Elettronica
Vacon Plc Financial Statement Bulletin 1 January - 31 December 2013
Vacon Plc, Stock Exchange Release, 6 February 2014 at 9.30 am (EET)
In this stock exchange release Vacon is publishing information that has a significant impact on securities included in the financial statements. The full financial statements are in the appendix to this release and can be downloaded from the company's website in English at www.vacon.com and in Finnish at www.vacon.fi.
October-December summary:
January-December summary:
October-December key indicators:
January-December key indicators:
*Figures adjusted in accordance with IAS 19. More details of changes in IFRS standards are given in the final section of this interim report.
Business environment and business development
In 2013, Vacon increased its revenues and improved its profitability in the challenging state of the market. In the company's assessment, the growth in the AC drive market remained slow in 2013.
Orders declined in October-December 2013 from the period for comparison. In the Europe, Middle East and Africa (EMEA) region, orders increased apart from the products for the generation of renewable energy, where the volume of orders fell. As a whole, orders in the EMEA region were on a lower level than during the period for comparison. The decline in orders in the Asia Pacific (APAC) region was due to seasonal fluctuation in orders from a few clients. The decline in orders in the North and South America region was spread among several industrial segments.
Vacon's order intake was in 2013 nearly on the same level as in the previous year. Orders in the EMEA and APAC regions increased a little in 2013. Orders in North and South America declined in January-December 2013.
Vacon's revenues declined in October-December 2013. Factors in this decline were the postponement of certain customer deliveries to 2014 and the fall in sales of products for the generation of renewable energy in the EMEA region. Regionally, revenues increased in October-December in the APAC region, but fell in the EMEA and North and South America regions.
In January-December 2013 Vacon's revenues increased from the period for comparison. Revenues increased e.g. for products for building automation and renewable energy production. In 2013 revenues rose in the EMEA and APAC regions, but fell in North and South America. Vacon has taken additional measures to put orders and revenues in North and South America on a growth track in 2014.
In 2013, the company's profitability clearly improved from the period for comparison, but the profitability of the year's final quarter was weaker than during the period for comparison due to the decline in revenues. A particular factor in the improvement in the profitability in 2013 was the cost benefits obtained from transferring material sourcing to lower-cost countries.
Vacon has decided to expand its product offering into the market for medium voltage AC drives. In contrast to Vacon's current low voltage AC drives, medium voltage AC drives typically operate on voltages of several kilovolts and at power levels of several megawatts. The global market for medium voltage AC drives is growing, and is currently estimated at USD 2.8 billion (IHS). The first pilot deliveries of Vacon's medium voltage AC drives are scheduled to take place in 2014.
In October 2013 Vacon launched the new VACON® NXP Grid Converter AC drive, which represents the next step in energy optimization, ensuring that e.g. ship and port owners can improve energy efficiency and productivity.
Dividend proposal
The parent company's profit for the 2013 financial year was EUR 23.7 million and the distributable equity of the parent company at the end of the financial year was at EUR 76.6 million. The Board of Directors proposes to the Annual General Meeting of Shareholders, to be held on 27 March 2014, that a dividend of EUR 1.30 per share be paid from the parent company's profit for the 2013 financial year and the remainder of the profit for the financial year be transferred to retained earnings. Under this proposal, a total of EUR 19.8 million would be paid in dividend.
The dividend will be paid to shareholders who are registered on 1 April 2014, the record date for the dividend payment, in the list of shareholders maintained by Euroclear Finland Oy. The dividend payment date is 8 April 2014.
Prospects for 2014
Market research institute IHS estimates that the AC drive market will grow at an average rate of 7% in the period 2012-2017. Global megatrends, such as urbanisation, growth in industrial automation, energy efficiency, developing markets and renewable energy boost growth in the AC drive market. Growth in the AC drive market varies from year to year, even from one quarter to another, but as a general estimate, the AC drive market is growing faster than global average growth in gross national product.
Overall market developments are exposed to various uncertainties in 2014. Vacon estimates that the AC drive market will increase some 5-10 % in 2014, depending on overall market developments. The company has expanded and renewed its product offering in the past few years, which places the company in a strong position to grow faster than the AC drive market in 2014.
Vacon's goal is to improve its profitability in 2014. Key factors in this will be the cost benefits from transferring material sourcing to lower cost countries, and raising overall efficiency in its operations.
Market guidelines for 2014
Vacon 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 years 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.
Financial reports in 2014
Vacon is publishing three 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, 6 February 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 6 February 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 (EET) on 6 February 2014. President and CEO Vesa Laisi, CFO Pia Aaltonen-Forsell and Director, Corporate Communications and Investor Relations Sebastian Linko will participate in the conference. Please call +358(0)9 2310 1619 (Finland Toll) or +44 (0)20 3427 0502 (UK Toll) and request to be connected to the Vacon call (Confirmation code 3157833). A recording of the conference will be available for seven days at +358 (0)9 2310 1650 (Finland Toll) or +44 (0)20 3427 0598 (UK Toll) and access code 3157833#.
The presentation material will be available before the start of the briefing at the Vacon's website www.vacon.com > Investors > Publications and releases.
Distribution:
NASDAQ OMX Helsinki
Financial Supervisory Authority
Main media
Copyright GlobeNewswire
Attachment(s)
http://hugin.info/132524/R/1759680/595257.pdf
http://hugin.info/132524/R/1759680/595263.pdf
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