2011-02-17 07:15:00 CET
2011-02-17 07:15:03 CET
REGULATED INFORMATION
PKC Group Oyj - Financial Statement Release
PKC GROUP'S FINANCIAL STATEMENT RELEASE, 1 January - 31 December 2010
PKC Group Oyj FINANCIAL STATEMENT RELEASE 17 February 2011 8.15 a.m.
PKC GROUP'S FINANCIAL STATEMENT RELEASE, 1 January - 31 December 2010
-- Consolidated net sales grew 56.6% on the previous year (1-12/2009),
totalling EUR 316.1 million (EUR 201.8 million).
-- Consolidated operating profit was EUR 29.7 million (EUR 0.7 million) i.e.
9.4% (0.3%) of net sales. Comparable operating profit without non-recurring
items was EUR 31.5 million (EUR 5.1 million), 10.0% (2.5%) of net sales.
-- Profit for the financial year amounted to EUR 19.7 million (EUR 2.3
million).
-- Earnings per share were EUR 1.09 (EUR 0.13).
-- Cash flows after investments were EUR 14.9 million (EUR 37.6 million).
-- Gearing was 1.7% negative (35.9%).
-- Equity ratio was 56.5% (49.2%)
-- Net liabilities were EUR 1.2 million negative (EUR 28.2 million).
-- A dividend of EUR 0.55 per share will be proposed.
KEY FIGURES 1-12/10 1-12/09
Net sales, EUR 1,000 316,081 201,814
Operating profit, EUR 1,000 29,689 682
% of net sales 9.4 0.3
Profit for the financial year, EUR 1,000 19,683 2,349
Earnings per share (EPS), EUR 1.09 0.13
ROI,% 25.8 6.4
Net liabilities, EUR 1,000 -2,068 28,245
Gearing, % -1.7 35.9
Average number of personnel 5,039 4,478
HARRI SUUTARI, PRESIDENT AND CEO:
“During the final quarter, the sales of PKC Group continued to grow along with
the recovery of the markets. Sales increased in both business segments and in
all of our market areas.
Commercial vehicle manufacture continued its growth in our key market areas in
Europe and Brazil, and in the the final quarter our customers received more
orders than they delivered vehicles within the same period. We expect the
growth to continue on the key markets this year.
Accelerated by customers' growth in the industrial electronics and energy
segments, PKC Group's deliveries of electronics design and manufacturing
services increased from the level of the previous quarter. We expect the growth
to continue this year.
Profitability improvement was limited by unfavourable price development of raw
and other materials. However, profitability remained at a good level thanks to
the growth in sales and the cost reductions made earlier.
In line with our strategy, our aim is not only organic growth but also business
growth through acquisitions.”
OPERATING ENVIRONMENT
Wiring Harness business
Registrations of heavy trucks increased in Europe (EU, Norway and Switzerland)
in 2010 by about 8% compared to 2009. About 179,000 heavy trucks were
registered during the financial year. The number of registrations in Europe is
still exceptionally low. The industry and analysts expect the number to
increase to about 220,000-230,000 registrations in 2011.
In Brazil, deliveries of heavy trucks increased by about 64% from the previous
year, totalling about 110,000 vehicles. Our customers' order volumes from the
final quarter support the automotive industry's general assumption of the
markets remaining at least at the current level in 2011.
Registrations of heavy trucks in North America increased in 2010 by about 20%
from the previous year, totalling about 140,000 trucks. The industry and
analysts expect the number to increase to about 220,000 registrations this
year. The order intake from the last four months (October 2010 to January
2011), about 100,000 vehicles, shows signs of strong growth in North America.
In North America, the recreational vehicle deliveries of our customers
increased in 2010 by about 50% from the previous year's level.
Although PKC Group has no wiring harness production of its own in Asia, the
increasing export to Asia by our customers supports the growth of PKC's
production volumes.
The sales of construction equipment increased in Europe by about 4% from the
previous year. The market is expected to growth a further 5-15% during 2011.
Sales of agricultural tractors declined in Europe in 2010 by 10% from the
previous year's sales. By contrast, forestry equipment sales increased from the
exceptionally weak comparison year.
Electronics business
The recovery of the global economy and revival of the electronics industry
increased the demand for the design and manufacturing services of PKC's
Electronics business in 2010. In particular, customers in the industrial
electronics and energy segments increased their sales during the latter half of
the year.
Due to the global growth in the electronics industry, there have still been
problems in the availability of electronics components.
NET SALES AND FINANCIAL PERFORMANCE
October-December 2010
Consolidated net sales from October-December amounted to EUR 91.9 million (EUR
55.4 million), up 66.0% on the same period a year earlier. Consolidated
operating profit totalled EUR 9.8 million (EUR 2.6 million), accounting for
10.6% of net sales (4.8%). During the report period were reported EUR 0.2
million in non-recurring expenses (the operating profit on the same period year
earlier included a non-recurring item of EUR 0.7 million as a result of the
costs of rationalisation being lower than what had been estimated).
