Business environment

The demand for the Group's products and the Group's business operations are influenced by changes in the operating environment and customer sectors.

The market outlook below has been published in Componenta's Q2 Interim Report  on 26 October 2016

Demand prospects in the company’s customer sectors remain uncertain, particularly in the mining and agricultural machinery customer sectors and the machine building customer sector.

  • The order book for Componenta’s heavy trucks customer sector was 9% higher than at the same time in the previous year. Demand in the truck industry in Europe is expected to rise slightly in 2016.
  • The order book for Componenta’s construction and mining customer sector was 27% lower than at the same time in the previous year. Total demand in construction and mining in 2016 is expected to fall below that in the previous year.
  • The order book for Componenta’s machine building customer segment was 45% lower than in the previous year. Demand within the customer segment varies from customer to customer and in different geographical regions. The demand prospects are especially challenging among the Nordic machine building segment customers.
  • The order book for Componenta’s agricultural machinery customer sector was 2% lower than at the same time in the previous year. Total demand in agricultural machinery in 2016 is expected to fall below that in the previous year.
  • The order book for Componenta’s automotive customer sector was 2% higher than in the previous year. Demand in Europe is expected to rise in 2016, but demand in Turkey and in Russia is expected to fall from previous year level.

The market outlook below has been published in Componenta's Q2 Interim Report  on 19 July 2016

Demand prospects in the Group’s customer sectors remain uncertain, especially in the mining, agricultural machinery and machine building customer sectors. Demand prospects in the heavy truck and automotive customer sectors are on a stronger base.

  • The order book for Componenta’s heavy trucks customer sector was 4% lower than at the same time in the previous year. Demand in the truck industry in Europe is expected to rise slightly in 2016.
  • The order book for Componenta’s construction and mining customer sector was 32% lower than at the same time in the previous year. Total demand in construction and mining in 2016 is expected to fall below that in the previous year.
  • The order book for Componenta’s machine building customer segment was 26% lower than in the previous year. Demand within the customer segment varies from customer to customer and in different geographical regions.
  • The order book for Componenta’s agricultural machinery customer sector was 42% lower than at the same time in the previous year. Demand in the customer sector is expected to remain at a low level.
  • The order book for Componenta’s automotive customer sector was 16% lower than in the previous year. Demand in Europe is expected to rise slightly in 2016, but demand in Turkey is expected to stay at the same level as in the previous year and in Russia to fall.

The market outlook below has been published in Componenta's Q1 Interim Report  on 22 April 2016

Demand prospects in all the Group’s customer sectors remain uncertain.

  • The order book for Componenta’s heavy trucks customer sector was 5% lower than at the same time in the previous year. Demand in the truck industry in Europe is expected to remain at the same level as in previous year.
  • The order book for Componenta’s construction and mining customer sector was 14% lower than at the same time in the previous year. Raw material prices are expected to rise in the second half of the year, which may increase investment in the sector. Total demand in construction and mining in 2016 is however expected to fall below that in the previous year.
  • The order book for Componenta’s machine building customer segment was 21% lower than in the previous year. Demand within the customer segment varies from customer to customer and in different geographical regions.
  • The order book for Componenta’s agricultural machinery customer sector was 6% lower than at the same time in the previous year. Demand in the customer sector is expected to remain at a low level.
  • The order book for Componenta’s automotive customer sector was 8% lower than in the previous year. Demand in Europe is expected to rise slightly in 2016, but demand in Turkey is expected to fall.

The market outlook below has been published in Componenta's Financial Statements Bulletin on 11 March 2016 

Demand prospects in all the Group’s customer sectors remain uncertain.

  • The order book for Componenta’s heavy trucks customer sector was 20% lower at the beginning of 2016 than at the same time in the previous year. Demand in the truck industry in Europe is expected to rise in 2016.
  • The order book for Componenta’s construction and mining customer sector at the beginning of 2016 was 17% lower than at the same time in the previous year. The weaker prospects for economic growth in China have brought down raw material prices in recent months, and this has weakened demand for investment in the construction and mining industries. Total demand in construction and mining is expected to fall below that in the previous year.
  • The order book for Componenta’s machine building customer segment was 6% lower at the beginning of 2016 than at the same time in the previous year.
  • The order book for Componenta’s agricultural machinery customer sector was 17% lower at the beginning of 2016 than at the same time in the previous year. Weak market conditions mean that demand is expected to continue to decline in 2016.
  • The order book for Componenta’s automotive customer sector was 1% lower at the beginning of 2016 than at the same time in the previous year. Demand in 2016 is estimated to improve from the previous year.

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