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Electronics Production | October 28, 2009

Lower sales for Elcoteq in Q3

Elcoteq's third-quarter net sales totaled 331.7 million euros (436.0 million euros in April-June 2009).
Operating income continued to improve and totaled -3.3 million euros, and excluding restructuring costs amounted to -1.6 million euros (-11.5 in April-June 2009). Cash flow after investing activities in July-September was positive at 42.7 million euros (72.2 in April - June 2009 and -66.7 July-September 2008). Interest bearing net debt decreased by 114.2 million euros compared to July - September 2008. The equity project proceeded, and Elcoteq signed a Letter of Intent with Videocon. The company is also continuing to restructure its balance sheet.

July - September
- Net sales 331.7 million euros (740.5 in July - September 2008)
- Operating loss -3.3 million euros (0.3), and excluding restructuring costs -1.6 million euros (0.3)
- Loss before taxes -7.5 million euros (-6.8)
- Earnings per share (EPS) -0.19 euros (-0.35)
- Cash flow after investing activities 42.7 million euros (-66.7)
- Rolling 12-month return on capital employed (ROCE) -14.4% (-5.6%)
- Gearing 2.6 (1.7)

January - September
- Net sales 1,237.7 million euros (2,554.1 in January - September 2008)
- Operating loss -53.1 million euros (-8.6), and excluding restructuring costs -37.4 million euros (-8.6)
- Loss before taxes -80.8 million euros (-27.7)
- Earnings per share (EPS) -2.26 euros (-1.13)
- Cash flow after investing activities 64.2 million euros (-146.3)
- Interest-bearing net debt 173.2 million euros (287.4)
July - September

The Group's net financial expenses were 4.1 million euros (7.0). Loss before taxes was -7.5 million euros (-6.8) and net loss totaled -6.3 million euros (-11.5). Earnings per share (EPS) were -0.19 euros (-0.35).

The Group's gross capital expenditures on fixed assets between July and September were 1.1 million euros (17.2), or 0.3% of net sales. Depreciation amounted to 13.5 million euros (20.5). Investments have been reduced to a minimum to increase existing asset capacity utilization ratios.

Cash flow after investing activities remained positive and was 42.7 million euros (-66.7). Elcoteq had no sold accounts receivable at the end of September (115.4). The company has continued actions to lower its working capital level, especially by optimizing material flows.

At the end of September 2009, Elcoteq had cash and unused but immediately available credit lines totaling 231.0 million euros (187.0). These credit limits included a 230 million euro syndicated, committed credit facility. The refinancing of the existing 230 million euro credit facility, the debenture conversion to equity and the completion of the equity increase are seamlessly linked to each other. Thus a new re-financing solution for the existing 230 million euro credit facility is now under negotiation.

At the end of September, the Group's interest-bearing net debt amounted to 173.2 million euros (287.4). Net debt decreased by 20% from the second quarter of 2009. The solvency ratio was 9.7% (15.9% at the end of September 2008) and gearing was 2.6 (1.7). Rolling 12-month return on capital employed (ROCE) was -14.4%
(-5.6%).

January - September

Net sales in January - September decreased significantly compared to the same period last year, standing at 1.237,7 million euros (2.554,1 in January - September 2008). Operating loss was -53.1 million euros (-8.6), excluding restructuring costs -37.4 million euros. Loss before taxes was -80.8 million euros (-27.7). Earnings per share (EPS) were -2.26 euros (-1.13). Cash flow after investing activities improved significantly from last year's comparable period and was positive at 64.2 million euros (-146.3).

Gross capital expenditures on fixed assets in January - September amounted to 4.6 million euros (61.5), 0.3% of net sales. Depreciation totaled 48.4 million euros (55.8).

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December 13 2017 10:15 PM V8.9.2-2