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03
May
2012
Fiscal Report

Incap's revenue falls

Incap has released its first quarter results for 2012, showing a decline in revenue.
- Revenue in January-March was EUR15.6 million (Jan-Mar 2011: EUR 16.0 million) 
- Operating profit (EBIT) was EUR -0.3 million (EUR -0.4 million) 

Sami Mykkänen, President and CEO of Incap Group:

"Revenue for January-March was lower than for the fourth quarter of 2011, as was expected. Demand especially for the products for energy efficiency segment was good both in Europe and in India. Transferring the products from the Helsinki plant to our other plants is proceeding according to plans in close collaboration with our customers, and the manufacturing activity will end at the Helsinki plant in July. We are now about to finalise the change in production structure, which aims at creating a solid basis for profitable operations."

"Our aim for 2012 is to increase revenue moderately and profitably. Demand in the company's strategic customer segments is expected to develop stably, although the market outlook is typically very short-term. According to estimates received from the customers, demand for energy-efficient equipment and equipment related to renewable sources of energy is, in particular, expected to remain high. We will continue our efforts to improve profitability. We will especially pursue savings in material costs, aiming at increased margins and improved competitiveness."

Revenue and net profit January-March 2012

Revenue for the first quarter of 2012 amounted to EUR 15.6 million, down 3% year-on-year. Typical of the industry, the first quarter of the year is slower than the others, and revenue for January-March 2012 decreased by approximately 8% compared to the previous quarter. Demand was strong in products for the energy industry in particular, and the full-year outlook is positive for them.

The operating result for January-March was EUR -0.3 million, which is approximately EUR 0.1 million better than the corresponding period the previous year. Low revenue level and extra costs for the closure of the Helsinki factory affected the result. In addition, fixed costs were exceptionally high during the review period due to the service and maintenance work carried out.

Outlook for 2012

Incap reiterates its previous forecast and estimates that its revenue in 2012 will increase from the EUR 68.9 million achieved in 2011. The Group's full-year operating result (EBIT) in 2012 is expected to be positive and, thus, clearly higher than in 2011 (EUR -1.6 million).
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