Brief: Rapala H1 Operating Profit Falls To EUR 11.4 Mln

Rapala VMC Oyj

19/07/2019 11:16

July 19 (Reuters) - Rapala VMC Corp  RAP1V.HE :
    * REG-RAPALA VMC CORPORATION’S HALF YEAR REPORT H1/2019:
SALES AND
PROFITABILITY DECREASED FROM LAST YEAR – FULL YEAR GUIDANCE
UNCHANGED
    * H1 NET SALES EUR 141.2 MILLION VERSUS EUR 124.5 MILLION
YEAR AGO
    * MARKET OUTLOOK FOR NORTH AMERICA IS POSITIVE AND GROUP HAS
A
STRONG ORDER BOOK FOR SECOND HALF OF 2019.
    * H1 EARNINGS PER SHARE WAS 0.17 EUR (0.23), DOWN 26%
    * H1 OPERATING PROFIT EUR 11.4 MILLION VERSUS PROFIT EUR
15.3
MILLION YEAR AGO
    * GROUP EXPECTS TO GROW SALES IN GROUP PRODUCTS.
    * EXPECTS 2019 FULL YEAR NET SALES WITH COMPARABLE FX RATES
TO BE
AROUND SAME LEVEL AS IN 2018
    * RECORD STRONG ORDER BOOK IN NORTH AMERICA, IMPROVEMENTS IN
INDONESIAN LURE FACTORY COMBINED WITH RIGOROUS MANAGEMENT OF
FIXED COSTS
    * UNCERTAINTIES AND RISKS RELATE TO US-CHINA TRADE
RELATIONS,
GLOBAL ECONOMIC GROWTH, SHIMANO SALES AFTER CHANGES IN
DISTRIBUTION AGREEMENTS AND RETAIL CUSTOMERS' YEAR-END PURCHASE
BEHAVIOR
    * EXPECTS 2019 COMPARABLE OPERATING PROFIT  TO INCREASE FROM
2018
    * MARKET OUTLOOK FOR NORTH AMERICA IS POSITIVE AND GROUP HAS
A
STRONG ORDER BOOK FOR SECOND HALF OF 2019
    * OUR TOPLINE FOR FIRST SIX MONTHS OF YEAR DEVELOPED FOR
MOST PART
ACCORDING TO EXPECTATIONS
    * GROUP SEES CONTINUED HEALTHY CONSUMER DEMAND FOR ITS
PRODUCTS
VIA OLD AND NEW SALES CHANNELS
    * THERE IS SLIGHTLY LOWER VISIBILITY TO SALES OF SHIMANO
PRODUCTS
IN 2019 IN COUNTRIES AFFECTED BY CHANGES IN DISTRIBUTION
AGREEMENTS
    * GROUP'S POSITION WITH MAJOR CUSTOMERS IN NORTH AMERICA IS
STRONG
    * IN EUROPE, OUTLOOK AND VISIBILITY IS SOMEWHAT CAUTIOUS AS
MARKET
ENVIRONMENT REMAINS CHALLENGING IN CERTAIN COUNTRIES AND PRODUCT
SEGMENTS
    * OVERALL, GROUP EXPECTS TO GROW SALES IN GROUP PRODUCTS.
    * SOME OF SALES IN NORTH AMERICA WILL BE SHIFTED FROM FIRST
HALF
TO SECOND HALF OF YEAR
    * THIRD PARTY PRODUCTS SALES DECLINED IN NORDICS AND WESTERN
EUROPEAN COUNTRIES
    * EXPECTS 2019 FULL YEAR NET SALES WITH COMPARABLE FX RATES
TO BE
AROUND SAME LEVEL AS IN 2018 AND COMPARABLE OPERATING PROFIT
(EXCLUDING MARK-TO-MARKET VALUATIONS OF OPERATIVE CURRENCY
DERIVATIVES AND OTHER ITEMS AFFECTING COMPARABILITY) TO INCREASE
FROM 2018
    * THERE IS SLIGHTLY LOWER VISIBILITY TO SALES OF SHIMANO
PRODUCTS
IN 2019 IN THOSE COUNTRIES WHICH ARE AFFECTED BY CHANGES IN
DISTRIBUTION AGREEMENTS
    * CONTINUING RISK OF TRADE WAR BETWEEN USA AND CHINA AND
POTENTIAL
SLOWDOWN IN GLOBAL ECONOMIC GROWTH MIGHT HAVE SOME IMPACT ON
RETAIL AND CONSUMER DEMAND
    * WE KEEP OUR GUIDANCE UNCHANGED FOR FULL YEAR 2019 AND
EXPECT TO
INCREASE COMPARABLE OPERATING PROFIT FROM LAST YEAR
    * WEATHER CHANGES AS WELL AS RETAIL CUSTOMERS' YEAR-END
PURCHASE
BEHAVIOR MAY AFFECT SALES OF GROUP

Source text for Eikon:  ID:nGNE7205fD 
Further company coverage:  RAP1V.HE 

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