Depreciation amounted to EUR 2.5 million (EUR 2.6 million). Financial items
were EUR 3.1 million negative (EUR 0.8 million negative). In addition to EUR
0.7 million interest expenses, a translation loss of EUR 0.8 million related to
the translation of subsidiaries' financial statements, as well as exchange rate
loss caused mainly by Group's internal liabilities totalling EUR 1.6 million
have been entered into the financial items. Profit before taxes was EUR 6.6
million (EUR 1.8 million). Profit for the report period totalled EUR 5.3
million (EUR 3.2 million). Earnings per share were EUR 0.29 (EUR 0.18).
January-December 2010
Consolidated net sales from financial year amounted to EUR 316.1 million (EUR
201.8 million), up 56.6% on the previous financial year. Consolidated operating
profit totalled EUR 29.7 million (EUR 0.7 million), accounting for 9.4% of net
sales (0.3%). The result was burdened by EUR 1.8 million (EUR 4.3 million)
mainly in non-recurring rationalisation expenses. Depreciation amounted to EUR
10.7 million (EUR 11.0 million). Financial items were EUR 4.7 million negative
(EUR 0.4 million). In addition to EUR 2.0 million interest expenses, a
translation loss of EUR 1.0 million related to the translation of subsidiaries'
financial statements as well as exchange rate losses caused mainly of Group's
internal liabilities totalling EUR 1.8 million have been entered into the
financial items. Profit before taxes was EUR 25.0 million (EUR 1.1 million).
Profit for the financial year totalled EUR 19.7 million (EUR 2.3 million).
Earnings per share were EUR 1.09 (EUR 0.13).
Net sales generated by the Wiring Harness business in the financial year
amounted to EUR 242.4 million (EUR 149.4 million), or 62.3% more than in the
previous financial year. The segment's share of the consolidated net sales was
76.7% (74.0%). Wiring Harness business generated an operating profit of EUR
24.5 million (EUR 3.9 million negative), equivalent to 10.1% of the segment's
net sales (2.6% negative). The result of the Wiring Harness business was
burdened in total by EUR 1.8 million (EUR 4.4 million) in non-recurring
expenses.
Net sales generated by the Electronics business increased by 40.4% to EUR 73.7
million (EUR 52.5 million). The segment's share of the consolidated net sales
was 23.3% (26.0%). Electronics business generated an operating profit of EUR
7.7 million (EUR 4.6 million), equivalent to 10.4% of the segment's net sales
(8.7%).
FINANCIAL POSITION AND CASH FLOW
Consolidated total assets at 31 December 2010 amounted to EUR 219.0 million
(EUR 159.9 million). Interest-bearing liabilities totalled EUR 35.0 million at
the close of the financial year (EUR 43.6 million). The Group's equity ratio
was 56.5% (49.2%). Net liabilities totalled EUR 2.1 million negative (EUR 28.2
million) and the gearing was 1.7% negative (35.9%).
Inventories amounted to EUR 58.1 million (EUR 36.1 million). Current
receivables totalled EUR 57.8 million (EUR 43.5 million). Cash flows after
investments during the financial year were EUR 14.9 million (EUR 37.6 million).
Cash and cash equivalents amounted to EUR 37.1 million (EUR 15.3 million).
Based on Board of Directors resolution on the directed share issue, the total
share subscription price of EUR 21.5 million has been recognised in Invested
non-restricted equity fund. In order to ensure financing flexibility, PKC has
available a total of EUR 15 million financing and credit facilities, of which
EUR 15 million has remained unused.
CAPITAL EXPENDITURE
During the financial year, the Group's gross capital expenditure totalled EUR
8.6 million (EUR 3.9 million), representing 2.7% of net sales (1.9%). The
capital expenditure consisted mostly of the acquisition of production machinery
and equipment.
RESEARCH & DEVELOPMENT
Research and development costs totalled EUR 5.7 million (EUR 5.5. million),
representing 1.8% (2.7%) of the consolidated net sales. At the end of the
financial year, 110 (114) people worked in product development.
PERSONNEL
During the financial year, the Group had an average payroll of 5,039 employees
(4,478). At the end of the financial yaer, the Group's personnel numbered 5,765
employees (4,077), of whom 5,326 (3,617) worked abroad and 439 (460) in
Finland. In addition the Group had at the end of the financial year 708 rented
employees.
As a result of the co-determination negotiations concluded in March 2010, it
was decided to lay off a total of 45 persons from PKC Wiring Systems Oy.
Non-recurring costs arising from layoffs were recorded during the first half of
the year to the total amount of EUR 0.6 million.
As a result of the co-determination negotiations concluded in August 2010, it
was decided to lay off a total of 31 persons from PKC Wiring Systems Oy.
Non-recurring costs arising from layoffs were recorded during the third quarter
of the year to the total amount of EUR 0.5 million.
QUALITY AND THE ENVIRONMENT
All of the Group's Wiring Harness factories are certified in accordance with
requirements of the ISO/TS16949 quality standard for the automotive industry
and with the ISO9001 quality standard as well as with the ISO14001
environmental standard. Production unit in Curitiba (Brazil) has alsocertification in accordance with the OHSAS18001 occupational health and safety
management system standard.
