Annual report 2012 - Comrod

Annual report 2012 5/92Strategies and values | Group | Parent company | Corporate governance | ContactAnnual report Financial statement Notes2012 Annual ReportHighlights 2012• The difficult market conditions experiencedduring second half 2011 has continuedthroughout 2012 with few signs of a quickmarket recovery.• Mast manufacturing consolidated to a singlesite by transferring Comrod Sweden’saluminum mast manufacturing to Business UnitFrance at end of the year.• New and improved composite masts for heavytop-loads introduced to the market.• During 2012, Comrod has become a qualifiedas supplier to major OEM’s and systemintegrators in targeted markets.• Two Centers of Excellence established duringthe year:- Mast manufacturing and testing at BusinessUnit France- Antenna manufacturing and testing atBusiness Unit NorwayThe Group reported revenues of NOK 218.3million in 2012 compared to NOK 286.2 in 2011and an operating profit before depreciation/amortization (EBITDA) of NOK 0.7 million in2012 compared to NOK 13.9 in 2011. Operatingprofit (EBIT) amounted to NOK – 30.1 million.A non-recurring final impairment of goodwillrelated to the Comrod France and Comrod Swedeninvestment has negatively affected the operatingprofit with NOK 11.8 million.The Norwegian Code of PracticeA detailed description of the Group’s latestCorporate Governance principles and practicehas been covered in the Corporate GovernanceSection of the Annual Report.Operating Business UnitsBusiness Unit NorwaySalesBusiness Unit Norway achieved revenues of NOK143.4 million in 2012 compared to NOK 209.4million for 2011. The main reason for the reducedturnover is the reduction and postponementsof global defence spendings within Comrod’sproduct segments. In spite of reduced volumes,the Business Unit’s international market sharefor tactical antennas remains strong and has notdeteriorated during the year.The 2012 market situation has been challengingand demanding due to budget cuts and politicalcircumstances in the major markets. Despitethat, Comrod has continued to position itselfwithin the target product areas and has nowobtained qualification for several future defenceprograms representing significant medium termopportunities for the Group.Operations and ResultsThe Business Unit’s operating margin for 2012 was0.3 %, compared to 10.1 % in 2011.Business Unit Norway reported an operatingprofit of NOK 0.5 million in 2012, a reduction fromNOK 21.2 million in 2011. This is reflecting lowervolumes of antennas which is the main productsegment for the Norwegian Business Unit.5