Tulikivi Oyj - Interim report (Q1 and Q3)

Tulikivi Corporation´s interim report 1-3/2014

TULIKIVI CORPORATION                        INTERIM REPORT 1-3/2014

                                                                  29  April
2014, at 10.0 a.m. 







Tulikivi Corporation

Interim report, 1 January — 31 March 2014: The operating result before
non-recurring expenses increased by EUR 0.5 million 

29 April 2014, 10 a.m.



- The Tulikivi Group's first-quarter net sales were EUR 8.3 million (EUR 9.2
million in Q1/2013), the operating result in the first quarter was EUR -1.6
(-1.7) million and result before taxes EUR -1.8 (-2.0) million. 

- The first-quarter operating result before non-recurring expenses was EUR -1.2
(-1.7) million. 

- Net cash flow from operating activities was EUR -2.4 (-2.5) million in the
review period. 

- The company has good liquidity owing to the share issue during the 2013
financial year. 

- Order books at the end of the period were at EUR 6.1 (6.0) million.

- Future outlook: The demand for Tulikivi products is in part dependent on
consumer confidence and construction. The performance improvement programme
started in 2013 includes sales and production efficiency measures and
cost-saving measures. The results of these measures will begin to show in 2014.
Full-year net sales are expected to be at the same level as in 2013, and the
operating result is expected to be positive. 



Summary of the interim report 1-3/2014.  The full interim report is attached to
this release. 

Key financial ratios



                     1-3/   1-3/  Change, %  1-12/
                     2014   2013              2013
Sales, MEUR           8.3    9.2       -9.2   43.7
Operating profit/    -1.6   -1.7        5.9   -4.3
loss, MEUR          
Operating result     -1.2   -1.7       28.8   -1.4
before non-                                       
recurring                                         
expenses, MEUR                                    
Profit before tax,   -1.8   -2.0        9.3   -5.3
MEUR                                              
Total                -1.5   -1.6        5.2   -4.5
comprehensive                                     
income for the                                    
period, MEUR                                      
Earnings per        -0.03  -0.04             -0.11
share, Euro                                       
Net cash flow        -2.4   -2.5               2.6
from operating                                    
activities, MEUR                                  
Equity ratio, %      38.9   32.0              38.1
Net Indebtness       81.5  142.2              59.3
ratio, %                                          
Return on           -15.6  -16.5              -9.8
investments, %                                    

Comments by Heikki Vauhkonen, Managing Director:

Net sales of Tulikivi products continued to be weak in the first quarter. In
addition to the weak financial situation, the unusually mild winter decreased
the number of deliveries in Finland and Central Europe. Net sales decreased
both in Finland and in exports. Since the flow of orders was slightly better
than in Q1/2013, order books increased to EUR 6.1 (6.0) million. 

Net sales were reduced due to the difficult market situation in Central Europe,
while in the Nordic and Baltic countries net sales showed a positive trend. Net
sales in Russia also increased in spite of the weakened rouble. 

In Finland low-rise housing construction and renovation was low, which affected
the number of deliveries. 

Despite the challenging market, sales kept growing for the latest products:
saunas, design fireplaces and the new-generation Hiisi fireplace collection. 

The performance improvement programme helped to increase the company's relative
profitability on the previous year. This improvement in performance was
achieved by the implementation of savings in fixed costs. 

The production of soapstone fireplaces was centralised, while the
reorganisation of the production of ceramic fireplaces will be implemented by
the end of May. It is believed that these measures will improve profitability
in the second half of the year. 



The performance improvement programme also includes measures to boost sales
efficiency. The measures have progressed as planned, but as their impact on
performance improvement will be felt more slowly, improvement is expected to
show later this year. 

TULIKIVI CORPORATION

Board of Directors



Distribution: NASDAQ OMX Helsinki

Key media

www.tulikivi.com



Additional information: Tulikivi Corporation, FIN-83900 Juuka, Finland, tel.
+358 207 636 000, www.tulikivi.com 

- Harri Suutari, Chairman of the Board, tel. +358 400 384 937

- Heikki Vauhkonen, Managing Director, tel. +358 207 636 555



ATTACHEMENT: Interim Report 1-3/2014

Attachments:

Interim report 01-032014 .pdf