The Group's Electronic factories are certified in accordance with the
requirements of the ISO9001 and ISO14001 standards. In addition, the Finnish
factory is certified in conformity with the ISO/TS16949 automotive industry
quality standard. The certification process of the ISO/TS16949 in China has
been completed after the report period. The certification process of the
ISO/TS16949 quality standard in the unit of Russia will be completed during the
first quarter in 2011. During 2011 all units will be certified in conformity
with the OHSAS18001 occupational health and safety management system standard.
Best Quality Practices are a part of PKC's strategy, and they enable the close
participation of each employee in daily quality work and the continuous
improvement of quality. The selected practices are tried and tested quality
tools and procedures that aid the development and standardisation of production
processes, methods, and products, ensuring that they are as uniform as
possible, regardless of production site. Best Quality Practices also include
Six Sigma, use of which has been increased in the Wiring Harness business in
the implementation of strategically important development projects and Six
Sigma practices have been trained to personnel. During the report period, also
the Electronic business embarked upon a Best Quality Practices and Six Sigma
projects as part its own operation. The progress of practices is actively
monitored in business segments and in the Group's Executive Board. Best Quality
Practices and monitoring the realisation of Quality Best Practices is handled
as part of the external system audits. The effectiveness of processes in Wiring
Harness business has been measured using harmonised indicators. The development
and harmonisation of indicators is continued. Indicators act as tools for
continuous improvement and this improves further the quality management in
Group level.
MANAGEMENT
The Annual General Meeting held on 31 March 2010, re-elected Outi Lampela,
Endel Palla, Olli Pohjanvirta, Matti Ruotsala and Jyrki Tähtinen as Board
members, and Matti Hyytiäinen as a new member. In the Board's organisation
meeting, Matti Ruotsala was elected as Chairman of the Board with Jyrki
Tähtinen as Vice-Chairman.
Outi Lampela was elected as chairman of the Audit Committee with Matti
Hyytiäinen and Olli Pohjanvirta as its members. The Board of Directors also
established a Nomination Committee, which shall prepare the matters pertaining
to the nomination and remuneration of directors and elected Matti Ruotsala as
chairman of the Nomination Committee and Endel Palla and Jyrki Tähtinen as
members.
Authorised public accounting firm KPMG Oy Ab, which has announced Virpi
Halonen, APA, to be the Auditor with principal responsibility, was selected as
auditor.
Since 15 March 2010 the Group's Executive Board has consisted of the following
persons: Harri Suutari, Chairman (President and CEO); Harri Ojala (President,
Wiring Harnesses); Jarmo Rajala (President, Electronics); Sanna Raatikainen
(General Counsel); Marja Sarajärvi (CFO); and Jarkko Kariniemi (Director, HR
and Risk Management).
SHARE TURNOVER AND SHAREHOLDERS
PKC Group Oyj's share turnover on NASDAQ OMX Helsinki Ltd from 1 January to 31
December 2010 was 10,172,914 shares (8,665,356 shares), representing 56.5% of
the average number of shares (48.7%). Shares were traded to a total value of
EUR 107.7 million (EUR 37.8 million). The lowest share value during the
financial year was EUR 6.55 (EUR 2.70) and the highest EUR 15.58 (EUR 6.83).
The closing price on the last trading day of the financial year was EUR 15.40
(EUR 6.60) and the average price during the period was EUR 10.72 (EUR 4.38).
The company's market capitalisation at 31 December 2010 was EUR 301.1 million
(EUR 117.4 million).
Flaggings 2010:
-- The share of votes and share capital in PKC Group Oyj held by Ilmarinen
Mutual Pension Insurance Company (Business ID 0107638-1) exceeded the limit
of 5% on 18 February 2010, after which Ilmarinen Mutual Pension Insurance
Company owned 969,685 shares i.e. 5.45% of shares and votes.
-- The share of votes and share capital in PKC Group Oyj held by corporations
in which OP-Pohjola Group Central Cooperative (0242522-1) exercises
influence, its subsidiaries and funds managed by its subsidiaries (OP-Suomi
Pienyhtiöt, OP-Pohjola Pienyhtiöt, OP-Focus) exceeded the limit of 5% on 23
February 2010, after which they owned a total of 908,467 shares i.e. 5.11%
of shares and votes.
-- The share of votes and share capital in PKC Group Oyj held by Jorma Takanen
fell below the limit of one twentieth (1/20) on 23 April 2010, after which
Jorma Takanen owned 807,598 shares i.e. 4.54% of shares and votes.
-- The share of votes and share capital in PKC Group Oyj held by corporations
in which OP-Pohjola Group Central Cooperative (0242522-1) exercises
influence, its subsidiaries and funds managed by its subsidiaries (OP-Suomi
Pienyhtiöt) fell below the limit of 5% on 9 September 2010. After
notification thereof on 28 September 2010 they owned a total of 840,015
shares i.e. 4.72% of shares and votes.
