Filed by Eimo Oyj
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Eimo Oyj
Commission File No. 132-01856
EIMO OYJ STOCK EXCHANGE RELEASE 03.08.2000 08:30 1 (6)
INTERIM REPORT JANUARY-JUNE 2000
Figures are not audited
Performance in January - June
The company recorded a turnover in January-June 2000 of EUR 38.4 million (EUR
35.5 million in the corresponding period in the previous year), an increase of
8%. The operating profit was EUR 4.1 (9.1) million and profit before
extraordinary items EUR 4.2 (7.9) million. The split adjusted (1:4) diluted and
non-diluted earnings per share were EUR 0.06 (0.13).
As previously announced, turnover failed to match expectations due to weaker
demand than forecast and the postponement of some projects, but still showed an
increase on the previous year. Profitability was affected by among other things
one-off costs relating to internationalisation.
Gross investments during January to June totalled EUR 12.4 (5.8) million. The
balance sheet total at the end of June stood at EUR 71.7 (58.0) million. The
equity ratio was 67.8% (85.0%) and the company's cash reserves stood at EUR
0.6 million at the end of the review period.
Eimo employed on average 712 (639) people during the first half of 2000. On 30
June the company had 794 employees, including summer workers.
Performance in second quarter
The second quarter of the year fell well short of its objectives, even though
turnover did exceed that in the corresponding period of the previous year by
28%. Lower than forecast demand and the postponement of product projects
contributed to the modest turnover. Profitability was hurt in particular by the
relatively high proportion of fixed costs, including inputs to international
growth.
Focus on international growth continues
Over half of investments during the review period were investments in machinery
and equipment at the Helmond factory. The ramp-up of production at the factory
has continued according to schedule.
In May Eimo signed an agreement to acquire production premises in the city of
Pecs in Hungary. It is estimated that the total investment during 2000 and 2001
will be about EUR 10 million.
Production is expected to start during the final quarter of 2000. Mr. Markus
Pulkki will be managing director of the factory in Hungary.
In May the company also signed a letter of intent to set up a holding company
with CIM Precision Molds (HK) Ltd, a Hong Kong-based mold manufacturer. The
purpose of the EUR 2 million investment is to reinforce Eimo's global growth
potential, by ensuring the availability of high quality molds and by
establishing a mold factory in China.
In July Eimo signed a formal merger agreement with a U.S. injection molder
Triple S Plastics, Inc. The share and option holders of Triple S will receive
33-37% of Eimo's shares and options as newly issued securities. Through this
merger Eimo becomes a global supplier for the mobile communications industry.
The net sales of Triple S were 95.0 million USD in the accounting year ended on
March 31, 2000. Triple S reported 32.1 million USD sales for April - June 2000
(67% increase compared to the corresponding period in the previous year) and
2.2 million USD net income.
New CEO
The company's current President Mr. Lauri Jalli has asked for resignation. The
Board of Directors has appointed Mr. Heikki Marttinen (53) as new President and
Chief Executive Officer from Oct 1, 2000.
Reinforcements for R & D department, training for young talent
Eimo is constantly studying new technologies to be able to respond quickly to
the changing needs of its customers. During the spring the company took on new
research personnel to strengthen its R & D department. The development and
training programmes initiated during the first quarter continued according to
plan. The company also decided to start a broad-based "Young Professionals
Program", aiming to train up young talent to become first class professionals
for the company's operations in Finland and abroad.
Share split
Eimo's share was split (1:4) in April, and since then the company has had a
total of 46,400,000 shares. Trading in the split shares started on 13 April
2000. Since the split, the closing price has ranged between EUR 5.78 and EUR
10.98. The closing price on 30 June 2000 was EUR 6.40.
Prospects (excl. Triple S merger)
Favorable growth continues in the mobile communications sector. Eimo's strong
standing as a strategic supplier to its customers and its investments in new
technology and internationalisation place the company in an excellent position
to respond to the growing requirements of customers. Even as sales in the second
half of the year grow very rapidly compared to the first half of the year, the
company is unlikely to achieve its challenging
target of 40% growth in turnover in 2000. With the fast growth in sales during
the second half of the year, net profit is expected to be significantly higher
than during the first half.
The interim report for January - September will be published on 2 November 2000.
