EXHIBIT 99.1
EIMO OYJ STOCK EXCHANGE RELEASE FEB 14, 2002 AT 08.20 1(10)
FINANCIAL RESULTS 2001
The auditors' statement on the company's financial statements has not yet been
issued.
Fourth Quarter 2001
- - Record net sales of EUR 73.9 million, growth 119%
- - Operating profit EUR 6.4 million (including one time charges of EUR 2.1
million)
- - EPS, diluted EUR 0.07
- - Integration of global activities well advanced
Year 2001
- - Net sales of EUR 165.8 million, growth 57%
- - Operating profit EUR 9.6 million
- - EPS, diluted EUR 0.113
- - Proposed dividend 0.04 EUR
Prospects 2002
- - Merger benefits will be realized
- - Net sales estimate EUR 260-290 million, growth over 55%
- - Significant EPSgrowth expected
Record Fourth Quarter
In October-December 2001, thanks in large part to the Triple S acquisition, Eimo
achieved all-time record quarterly sales and operating profit. The company's
fourth quarter net sales were EUR 73.9 million (EUR 33.7 million in the
corresponding period in the previous year), growth of 119%. The period's
operating profit was EUR 6.4 million (EUR 3.4 million) and diluted earnings per
share were EUR 0.07. The period's cash flow after net capital expenditures of
EUR 6.8 million was EUR -1.7 million. As a percentage of total sales for the
period in terms of the geographical location of customers, 47% of sales went to
Europe, 49% to the Americas and 4% to Asia. Customers in the telecommunications
and other electronics industries represented 87% of net sales during the period.
Sales for the period exceeded target with several production locations posting
also profits above expectations. Finland performed especially well thanks to
high capacity utilization. The favorable operating results for the period were
achieved despite certain one time costs totaling EUR 2.1 million. The most
significant of these were one time amortizations of remaining goodwill
associated with Eimo's acquisition of its interests in CIM Technology Ltd (EUR
1.0 million) and in Eimo's Hungarian subsidiary Eimo Kft. (EUR 0.6 million).
The Year 2001 - a Year of Internationalization and Strong Growth
In 2001 Eimo achieved major internationalization targets. As a result
of Eimo's acquisition of Triple S Plastics, Inc. on August 15, 2001, Eimo now
has the ability to serve its customers on four continents, strengthening its
position for the company as a key supplier for the telecommunications and other
electronics industries. Subsequent to the acquisition, both existing and new
customers have shown increased interest in the company's expanded capabilities.
During the second half of 2001 both new customer relationships were established
and new product programs were awarded by existing customers. Eimo accounted for
the Triple S acquisition as a purchase in accordance with applicable accounting
rules. Details of the accounting treatment were explained in the company's
Interim Report January-September published on November 14, 2001.
In 2001 the company had net sales of EUR 165.8 million (EUR 105.5
million in the previous year, growth 57%). The telecommunications and other
electronics industries accounted for 88% of total sales. As a percentage of
total sales for the year by geographical location of customers, 64% of sales
went to Europe, 34% to the Americas, and 3% to Asia. Operating profit was EUR
9.6 million (EUR 13.7 million), or 5.8% of net sales. Profit before
extraordinary items was EUR 7.8 million (EUR 13.4 million) and after
extraordinary items EUR 6.6 million (EUR 12.6 million). Extraordinary items
consisted mainly of costs recorded under the initial merger agreement between
Eimo and Triple S, which agreement between Eimo and Triple S was terminated and
reinstated on amended terms.
Undiluted earnings per share for the year were 0.114 EUR (0.202 EUR)
and diluted earnings per share 0.113 EUR (0.200 EUR). Return on investment was
9.5% and return on equity was 8.8%. Gross investments in 2001 totaled EUR 44.9
(EUR 28.8) million, or 27% of net sales. A large part of the capital investments
cost was related to the acquisition of Triple S Plastics, Inc. (EUR 25.1
million), of which EUR 24.8 million was paid through an exchange of shares.
Other capital expenditures were financed from operating income and loans from
financial institutions. The average number of personnel in 2001 was 1229 (768)
people. At the end of the year the group had 1833 employees. The increase in
personnel was primarily due to personnel acquired as a result of the Triple S
acquisition.
