Stock Exchange Release 24 January 2014 at 8 a.m. (EET)
INCAP'S TURNAROUND PROGRAM TO A SUCCESSFUL END – EVALUATION OF STRATEGIC ALTERNATIVES STARTED
The turnaround program launched at Incap in October 2013 has now been successfully implemented. The overall strategy in the program was to focus on core business, i.e. manufacturing and deliveries to customers. The main objectives of the program were achieved and accordingly, the delivery accuracy in terms of On-Time-Delivery has improved remarkably, the operational efficiency has increased both in manufacturing units and in supporting functions, the Group organisation has been streamlined to cover essential functions only and the manufacturing operations have been adjusted to actual demand. The organisation structure has been changed and now the manufacturing units operate as self-sufficient profit centres having full responsibility of their operations including sales.
After completion of the actions of the turnaround program, Incap is able to reach a break-even in profitability during 2014 even with substantially lower volumes compared with 2013. Incap will publish the financial statements for 2013 and give further guidance for the year 2014 on 25 February 2014.
Evaluation of strategic alternatives
Even though Inission AB did not use the option for a merger by the end of 2013 it has now indicated its continued interest in consolidation of Incap and Inission. In this new situation Incap's Board of Directors has started evaluating the strategic alternatives for further development of the company's business operations. To assess its alternatives for potential strategic alliances Incap's Board of Directors has decided to engage an investment bank as its advisor.
Board of Directors
Lassi Noponen, Chairman of the Board, tel. +358 40 501 5127
Fredrik Berghel, President & CEO, tel. +46 73 202 2210
NASDAQ OMX Helsinki Ltd
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 470 people. Incap's share is listed on the NASDAQ OMX Helsinki. Additional information: www.incap.fi.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Incap Oyj via Globenewswire