© Electronics Production | February 22, 2012

Incap: operating result better than last year

Incap blamed a shortage of materials and restructuring costs for its negative operating result in 2011. The result is an improvement on last year however.
Incap Group's revenue for 2011 amounted to EUR 68.9 million, up about 16% year-on-year (59.2 million in 2010).

The company said revenue was held back by a global shortage of certain semiconductor components, which impacted the company's delivery capacity.

Incap's operating result for 2011 was EUR -1.6 million, better than the previous year (-3.2 million in 2010).

"The result was affected by a weakened availability of materials and an increase in material costs due to the tsunami in Japan as well as by a non-recurring provision of EUR 0.6 million related to the closure of the Helsinki plant,” a statement by the company said.

Net financial expenses rose to EUR 2.4 million (1.7 million). Depreciation stood at EUR 2.0 million (2.8 million). Loss for the period was EUR 4.0 million (4.9 million).

Restructuring process

The production transfer from the Vuokatti electronics plant to Kuressaar resulted in a reduction of approximately EUR 3 million in personnel expenses in 2011, when compared to 2009.

Incap decided to close its Helsinki plant and to transfer the production to the company's other plants in Vaasa and Kuressaare by the autumn of 2012. The transfer is estimated to result in remarkable savings during the years 2012-2013.

After the production restructuring, Incap will have a production plant in each of its countries of operation: Finland, Estonia and India. In addition, the company has a procurement office in Hong Kong.

Summary of results:

-full-year revenue for 2011 amounted to EUR 68.9 million - increase of about 16% year-on-year (2010: EUR 59.2 million)
-full-year operating result (EBIT) was EUR -1.6 million (EUR -3.2 million)
-operating result (EBIT) excluding non-recurring expenses was positive both for the fourth quarter and the second half of the year
-operating result for the fourth quarter includes non-recurring expenses of approx. EUR 0.6 million for the closedown of the Helsinki factory
-full-year earnings per share stood at EUR -0.21 (-0.33)
-the company's strategic change has been completed and stable basis for profitable growth has been laid
-Incap estimates that the revenue in 2012 grows and the operating result (EBIT) is positive


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