Incap lowers its estimate for revenue and result

GlobeNewswire Europe

Incap Corporation  
Stock Exchange Release   13 September 2013 at 10 a.m.

INCAP LOWERS ITS ESTIMATE FOR REVENUE AND RESULT

The revenue and operating profit of Incap Group in 2013 are estimated to be smaller than previously forecasted. Several customers have announced that their order volumes will drop during the latter part of the year, and also the transfer of material purchases from customers back to Incap has been postponed more than expected. Furthermore, the weakening of the Indian rupee is decreasing the revenue calculated in Euros. Based on the updated calculations Incap estimates that the revenue for the latter part of the year will be approximately on the same level than for the first half of the year, when the revenue was EUR 20.5 million. Accordingly, the full-year revenue for 2013 is estimated to be significantly lower than in 2012.

The decrease in revenue is impacting on the result. Additionally, there are extra costs connected with the financing arrangement which were not included in earlier calculations.  Therefore, the company estimates that the Group`s operating result (EBIT) for the latter half of the year is negative, whereby the full-year operating result 2013 will be negative. The operating result for January-June 2013 amounted to EUR -1.8 million.

The company has initiated intensified actions to adapt the costs according to the revenue estimate.

In the interim report for January-June 2013 published on 31 July 2013 the company estimated that the Group`s full-year revenue would be clearly smaller than in 2012 and the full-year operating profit (EBIT) would be positive. In 2012 the Group`s full-year revenue was EUR 64.1 million and the operating result (EBIT) EUR -0.7 million.

Incap will publish its interim report for January-September 2013 on Thursday, 31 October.

INCAP CORPORATION

Sami Mykkänen
President and CEO

Further information:
Sami Mykkänen, President and CEO, tel. +358 40 559 9047 or +372 555 379 05
Kirsti Parvi, CFO, tel. +358 50 517 4569 or +372 555 620 35
Hannele Pöllä, Director, Communications and IR, tel. +358 40 504 8296

DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.incap.fi

INCAP IN BRIEF
Incap Corporation is an internationally operating contract manufacturer whose comprehensive services cover the entire life-cycle of electromechanical products from design and manufacture to maintenance services. Incap`s customers include leading equipment suppliers in energy efficiency and well-being technologies, for which the company produces competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China. The Group`s revenue in 2012 amounted to EUR 64.1 million and the company currently employs approximately 600 people. Incap`s share is listed on the NASDAQ OMX Helsinki since 1997. Additional information: www.incap.fi.

 




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Source: Incap Oyj via Thomson Reuters ONE

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