INTERIM REPORT 1 JANUARY – 31 MARCH 2004
Stock exchange release – Published: 05.05.2004 8:00:05
INTERIM REPORT 1 JANUARY - 31 MARCH 2004
ETTEPLANS TURNOVER UP BY 18 %; OPERATING PROFIT 6,0 % OF TURNOVER
- Consolidated turnover: EUR 14,3 million (12,1 million)
- Operating profit: EUR 0,9 million (1,0 million)
- Earnings per share: EUR 0,09 (0,12)
- Personnel: 926 employees (825)
(Figures in brackets are those for the same period in 2003 unless
otherwise stated.)
The Etteplan Groups turnover increased during January - March in
consequence of improved market situation. Operating profit per cent
of turnover improved considerably compared to both previous quarter
and the entire fiscal year 2003 as a result of both higher work-load
and improved efficiency of internal functions. Profitability has
improved in all major market areas, but especially in international
operations.
Turnover and result
Etteplans turnover grew to EUR 14,3 million (12,1 million), due to
clearly improved demand situation.
Operating profit was EUR 0,9 million (1,0 million), or 6,0 % of
turnover (8,2 %). The amount of work in progress increased compared
to the equivalent period in 2003, which in its part decreases the
reported operating profit. Profit for the financial period before
extraordinary items and taxes was EUR 0,9 million (1,0 million).
Net profit was EUR 0,4 million (0,5 million). Earnings per share
were EUR 0,09 (0,12). Equity per share decreased by 12,3 % and was
EUR 2,43 (2,77).
Return on investment improved clearly compared to previous year,
being 24 %. It was, however slightly poorer than in the comparison
period (26,8 %).
Business Operations
Etteplan acts as a partner of large and medium-sized internationally
operating industrial companies, carrying out entire design projects
or continuous product development and equipment design. The Groups
design services consist of 1) machine technology and mechatronics
design, 2) automation and electrical design as well as 3) electronics
and software design. The customers are equipment manufacturers and
end-users in the wood-processing industry as well as processing,
automotive, lifting and hoisting and electronics industry.
Major events in the first quarter
The market situation has improved especially in wood processing
industry as well as in materials handling equipment-manufacturing
industry.
During the report period the company has received new significant
assignments. Among others can be mentioned designing of 28 steel
lift shafts to MacGREGOR (FIN) Oy as well as several design
assignments of paper machine sections to Metso Paper Oy.
In March, Etteplan Oyj held its Annual General Meeting, at which
the Board of Directors was authorized:
- to decide within one year from the Annual General Meeting on
the floating of one or more issues of convertible bonds and/or the
granting of stock options and/or to decide on increasing the share
capital by offering in one or more instalments a maximum of 854,921
shares with an accounting counter value of EUR 0.10 at a price
determined by the Board of Directors and otherwise on the terms
and conditions decided by the Board of Directors.
- to decide on buying back the companys own shares (treasury
shares) in one or more instalments such that the company can buy
back a maximum of 213,730 of the companys shares with an accounting
counter value of EUR 0.10 using distributable funds in disproportion
to shareholders existing shareholdings.
- to decide, on the basis of the authorization passed as a
resolution, on the transfer of the companys treasury shares in
one or more instalments. The authorization granted to the Board of
Directors comprises the right to transfer a maximum of 213,730
shares with an accounting counter value of EUR 0.10 such that the
aggregate accounting counter value of the shares to be transferred
and the votes conferred by them is a maximum of five (5) per cent
of the companys share capital and the total voting rights conferred
by the shares.
Personnel
The operations and number of personnel of the Etteplan Group have
grown steadily. During the report period the Group employed an
average of 926 persons (825) and at the end of the period the
payroll numbered 942 employees (823). Increases in the number of
staff were due to transferred business activities and were nearly
entirely directed to the carrying out of customer projects. The
Groups personnel at units abroad numbered 222 employees.
Capital expenditures and financing
The Groups total capital expenditures increased by 17,2 % compared
with the same period a year earlier and totalled EUR 0.5 million
(0,4 million). The investments went for the purchase of computer
software and hardware as well as for the development of information
networks.
Etteplans financial position remained strong. Total assets at
31 March 2004 stood at EUR 27.2 million (25.2 million), of which
cash and cash equivalents as well as securities held as financial
fixed assets totalled EUR 7.1 million (5.5 million). The Groups
interest-bearing liabilities at the end of the period totalled
EUR 0.9 million (1.0 million). As a result of the book entry of
dividend resolution made in the Annual General Meeting the equity
ratio decreased to 46.2 % (55.2 %). Good liquidity was maintained
throughout the report period and operating cash flow was
EUR 1.3 million.
Share capital and treasury shares
At 31 March 2004 the company held 100 treasury shares, corresponding
to 0.0 % of the entire shares outstanding. The consideration paid
for the shares amounted to EUR 481.00. During the report period the
company has not bought back its shares. The companys treasury
shares do not have an effect on the proportional distribution of
shareholdings.
Major events after the report period
The company signed in April a Letter of Intent according to which
19 designers from Metso Paper Como S.p.A will be transferred to the
service of Di&Esse Etteplan Srl, an associated company of Etteplan.
At the same time the companies agreed on partnership based co-
operation. The business trade means on annual level approximately
two per cent volume increase to the Group.
Also in April Etteplan and MacGREGOR (FIN) Oy signed a general
agreement concerning delivery of design services for lift shafts in
ships. The first assignment is to design utilizing the MacGREGOR
plug-in technology 28 steel lift shafts to Ultra Voyanger cruiser,
which is under construction in Turku, Finland.
