INCAP GIVES OUT PRELIMINARY INFORMATION ON FINANCIAL RESULTS IN 2006 AND CONCLUDES CO-DETERMINATION PROCEDURE AT VUOKATTI FACTORY
Stock Exchange Release 25 January 2007 at 1 p.m.
According to preliminary calculations, the Incap Group’s full-year revenue in 2006 increased by 17% from the previous year and was approx. EUR 89 million. Operating profit was according to a preliminary estimation approx. EUR 3.0 million, or approx. 3.4% of revenue. Incap will publish the confirmed financial statement from the year 2006 on 27 February 2007.
In year 2006 Incap has invested strongly into future growth and internationalisation according to its strategy, and approximately EUR 0.9 million was used into development of functions. The most significant investments included the start-up of the new factory in Kuressaare and the production transfers from Vuokatti to Kuressaare as well as the examination of new business opportunities in India. Further, the organisation was strengthened especially in materials management and sales.
Incap has today concluded the co-determination negotiations that began last May at its factory in Vuokatti. A total of EUR 0.5 million will be booked as non-recurring expenses in the result of year 2006, and this is included in the above-mentioned operating profit estimate.
Most of the planned production transfers from Vuokatti to Kuressaare were implemented in 2006 and there will not incur any significant expenses in 2007 for them. Prototype fabrication and manufacturing of pre-production series will remain at Vuokatti, along with volume production suitable for the unit’s capacity. The capacity at Kuressaare can then be used for new products for both current and future customers.
As a result of the industrial co-operation procedures, 53 people will be made redundant, of whom 48 are blue-collar workers and 5 office staff. After ending fixed-term employment contracts and redundancies made due to the co-determination procedure, the amount of personnel at Vuokatti factory will be 137 persons.
Operations at Vuokatti factory have been reorganised and a development program has been initiated to markedly improve working efficiency. Ms Vuokko Piirala, B.Sc. (Eng.), has been appointed Director of both the Vuokatti unit and the development program on a fixed-term basis. She has previously worked as Business Controller at Incap Group, and has prior to that for many years worked in electronics industry in different management positions both in production and materials management, among other things.
The development program in Vuokatti unit will last until the end of June 2007.
President and CEO
For additional information, contact:
Juhani Hanninen, President and CEO, tel. +358 50 556 7199
Anne Sointu, Chief Financial Officer, tel. +358 40 347 2059
Hannele Pöllä, Director, Communications and Investor Relations, tel. +358 40 504 8296
Helsinki Stock Exchange
Incap Corporation is a fast-growing electronics contract manufacturer whose comprehensive service covers the entire product life cycle from design and manufacture to repair and maintenance services. The company’s main customer sectors are leading equipment suppliers in telecommunications, electrical power technology, the automation and process industries as well as measurement technology, safety electronics and health care. The Incap Group’s revenue amounted 2005 of EUR 76.7 million and the company currently employs approx. 550 persons. Incap’s share is listed on the Helsinki Stock Exchange and it is a component of the Nordic Small Cap list within the information technology sector. For additional information, please visit www.incap.fi