The shares held by Board members, their closely associated persons and
corporations in which they have a controlling interest accounted for 0.7%
(0.7%) of the total number of shares at the end of the financial year. PKC
Group Oyj had a total of 7,207 shareholders (7,336) at the end of the financial
year. The shares held by foreigners and through nominee registrations at the
close of the financial year totalled 19.8% of the share capital (15.5%).
SHARES AND SHARE CAPITAL
PKC Group Oyj's shares and share capital has changed during the financial year
as follows:
-- A total of 1,770,000 new shares were subscribed for in the directed share
issue resolved by the Board of Directors on 15 November 2010. The share
issue was based on the authorisation granted to the Board of Directors. New
shares were registered with the Trade Register on 19 November 2010 and were
traded on NASDAQ OMX Helsinki Ltd together with the old shares as of the
same date. Share subscription price was recognised in parent company's
Invested non-restricted equity fund. Following the share issue, the Company
had a total of 19,551,522 shares and votes.
-- A total of 410 PKC Group Oyj's shares have been subscribed for with 2006 A
options. The new shares and the corresponding increase in the share
capital, EUR 139.40, have been entered into the Trade Register on 30
November 2010. The new shares were traded on the main list of the NASDAQ
OMX Helsinki Ltd as of 1 December 2010. After the increase the Company's
registered share capital was EUR 5,982,727.36, divided into 19,551,932
shares.
After the balance sheet date PKC Group Oyj's shares and share capital has
changed as follows:
-- a total of 49,400 PKC Group Oyj's shares have been subscribed for with 2006
options (31,600 with 2006A options and 17,800 with 2006B options). The new
shares and the corresponding increase in the share capital, EUR 16,796,
have been entered into the Trade Register on 1 February 2011. The new
shares were traded on the main list of the NASDAQ OMX Helsinki Ltd together
with the old shares as of 2 February 2011. After the increase the Company's
registered share capital was EUR 5,999,523.36, divided into 19,601,332
shares.
Currently the Company's registered share capital is EUR 5,999,523.36, divided
into 19,601,332 shares.
THE BOARD'S AUTHORISATIONS
The Board of Directors was granted authorisation by the Annual General Meeting
on 29 March 2007 to decide on one or more share issues and the granting of
special rights as defined in Chapter 10, Section 1 of the Companies Act and on
all the terms and conditions thereof. A maximum total of 3,500,000 shares may
be issued, or subscribed for on the basis of the authorisation. The
authorisation includes the right to decide on a directed share issue and shall
remain in force for five years from the date of the resolution of the Annual
General Meeting. The authorisation may be used at the Board's discretion for
financing corporate acquisitions, for carrying out inter-company co-operation
or similar arrangements, or for strengthening the company's financing and
capital structure. Following the directed share issue decided on 15 November
2010, the total number of shares to be offered or subscribed under this
authorisation may not exceed 1,730,000.
The Board of Directors does not possess a valid authorisation to acquire
company's own shares, and the company does not have any own shares (treasury
shares) in its possession.
STOCK OPTION SCHEMES
2006 options
The stock option scheme initiated in 2006, comprises a total of 697,500 options
divided into A, B and C warrants. At the close of financial year, the
outstanding options and options held by key personnel totals 202,090 2006A
warrants, 232,500 2006B warrants and 260,850 2006C warrants.
The share subscription price for the 2006 stock options is the volume-weighted
average price of the PKC Group Oyj share on NASDAQ OMX Helsinki, with dividend
adjustments, as defined in the stock option terms (at present, EUR 10.09 for
the 2006A, 2006B and 2006C warrants). Through the exercise of the 2006 stock
options, the share capital of PKC Group Oyj may be increased by a maximum total
of 697,500 new shares and EUR 237,150. After the registration of subscription
on 1 February 2011, the Company's share capital can increase by a maximum of
647,690 shares i.e. EUR 220,214.60 as a result of the exercise of the remaining
outstanding option rights. The share subscription period is for 2006A warrants
1 April 2009 - 30 April 2011, for 2006B warrants 1 April 2010 - 30 April 2012,
and for 2006C warrants 1 April 2011 - 30 April 2013. The 2006 stock options are
subject to a share ownership plan. Key personnel are obliged to subscribe for
or purchase the company's shares with 20% of the gross income earned from stock
options and to own these shares for two years. The company's President and CEO
is obliged to own these shares for the duration of his managerial contract.
2009 options
The Annual General Meeting held on 27 March 2009 decided to issue stock options
to key personnel in the company and its subsidiaries. The maximum total number
of stock options issued is 600,000 and they are divided into A, B and C
warrants. At the close of the financial year, the outstanding options and
options held by key personnel totals 200,000 2009A and 200,000 2009B warrants.
