Exel's demand situation has remained good, but higher material costs have affected short-term performance more than we expected. This year's earnings growth will remain low, but one single setback does not spoil the longer-term potential. 

The structure of Exel's production network is global, industrial positioning extensive, and relative economies of scale are genuine. These factors help guard competitiveness and contribute to strengthening the earnings outlook for coming years. During the last month, share valuation has decreased slightly and the return/risk ratio has improved a smidgen.

Exel published its Q2 report yesterday. Growth was clearly brisker than we expected, but the operating result was below our estimates. The key causes of joy in the report were undoubtedly related to excellently developed new orders, another record-high order book, and, thus, the short-term order situation looking better than before. Also looking further ahead there are a lot of opportunities and Exel’s own structural characteristics do not, in our opinion, place any restrictions on utilizing these opportunities.

 EXEL COMPOSITES PLC    HALF YEAR FINANCIAL REPORT    20 JULY 2021 at 10:00 EET