Lahti, 3 August 2000
EIMO OYJ
Jalo Paananen
Chairman of the Board
Further Information
Elmar Paananen Executive Vice Chairman, +358 500 503 865
Investors are urged to read the information to be filed with the United States
Securities and Exchange Commission in connection with the merger, including the
proxy material to be sent to the holders of common stock of Triple S to solicit
their approval of the Merger Agreement and the transactions contemplated thereby
and the registration statement to be filed by Eimo on Form F-4 with respect to
ordinary shares of Eimo to be issued in connection with the transaction, each of
which will include a copy of the Merger Agreement as an exhibit. Such documents,
when filed, will be available free of charge from the SEC website at
www.sec.gov.
This press release includes statements that constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. This information involves risks and uncertainties
that could cause actual results to differ materially from the forward-looking
statements. For certain information regarding these risks and uncertainties,
reference is made to Eimo's March 1999 Offering Circular for 5,000,000 share
combined offering (copies of which are available from Eimo upon written request)
and Triple S' Annual Report on Form 10-K for the year ended March 31, 2000.
Distribution:
HEX Helsingin Porssi
Press
ENCLOSURES:
Consolidated profit and loss accounts,
Consolidated balance sheet, Financial ratios
CONSOLIDATED PROFIT AND LOSS ACCOUNT
1-6/00 1-6/99 1-12/99
1000 EUR 1000 EUR Muutos % 1000 EUR
-------- -------- -------- --------
TURNOVER 38,436 35,529 8.2 78,011
Other operating
income 164 215 (23.7) 728
Operating costs 31,726 24,686 28.5 54,895
Depreciation and
write-downs 2,790 1,982 40.8 4,629
OPERATING PROFIT 4,084 9,076 (55.0) 19,215
% of turnover 10.6 25.5 24.6
Financing income
and expenses 78 (1,194) (106.5) (1,016)
PROFIT BEFORE
EXTRAORDINARY
ITEMS 4,162 7,882 (47.2) 18,199
% of turnover 10.8 22.2 23.3
Extraordinary
items - 527 (100.0) 528
PROFIT BEFORE
TAXES 4,162 8,409 (50.5) 18,727
% of turnover 10.8 23.7 24.0
Taxes (1,202) (2,210) (45.6) (5,129)
PROFIT FOR THE
REVIEW PERIOD 2,960 6,199 (52.3) 13,598
CONSOLIDATED BALANCE SHEET
30.6.00 30.6.99 31.12.99
1000 EUR 1000 EUR Muutos % 1000 EUR
-------- -------- -------- --------
ASSETS
NON-CURRENT ASSETS
Intangible assets 422 222 90.0 381
Tangible assets 43,792 27,816 57.4 34,268
Investments 71 62 14.5 62
CURRENT ASSETS
Inventories 11,151 5,229 113.3 7,852
Deferred tax
receivable 318 - -
Receivables 15,337 10,023 53.0 11,865
Cash and bank
accounts 593 14,617 (95.9) 16,718
TOTAL ASSETS 71,685 57,970 23.7 71,146
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 11,600 1,951 494.6 11,600
Share premium
account 18,124 27,773 (34.7) 18,124
Retained profits 17,925 19,219 (6.7) 26,618
LIABILITIES
Deferred tax
liability 2,312 1,811 27.7 2,232
Non-current
liabilities
Loans from
financial
institutions 9,695 208 4,561.1 157
Current
liabilities
Loans from
financial
institutions 131 137 (4.4) 118
Non-interest
bearing
liabilities 8,416 3,706 127.1 6,888
Accruals and
deferred income 3,482 3,165 10.0 5,409
TOTAL LIABILITIES
AND SHAREHOLDERS' 71,685 57,970 23.7 71,146
EQUITY
FINANCIAL RATIOS
30.6.00 30.6.99 Muutos % 31.12.99
Return on equity
(ROE), % 11.4 32.0 33.4
Return on
investment (ROI), % 14.8 44.2 43.1
Equity ratio, % 67.8 85.0 79.9
Net Gearing, % 19.4 (29.2) (29.2)
Current Ratio 2.25 4.26 2.93
Gross investments
in fixed assets,
1000 EUR 12,365 5,754 114.9 15,281
% of turnover 32.2 16.2 19.6
Average number of
personnel 712 639 11.4 681
PER SHARE RATIOS
Earnings per
share (EPS), EUR 0.064 0.130 (51.1) 0.291
Shareholders
equity per share,
EUR 1.027 1.055 (2.6) 1.214
SECURITIES AND GUARANTEESS,
1000 EUR
Securities for
own liabilities 16,320 14,400 13.3 14,322
- -Of which in use 10,003 681 1,368.9 540
Other own
liabilities - - -
Nominal value of
derivative
contracts 2,000 - -
On behalf of
outsiders - - -