NEO INDUSTRIAL PLC STOCK EXCHANGE RELEASE 12 JUNE 2018 AT 2.00 PM
Neo Industrial: Update of 2018 outlook based on second quarter turnover and operating profit
Neo Industrial Plc (“Neo Industrial or “Company”) announced in its 1.1.2018–31.3.2018 business review published on 24 April 2018 that it will update the outlook of the Company’s financial performance for the rest of the year by 12 June 2018 at the latest.
Due to the weak performance of the first quarter of 2018, the full-year operating result is expected to weaken from last year, albeit to remain notably positive. The update is based on preliminary information on turnover of the second quarter, which is approximately EUR 32.0 million (EUR 32.5 million in the comparative period 1.4.-30.6.2017) and preliminary information on the second quarter operating profit, which is better as compared to previous year, approximately EUR 1.7 million (EUR 1.1 million).
The sanctions concerning the production of aluminum raw materials imposed by United States against Russia have been postponed to October 2018. Due to this, the effects of the sanctions on the availability of aluminum raw materials have for the time being remained smaller than expected. The Company has secured significant part of its aluminum rod deliveries with current contracts. However, the price level of aluminum cables has risen during the first half of 2018, as a result of the current situation in the aluminum market, such as sanctions against Russia and aluminum import duties imposed by the United States.
In its half-year report in 15 August 2018, the Company will provide additional information on the impact of the Anti-Russian sanctions on prices and availability of aluminum raw materials during the third quarter. Neo Industrial’s business is characterized by large variations between quarters and the quarterly performance may vary in different years.
Neo Industrial Plc
Board of Directors
Additional information:
Markku Rentto, Chairman of the Board, Neo Industrial Plc
Tel. +358 40 500 1858
Neo Industrial Plc in Brief:
Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the main list of NASDAQ Helsinki Stock Exchange. Neo Industrial's business segment is Cable Industry. More information: www.neoindustrial.fi/en