Annual report 2012 - Comrod

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Annual report 2012 8/92Strategies and values | Group | Parent company | Corporate governance | ContactAnnual report Financial statement Notesterms have been renegotiated for the comingyear. At year end, the Group was fulfilling all itsfinancial covenants related to external funding. Tostrengthen the financial and the liquidity positionfor the Group, a cost-saving program is beingpursued as a high priority action plan.The Group employed a total of 210 staff as of 31December 2012 (2011: 222). Of these, the mainBusiness Units (Norway and France) employedrespectively 99 (2011: 108) and 67 (2011:69)staff. Sick leave in the Group amounted to 4.1 % ofworking hours in 2012 (2011: 3.3 %). In absolutefigures, total sick leave for the Group during 2012amounted to 15542 hours (2011: 12137 hours).The Board and the Administration continue theirefforts to improve the current level.The Board and Management wish to promotediversity and equality in all areas. Recruitment andDevelopment opportunities are decided on thebasis of a comprehensive evaluation of the shorttermand long-term competence requirements ofthe individual Company and the Group as a whole.Salaries are based on education, qualifications,experience and performance. Men and women aretreated equally. Most positions in the Group areattributed to manufacturing, traditionally being amale-dominated area. The total number of womenin the Group was 68 (32 %) in 2012 and 73 (33%) in 2011. The Group Board has 40 % femalerepresentation.The Norwegian Discrimination Act aims topromote equality, ensure equal opportunitiesand rights and prevent discrimination basedon ethnicity, national origin, ancestry, colour,language, religion or belief. The Group worksto promote the Act’s purpose throughout thebusiness. The activities include recruitment,wages and working conditions, promotion,development and protection from harassment.The Group aims to be a workplace withoutany discrimination based on disabilities. In theplanning of new premises the Group has activelyand purposely designed and put in place solutionsin the physical working environment to ensurethat the premises are well suited for employeeswith physical disabilities. For these employees theGroup facilitates individual adaptation of workstationsand tasks.While the economical situation for the Group ischallenging given the current market situation, theBoard is confident that the measures taken willlead the Group through the difficult situation. Thefinancial statements for 2012 have been preparedon the basis of a going concern assumption. TheBoard of Directors confirms the validity of thisassumption in accordance with the provisions ofsection 3-3a of the Norwegian Accounting Act.Environmental ReportingThe Group’s operations do not release anysubstances into the surrounding environmentrequiring specific public permits, and no knownhealth hazards are associated with its products.Waste from manufacturing processes, such asmetal shavings are sent to approved disposalcentres. This also applies to hazardous wastesuch as oil emulsions. Other waste is separated atsource and deposited at authorized waste disposalsites. External emissions are registered annually8
Annual report 2012 9/92Strategies and values | Group | Parent company | Corporate governance | ContactAnnual report Financial statement Notesand reported to the Norwegian Pollution ControlAuthority and relevant Authorities in countries inwhich the Company operates.All manufacturing units in the Group are ISO9001-2008 certified.Business Unit France is expected to continue itsrepositioning for future growth during 2013. Theestablishment of a Centre of Excellence for Mastsand the relocation of Comrod Sweden’s aluminiummast production line is expected to provide afuture positive effect on the Business Unit.Future ProspectsThis section, and some other parts of thisBoard report, contains certain forward-lookingstatements. These forward-looking statementsreflect current views with respect to future eventsand are, by their nature, subject to significant risksand uncertainties because they relate to eventsand depend on circumstances which might occurin the future. There are a number of factors thatcould cause actual results and developments todiffer materially from those expressed or impliedby these forward-looking statements, including:levels of industry product supply, demand andpricing; currency exchange rates; political andeconomic policies in Norway and the othercountries the Group have own operations orexport to and import from; general economicconditions; political stability and economic growthin relevant areas of the world; global politicalevents and actions, including war, terrorism andsanctions; the ability of Comrod CommunicationGroup to successfully implement its strategiesand achieve its objectives.Business Unit Norway is expecting a moderateincrease in revenue for 2013 in spite of acontinued challenging market situation. However,this situation may change if some of the largerprospects turn into orders by the end of 2 ndquarter.The Board as well as the Administration arefocussing on consolidating Group activities forlower volume levels and to ensure positioningfor future recovery and growth as soon as globalmarkets return to more normal behaviour.Unique application competence, mainly basedon experience and specific expertise related todevelopment and manufacturing according tostrict defence standards, is likely to represent anentry barrier into this market. The Group doesnot see any immediate short term threats fromemerging technologies or new players.The Group will continue to invest in itsmanufacturing facilities to achieve furtherautomation in order to ensure cost efficiency.The Group will continue to utilize manufacturingcapacity in low cost countries as a means to stayflexible with respect to capacity and to improveoverall profitability.Financial RiskMarket RiskThe Group’s main customers often placetheir orders under long-term defence radiocommunication programmes mostly fundedby Governmental institutions. The businessis, however, influenced by changes in defencestrategies and the level of conflict in the world.9
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Annual report 2012 - Comrod

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