buybacks is given in the table below.Period of time Amount Average price/ Total price,
of shares share, Euro EuroMay 1 – 31, 2002 24 400 7.99 194 982.50
June 1 – 30, 2002 75 600 7.45 563 122.50Total 100 000 7.58 758 105.00
By June 28, the company had bought back 100,000 company shares and
the counter book value of the shares was EUR 100,000, representing
1.0% of the company’s share capital and voting rights. The share
buybacks did not have any significant impact on the distribution of
shareholdings or voting rights in the company.On April 5, the Annual General Meeting passed a resolution to
decrease the company’s share capital by invalidating 100,900 company
shares. The new share capital, EUR 10,041,026, and the number of
shares, 10,041,026, were entered in the Finnish Trade Register on
April 9.In addition, the Annual General Meeting passed a resolution to
authorize the Board to decide on share buybacks and decide on new
issues and/or convertible loans. The authorizations are valid for one
year from the date of the AGM.On May 17, 2002, the insurance company If Skadeförsäkring Ab
announced that its share in the voting rights and share capital of
Aspocomp Group Oyj was over 5%.PERSONNEL
The number of employees averaged 3,090 from January 1 to September
30, 2002, compared with 3,347 for the same period in the previous
year. Personnel averaged 3,314 for 2001. At the end of September 2002
there were 2,894 employees in all.5(9)
Average Average Number Number Number
number number
2002 2001 2002 2001 2001
Jan 1-Sep 30 Jan 1-Sep 30 Sep 30 Sep 30 Dec 31
Europe 1,525 1,901 1,093 1,846 1,785
Thailand 897 1,145 1,025 1,025 882
China 668 301 776 438 511
Total 3,090 3,347 2,894 3,309 3,178The adjustment of personnel amount in the Telecom segment’s PWB
sector and in the EMS business unit continued during the period.THE WRIT OF SUMMONS FROM FRANCE
In accordance with the lawsuit filed by the administrators of the
French subsidiary Aspocomp S.A.S., Aspocomp Group Oyj submitted its
rebuttal to the Commercial Court in Evreux, France on September 10,
2002. According to the expert opinion available, the writ of summons
and the claims presented therein are unfounded. As a consequence, it
is estimated that the writ of summons will have no effect on the
profitability position of the company, its balance sheet or financial
position. The case on the suit will resume in January 2003.The bankruptcy estate calls for the bankruptcy proceedings of the
subsidiary and liability for its debts to be extended to include
Aspocomp Group Oyj.PROSPECTS
The Aspocomp Group’s EBIT for the latter part of the year is
forecasted to be at least on the level of third quarter. Due to
write-downs during the first quarter, the profit for the 2002 will be
negative.As a consequence of the overcapacity situation, price pressure
continues in the printed wiring board market. The growth for 2003 is
estimated to be moderate for the Mobile and Auto & Industry segments
in the PWB business unit. No recovery in mobile network investments
is expected to take place in the following year, and as a consequence
of this demand for the Telecom segment in the PWB business unit and
EMS business unit will not experience significant growth. Due to new
customer projects in China, the capacity utilization rate at the
Suzhou plant is expected to increase during the forthcoming quarters.
During next year, the monthly performance of the Suzhou plant is
expected to turn positive. The Aspocomp Group EBIT for 2003 is
expected to be positive and strengthen towards the end of the year.ASPOCOMP GROUP INCOME STATEMENT, JULY – SEPTEMBER
7-9/02 4-6/02 7-9/01
MEUR % MEUR % MEUR %NET SALES 44.8 100.0 42.2 100.0 50.3 100.0
6(9)Other operating
income -0.1 -0.3 -0.4 -0.8 0.0 0.0
Depreciation and
write-downs 7.2 16.1 7.4 17.6 8.7 17.4OPERATING PROFIT/LOSS
AFTER DEPRECIATION 1.6 3.6 -1.4 -3.4 -3.4 -6.7
Financial income
and expenses -0.7 -1.7 -0.8 -1.9 -0.9 -1.8PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAXES 0.9 1.9 -2.2 -5.3 -4.3 -8.5