The subscription price for shares through the exercise of the 2009 stock
options is the volume-weighted average price of the PKC Group Oyj share on
NASDAQ OMX Helsinki for April 2009, 2010 and 2011 + 20% with dividend
adjustments, (at present, EUR 3.45 for the 2009A warrants and EUR 13,26 for the
2009B warrants). The subscription price for shares will be recorded in the
invested non-restricted equity fund. The stock options entitle their owners to
subscribe for a maximum total of 600,000 new shares in the company or existing
shares held by the company. The share subscription period for 2009A warrants is
1 April 2012 — 30 April 2014, for 2009B warrants 1 April 2013 — 30 April 2015
and for 2009C warrants 1 April 2014 — 30 April 2016. The 2009 stock options are
subject to a share ownership plan. Key personnel are obliged to subscribe for
or purchase the company's shares with 20% of the gross income earned from stock
options and to own these shares for two years. The company's President and CEO
is obliged to own these shares for the duration of his managerial contract.
SHORT-TERM RISKS AND UNCERTAINTIES
Due to the global growth in industrial production, the prices of raw materials
and components have developed in an unfavourable direction, particularly in the
latter half of 2010. The same development has continued in early 2011 and may
continue unfavourably.
There were problems with the availability of components in 2010, and component
availability problems may increase PKC's processing and freight costs this
year.
A potential weakening of the euro against the Polish zloty and the Russian
rouble may increase PKC's processing costs calculated in euros.
The principles, objectives and organisation of the company's risk management as
well as key risk areas are described in the risk management section of the
Corporate Governance guidelines, which are available on the company's website
at www.pkcgroup.com.
OUTLOOK FOR THE FUTURE
The number of orders received by our automotive industry customers during the
final quarter exceeded the number of vehicles they delivered within the same
period. The industry is anticipating significant growth this year on the
recovering European and North American markets. Markets in the developing
countries are also expected to keep growing. Based on this, we are expecting an
increase in the net sales of the Wiring Harnesses segment compared to last
year. Customers in the industrial electronics and energy segment steadily
increased their sales last year, and we expect this growth to continue. We also
estimate that the net sales generated by the electronics design and
manufacturing services will increase this year. PKC Group estimates that its
net sales and comparable operating profit will increase in 2011 from the
previous year's level. In 2010, net sales amounted to EUR 316.1 million, and
operating profit before non-recurring items was EUR 31.5 million.
THE BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFITS
The parent company's distributable funds are EUR 67.8 million, of which the net
profit for the financial year is EUR 2.0 million. The Board of Directors will
propose to the Annual General Meeting to be held on 30 March 2011 that a
dividend of EUR 0.55 per share be paid for a total of EUR 10.8 million
(calculated with the number of shares at the balance sheet date) and that the
remainder of the distributable funds be transferred to shareholders' equity.
The record date for the dividend payout is 4 April 2011 and the payment date is
11 April 2011. In the view of the Board of Directors, the proposed dividend
payout will not put the company's liquidity at risk.
ANNUAL REPORT 2010 AND CORPORATE GOVERNANCE STATEMENT
PKC will publish its Annual Report for 2010, which contains the report by the
Board of Directors and financial statements, auditor's report and a separate
corporate governance statement on 8 March 2011 on its website at
www.pkcgroup.com.
ANNUAL GENERAL MEETING AND FINANCIAL REPORTS IN 2011
The Annual General Meeting of PKC Group Oyj will be held on Wednesday 30 March
2011.
In 2011, the Interim Reports will be published as follows:
Interim Report 1-3/2011 on Thursday 5 May 2011 at 8:15 a.m.
Interim Report 1-6/2011 on Thursday 4 August 2011 at 8:15 a.m.
Interim Report 1-9/2011 on Thursday 3 November 2011 at 8:15 a.m.
The text section of this financial statement release focuses on the annual
accounts. Comparisons in accordance with IFRS standards have been made to the
figures in 2009 unless otherwise mentioned. The figures presented in the tables
are independently rounded figures.
TABLES
The annual figures have been audited. This financial statement release has been
prepared in accordance with IAS 34 (Interim Financial Reporting) standard. The
financial statement has been prepared in accordance with the same principles as
the annual financial statements for 2009. The year 2010 IFRS standard changes
have not had any effect.
CONSOLIDATED STATEMENT OF COMPREHENSIVE 10-12/10 10-12/09 1-12/10 1-12/09
INCOME (EUR 1,000) 3 mon. 3 mon. 12 mon. 12 mon.
