Incap's revenue dropped 32% in Q1

Incap Groups Q1 revenue was EUR 10.7 million, down by approximately 32% year-on-year, compared to the same period of 2012: EUR 16.0 million. As a result of the decrease in revenue, the operating result (EBIT) declined year-on-year and was EUR -1.4 million (EUR -0.3 million). An impairment of approximately EUR 0.4 million was recorded in the depreciation for the period for the Vuokatti property. the company reiterates its financial guidance and estimates that the Group's revenue in 2013 will be lower than in 2012 and its full-year operating result (EBIT) will be clearly positive. Net profit/loss for the period was EUR -1.9 million (EUR -0.7 million for the same period in 2012). Sami Mykkänen, President and CEO of Incap Group: "Revenue in the first months of this year was lower than in the same period last year and the preceding quarters in 2012. Demand and order intake especially in energy efficiency products exceeded our ability to deliver. The growth of revenue was hampered by the delays in deliveries due to our challenging cash position. In order to solve the situation and ensure the deliveries to customers, some of the responsibility for the purchase of materials was temporarily moved to customers, which decreased revenue. Thanks to the positive development in the order intake we have cancelled the temporary lay-offs which were negotiated to take place among the entire personnel in the Vaasa factory by the end of June. At this moment we estimate that the factory will operate with full capacity at least towards the end of summer. Revenue of the Indian operations grew year-on-year despite the fact that recession decreased slightly the demand for the products delivered to European market. Profitability also continued to improve in India.”