According to its interim report, Exel's operating profit for the 2009 quarter was €2.0 million, down 25.7% on the first quarter (Q1) of 2008.

“During the first quarter 2009, the impact of the financial crisis has continued to escalate, affecting also market demand in the pultrusion business negatively, especially in the building and construction and transportation segments,” says Vesa Korpimies, President and CEO of the Finnish company. “To address this, actions have been taken to adapt Exel Composites’ cost base. We maintain a strong emphasis on operative working capital reduction to safeguard cash flow and improve financial position.”

The restructuring of the Group has now been completed. Exel Sports Brands’ Outdoor business was sold to ESB Sports in June 2008 and the remaining Floorball business was sold to Cape Nordic in March 2009. From this interim report onwards, Exel Composites will report with one segment, Exel Composites. The company name has been changed to Exel Composites plc in English and Exel Composites Oyj in Finnish.

Market demand is uncertain and Exel is preparing for the weakening trend to continue, notes Korpimies.

Exel Composites designs, manufactures and markets composite profiles and tubes for industrial applications. Exel specialises in the pultrusion, pullwinding, co-winding, continuous lamination and prepreg manufacturing processing techniques.

Exel Composites: consolidated key figures, million Euros (unaudited).
  Q1 2009 Q1 2008 % change Full year 2008
Net sales, continuing operations 18.5 20.9 -11.4 84.9
Operating profit, continuing operations 2.0 2.7 -25.7 8.6
% of net sales 10.8 12.9   10.1
Profit, continuing operations 1.7 -0.1 32.8 -3.0