NET SALES 91,940 55,390 316,081 201,814
Other operating income 1,139 753 4,597 2,253
Increase (+) / decrease (--) in stocks 3,639 -1,298 5,983 -9,319
of finished goods and work in progress
Materials and services 56,689 29,343 190,940 106,346
Employee benefit expenses 19,210 13,529 66,442 53,384
Depreciation 2,483 2,606 10,684 10,982
Other operating expenses 8,559 6,735 28,906 23,355
OPERATING PROFIT/LOSS 9,776 2,632 29,689 682
Interest expenses -742 -427 -1,964 -2,527
Other financial income 41 1,039 132 2,949
Other financial expenses -2,437 -1,420 -2,829 0
PROFIT/LOSS BEFORE TAXES 6,639 1,824 25,029 1,103
Income tax -1,366 1,421 -5,346 1,246
PROFIT/LOSS FOR THE REPORT PERIOD 5,272 3,244 19,683 2,349
Other comprehensive income:
Foreign currency translation differences 5,241 1,062 10,499 443
- foreign operations
Total comprehensive income for the 10,513 4,307 30,182 2,792
period
Attributable to equity holders of the
parent company:
Basic earnings per share (EPS), EUR 0.29 0.18 1.09 0.13
Diluted earnings per share (EPS), EUR 0.29 0.19 1.09 0.14
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000) 12/10 12/09
ASSETS
NON-CURRENT ASSETS
Goodwill 15,662 13,794
Other intangible assets 9,196 11,955
Property, plant and equipment 36,232 34,378
Deferred tax assets 4,794 4,804
Other receivables 38 64
Total non-current assets 65,923 64,995
CURRENT ASSSETS
Inventories 58,127 36,066
Receivables
Trade receivables 45,797 35,170
Other receivables 12,005 8,291
Total receivables 57,803 43,460
Cash and cash equivalents 37,104 15,326
Total current assets 153,034 94,852
Total assets 218,956 159,847
EQUITY AND LIABILITIES
EQUITY
Share capital 5,983 5,983
Share premium account 4,850 4,862
Invested non-restricted equity fund 21,852 370
Translation reserve 958 -1,253
Share-based payments 1,663 1,052
Retained earnings 68,789 65,263
Profit/loss for the report period 19,683 2,349
TOTAL EQUITY 123,776 78,626
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 26,097 34,630
Non-interest-bearing liabilities
Provisions 472 376
Deferred tax liabilities 4,804 3,103
Total non-current liabilities 31,373 38,110
Current liabilities
Interest-bearing liabilities 8,939 8,940
Trade payables 33,291 16,059
Other non-interest-bearing liabilities 21,577 18,112
Total current liabilities 63,807 43,111
Total liabilities 95,180 81,221
TOTAL EQUITY AND LIABILITIES 218,956 159,847
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000) 1-12/10 12 1-12/09 12
mon. mon.
Cash flows from operating activities
Cash receipts from customers 305,662 210,096
Cash receipts from other operating activities 4,625 2,693
Cash paid to suppliers and employees -284,392 -163,942
Cash flows from operations before financial income 25,895 48,847
and expenses and taxes
Interest paid -1,915 -2,527
Translation difference 857 -1,725
Interest received and other financial income 342 630
Income taxes paid -2,244 -2,817
Net cash from operating activities (A) 22,935 42,408
Cash flows from investing activities
Acquisition of property and equipment and intangible -8,542 -3,913
assets
Proceeds from sale of property and equipment and 466 178
intangible assets
Investments 0 -1,076
Loans granted -1 -2
Proceeds from repayments of loans 17 37
Dividends received
Net cash used in investment activities (B) -8,060 -4,776
Cash flows after investments 14,875 37,632
Cash flows from financing activities
Share issue 21,708 0
Repayment of short-term/long-term borrowings -8,697 -32,723
Dividends paid -7,113 -2,709
Net cash used in financing activities (C) 5,898 -35,432
Net increase (+) or decrease (--) in cash and 20,774 2,200
equivalents (A+B+C)
Cash and cash equivalents in the beginning of the 15,326 12,435
period
Effect of exchange rate fluctuations 1,004 692
Cash and cash equivalents in the end of the period 37,104 15,326
KEY FINANCIAL INDICATORS 1-12/10 12 mon. 1-12/09 12 mon.
Net sales, EUR 1,000 316,081 201,814
Operating profit/loss, EUR 1,000 29,689 682
% of net sales 9.4 0.3
Profit/loss before taxes, EUR 1,000 25,029 1,103
% of net sales 7.9 0.5
Net profit/loss for the period, EUR 1,000 19,683 2,349
% of net sales 6.2 1.2
Return on equity (ROE), % 19.4 3.0
Return on investments (ROI), % 25.8 6.4
Net liabilities, EUR 1,000 -2,068 28,245
Gearing, % -1.7 35.9
Equity ratio, % 56.5 49.2
Current ratio 2.4 2.2
Gross capital expenditure, EUR 1,000 8,575 3,894
% of net sales 2.7 1.9
R&D expenditures, EUR 1,000 5,692 5,518
% of net sales 1.8 2.7
Personnel average 5,039 4,478
PER-SHARE KEY INDICATORS 1-12/10 12 1-12/09 12
mon. mon.
Earnings per share (EPS), EUR 1.09 0.13
Earnings per share (EPS),diluted, EUR 1.09 0.14
Equity per share, EUR 6.33 4.42
Share price at close of period, EUR 15.40 6.60
Dividend per share, EUR*) 0.55 0.40
Dividend per earnings, %*) 50.50 307.70
Effective dividend yield, %*) 3.30 6.10
Price/earnings ratio (P/E) 14.10 50.80
Lowest share price, EUR 6.55 2.70
Highest share price, EUR 15.58 6.83
Average share price, EUR 10.72 4.38
Turnover in shares, 1,000 shares 10,173 8,655
Turnover in shares per (share issue adjusted) share 56.5 48.7
capital, %
Average number of shares, 1,000 shares 17,990 17,782
Average number of shares, diluted, 1,000 shares 18,054 16,690
Shares at end of period, 1,000 shares 19,552 17,782
Market capitalisation, EUR 1,000 301,100 117,358
*) The figures of 2010 are based on the Board of
Director's proposal.
