Neo Industrial Plc announced preliminary earnings results for the full year of 2017. The company reported preliminary net sales of EUR 110 million in 2017 and in line with performance guidance, clearly increasing from the previous year. Preliminary operating profit was EUR 5.0 million is below the previous performance guidance. According to earlier performance guidance, operating profit was projected to be at the level of the operating profit of 2016 was EUR 5.9 million. The decline in the operating profit is caused by increasing raw material prices which are always transferred with delay into the sales prices and the changes in exchange rates, especially the Norwegian and Swedish krona. These together decreased the sales margin and the value of inventory and raw material price hedges during the last quarter of 2017.

The company provided earnings guidance for the financial year 2018, the company expects net sales to increase from the previous financial year and the operating result is expected to increase clearly from the previous financial year. Large variations between different quarters are part of the business and they may differ from year to year.