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EVOX RIFA GROUP OYJ STOCK EXCHANGE RELEASE
on August 1, 2002 at 10:00 o’clock a.m.
EVOX RIFA GROUP INTERIM REPORT JANUARY 1, 2002 —
June 30, 2002
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Net sales for the first half of 2002 were EUR 30.3 million
(EUR 40.6 million during the first half of 2001)
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Operating loss was EUR 4.9 million (profit EUR 0,5 million
in 2001)
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Loss before extraordinary items was EUR 4.9 million (loss
EUR 0.3 million in 2001)
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Earnings per share was EUR —0.053 (EUR -0.004)
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Order backlog on June 30, 2002 was EUR 16.0 million (EUR
17.8 million)
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Acquisition of the UK based BHC Aerovox Ltd. made Evox
Rifa Group one of the largest manufacturers of electrolytic
capacitors in the world and number one in Europe.
ECONOMIC DEVELOPMENT
The financial information of the acquired BHC Components
Ltd. (former BHC Aerovox Ltd.) has been consolidated in Evox
Rifa Group’s figures since the beginning of May.
Net Sales
Net sales of the group were EUR 30.3 million, which is about
EUR 10.3 million less than during the corresponding period
in the previous year.
Sales developed quite well in the customer sectors of automotive
industry and industrial electronics. Demand in telecommunications
sector remained weak, and no sign of improvement is to be
seen in a short run.
Along with the acquisition of BHC Components, aluminium electrolytic
capacitors became clearly the biggest product group, about
38% of the net sales of Evox Rifa Group. Plastic film capacitors
still make up over a third of the net sales.
During the first half of 2002, demand has developed positively
only in Asia. Demand in Europe and North America continues
weak. Price competition is harsh in all market areas.
Profit
The group’s profit during the first half of 2002 was
negative. Ongoing cost saving projects have improved the profitability
toward the end of the reporting period. The group’s operating
loss was EUR 4.9 million (profit EUR 0.5 million) and loss
before extraordinary items was EUR 4.9 million (loss EUR 0.3
million).
Earnings per share was EUR —0.053 (EUR -0.004)and shareholders’
equity per share was EUR 0.154 (EUR 0.355).
Order backlog
Evox Rifa Group’s order backlog improved somewhat compared
to the situation at the end of the previous quarter, even
though there were still no real signs of recovery in the market
place during the second quarter. One reason for the increase
is the acquisition of BHC Components. Order backlog at the
end of the first half of 2002 was EUR 16,0 million (EUR 17.8
million at the end of first half of 2001).
FINANCIAL STATUS AND CAPITAL EXPENDITURE
The development of financial status of Evox Rifa Group was
especially affecetd by the acquisition of BHC Components.
A decision was made to finance the acquisition by external
loans and a rights offering. Loans were raised during the
reporting period, and the rights offering was progressing
when the reporting period ended. The group’s liquid assets
were EUR 4.2 million and the group’s equity ratio was
39.3% at the end of first half of 2002.
Gross capital expenditure into fixed assets amounted to EUR
6.509 million. The main part of this were investments into
the acquisition of BHC Components Ltd. and the Chinese joint
venture. Capacitor production at the Chinese factory started
in April, 2002.
SHARES AND SHARE CAPITAL
The nominal value of the shares of Evox Rifa Group Oyj is
EUR 0.05, the number of shares was 86 685 509 on June 30,
2002 and the share capital was EUR 4 334 275.45.
As a result of the rights offering,(Stock Exchange Release
was published on July 8, 2002) the number of shares increased
to 173 371 018 and the share capital to EUR 8.668.550,90.
PERSONNEL
The average number of personnel of Evox Rifa Group during
the first half of 2002 was 1183 (1415 during the corresponding
period in 2001).
Due to the prolonged, unfavourable market situation Evox
Rifa will continue to adapt costs to current demand. Temporary
personnel lay-offs will be continued at Suomussalmi factory
in Finland and further measures to cut costs are being searched
for in all units.
SIGNIFICANT EVENTS AFTER JUNE 30, 2002
Evox Rifa Group Oyj’s rights offering ended on July
2, 2002 and all shares offered were subscribed. A total of
EUR 6,1 million was raised through the offering and as a result
the number of shares increased to 173.371.018, and the share
capital to EUR 8.668.550,90. Evox Rifa Group’s Board
of Directors has approved all subscriptions made based on
the primary and secondary pre-emptive rights of subscription
and the share capital has been registered with the trade register
on July 10, 2002.
OUTLOOK FOR THE YEAR 2002
Weak demand has continued during the second quarter of 2002,
but the order backlog has slightly increased. There are still
no clear signs of a continued, stronger demand in the market
place. The weak situation in North America and Europe seems
to continue but there are some positive signs on the Asian
market. Western companies are increasingly transferring their
manufacturing to Asia. The role of Asia and especially China
is expected to grow, and the presence of Evox Rifa on those
markets is important.