1. SEGMENT INFORMATION
1.1.-31.12.2010 (EUR 1,000) Wiring Electro Unallocated amounts Group
Harness nics and eliminations Total
Sales to external customers 242,384 73,697 316,081
Sales to other segments 10,169 243 -10,412 0
Net sales, EUR 1,000 252,553 73,940 -10,412 316,081
Operating profit /loss before 26,260 7,691 -2,452 31,499
non-recurring expenses
% of net sales 10.8 10.4 10.0
Non-recurring employee 1,363 0 0 1,363
benefit expenses
Non-recurring inventory 447 0 0 447
write-down
Total non-recurring expenses 1,810 0 0 1,810
Operating profit/loss 24,450 7,691 -2,452 29,689
% of net sales 10.1 10.4 9.4
Segment's assets 151,634 52,348 10,181 214,162
Unallocated assets *) 4,794 4,794
Total assets 151,634 52,348 14,975 218,956
*) Segment's assets do not include deferred taxes
1.1.-31.12.2009 (EUR 1,000) Wiring Electro Unallocated amounts Group
Harness nics and eliminations Total
Sales to external customers 149,316 52,497 201,813
Sales to other segments 227 107 -334 0
Net sales, EUR 1,000 149,543 52,604 -334 201,813
Operating profit /loss before 492 4,575 5,068
non-recurring expenses
% of net sales 0.3 8.7 2.5
Non-recurring employee 2,033 0.0 0 2,033
benefit expenses
Non-recurring other operating 2,353 0.0 0 2,353
expenses
Total non-recurring expenses 4,386 0.0 0 4,386
Operating profit/loss -3,894 4,575 682
% of net sales -2.6 8.7 0.3
Segment's assets 100,191 43,706 11,146 155,043
Unallocated assets *) 4,804 4,804
total assets 100,191 43,706 15,950 159,847
*) Segment's assets do not include deferred taxes
NET SALES BY GEOGRAPHICAL 10-12/10 3 10-12/09 3 1-12/10 12 1-12/09 12
LOCATIONS (EUR 1,000) mon. mon. mon. mon.
Finland 15,513 10,508 53,720 40,494
Other Europe 43,185 25,538 154,588 99,928
North America 4,171 4,443 20,732 18,870
South America 14,408 10,478 56,958 26,526
Other countries 14,663 4,423 30,083 15,995
Total 91,940 55,390 316,081 201,814
2. CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY (EUR MILLION)
A = Share Capital
B = Share premium account
C = Invested non-restricted equity fund
D = Translation difference
E = Retained earnings
F = Non-Controlling interest
G = Total equity
A B C D E F G
Equity at 1.1.2009 6.0 4.9 0.4 -3.3 70.1 0.3 78.3
Dividends 0.0 0.0 0.0 0.0 -2.7 0.0 -2.7
Share-based payments 0.0 0.0 0.0 0.0 0.3 0.0 0.3
Comprehensive income for the period 0.0 0.0 0.0 0.4 2.3 0.0 2.7
Other changes 0.0 0.0 0.0 0.0 0.3 -0.3 0.0
Equity at 31.12.2009 6.0 4.9 0.4 -2.9 70.3 0.0 78.6
Equity at 1.1.2010 6.0 4.9 0.4 -2.9 70.3 0.0 78.6
Dividends 0.0 0.0 0.0 0.0 -7.1 0.0 -7.1
Share-based payments 0.0 0.0 0.0 0.0 0.6 0.0 0.6
Subscription of shares 0.0 0.0 21.4 0.0 0.0 0.0 21.4
Comprehensive income for the period 0.0 0.0 0.0 10.5 19.7 0.0 30.2
Equity 31.12.2010 6.0 4.9 21.8 7.6 83.5 0.0 123.8
3. PROPERTY, PLANT AND EQUIPMENT (EUR 1,000) 12/10 12/09
Acquisition cost 1.1. 73,772 75,526
+/- Translation difference 1.1. 1,421 -56
+ Additions 11,128 11,561
- Disposals -9,352 -13,260
Acquisition cost 31.12. 76,969 73,772
Accumulated depreciation 1.1. 39,395 40,597
+/- Translation difference 1.1. -499 -4
- Accumulated depreciation on disposals -5,335 -8,726
+ Depreciation 7,132 7,527
- Exchange difference 44 0
Depreciation 31.12. 40,736 39,394
Carrying amount 31.12. 36,232 34,378
4. OTHER INTANGIBLE ASSETS (EUR 1,000) 12/10 12/09
Acquisition cost 1.1. 37,169 32,056
+/- Translation difference 1.1. 1,290 0
+ Additions 1,177 5,214
- Disposals 0 -101
Acquisition cost 31.12. 39,636 37,169
Accumulated depreciation 1.1. 11,420 8,052
+/- Translation difference 1.1. 92 0
- Accumulated depreciation on disposals -308 -85
+ Depreciation 3,552 3,453
- Exchange difference 22 0
Depreciation 31.12. 14,778 11,420
Carrying amount 31.12. 24,858 25,749
5. CONTINGENT LIABILITIES AT END OF PERIOD (EUR 1,000) 12/10 12/09
Leasing liabilities 2,982 3,027
Liabilities for derivative instruments
Nominal values
Currency derivatives
Forward contracts 0 0
Copper derivatives
Forward contracts 2,010 1,187
Total 2,010 1,187
Fair values
Currency derivatives
Forward contracts 0 0
Copper derivatives
Forward contracts 307 83
Total 307 83
Currency and copper derivates are used only in hedging currency and copper
risks. PKC Group does not apply hedge accounting to derivate instruments in
accordance with IAS 39. Fair values of the derivates are entered directly in the
income statement.
