Incap Oyj : Incap lowers its estimate for revenue in 2013 and continues with
the action plan aimed at improved profitability
Stock Exchange Release 10 April 2013 at 8.30 a.m.
INCAP LOWERS ITS ESTIMATE FOR REVENUE IN 2013 AND CONTINUES WITH THE ACTION
PLAN AIMED AT IMPROVED PROFITABILITY
Incap Corporation estimates that the Group's revenue in 2013 will be lower
than in 2012, when it amounted to EUR 64.1 million. Previously on 19 March
2013 Incap estimated that the Group's revenue in 2013 will be at the same
level or somewhat lower than in 2012. The company retains its previous
estimate for profitability and estimates that the full-year operating result
(EBIT) will be clearly positive. The operating result in 2012 was negative EUR
The decrease in revenue is caused by the fact that the purchase of a part of
the materials needed in production has temporarily been transferred over to
some customers. This way the deliveries to customers are secured, while the
company's challenging financial situation has weakened the availability of
materials. The transfer of responsibility for material purchase is a temporary
Action plan for improved profitability
One of the most important objectives of the company in 2013 is the improvement
of profitability. The actions taken during 2011 have already resulted in a
profitability improvement of approx. EUR 1 million in 2012. By enhanced
material sourcing, closing down the Helsinki factory and centralising
corporate functions to Estonia the company estimates to gain further savings
of approx. EUR 2.3 million in 2013.
Furthermore, the company has launched in the beginning of 2013 an action plan,
which shall improve the operating result (EBIT) of the year 2013 by a total of
approx. EUR 1.8 million.
The respective actions are focused on the operations in Finland and in
Estonia. There have been substantial actions for increased operational
efficiency in the subsidiary in India already during 2012, which have for
their part contributed to the positive development of the performance of the
In order to decrease the overhead expenses the organisation structure of the
Group will be streamlined. The corporate functions in Finland have been
decreased to a half compared with the previous situation. Some tasks will be
transferred from Finland to Estonia and India, and functions are centralised
to the factories. These actions will result in improved efficiency among
others in finance, sourcing and IT.
The production will be made more efficient and adjusted both in Estonia and in
Finland. The number of personnel in production has been reduced. Working hours
in Kuressaare have been cut down and all the personnel in the factory will
work only on four days a week during April and May. A new production control
model has been introduced in the Vaasa factory, and also the rewarding system
in the factory is about to be renewed. Actions for improved turn of
inventories and decreased material prices will be continued.
President and CEO
For additional information, please contact:
Sami Mykkänen, President and CEO, tel. +358 40559 9047 or +372 5553 7905
Kirsti Parvi, CFO, tel. +358 50517 4569
Hannele Pöllä, Director, Communications and Investor Relations, tel. +358 40
NASDAQ OMX Helsinki Ltd
INCAP IN BRIEF
Incap Corporation is an internationally operating contract manufacturer whose
comprehensive services cover the entire life-cycle of electromechanical
products from design and manufacture to repair and maintenance services.
Incap's customers include leading equipment suppliers in energy efficiency and
well-being technologies, for which the company produces competitiveness as a
strategic partner. Incap has operations in Finland, Estonia, India and China.
The Group's revenue in 2012 amounted to approximately EUR 64.1 million, and
the company currently employs approximately 610 people. Incap's share is
listed on the NASDAQ OMX Helsinki Ltd. Additional information: www.incap.fi.
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Incap Oyj via Thomson Reuters ONE
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