Extraordinary income 0.0 0.0 0.0 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0 0.0 0.0 0.0PROFIT/LOSS BEFORE TAXES 0.9 1.9 -2.2 -5.3 -4.3 -8.5
Minority interest 0.7 1.6 1.5 3.4 0.2 0.5PROFIT/LOSS FOR THE
PERIOD 3.7 8.2 -1.2 -2.7 -4.6 -9.1CASH FLOW STATEMENT, JULY – SEPTEMBER
7-9/02 4-6/02 7-9/01
MEUR MEUR MEUR
Net operational cash flow 3.7 9.1 2.1
Total cash flow from investments -0.7 -4.8 -27.7
Cash flow before financing 3.1 4.2 -25.6
Total financing -5.8 -11.3 1.0
Increase/Decrease in liquid funds -2.7 -7.1 -24.7
Liquid funds at the end of the period 7.3 10.1 29.5ASPOCOMP GROUP INCOME STATEMENT, JANUARY – SEPTEMBER
1-9/02 1-9/01 1-12/01
MEUR % MEUR % MEUR %NET SALES 131.3 100.0 167.8 100.0 221.8 100.0
Other operating
income 0.1 0.1 0.6 0.4 0.9 0.4
Depreciation and
write-downs 23.1 17.6 26.6 15.8 39.1 17.6OPERATING PROFIT/LOSS
AFTER DEPRECIATION -28.0 -21.4 -12.2 -7.3 -27.4 -12.3
Financial income
and expenses -2.3 -1.7 -1.8 -1.1 -2.6 -1.2PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAXES -30.3 -23.1 -14.0 -8.3 -29.9 -13.5
Extraordinary income 0 0 0 0 0 0
Extraordinary expenses 0 0 0 0 0 0PROFIT/LOSS BEFORE TAXES -30.3 -23.1 -14.0 -8.4 -29.9 -13.5
7(9)Minority interest 3.0 2.2 1.0 0.6 3.6 1.6
PROFIT/LOSS FOR THE
PERIOD -23.7 -18.1 -12.3 -7.3 -26.9 -12.1EARNINGS PER SHARE, EUR -2.37 -1.21 -2.66
Accrued taxes for this interim period have been calculated in
accordance with the corporate tax rate in force during the period
under review and they include taxes brought forward from earlier
periods.ASPOCOMP GROUP BALANCE SHEET
9/02 9/01 Change 12/01
MEUR MEUR % MEURNon-Current Assets
Intangible assets 4.2 15.4 -72.7 5.3
Tangible assets 140.5 186.0 24.5 195.3
Investments 3.0 1.1 – 1.5Current Assets
Inventories 21.2 37.2 -42.9 30.7
Receivables 47.6 50.8 -6.5 39.1
Investments 0 17.0 – 0.0
Cash and bank deposits 7.3 12.6 -41.6 20.3TOTAL ASSETS 223.8 320.1 -30.1 292.1
Shareholders’ equity
Share capital 10.0 10.1 10.1
Other shareholders’ equity 94.7 135.5 -30.2 121.5
Minority interest 29.9 35.8 -16.4 33.8
Mandatory reserves 2.7 9.4 -71.3 11.5
Long-term liabilities 45.7 54.4 -15.9 55.1
Short-term liabilities 40.8 74.9 -45.5 60.1TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 223.8 320.1 -30.1 292.1CASH FLOW STATEMENT
1-9/02 1-9/01 1-12/01MEUR MEUR MEUR
Net operational cash flow 8.6 13.7 16.4
Total cash flow from investments -13.6 -56.0 -72.3
Cash flow before financing -5.0 -42.2 -55.8
Total financing -8.0 38.0 42.3
Increase/Decrease in liquid funds -12.9 -4.2 -13.5
Liquid funds at the end of the period 7.3 29.5 20.3
8(9)
KEY FIGURES
9/02 9/01 12/01Equity/share, EUR 10.46 14.39 13.01
Equity ratio, % 60.0 56.5 56.5
Gearing, % 42.0 28.8 35.7
Gross investments, MEUR 14.5 51.5 73.3
Accumulated excess depreciation and voluntary reserves totaling EUR
4.9 million have been divided among shareholders’ equity and nominal
tax liabilities.CONTINGENT LIABILITIES
9/02 12/01
MEUR MEUR
Securities on Group liabilities 2.1 3.2
Operational leasing liabilities 0.1 0.2
Other liabilities 0.3 0.3
TOTAL 2.5 3.7All figures are unaudited.
Some statements in this interim report are forecasts and actual
results may differ materially from those stated.Statements in this stock exchange release relating to matters that
are not historical facts are forecasts. All forecasts involve known
and unknown risks, uncertainties and other factors, which may cause
the actual results, performances or achievements of Aspocomp Group to
be materially different from any future results, performances or
achievements expressed or implied by such forecasts. Such factors
include general economic and business conditions; increases in PWB
industry capacity and competition; the ability of the company to
implement its investment program and to continue to expand its
business outside the European market.Vantaa, October 31, 2002
ASPOCOMP GROUP OYJ
Board of Directors
For more information, please contact CEO Jarmo Niemi
at +358 9 7597 0711.ASPOCOMP GROUP OYJ
Jarmo Niemi
President and CEO
9(9)DISTRIBUTION:
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