Elettronica
Vacon Plc Interim report 1 January - 31 March 2014
Vacon Plc, Stock Exchange Release, 23 April 2014 at 9.30 am (EET)
In this stock exchange release Vacon is publishing information included in the interim report that has a significant impact on the value of securities. The full interim report is in the appendix to this release and can be downloaded from the company's website in Finnish at www.vacon.fi and in English at www.vacon.com .
January-March highlights:
January-March key indicators:
President and CEO Vesa Laisi: Order intake increased in the first quarter
"I am particularly satisfied with the way Vacon personnel succeeded in getting order intake back on a growth track during the first quarter. This places us in a good position for increasing revenues in 2014.
The volume of orders received increased in the January-March 2014 period 4.6% from the corresponding period in the previous year and 19.6% from the final quarter in 2013. We cannot be satisfied with how revenues developed in the first quarter. The main reason for the slight fall in revenues was the low order intake in the final quarter of 2013. Profitability improved from the corresponding period in the previous year. The low level of revenues did however have a negative impact on profitability.
In January 2014 we launched the new VACON NXP System Drive product range, which expands our product offering for system integrators. The new product range of standardized AC drives offers customers cost-efficiency, reliability and uniform quality. Our strong, continuously upgraded product offering creates outstanding potential for further raising our market share.
Early in 2014 we had the honour of welcoming special guests to Vacon, when President Barack Obama and US Secretary of Energy Ernest Moniz visited our R&D center in Research Triangle Park in North Carolina. The visit was part of the president's tour of North Carolina. This brought Vacon excellent visibility in North America.
Vacon's new vision, The Drives Family, was created together with personnel in 2013. We have started to introduce the new vision within our own organization and stakeholders. Our unique corporate culture is one of our success factors and nurturing this is one of our most important goals."
Prospects for 2014
Market research institute IHS estimates that the AC drive market is growing at an average rate of 7% in the period 2012-2017. Global megatrends, such as urbanisation, increase in industrial automation, energy efficiency, developing markets and renewable energy, all support growth in the AC drive market. Growth in the AC drive market varies from year to year, and even from one quarter to another, but as a general rule it is estimated that the AC drive market grows much faster than global average growth in gross national product.
There are uncertainties relating to general developments in the market in 2014. Vacon estimates that the AC drive market will grow some 5-10% in 2014, depending on general developments in the market. During the past few years the Company has expanded and renewed its product offering, which places the Company in a strong position to grow faster than the AC drive market in 2014. The orders received in the January-March period support growth in the Company's revenues during the remainder of the year.
Vacon's goal is to improve profitability in 2014. Key factors contributing to an improvement in profitability are the cost benefits from transferring material sourcing to lower cost countries and raising overall efficiency in operations.
Market guidelines for 2014
Vacon is retaining the market guidelines it published earlier and estimates that its revenues will increase 5-15% and its operating profit percentage excluding one-time items will be 11-13% in 2014.
Revenues in 2013 totalled EUR 403.0 million and the operating profit percentage excluding one-time items was 10.1%.
Vacon's financial targets for the period 2014-2020
Growth: The target is to achieve an average annual revenue growth of over 10%. The growth target is based on growing the business organically in a market environment where the AC drives market grows clearly faster than the average Gross Domestic Product (GDP). Selective acquisitions can be used to further accelerate the growth.
Profitability: The long-term profitability target is to achieve a sustainable EBIT margin level of 14%. Vacon focuses on growth and on measures that improve the company's efficiency in the long term and thus deliver a higher absolute EBIT and shareholder value.
Vacon does not consider the long term financial targets as market guidance for any given year during the period 2014-2020. It will issue separate market guidance annually.
Financial reports in 2014
Vacon is publishing two interim reports in 2014 as follows:
Formal statement
This release contains certain forward-looking statements that reflect the current views of the company's management. Due to the nature of these statements, they contain risks and uncertainties and are subject to changes in the general economic situation and in the company's business sector.
Vacon in brief
Vacon is driven by a passion to develop, manufacture and sell the best AC drives and inverters in the world - and provide customers with efficient product lifecycle services. Our AC drives offer optimum process control and energy efficiency for electric motors. Vacon inverters play a key role when energy is produced from renewable sources. Vacon has production and R&D facilities in Europe, Asia and North America, and sales offices in 30 countries. Further, Vacon has sales representatives and service partners in nearly 90 countries. In 2013, Vacon's revenues amounted to EUR 403.0 million, and the company employed globally approximately 1,600 people. The shares of Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange (NASDAQ OMX Helsinki).
Driven by Drives, www.vacon.com
Vaasa, 23 April 2014
VACON PLC
Board of Directors
For more information please contact:
Conference for media and analysts
A briefing for the financial analysts and media will be held on 23 April 2014 at Pörssitalo, Fabianinkatu 14 A, 2nd floor, Helsinki (entrance via NASDAQ OMX Helsinki's reception) at 11:30 am Finnish time (EET).
Dial-in conference for investors and investment analysts
A dial-in conference for investors and investment analysts will be held at 3.00 pm on 23 April 2014. President and CEO Vesa Laisi, CFO Ann-Louise Brännback and Director, Corporate Communications and Investor Relations Sebastian Linko will participate in the conference. Please call (Finland Toll +358(0)9 6937 9543) or (UK Toll +44(0)20 3427 1901) and request to be connected to the Vacon call (Confirmation code 3132678). A recording of the conference will be available for seven days at (Finland Toll +358 (0)9 2310 1650) or (UK Toll +44 (0)20 3427 0598) and access code 3132678#.
The presentation material will be available before the start of the briefing at the Vacon's website www.vacon.com > Investors > Reports and presentations.
Distribution:
NASDAQ OMX Helsinki
Financial Supervisory Authority
Main media
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http://hugin.info/132524/R/1778884/607653.pdf
http://hugin.info/132524/R/1778884/607641.pdf
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