Near-term outlook
Demand for capital goods is expected to slightly increase in
companys main marketing area in North and Central Europe in all
industrial sectors also during the current quarter.
Companys main objective is continuation of profitable growth. The
growth is achieved organically when customers transfer their design
activities to Etteplan and by acquisitions. The company works
persistently and systematically to ensure the realization of growth
objectives.
Hollola, 5 May 2004
Etteplan Oyj
Board of Directors
For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063.
The figures are unaudited.
DISTRIBUTION: Helsinki Exchanges
Principal media
www.etteplan.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1000)
1.1.-31.3.04 1.1.-31.3.03 1.1.-31.12.03
TURNOVER 14 259 12 132 50 662
Variation in work in progress 253 -34 110
Other operating income 8 7 134
Materials and services -264 -77 -1 087
Staff expenses -10 771 -8 707 -38 312
Depreciation and amortisation
according to plan -491 -383 -1 791
Other operating expenses -2 138 -1 910 -7 193
Share of losses from
participating interests 0 -34 -128
OPERATING PROFIT 856 992 2 395
" % 6,0 8,2 4,7
Financial income and expenses -2 -12 49
PROFIT BEFORE
EXTRAORDINARY ITEMS 854 981 2 444
Extraordinary items 0 0 0
PROFIT BEFORE APPROPRIATIONS
AND TAXES 854 981 2 444
Income taxes -331 -337 -1 054
Change in deferred tax liability 1 0 -11
Minority interest -146 -113 -416
NET PROFIT FOR THE PERIOD 378 531 964
" % 2,6 4,4 1,9
CONSOLIDATED BALANCE SHEET (EUR 1000)
1.1.-31.3.04 1.1.-31.3.03 1.1.-31.12.03
ASSETS
NON-CURRENT ASSETS
Intangible assets 4 140 2 315 4 308
Tangible assets 3 297 3 143 3 361
Own shares 0 139 0
Other investments 415 2 352 443
NON-CURRENT ASSETS, TOTAL 7 852 7 949 8 112
CURRENT ASSETS
Stocks 1 095 469 843
Current receivables 11 189 11 278 10 518
Marketable securities 0 1 332 796
Cash and cash equivalent 7 068 4 179 5 810
CURRENT ASSETS, TOTAL 19 352 17 258 17 968
ASSETS, TOTAL 27 204 25 207 26 080
SHAREHOLDERS EQUITY AND LIABILITIES
SHAREHOLDERS EQUITY
Share capital 427 427 427
Share premium account 5 058 5 058 5 058
Reserve for own shares 0 139 0
Retained earnings 4 520 5 768 5 923
Net profit for the period 378 531 964
SHAREHOLDERS EQUITY, TOTAL 10 383 11 924 12 372
MINORITY INTERESTS 1 879 1 844 2 194
LIABILITIES
Deferred tax liabilities 197 187 198
Long-term liabilities 734 794 1 065
Current liabilities 14 010 10 458 10 249
LIABILITIES, TOTAL 14 941 11 439 11 513
SHAREHOLDERS EQUITY AND
LIABILITIES, TOTAL 27 204 25 207 26 080
KEY FIGURES FOR ETTEPLAN GROUP (EUR 1000)
Changes
1.1.-31.3.04 1.1.-31.3.03 1.1.-31.12.03 for prev.
year
Turnover 14 259 12 132 50 662 17,5 %
Operating profit 856 992 2 395 -13,8 %
% of turnover 6,0 8,2 4,7
Profit before extra-
ordinary items 854 981 2 444 -13,0 %
Net profit for
the period 378 531 964 -28,9 %
Return on investment, % 24,0 26,8 16,1
Return on equity, % 15,6 18,5 9,6
Equity ratio % 46,2 55,2 57,2
Gross interest-bearing
loans 888 976 1 197 -9,0 %
Dept-equity ratio, % -50,4 -33,3 -37,1
Total balance 27 204 25 207 26 080 7,9 %
Gross investments 483 412 2 772 17,2 %
Earnings per share 0,09 0,12 0,23 -25,0 %
Equity per share 2,43 2,77 2,89 -12,3 %
Personnel at the end
of the period 942 823 936 14,5 %
Personnel, average 926 825 876 12,2 %
CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)
1.1.-31.3.04 1.1.-31.3.03 1.1.-31.12.03
OPERATING CASH FLOW
Cash receipts from customers 13 737 8 935 48 063
Other operating income 8 7 109
Operating expenses paid 12 158 10 078 44 117
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 1 587 -1 137 4 055
Interest and payment paid for
financial expenses 13 26 59
Interest received 10 15 98
Dividend received 0 0 11
Income taxes paid 331 337 1 054
OPERATING CASH FLOW (A) 1 254 -1 485 3 051
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 483 412 2 759
Sales of tangible and
intangible assets 0 0 203
Investments to other investments 0 5 13
INVESTMENT CASH FLOW (B) -483 -417 -2 569
FINANCING CASH FLOW
Short-term loans, increase 0 255 0
Short-term loans, decrease 0 0 78
Long-term loans, increase 0 0 269
Long-term loans, decrease 309 2 0
Dividends paid and other
profit distribution 0 0 1 227
FINANCING CASH FLOW (C) -309 -253 -1 035
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-) 462 -1 649 -553
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 6 606 7 160 7 160
ASSETS AT THE END
OF THE FINANCIAL PERIOD 7 068 5 511 6 606
