© ingrid prats Electronics Production | February 27, 2013

Incap's revenue did not meet expectations

2012 was a challenging year for Incap – with a restructuring process aiming for one production plant in each of its countries of operation – the company had a lot on its plate.
January–December 2012:
  • The Group’s revenue in 2012 amounted to EUR 64.1 million, a decrease of approximately 7% year-on-year (2011: EUR 68.9 million).
  • Revenue generated by the operations in India grew by 37% from the previous year and the earnings trend also exceeded expectations
  • Full-year operating result (EBIT) improved year-on-year and was EUR -0.7 million (EUR -1.6 million)

October–December 2012:
  • Revenue for the final quarter of 2012 amounted to EUR 14.5 million (EUR 16.9 million for the same period in 2011)
  • revenue was decreased by the elimination of certain products from the manufacturing programme and the partial postponement of deliveries to early 2013
  • operating result (EBIT) was EUR -0.6 million (EUR -0.6 million)

Sami Mykkänen, President and CEO of Incap Group:
“In many aspects, the year 2012 was very challenging. Our revenue decreased from the previous year, mainly because slot machines and certain products made at the Helsinki plant with lower profitability were eliminated from the manufacturing programme. As a result of this development, there was a distinct change in the structure of our customer base and the share of well-being technology products in the Group’s revenue decreased clearly.

Demand for our services at profitable prices was bigger than what we were able to fulfill. Here, our financial situation was a bottleneck offering us challenges when obtaining components for production.”

The closure of the Helsinki plant in 2012 was the last phase of the company’s strategic change to production structure, creating the prerequisites for profitable growth. Reduction of the number of plants and other efficiency improvements in production, together with the streamlining of the Group services, will improve the company’s profitability in 2013.

Incap estimates that the Group’s revenue in 2013 will be the same or somewhat lower than the EUR 64.1 million achieved in 2012. The company estimates that its full-year operating result (EBIT) will be clearly positive. In 2012 the operating result was negative EUR -0.7 million.


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