Global Service with Multi-faceted Technology
Eimo's strategy is to serve customers near their production sites.
After the internationalization arrangements implemented in 2001 described above,
the company now has eleven injection molding plants and six mold manufacturing
units in different parts of the world, located close to the production units of
its key customers.
On January 1, 2001, through a majority owned holding company called
Eimo (HK) Ltd., Eimo acquired Century Step Company (HK) Ltd., and thereby its
wholly owned production subsidiary located in Shenzhen, PRC. The modernization
of the Shenzhen plant started in the spring of 2001 and expansion of its scope
of services will continue through the spring of 2002. In January 2002 Eimo
acquired the remaining 30% of Eimo (HK) Ltd, as a result of which Eimo (HK) Ltd.
became a wholly owned subsidiary of Eimo.
As a result of the acquisition of Triple S, Eimo acquired four
injection molding plants located in the United States and one located in Brazil,
as well as one rapid prototyping facility and two mold manufacturing facilities,
all of them located in the United States. At these new Eimo locations, the
company has invested strongly in the application of new technology. Capital
expenditure programs in 2001-2002 include for example clean rooms for in-mold
decoration (IMD) and in-mold labeling (IML) production, painting shops, an
increase in the level of automation, both in injection molding and assembly, and
other capital improvements. In the United States, these technologies are already
in use; in Brazil, the last equipment included in the initial upgrading program
is expected to be installed by the end of April 2002.
Painting operations that had been outsourced in Finland and in the
Netherlands as to the painting work (utilizing equipment owned by the company)
were altogether taken over by Eimo during 2001.
Finance, Treasury and Acquisition Related Cost Savings
The company's financial position remained stable. Year end equity ratio
was 47% and the current ratio was 1.36. Consolidated interest bearing net debt
was EUR 41.1 million and the balance sheet total EUR 174.0 million at December
31, 2001.
Although cost savings were not a major goal of the acquisition of
Triple S, Eimo currently estimates that consolidated savings which will be
achieved as a result of the acquisition in the profit and loss account in 2002
will slightly exceed the original EUR 1 million target and expects that such
yearly savings will reach EUR 1.5 million within the next several years. The
areas of largest savings to date have been achieved in the rationalization of
capital expenditures, information systems development and in certain
headquarters level personnel costs.
Share Capital, Shares and Options
At the end of 2001 Eimo's share capital totaled EUR 16.17 million and
the company had 64,680,000 shares outstanding. The number of shares increased by
18.28 million shares during the year, primarily due to the issuance of shares in
connection with the Triple S
acquisition. In connection with the Triple S merger, all of Eimo's K shares were
converted into A shares on a one for one basis. The accounting counter value of
each share is EUR 0.25.
All of Eimo's outstanding shares are Series A shares, which are listed
on the Helsinki Stock Exchange (HEX), under the trading symbol EIMAV. Eimo's
American Depositary Shares (ADSs), each representing ten (10) Eimo Series A
shares, have been listed on the Nasdaq National Market System since August 16,
2001 under the trading symbol EIMO. As of January 31, 2002, there were a total
of 65,228,000 shares outstanding and the free float was approximately 60%.
The company has two warrant and one option programs previously approved
at general meetings of the company's shareholders. New shares can be issued only
pursuant to the warrant program of 2001. At December 31, 2001, a total of
425,600 warrants were outstanding under the warrant program of 1999, and a total
of 530,400 warrants were outstanding under the warrant program of 2001,
respectively. Under the warrant program of 2001, the company may issue a maximum
of 1.0 million warrants, each with the right to subscribe for one Series A
share. The company's option program was authorized to assume outstanding options
previously issued by Triple S. Under this program, options to purchase up to
1,888,650 shares were outstanding on December 31, 2001. Based on the above
warrant and option programs, the company's share capital can be raised by
maximum EUR 828,562.50 or 3,314,250 shares.
Trading in Eimo Oyj's Series A shares on Helsinki Exchanges was active
in 2001: 112% of the average number of Series A shares. The highest closing
price in 2001 was EUR 5.50 and the lowest EUR 0.88. The closing price on
December 28, 2001 was EUR 2.07.
