Vacon Plc revises profit forecast for 2011
(Thomson Reuters ONE) -
Vacon, Stock Exchange Release, 14 March 2011 at 1.25 pm:
- Vacon Plc sells The Switch Engineering Oy shares
Vacon is revising its profit forecast and now estimates that earnings per share
will improve considerably in 2011. The reason for revising the profit forecast
is the capital gains that will be obtained from the sale of The Switch
Engineering Oy shares once the transaction is completed. The capital gains are
expected to raise Vacon Plc's earnings per share by roughly about EUR 1.4 in
2011.
In its revised profit forecast, Vacon estimates that 2011 revenues will
increase 10-20 % and the operating profit percentage will rise from the 2010
figures. Earnings per share are expected to improve considerably from 2010.
Previously the company estimated that revenues in 2011 would increase
10-20 % and the operating profit percentage would rise from the 2010 figures.
Earnings per share were expected to improve from 2010.
Sale of The Switch Engineering Oy shares
Vacon Plc and the other shareholders in The Switch Engineering Oy have
signed an agreement with American Superconductor Corporation on 14 March 2011,
under which the entire share capital of The Switch Engineering is transferred to
American Superconductor Corporation. The transaction requires the approval of
the competition authorities and it is estimated that the sale will take place
during the second quarter. The Switch Engineering is a major customer of Vacon
Plc in the generation of renewable energy.
Vacon owns directly 14 % of the shares of The Switch Engineering. The
price for the shares held directly by Vacon is some EUR 26 million, and 73 % of
this will be paid in cash and 27 % in American Superconductor Corporation
shares. American Superconductor Corporation is listed in the USA on the NASDAQ
Global Select Market.
Vacon will recognize capital gains before tax of EUR 22 million on the
sale in the income statement in 2011. The capital gains will be recorded in the
income statement under financial income when the transaction has taken place.
Ten per cent of the price will be deposited in an escrow account and it may be
possible for Vacon to record further capital gains of EUR 0-2 million on this
amount in 2012.
Vacon has a further 5 % holding in The Switch Engineering through the
investment fund Power Fund I. The yield from the fund to be obtained from the
sale of The Switch Engineering shares will be determined by the fund rules and
applicable taxation.
Further information: President and CEO Vesa Laisi, +358 40 837 1510
Media contact: Director, Corporate Communications, Sebastian Linko,
+358 40 837 1634
Vacon in brief:
Vacon's operations are driven by a passion to develop, manufacture and sell the
best AC drives in the world - and nothing else. AC drives are used to control
electric motors and in renewable energy generation. Vacon has R&D and production
units in Finland, the USA, China and Italy, and sales offices in more than 25
countries. In 2010 Vacon had revenues of EUR 338 million and globally employed
1,300 people. The shares of Vacon Plc (VAC1V) are quoted on the main list of the
Helsinki stock exchange.
Driven by Drives, www.vacon.com
Distribution:
Financial Supervision Authority
NASDAQ OMX Helsinki
Main media
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Vacon Oyj via Thomson Reuters ONE
[HUG#1496667]
Unternehmensinformation / Kurzprofil:
Datum: 14.03.2011 - 12:25 Uhr
Sprache: Deutsch
News-ID 52413
Anzahl Zeichen: 4344
contact information:
Town:
Vaasa
Kategorie:
Business News
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"Vacon Plc revises profit forecast for 2011"
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