INTERIM REPORT 1 JANUARY – 31 MARCH 2003
Stock exchange release – Published: 07.05.2003 8:00:58
INTERIM REPORT 1 JANUARY - 31 MARCH 2003
ETTEPLANS TURNOVER UP BY 37 % AND NET PROFIT BY 65 %
- Consolidated turnover: EUR 12,1 million (8,8 million)
- Operating profit: EUR 1,0 million (0,6 million)
- Earnings per share: EUR 0,12 (0,06)
- Personnel: 825 employees (604)
(Figures in brackets are those for the same period in 2002 unless
otherwise stated.)
The Etteplan Groups turnover and result developed positively
during January - March. Turnover grew both organically and through
acquisitions. The growth in profitability is a result of both
recovered work-load and efficiency boosting of internal functions.
Turnover and result
Etteplans turnover grew to EUR 12,1 million (8,8 million),
despite the continued tight market situation. The growth in
turnover was most powerful in Finland and in Germany.
Profitability has improved in all major market areas, but
especially in international operations. The growth in
profitability is a result of both recovered work-load and
efficiency boosting of internal functions.
Operating profit was EUR 1,0 million (0,6 million), or 8,2 % of
turnover (6,8 %). Profit for the financial period before
extraordinary items and taxes was EUR 1,0 million (0,6 million).
Net profit was EUR 0,5 million. Earnings per share were EUR 0,12
(0,06). Equity per share grew by 4,4 % and was EUR 2,77 (2,66).
Business Operations
Etteplan acts as a partner of large and medium-sized
internationally operating industrial companies, carrying out
entire design projects or continuous product development and
equipment design. The Groups design services consist of
1) machine technology and mechatronics design, 2) automation and
electrical design as well as 3) electronics and software design.
Operations have been divided on the customer basis into four
different business areas: Pulp & Paper, Lifting and Hoisting,
Production Lines and Electronics. The customers are equipment
manufacturers and end-users in the mentioned business areas.
Major events in the first quarter
In the beginning of January transferred 47 employees from the
Oulu office of Rautaruukki Steels Engineering unit to Etteplan.
Also in the beginning of January began a new subsidiary company
Etteplan Production Lines Oy its operations in the city of
Vantaa. 53 employees from Nextrom Oy transferred to the new
company. Etteplan owns 81 % of the company and Nextrom 19 %.
In March, Etteplan Oyj held its Annual General Meeting, at which
the Board of Directors was authorized:
- to decide within one year from the Annual General Meeting on
the floating of one or more issues of convertible bonds and/or
the granting of stock options and/or to decide on increasing the
share capital by offering in one or more instalments a maximum of
854,921 shares with an accounting countervalue of EUR 0.10 at a
price determined by the Board of Directors and otherwise on the
terms and conditions decided by the Board of Directors.
- to decide on buying back the companys own shares (treasury
shares) in one or more instalments such that the company can
buy back a maximum of 213,730 of the companys shares with an
accounting countervalue of EUR 0.10 using distributable funds
in disproportion to shareholders existing shareholdings.
- to decide, on the basis of the authorization passed as a
resolution, on the transfer of the companys treasury shares in
one or more instalments. The authorization granted to the Board
of Directors comprises the right to transfer a maximum of 213,730
shares with an accounting countervalue of EUR 0.10 such that the
aggregate accounting countervalue of the shares to be transferred
and the votes conferred by them is a maximum of five (5) per cent
of the companys share capital and the total voting rights
conferred by the shares.
Personnel
The operations and number of personnel of the Etteplan Group
have grown steadily. During the report period the Group employed
an average of 825 persons (604) and at the end of the period the
payroll numbered 823 employees (602). Including the associated
companies the total number of personnel at the end of the period
was 924 persons. Increases in the number of staff were due to
transferred business activities and were nearly entirely directed
to the carrying out of customer projects. The Groups personnel
at units abroad, including associated companies, numbered 202
employees.
Capital expenditures and financing
The Groups total capital expenditures decreased by 84,4 %
compared with the same period a year earlier and totalled
EUR 0.4 million (2.6 million). The investments went for the
purchase of computer software and hardware as well as for the
development of information networks.
Etteplans financial position remained strong. Total assets at
31 March 2003 stood at EUR 25.2 million (21.7 million), of which
cash and cash equivalents as well as securities held as financial
fixed assets totalled EUR 5.5 million (5.5 million). The Groups
interestbearing liabilities at the end of the period totalled
EUR 1.0 million (0.9 million). The equity ratio was 55.2 %
(55.7 %). Good liquidity was maintained throughout the report
period.
Share capital and treasury shares
The Annual General Meeting held on 28 March 2001 granted the
Board of Directors authorizations to buy back the companys own
shares and to transfer them within the maximum limits permitted
for a limited company. Etteplan began buying back its own shares
on 19 September 2001. At 31 March 2003 the company held 24,100
treasury shares, corresponding to 0.6 % of the entire shares
outstanding. The consideration paid for the shares amounted to
EUR 139,418.34. During the report period the company has not
bought back of its shares. The companys treasury shares do not
have an effect on the proportional distribution of shareholdings.