6. QUARTERLY KEY 7-9/09 3 10-12/09 1-3/10 3 4-6/10 3 7-9/10 3 10-12/10
INDICATORS, mon. 3 mon. mon. mon. mon. 3 mon.
CONSOLIDATED
Net sales, EUR 46.8 55.4 60.8 81.0 82.3 91.9
million
Operating 3.5 2.6 2.8 7.6 9.5 9.8
profit/loss, EUR
million
% of net sales 7.6 4.8 4.6 9.4 11.5 10.6
Profit/loss before 5.7 1.8 0.4 4.7 13.4 6.6
taxes, EUR million
% of net sales 12.2 3.3 0.6 5.8 16.2 7.2
Equity ratio, % 46.7 49.2 46.1 47.7 50.2 56.5
Earnings per share 0.39 0.19 0.01 0.24 0.56 0.29
(EPS), diluted (EUR)
Equity per share, 4.20 4.42 4.47 4.95 5.15 6.33
EUR
QUARTERLY KEY
INDICATORS, WIRING
HARNESS
Net sales, EUR 34.2 40.3 45.7 64.1 61.8 70.8
million
Operating 2.0 1.0 2.0 7.0 6.8 8.7
profit/loss, EUR
million
% of net sales 5.9 2.4 4.4 10.9 11.0 12.3
QUARTERLY KEY
INDICATORS,
ELECTRONICS
Net sales, EUR 12.7 15.1 15.1 16.9 20.5 21.1
million
Operating 1.5 1.7 1.3 1.1 3.3 2.0
profit/loss, EUR
million
% of net sales 12.2 12.2 8.6 6.5 15.9 9.6
CALCULATION OF INDICATORS
Return on equity (ROE), %
= 100 x (Profit/loss) / Shareholders' equity (average)
Return on investments (ROI), %
= 100 x (Profit before taxes + financial expenses) / Shareholders' equity +
interest-bearing liabilities (average)
Gearing, %
= 100 x (Interest-bearing liabilities - cash and cash equivalents and
investments) / Shareholders' equity + non-controlling interests
Equity ratio, %
= 100 x (Shareholders' equity + non-controlling interests) / Total of statement
of financial position - advance payments received
Quick ratio
= Receivables and cash and cash equivalents / Current liabilities - advance
payments received
Current ratio
= Receivables and cash and cash equivalents + inventories / Current liabilities
Earnings per share (EPS), EUR
= Profit/loss +/- non-controlling interests / Average share issue-adjusted
number of shares
Shareholders' equity per share, EUR
= Shareholders' equity / Share issue-adjusted number of shares at the date of
the statement of financial position
Market capitalisation
= Number of shares at the end of the financial period x the last trading price
of the financial period
All the future estimates and forecasts presented in this stock exchange release
are based on the best current knowledge of the company's management. The
estimates and forecasts contain certain elements of risk and uncertainty which,
if they materialise, may lead to results that differ from present estimates.
The main factors of uncertainty are related, among other things, to the general
economic situation, the trend in the operating environment and the sector as
well as the success of the Group's strategy.
PKC GROUP OYJ
Board of Directors
Harri Suutari
President and CEO
For additional information, contact:
Harri Suutari, President & CEO, PKC Group Oyj, +358 400 384 937
PRESS CONFERENCE
A press conference on the financial statement will be arranged for analysts and
investors today, 17 February 2011, at 10.00 a.m., at the address World Trade
Center, Aleksanterinkatu 17, meeting room 2, 2nd floor, Helsinki.
DISTRIBUTION
NASDAQ OMX
Main media
www.pkcgroup.com
The PKC Group offers design and contract manufacturing services for wiring
harnesses, cabling and electronics. The Group has production facilities in
Finland, Brazil, China, Mexico, Poland, Estonia and Russia. The Group's net
sales in 2010 totalled EUR 316.1 million. PKC Group Oyj is listed on NASDAQ OMX
Helsinki Ltd.
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