Vacon Plc, Stock Exchange Release, 12 February 2015 at 9.30 a.m. (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 highlights:
* Order intake totalled MEUR 108.6 (MEUR 87.7 in October-December 2013), an
increase of 23.9% from the corresponding period in the previous year.
* Revenues totalled MEUR 109.4 (MEUR 97.8), an increase of 11.8% from the
corresponding period in the previous year.
* Operating profit excluding one-time items was MEUR 13.2, or 12.1% of
revenues (MEUR 9.7 and 9.9%).
* Operating profit was MEUR 6.7, or 6.1% of revenues (MEUR 9.7 and 9.9%).
* Net cash flow from operating activities was MEUR 7.3 (MEUR 14.7).
* Earnings per share were EUR 0.21 (EUR 0.22*).
January-December highlights:
* Order intake totalled MEUR 424.7 (MEUR 399.8 in January-December 2013), an
increase of 6.2% from the corresponding period in the previous year.
* Revenues totalled MEUR 409.4 (MEUR 403.0), an increase of 1.6% from the
corresponding period in the previous year.
* Operating profit excluding one-time items was MEUR 47.2, or 11.5 % of
revenues (MEUR 40.6 and 10.1%).
* Operating profit was MEUR 39.7, or 9.7% of revenues (MEUR 40.6 and 10.1%).
* Net cash flow from operating activities was MEUR 35.4 (MEUR 46.7).
* Earnings per share were EUR 1.00 (EUR 0.92 *).
January-December key indicators:
+--------------------------------+------+------+---------+-----+-----+---------+
|MEUR |10-12/|10-12/|Change, %|1-12/|1-12/|Change, %|
| | 2014| 2013| | 2014| 2013| |
+--------------------------------+------+------+---------+-----+-----+---------+
|Order intake | 108.6| 87.7| 23.9%|424.7|399.8| 6.2%|
+--------------------------------+------+------+---------+-----+-----+---------+
|Revenues | 109.4| 97.8| 11.8%|409.4|403.0| 1.6%|
+--------------------------------+------+------+---------+-----+-----+---------+
|Operating profit excluding | | | | | | |
| | | | | | | |
|one-time items | 13.2| 9.7| 36.7%| 47.2| 40.6| 16.2%|
+--------------------------------+------+------+---------+-----+-----+---------+
|% of revenues | 12.1%| 9.9%| |11.5%|10.1%| |
+--------------------------------+------+------+---------+-----+-----+---------+
|Operating profit | 6.7| 9.7| -31.1%| 39.7| 40.6| -2.4%|
+--------------------------------+------+------+---------+-----+-----+---------+
|% of revenues | 6.1%| 9.9%| | 9.7%|10.1%| |
+--------------------------------+------+------+---------+-----+-----+---------+
|Profit before taxes | 6.9| 9.2| -25.0%| 39.8| 39.7| 0.4%|
+--------------------------------+------+------+---------+-----+-----+---------+
|Net cash flow from operating | | | | | | |
|activities | 7.3| 14.7| -50.6%| 35.4| 46.7| -24.1%|
+--------------------------------+------+------+---------+-----+-----+---------+
| | | | | | | |
|Earnings per share, EUR | 0.21| 0.22*| -4.9%| 1.00|0.92*| 9.0%|
+--------------------------------+------+------+---------+-----+-----+---------+
+--------------------------------+-+-+-+------+------+---------+
|MEUR | | | |31.12.|31.12.|Change. %|
| | | | | 2014| 2013| |
+--------------------------------+-+-+-+------+------+---------+
|Order book | | | | 62.2| 46.8| 32.7%|
+--------------------------------+-+-+-+------+------+---------+
|Return on equity, % | | | | 25.6%| 25.4%| |
+--------------------------------+-+-+-+------+------+---------+
| | | | | | | |
|Interest-bearing net liabilities| | | | -10.4| -17.2| -39.7%|
+--------------------------------+-+-+-+------+------+---------+
|Gearing, % | | | | -8.3%|-14.7%| |
+--------------------------------+-+-+-+------+------+---------+
|Gross capital expenditure | | | | | | |
| | | | | 24.1| 19.7| 22.0%|
+--------------------------------+-+-+-+------+------+---------+
* The figures have been adjusted to take into account the increase in the number
of shares after the share split.