Research and Development
Following the acquisition of Triple S, the research and development
activities of Eimo and Triple S were combined to better serve the company's
global needs. Eimo acts in close cooperation with customers and suppliers, as
well as with the development units of several universities and colleges. In
August 2001 the company started cooperation with Inclosia, a business unit of
the Dow Chemical Company, in order to develop and manufacture functionally
integrated enclosures for the telecommunications and data communications
industries.
In 2001, Eimo spent EUR 2.5 (EUR 2.4) million, or 1.5% of net sales, on
research and development. Such expenditures included quality control development
and training but not costs of customers' product programs. Of such R&D spending,
4% consisted of capital expenditures.
Business Prospects
The market for the products of Eimo's key customers is generally
expected to grow 10-15% in the year 2002, compared to 2001. Following the
internationalization developments in 2001, Eimo's management believes the
company's business is well positioned for 2002.
Eimo's current estimate for net sales in 2002 is EUR 260-290 million.
This estimate is based on a currently forecasted global mobile phone market of
420-440 million units and is predicated on Eimo maintaining or slightly
increasing its current market share.
The range for the internal estimates of operating results and
profitability in 2002 is still wide, as the profitability of Eimo's operations
is highly dependent on capacity utilization rates. Eimo's expanding product
portfolio and cost efficiencies, together with increased capacity utilization,
support positive profitability development. Even at the low end of the above
sales estimate, the company expects to be able to report significantly higher
earnings per share than the EUR 0.11 EPS realized in 2001.
On a quarterly basis, Eimo expects to realize a profit in each quarter.
First quarter sales are expected to exceed EUR 60 million.
Board Proposal for the Distribution of Profits and Schedules
The Board proposes to the Annual General Meeting the distribution of a
dividend of EUR 0.04 per share.
Eimo's annual report will be published in the week starting 18 March,
2002. The Annual General Meeting of Eimo Oyj will be held in Lahti, Finland on
Monday, April 15, 2002 at 10.00 A.M. The notice of the meeting will be published
at a later date. The interim report for January - March 2002 will be published
on May 3, 2002 at 8.30 A.M., Helsinki time.
Lahti 14 February 2002
Board of Directors
Eimo Oyj is a leading global manufacturer of precision plastic
components, whose main customers are companies in the mobile communications
industry. With operations on four continents, the company's worldwide operations
include eleven injection molding plants and six tool manufacturing units located
close to the production units of the company's key customers.
NOTE: All of the above have been reported according to Finnish Accounting
Standards (FAS). FAS differs in several important respects from United States
generally accepted accounting standards (US GAAP). Eimo will publish a
reconciliation of its annual financial statements
under FAS to US GAAP, as part of its annual report on Form 20-F, to be filed
with the United States Securities and Exchange Commission by June 30, 2002.
This 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 Registration Statement on Form F-4 filed with the United States
Securities and Exchange Commission on July 13, 2001 (copies of the prospectus
from such registration statement are available from Eimo upon written request).
