Incap Group interim report January-March 2012: Revenue on a par with the previous year, profitability improved:

• Revenue in January-March was EUR 15.6 million (Jan-Mar 2011: EUR 16.0 million).
• Operating profit (EBIT) was EUR -0.3 million (EUR -0.4 million).
• Earnings per share were EUR -0.04 (EUR -0.05).
• The company reiterates its previous profit forecast, estimating that full-year revenue for 2012 will be higher than for 2011 and that operating profit (EBIT) will be positive.

This interim report has been prepared in accordance with international financial reporting standards (IFRS) - IAS 34 Interim Financial Reporting standard. The accounting principles of the interim report are the same as those used in the preparation of the 2011 financial statements. Unless otherwise stated, the comparison figures refer to the same period in the previous year. This interim report is unaudited.

Sami Mykkänen, Ppesident and CEO of Incap Group, said, "Revenue for January-March was lower than for the fourth quarter of 2011, as was expected. Demand especially for the products for energy efficiency segment was good both in Europe and in India. Transferring the products from the Helsinki plant to our other plants is proceeding according to plans in close collaboration with our customers, and the manufacturing activity will end at the Helsinki plant in July. We are now about to finalise the change in production structure, which aims at creating a solid basis for profitable operations."

"Our aim for 2012 is to increase revenue moderately and profitably. Demand in the company's strategic customer segments is expected to develop stably, although the market outlook is typically very short-term. According to estimates received from the customers, demand for energy-efficient equipment and equipment related to renewable sources of energy is, in particular, expected to remain high. We will continue our efforts to improve profitability. We will especially pursue savings in material costs, aiming at increased margins and improved competitiveness."

Revenue and Net Profit January-March 2012

Revenue for the first quarter of 2012 amounted to EUR 15.6 million, down 3% year-on-year. Typical of the industry, the first quarter of the year is slower than the others, and revenue for January-March 2012 decreased by approximately 8% compared to the previous quarter. Demand was strong in products for the energy industry in particular, and the full-year outlook is positive for them.

The operating result for January-March was EUR -0.3 million, which is approximately EUR 0.1 million better than the corresponding period the previous year. Low revenue level and extra costs for the closure of the Helsinki factory affected the result. In addition, fixed costs were exceptionally high during the review period due to the service and maintenance work carried out.

Net financial expenses decreased to EUR 0.4 million (EUR 0.5 million) due to exchange rate fluctuations. Depreciation stood at EUR 0.4 million (EUR 0.5 million). The loss for the period was EUR 0.7 million (1.0 million).