President and CEO Vesa Laisi: Vacon's order intake, revenues and operating
profit increased in final quarter of 2014
"According to preliminary estimates from AC drive market surveys, the AC drive
market did not grow significantly in 2014, but the market showed signs of
picking up towards the end of the year.
I am pleased with the way our personnel have managed to focus on meeting
customer needs despite the change in ownership taking place in our company. Our
volume of orders recorded a solid increase in the final quarter of 2014. This
places us in a strong position as we move into 2015. Revenues also increased in
the fourth quarter compared to the previous year.
The company's operating profit excluding one-time items improved both in the
final quarter and for the whole of 2014. Efficient material sourcing and the
cost benefits from transferring material sourcing to lower cost countries have
been key factors in improving the company's profitability.
Vacon has been part of the Danfoss Group since 1 December 2014. Danfoss
announced in September 2014 that it was making a voluntary public tender offer
to purchase all Vacon shares. By the end of November Danfoss had obtained all
necessary approvals from the authorities and had acquired more than 90% of the
shares and voting rights in Vacon. At present Danfoss holds some 98% of the
total Vacon share stock.
Combining the AC drive operations of Vacon and Danfoss creates one of the
leading players in the global drives market that can take advantage of the best
features of both companies. Bringing together two strong and innovative AC drive
manufacturers offers customers an even more competitive, innovative and
attractive range of AC drives. Joining forces also means that the new business
can invest more in R&D and in the sales force, which is an important factor in
the success of our business. A dedicated focus on AC drives is a common feature
for Vacon and Danfoss Power Electronics, and distinguishes these two companies
from their competitors."
Prospects for 2015
Global megatrends, such as urbanization, increasing industrial automation,
energy efficiency, developing markets and renewable energy, all support growth
in the AC drive market in the long term.
In the assessment of market research institutions, the AC drive market has
hardly grown at all during the past three years. A major factor in this has been
the overall economic uncertainty, which has caused industrial investment to slow
down.
During 2015 Vacon and Danfoss will merge their AC drive business operations.
Combining Vacon and Danfoss creates one of the leading players in the global AC
drive sector, which can take advantage of the best features of both companies.
Market guidelines for 2015
Vacon estimates that its revenues will increase and its operating profit
percentage excluding one-time items will improve from 2014.
Vacon's revenues in 2014 totalled EUR 409.4 million and the operating profit
percentage excluding one-time items was 11.5%.
Vacon's financial targets until 2020
Vacon published new long-term financial targets and a revised strategy for the
period 2014-2020 in November 2013.
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.
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 31 countries. Further,
Vacon has sales representatives and service partners in nearly 90 countries. In
2014, Vacon's revenues amounted to EUR 409.4 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). Vacon is
part of Danfoss Group.
Driven by Drives, www.vacon.com
Vantaa, 12 February 2015
VACON PLC
Board of Directors
For more information please contact:
* Vesa Laisi, President and CEO, Vacon Plc, phone +358 (0)40 8371 510,
vesa.laisi(at)vacon.com
* Pia Aaltonen-Forsell, CFO, Vacon Plc, phone +358 40 8371 910, pia.aaltonen-
forsell(at)vacon.com
* Sebastian Linko, Director, Corporate Communications and Investor Relations,
Vacon Plc, phone +358 (0)40 8371 634, sebastian.linko(at)vacon.com
Distribution:
NASDAQ OMX Helsinki
Financial Supervisory Authority
Main media
ATTACHMENTS
[HUG#1893888]
Vacon Plc Financial Statement Bulletin 1 January - 31 December 2014
| Source: Vacon.
Attachments
