26% revenue decline for Incap in 2009

Revenue and earnings in October-December 2009 Revenue during the last quarter in 2009 was €17.7 million (2008: €25.8 million) or 31.2% less than during the comparable period in 2008. The revenue was affected especially by decreased deliveries of electrotechnical components. The operating profit was minus €3.7 million (2008: minus €1.2 million) and as a percentage of revenue it was 20.7% negative (4.8% negative). The quarterly result includes €2.5 million of non-recurring expenses due to eventual close down of Vuokatti factory. Revenue of the comparable period in 2008 includes non-recurring expenses of €0.8 million related to production reorganisation. Sami Mykkänen, President and CEO of Incap Group: "The market situation in 2009 was challenging and the economic recession affected the overall demand for Incap's services especially towards the end of the year. The contraction of revenue of about 25% was mainly a result of the controlled ramp-down of high-volume manufacture of telecommunications products in accordance with the strategy." The company will continue the implementation of the new strategy and enhanced operations and services in the selected key industries energy efficiency and well-being technology, a statement reads. The structural change in production capacity was continued - all electronics manufacturing is now concentrated in one European facility. Additional to that, Incap also inaugurated the new facility in India; all product design services were concentrated in India. "Asia will gain more importance for Incap in future both as to the manufacture and the sales", Sami Mykkänen continued.