Tulikivi Oyj - Financial Statement Release

TULIKIVI CORPORATION: FINANCIAL STATEMENTS RELEASE

TULIKIVI CORPORATION                        FINANCIAL STATEMENTS RELEASE

                                                                  10  February,
2014  at  2.00 p.m. 





Financial Statements Release Jan-Dec 2013

- The Tulikivi Group's fourth-quarter net sales totalled EUR 11.8 million (EUR
14.2 million Q4/2012), the operating result was EUR -1.8 (0.5) million and the
profit before taxes was EUR -2.0 (0.3) million. 

- The fourth-quarter operating result before non-recurring expenses was EUR 0.5
(0.5) million. 

- For the full year 2013, net sales totalled EUR 43.7 (51.2) million, the
operating result was EUR -4.3 (0.1) million and the result before taxes was EUR
-5.3 (-0.8) million. The operating result in 2013 before non-recurring expenses
was EUR -1.4 (0.1) million. 

- Net cash flow from operating activities at the end of the year was EUR 2.6
(0.1) million. 

- The company has good liquidity owing to the share issue undertaken during the
financial year, which produced EUR 7.1 million. 

- Year-end order books were at EUR 4.4 million (EUR 4.6 million on 31 December
2012). 

- Future outlook: The demand for Tulikivi products is in part dependent on
consumer confidence. The performance improvement programme started in 2013
includes sales and production efficiency measures and cost-saving measures, the
results of which 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 financial statement release 01-12/2013. The full financial
statement release is attached to this release. 

Key financial ratios



                        1-12/  1-12/   Change,  10-12/  10-12/   Change,
                         2013   2012         %    2013    2012         %
Sales, MEUR              43.7   51.2     -14.6    11.8    14.2     -17.0
Operating profit/        -4.3    0.1  -7 318.6    -1.8     0.5    -482.0
loss, MEUR                                                              
Profit before tax,       -5.3   -0.8    -575.1    -2.0     0.3    -798.6
MEUR                                                                    
Total comprehensive      -4.5   -0.6    -589.9    -2.0     0.2  -1 090.0
income for the period,                                                  
MEUR                                                                    
Earnings per share,     -0.11  -0.02             -0.04    0.00          
Euro                                                                    
Net cash flow from        2.6    0.1                                    
operating activities,                                                   
MEUR                                                                    
Equity ratio, %          38.1   35.2                                    
Net indebtness           59.3  112.9                                    
ratio, %                                                                
Return on                -9.8    0.3              -4.0     3.4          
investments, %                                                          

Comments by Heikki Vauhkonen, Managing Director:

The demand for Tulikivi's products on the domestic and export markets in the
fourth quarter was down on the previous year's figures. In addition to the weak
condition of the market caused by the economic situation, mild weather in the
autumn and early winter adversely affected sales in the principal market areas. 

Demand in the main export markets, Germany and France, was lower than usual.
Sales in Russia, however, were on a positive trend in the fourth quarter. In
the final quarter, demand continued to be weak in Sweden as well, which was
particularly reflected in the demand for lining stones. 

Despite the challenging market, demand is growing for the latest product
ranges: saunas, design fireplaces and the new-generation Hiisi fireplace
collection. 

In Finland there was a decline in low-rise housing construction and in
renovations, and this had an impact on the demand for fireplaces and interior
stone products. In the fourth quarter, the shortfall in relation to the 2012
figures was greater than in the first early part of the year. 

Tulikivi adjusted its production and its fixed costs in line with the lower net
sales, and this improved the relative profitability of operations in the fourth
quarter. Working capital decreased as a result and net cash flow from operating
activities improved. 

On 8 August 2013 Tulikivi issued a stock exchange release announcing a
performance improvement programme which aims at increasing the annual operating
result, before non-recurring expenses, by EUR 7 million by the end of 2015 from
the 2013 level.  Plans to rationalise production, reduce costs and boost sales
have proceeded as previously reported. The codetermination negotiations
launched in September concerning a reduction of a maximum of 90 employees were
completed in early November. The performance improvement programme caused
non-recurring expenses of EUR 2.3 million in the fourth quarter of 2013. The
measures taken under the programme will have a positive impact on productivity
from the beginning of 2014. 

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

Attachments:

Corporate Governance Statement 2013.pdf