Sometimes investors really get burned when a company posts bullish news or headlines right in front of something or in connection with other details that may cause an opposite reaction. Today there was some potential for such as Componenta (OMXH: CTH1V) hiked full-year 2012 outlook slightly as a result of implemented price increases and improved cost structure.
This came together with the news that its current syndicated loan has been extended by one year and that the company is also conducting a rights issue of 10-20 million Euros and issuing a 20 million hybrid bond. Componenta is also selling its Manisa, Turkey passenger car aluminium wheel production unit. All these measures should reduce interest-bearing debt by a third.
The hybrid bond is offered to select investors in a private placement at fixed 12% per annum rate for four years. After this time the interest rate increases if the company does not redeem the bond. The bond is subordinate the other debt obligations and is classified as an equity instrument in IFRS accounts.
The share issue will be done without pre-emptive rights to existing shareholders. A maximum of six and a quarter million new shares will be issues at 3.20 Euros per share will be offered to the public at Alexander Corporate Finance Oy in Helsinki. The stock has gained just over 3% to trade at 3.32 Euros in the Afternoon session.
Showing posts with label Componenta. Show all posts
Showing posts with label Componenta. Show all posts
Tuesday, 20 March 2012
Tuesday, 24 January 2012
Componenta was still loss-making in 2011
Casting solutions provider Componenta Corporation (OMXH: CTH1V) sounded optimistic and satisfied in its Q4 report despite posting another annual loss after one-off items pushed EPS to minus EUR 0.25. Consolidated net sales were 576 million and operating profit excluding special items nearly 30 million. Net cash flow from operations was slightly positive at 3.6 million. The order book has increased by 5% in one year to 100 million.
Fourth quarter sales were up 8% against the corresponding quarter in 2010. Capacity utilization rate was down to 60% from 66% but production volumes were higher. Higher prices in non-surcharged raw materials (meaning the company was unable to pass-on the costs to its customers) and additional 3 million in quality costs related to Orhangazi Foundry Business Unit in Turkey were weighing on the result.
Planned balance sheet strengthening measures will include a share issue and a hybrid bond totalling 20 million Euros. Manisa, Turkey aluminium wheels business unit will also be sold. The unit had 2011 net sales of 45 million and EBITDA of nearly 9 million made possible by nearly 400 employees.
Componenta assumes that these measures mentioned above will help it reduce interest-bearing debt by a third. The Board of Directors proposes no dividend is paid for 2011 and is proposing to the AGM that an authorization on a share issue of special rights be given up to 8 million new shares (close to a third of the current number of shares).
Corporate Executive Team will also face a shakeup with the current COO stepping down and new SVP’s in Finland and in Sales and Product Development. Despite the continued poor performance, shareholders representing more than 10 percent of the shares are proposing the General Meeting that the number of Board of Directors will be raised to 7 and that members of the Board will get a 20% raise. Three new members in Harri Suutari, Riitta Palomäki and Matti Ruotsala are suggested.
Componenta feels that the current demand outlook is satisfactory. Agricultural products and machinery are expected to see increased demand on relatively high food prices. Demand in automotive industry and in machine building industry is expected to remain flat. Wind power demand outlook in Europe is still sluggish. The company will report that as a part of machine building industry from now on. And finally Componenta is uncertain on the demand in the heavy trucks industry.
Componenta expects 2012 sales on the same level as in 2011 but higher operating profit as a result of price increases and improved cost structure. Capital investments are at a low level. The stock is down around 4% approaching the last three hours of trading for the day.
Fourth quarter sales were up 8% against the corresponding quarter in 2010. Capacity utilization rate was down to 60% from 66% but production volumes were higher. Higher prices in non-surcharged raw materials (meaning the company was unable to pass-on the costs to its customers) and additional 3 million in quality costs related to Orhangazi Foundry Business Unit in Turkey were weighing on the result.
Planned balance sheet strengthening measures will include a share issue and a hybrid bond totalling 20 million Euros. Manisa, Turkey aluminium wheels business unit will also be sold. The unit had 2011 net sales of 45 million and EBITDA of nearly 9 million made possible by nearly 400 employees.
Componenta assumes that these measures mentioned above will help it reduce interest-bearing debt by a third. The Board of Directors proposes no dividend is paid for 2011 and is proposing to the AGM that an authorization on a share issue of special rights be given up to 8 million new shares (close to a third of the current number of shares).
Corporate Executive Team will also face a shakeup with the current COO stepping down and new SVP’s in Finland and in Sales and Product Development. Despite the continued poor performance, shareholders representing more than 10 percent of the shares are proposing the General Meeting that the number of Board of Directors will be raised to 7 and that members of the Board will get a 20% raise. Three new members in Harri Suutari, Riitta Palomäki and Matti Ruotsala are suggested.
Componenta feels that the current demand outlook is satisfactory. Agricultural products and machinery are expected to see increased demand on relatively high food prices. Demand in automotive industry and in machine building industry is expected to remain flat. Wind power demand outlook in Europe is still sluggish. The company will report that as a part of machine building industry from now on. And finally Componenta is uncertain on the demand in the heavy trucks industry.
Componenta expects 2012 sales on the same level as in 2011 but higher operating profit as a result of price increases and improved cost structure. Capital investments are at a low level. The stock is down around 4% approaching the last three hours of trading for the day.
Friday, 15 July 2011
Componenta 2011 second quarter
Casting solutions provider Componenta Corporation (OMXH: CTH1V) benefited from good demand in heavy trucks sector in second quarter. Net sales were up a third to 156.5 million Euro and operating profit more than doubled to 10.7 million. Company CEO highlighted particularly strong growth in Sweden and Turkey and said higher volumes and cost cutting measures contributed to profit improvement.
Heavy trucks segment brought in 28% of the quarterly sales. Other important sales segments for the company are mining machinery components, construction equipment, machine building, automotive industry and agricultural machinery. Componenta feels that the overall demand outlook is still good despite increased uncertainty in the financial markets.
Heavy trucks segment brought in 28% of the quarterly sales. Other important sales segments for the company are mining machinery components, construction equipment, machine building, automotive industry and agricultural machinery. Componenta feels that the overall demand outlook is still good despite increased uncertainty in the financial markets.
Subscribe to:
Posts (Atom)