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Q4 sales expand 18.6% at Finnish composites maker Exel

20 Feb '15

3 min read

Net sales at Finnish manufacturer of composite profiles and tubes, Exel Composites expanded 18.6 per cent from a year ago quarter in the fourth quarter ended December 31, 2014.

In a press release, Exel said its net sales totaled €21.1 million, up 18.6 per cent on the previous year’s fourth quarter of €17.8 million.

Operating profit in the reporting quarter improved by 39.2 per cent to €2.1 million as against €1.5 million and stood at 9.8 per cent of net sales compared to 8.4 per cent in the same quarter of 2013.

Net cash flow from operating activities in the quarter under review was positive at €3.8 million from €2.9 million in the prior year quarter.

Exel added that fully diluted earnings per share for the fourth quarter of 2014 reached €0.12 as against €0.07 in the fourth quarter from the previous year.

For the full year of 2014, net sales increased to €79.3 million, also up 14.4 per cent on the previous year.

Operating profit expanded by a massive 83.5 per cent to €8.9 million from €4.8 million and was 11.2 per cent of net sales as against 7.0 per cent of net sales in the corresponding quarter of 2013.

Here too, net cash flow from operating activities was positive at €10.7 million compared to €7.8 million.

For the full year of 2014, diluted earnings per share totaled €0.48 from €0.26 in the same quarter of 2013.

The Exel board of directors has proposed a dividend of €0.20 per share be paid for the financial year 2014.

For 2015, Exel sees positive signs in its key market segments. However, uncertainties relating to general growth prospects in the economy continue, it informed.

The composites maker will implement its new strategy by reinforcing the organisation, especially in sales resources, product development and operations development and by increasing its capacity.

According to Exel, these efforts are expected to reduce the 2015 operating profit margin compared to 2014, but will position it better for long-term profitable growth.

The CEO at Exel said, “The Company got back on growth mode and the financial performance was greatly improved leading to a double digit operating profit margin.”

“Our order intake increased significantly, net operative cash flow was strongly positive at year end and EBIT improved more than 80 per cent from the previous year,” he added.

According to the CEO, the biggest sales growth in absolute terms in 2014 came from Europe and turnaround measures in Australia were completed.

“However, the financial performance of the Australian unit was not satisfactory in 2014. The focus in Australia is now on generating more sales,” he noted.

Exel released its new growth strategy in November 2014, which focuses on accelerating growth in China, penetrating new applications and market segments and creating a true global footprint.

In line with the strategy, the Nanjing unit in China will be expanded in order to double the production capacity and is estimated to be completed during the first half of 2016. (AR)

Fibre2fashion News Desk - India