OUTLOOK

Outlook for 2012 

The economic cycles in the global markets have a significant impact on demand for laser and automation equipment. Even though the year has started off with a moderately positive market outlook, it is uncertain whether the situation will remain positive throughout the year. The demand for special components will greatly depend on when the mass production for the deliveries according to the framework agreement related to renewable energy disclosed by Cencorp on 23 January 2012 will start. The value of the agreement may amount to over EUR 50 million over three years. The parties to the framework agreement have agreed on the terms and conditions of the deal and production volume estimates that will not be binding on the buyer for 2012–2014. The shift that is taking place in the mobile phone sector in general may also positively affect the demand for the special components manufactured by Cencorp.

Despite the uncertain economic situation, Cencorp estimates its net sales to increase compared to 2011 and the full-year EBITDA is estimated to be positive provided that no essential change takes place in the operating environment or in the current economic outlook.