Near-term outlook
Because of the uncertainty still prevailing in the world market
the market situation is expected to improve slowly. When the
crises remove it is however presumable that demand for certain
investment goods will improve already at the current quarter.
Despite the factors of uncertainty the management of the company
assumes that the turnover will grow as predicted also during the
second quarter.
Companys main objective is continuation of profitable growth.
The growth is achieved organically when customers transfer their
design activities to Etteplan and by acquisitions. The company
works persistently and systematically to ensure the realization
of growth objectives.
Hollola, 7 May 2003
Etteplan Oyj
Board of Directors
For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063.
The figures are unaudited.
DISTRIBUTION: Helsinki Exchanges
Principal media
www.etteplan.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1000)
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02
TURNOVER 12 132 8 844 37 011
Variation in work in progress -34 4 196
Other operating income 7 2 66
Materials and services -77 -109 -347
Staff expenses -8 707 -6 242 -26 387
Depreciation and amortisation
according to plan -383 -402 -1 744
Other operating expenses -1 910 -1 370 -5 852
Share of losses from
participating interests -34 -127 -219
OPERATING PROFIT 992 599 2 724
" % 8,2 6,8 7,4
Financial income and expenses -12 -5 29
PROFIT BEFORE
EXTRAORDINARY ITEMS 981 595 2 753
Extraordinary items 0 -1 0
PROFIT BEFORE APPROPRIATIONS
AND TAXES 981 594 2 753
Income taxes -337 -232 -1 020
Change in deferred tax liability 0 -1 -29
Minority interest -113 -111 -434
NET PROFIT FOR THE PERIOD 531 250 1 270
" % 4,4 2,8 3,4
CONSOLIDATED BALANCE SHEET (EUR 1000)
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02
ASSETS
NON-CURRENT ASSETS
Intangible assets 2 315 2 378 2 343
Tangible assets 3 143 2 655 3 054
Own shares 139 89 139
Other investments 2 352 2 626 2 381
NON-CURRENT ASSETS, TOTAL 7 949 7 748 7 917
CURRENT ASSETS
Stocks 469 256 493
Current receivables 11 278 8 191 7 027
Marketable securities 1 332 3 186 1 497
Cash and cash equivalent 4 179 2 311 5 663
CURRENT ASSETS, TOTAL 17 257 13 945 14 680
ASSETS, TOTAL 25 207 21 692 22 597
SHAREHOLDERS EQUITY AND LIABILITIES
SHAREHOLDERS EQUITY
Share capital 427 411 427
Share premium account 5 058 4 599 5 058
Reserve for own shares 139 89 139
Retained earnings 5 768 5 620 5 565
Net profit for the period 531 250 1 270
SHAREHOLDERS EQUITY, TOTAL 11 924 10 970 12 460
MINORITY INTERESTS 1 844 1 135 1 857
LIABILITIES
Deferred tax liabilities 187 160 188
Long-term liabilities 794 781 796
Current liabilities 10 458 8 647 7 297
LIABILITIES, TOTAL 11 439 9 588 8 281
SHAREHOLDERS EQUITY AND
LIABILITIES, TOTAL 25 207 21 692 22 597
KEY FIGURES FOR ETTEPLAN GROUP (EUR 1000)
Changes
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02 for prev.
year
Turnover 12 132 8 844 37 011 37,2 %
Operating profit 992 599 2 724 65,6 %
% of turnover 8,2 6,8 7,4
Profit before extra-
ordinary items 981 595 2 753 64,9 %
Net profit for
the period 531 250 1 270 112,0 %
Return on investment, % 26,8 18,2 19,7
Return on equity, % 18,5 11,6 12,6
Equity ratio % 55,2 55,7 63,4
Gross interest-bearing
loans 976 900 1 006 8,4 %
Dept-equity ratio, % -33,3 -38,3 -43,4
Total balance 25 207 21 692 22 597 16,2 %
Gross investments 412 2 642 4 497 -84,4 %
Earnings per share 0,12 0,06 0,30 104,0 %
Equity per share 2,77 2,66 2,90 4,4 %
Personnel at the end
of the period 823 602 723 36,7 %
Personnel, average 825 604 660 36,6 %
CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02
OPERATING CASH FLOW
Cash receipts from customers 8 935 8 832 37 933
Other operating income 7 2 66
Operating expenses paid 8 881 6 312 32 050
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 60 2 522 5 950
Interest and payment paid for
financial expenses 26 20 129
Interest received 15 15 153
Dividend received 0 0 5
Income taxes paid 337 232 1 020
OPERATING CASH FLOW (A) -288 2 286 4 958
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 412 522 2 346
Sales of tangible and
intangible assets 0 0 111
Investments to other investments 5 2 111 1 463
INVESTMENT CASH FLOW (B) -417 -2 633 -3 697
FINANCING CASH FLOW
Purchase of own shares 0 14 64
Short-term loans, increase 255 0 0
Long-term loans, increase 0 0 101
Long-term loans, decrease 2 5 0
Dividends paid and other
Profit distribution 1 197 1 365 1 365
FINANCING CASH FLOW (C) -944 -1 383 -1 329
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-) -1 649 -1 731 -68
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 7 160 7 227 7 227
ASSETS AT THE END
OF THE FINANCIAL PERIOD 5 511 5 497 7 160