Further information:
Heikki Marttinen, President and CEO +358-03-850 50
Elmar Paananen, Vice Chairman, IR +358-500-503 865
DISTRIBUTION:
HEX Helsinki Exchange
Press
APPENDICES:
Consolidated profit and loss account
- - fourth quarter 2001
- - year 2001
Consolidated balance sheet
Financial ratios
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Consolidated profit and loss account 10- 10-
October-December 2001 12/2001 12/2000
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1 000 EUR 1 000 EUR Change %
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NET SALES 73 878 33 694 119.3
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Other operating income 65 111 - 41.4
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Operating costs 63 935 28 497 124.4
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Depreciation and write-downs 3 653 1 945 87.8
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OPERATING PROFIT 6 355 3 363 89.0
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% of net sales 8.6 10.0 -
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Financing income and expenses - 556 - 188 195.7
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PROFIT BEFORE EXTRAORDINARY ITEMS 5 799 3 175 82.6
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% of net sales 7.8 9.4 -
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Extraordinary items - - 115 -
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PROFIT BEFORE TAXES 5 799 3 060 89.5
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% of net sales 7.8 9.1 -
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Income tax on ordinary activities - 1 612 - 1 061 51.9
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Income tax on extraordinary items - 33 -
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Minority interests 337 - 7 -
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CONSOLIDATED PROFIT FOR THE FINANCIAL PERIOD 4 524 2 025 123.4
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Consolidated profit and loss account 1- 1-
Year 2001 12/2001 12/2000
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1 000 EUR 1 000 EUR Change %
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NET SALES 165 837 105 530 57.1
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Other operating income 963 327 194.5
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Operating costs 147 312 85 869 71.6
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Depreciation and write-downs 9 872 6 319 56.2
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OPERATING PROFIT 9 616 13 669 -29.7
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% of net sales 5.8 13.0 -
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Financing income and expenses - 1 808 - 242 647.1
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PROFIT BEFORE EXTRAORDINARY ITEMS 7 808 13 427 - 41.8
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% of net sales 4.7 12.7 -
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Extraordinary items - 1 237 - 857 44.3
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PROFIT BEFORE TAXES 6 571 12 570 - 47.7
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% of net sales 4.0 11.9 -
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Income tax on ordinary activities - 2 480 - 4 033 - 38.5
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Income tax on extraordinary items 359 249 44.2
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Minority interests 744 - 7 -
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CONSOLIDATED PROFIT FOR THE FINANCIAL PERIOD 5 194 8 779 - 40.8
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Consolidated balance sheet 31.12.01 31.12.00
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1 000 1 000 Change %
EUR EUR
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ASSETS
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NON-CURRENT ASSETS
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Intangible assets 2 550 1 323 92.7
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Tangible assets 93 685 55 388 69.1
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Investments 650 2 158 -69.9
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CURRENT ASSETS
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Inventories 23 010 16 422 40.1
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Long-term receivables - - -
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Deferred tax receivable 1 127 - -
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Short-term receivables 47 124 25 109 87.7
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Cash and bank accounts 5 851 1 665 251.4
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TOTAL ASSETS 173 997 102 065 70.5
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LIABILITIES AND SHAREHOLDERS' EQUITY
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SHAREHOLDERS' EQUITY
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Share capital 16 170 11 600 39.4
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Share premium account 38 655 18 124 113.3
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Translation differences 876 - 373 -
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Retained earnings 26 246 23 718 10.7
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MINORITY INTERESTS 1 009 1 664 - 39.4
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NEGATIVE GOODWILL 1 686 - -
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LIABILITIES
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Deferred tax liability 3 272 2 980 9.8
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Non-current liabilities
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Interest bearing liabilities 29 392 16 107 82.5
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Current liabilities
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Interest bearing liabilities 17 568 4 059 332.8
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Other non-interest bearing liabilities 29 921 20 612 45.2
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Accruals and deferred income 9 202 3 574 157.5
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 173 997 102 065 70.5
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Financial ratios 31.12.01 31.12.00 Change %
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Return on equity (ROE), % 8.8 16.9 -
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Return on investment (ROI), % 9.5 21.0 -
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Equity ratio, % 47.4 53.3 -
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Net Gearing, % 50.2 34.9 -
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Current Ratio 1.36 1.53 -
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Gross investments in fixed assets, 44 936 28 785 56.1
1 000 EUR
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% of net sales 27.1 27.3 -
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Average number of personnel 1 229 768 60.0
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Dividends, 1 000 EUR (proposal) 2 609 3 248 - 19.7
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PER SHARE RATIOS
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Earnings per share (EPS), diluted, EUR 0.113 0.200 -43.5
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Shareholders equity per share, EUR 1.267 1.144 10.8
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Dividend / share, EUR 0.040 0.070 - 42.9
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Dividend / profit, % 35.3 34.6 -
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SECURITIES AND GUARANTEES, 1 000 EUR
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Securities for own liabilities 62 896 24 985 -
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Other own liabilities 3 579 - -
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Notional value of derivative contracts 20 186 - -
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Market value of derivative contracts - 93 - -
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On behalf of outsiders - - -
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