Characteristic to the present market situation is that the
level of inventories is kept low and that order-delivery cycles
are short. Due to weak market conditions, Evox Rifa is forced
to adapt its production volumes and other activities to match
present and estimated demand. Evox Rifa seeks for cost benefits
by increasing its manufacturing volumes in Asia. This is possible
through utilizing the currently existing manufacturing and
sales resources in Asia.
Activities to reduce working capital and improve its turn-over
will be continued to safeguard the cash reserves of the group.
With the exception of strategic investments (acquisition in
the UK, joint venture in China and transfer of manufacturing
to Asia), the group will make only necessary maintenance and
service investments.
INCOME STATEMENT OF EVOX RIFA GROUP
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1.1. - 30.6.2002
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1.1. - 30.6.2001
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1.1. - 31.12.2001
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|
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1000 EUR
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1000 EUR
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1000 EUR
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NET SALES
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30 290
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40 615
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68 968
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Materials and services
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-11 727
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-13 965
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-21 718
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Personnel expenses
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-15 944
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-18 601
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-32 692
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Depreciations and write-downs
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-2 015
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-1 653
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-3 545
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OPERATING PROFIT (LOSS)
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-4 887
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530
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-4 774
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Financial income and expenses
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34
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-875
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-1 607
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PROFIT (LOSS) BEFORE EXTRAORDINARY ITEMS
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-4 853
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-345
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-6 381
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Extraordinary items
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0
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0
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79
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PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES
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-4 853
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-345
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-6 302
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NET PROFIT (LOSS) FOR THE PERIOD
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-4 612
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-370
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-4 996
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Unaudited
BALANCE SHEET OF THE GROUP
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ASSETS
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30.6.2002
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30.6.2001
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31.12.2001
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1000 EUR
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1000 EUR
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1000 EUR
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|
FIXED ASSETS AND OTHER NON-CURRENT ASSETS
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|
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Intangible assets
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2 262
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223
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1 590
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Tangible assets
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23 342
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20 351
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19 717
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Investments, non-current
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92
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164
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76
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INVENTORIES AND CURRENT ASSETS
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Inventories
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15 093
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20 582
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15 635
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Long-term receivables
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5
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415
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0
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Long-term receivables
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24 897
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15 886
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12 309
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Short-term receivables
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4 149
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5 523
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6 409
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TOTAL NON-CURRENT AND CURRENT ASSETS
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69 840
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63 144
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55 736
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Share capital
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4 334
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4 334
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4 334
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Offering
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6 068
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Other restricted equity
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12 989
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12 989
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12 989
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Non-restricted equity
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3 349
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13 433
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8 324
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TOTAL SHAREHOLDERS’EQUITY
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26 740
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30 756
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25 647
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MINORITY INTEREST
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725
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647
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833
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LIABILITIES
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Deferred tax liability
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762
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1 326
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286
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Long-term
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21 381
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14 393
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15 454
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Short-term
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20 130
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16 022
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13 516
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TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY
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69 840
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63 144
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55 736
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Unaudited
EVOX RIFA GROUP KEY FIGURES
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30.6.2002
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30.6.2001
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31.12.2001
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Return on equity, %
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-34,5 %
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-2,1 %
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-17,5 %
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Return on investment, %
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-19,5 %
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2,3 %
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-10,2 %
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Equity ratio
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39,3 %
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49,7 %
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47,5 %
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Gross investments in fixed assets, TEUR
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6 509
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1 760
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5 893
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% of net sales
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21,5 %
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4,3 %
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8,5 %
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Earnings per share, EUR
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-0,053
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-0,004
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-0,059
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Equity per share, EUR
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0,154
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0,355
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0,296
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Order backlog, MEUR
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16,0
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17,8
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10,5
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Personnel, average
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1 183
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1 415
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1 336
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Unaudited
The increase of the share capital of Evox Rifa has been registered
at the trade register as specified in the rights issue on
July 10, 2002. After the increase the number of shares is
173.371.018 and the total share capital EUR 8.668.550,90.
The item "equity per share, EUR" has been calculated
using 173.371.018 as the divisor.
DERIVATIVE CONTRACTS
The company uses forward contracts and currency options to
hedge foreign currency denominated balance sheet items against
exchange rate fluctuations. The maturity of forward contracts
and currency options vary from 1 to 3 months.
The market values of off-balance sheet derivative contracts
made to hedge the exchange rates fluctuations (1000 EUR):
Currency options
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Bought options
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Value at the time of contract
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5 331
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Market value 30.6.
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132
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Sold options
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Value at the time of contract
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6 977
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Market value 30.6.
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-45
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Forward contracts
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Value at the time of contract
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1 130
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Market value 30.6.
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-1
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In Espoo on August 1, 2002
EVOX RIFA GROUP OYJ
Harri Launonen
President
For further information please contact:
Evox Rifa Group Oyj, Harri Launonen, President, tel. +358
9 5406 5001
DISTRIBUTION
Helsinki Exchanges
Main Media
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