2016-04-19 07:56:27 CEST
2016-04-19 07:56:27 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 31 MARCH 2016
Vieremä, Finland, 2016-04-19 07:55 CEST (GLOBE NEWSWIRE) --
PONSSE PLC, STOCK EXCHANGE RELEASE, 19 APRIL 2016, 9:00 a.m.
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 31 MARCH 2016
– Net sales amounted to EUR 115.1 (91.2) million.
– Operating result totalled EUR 12.1 (7.3) million, equalling 10.5 (8.0) per
cent of net sales.
– Result before taxes was EUR 12.0 (7.4) million.
– Cash flow from operating activities was EUR -2.3 (-8.8) million.
– Earnings per share were EUR 0.34 (0.20).
– Equity ratio was 48.9 (42.5) per cent.
– Order books stood at EUR 156.2 (175.1) million.
PRESIDENT AND CEO JUHO NUMMELA:
Demand for PONSSE forest machines continued to be good during the first quarter
of the year. Order intake was good, and the order books remained on a par with
the turn of the year. The order books were strong, totalling EUR 156.2 (175.1)
million at the end of the period under review. International business
operations accounted for 72.7 (72.1) percent of net sales.
The company's net sales for the first quarter were EUR 115.1 (91.2) million and
the growth in net sales was 26 percent. The operating profit amounted to EUR
12.1 (7.3) million and accounted a growth of 66 percent compared to the
comparison period. Underlying the strong performance is the fact that machine
deliveries took place normally in the first quarter, whereas during the
comparison period machine delivery volumes fell clearly short of the normal
level due to the commencement of production of the new model range.The
operating result equalled 10.5 (8.0) percent of net sales for the period under
review. Cumulative cash flow improved compared to the comparison period and
amounted to EUR -2.3 (-8.8) million.
North and South America accounted for a significant share of the net sales, and
the demand for forest machines is active in North America. The demand for
forest machines has showed signs of picking up in Russia, and Russia has
slightly increased its share of net sales. The share of Northern Europe
decreased slightly, while Central Europe's share of net sales was at the normal
level. The market situation is good. Service operations continued their growth
and the trade-in machine business grew strongly during the past quarter. The
accelerated growth in services is related both to the growing machine base and
new business concepts in services.
NET SALES
Consolidated net sales for the period under review amounted to EUR 115.1 (91.2)
million, which is 26.2 per cent more than in the comparison period.
International business operations accounted for 72.7 (72.1) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 39.5 (42.3)
per cent, Central and Southern Europe 19.3 (18.7) per cent, Russia and Asia
10.6 (9.9) per cent, North and South America 29.2 (28.9) per cent and other
countries 1.4 (0.1) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 12.1 (7.3) million. The operating result
equalled 10.5 (8.0) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 27.1 (21.2) per cent.
Staff costs for the period totalled EUR 17.3 (15.7) million. Other operating
expenses stood at EUR 10.9 (9.4) million. The net total of financial income and
expenses amounted to EUR -0.1 (0.2) million. Exchange rate gains and losses
with a net effect of EUR 0.1 (0.4) million were recognised under financial
items for the period. Result for the period under review totalled EUR 9.5 (5.5)
million. Diluted and undiluted earnings per share (EPS) came to EUR 0.34
(0.20).
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total consolidated statements of
financial position amounted to EUR 264.5 (227.6) million. Inventories stood at
EUR 112.2 (104.7) million. Trade receivables totalled EUR 39.2 (31.1) million,
while liquid assets stood at EUR 14.4 (8.4) million. Group shareholders’ equity
stood at EUR 127.8 (95.8) million and parent company shareholders’ equity (FAS)
at EUR 122.8 (114.0) million. The amount of interest-bearing liabilities was
EUR 57.0 (58.8) million. The company has used 10 per cent of its credit
facility limit. The parent company's net receivables from other Group companies
stood at EUR 71.4 (88.6) million. The parent company’s receivables from
subsidiaries mainly consisted of trade receivables. Consolidated net
liabilities totalled EUR 42.6 (50.4) million, and the debt-equity ratio (net
gearing) was 33.3 (52.6) per cent. The equity ratio stood at 48.9 (42.5)
percent at the end of the period under review.
Cash flow from operating activities amounted to EUR -2.3 (-8.8) million. Cash
flow from investment activities came to EUR -4.5 (-4.8) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 116.2 (112.4) million, while
period-end order books were valued at EUR 156.2 (175.1) million.
DISTRIBUTION NETWORK
No changes took place in the Group structure during the period under review.
The subsidiaries included in the Ponsse Group are Ponsse AB, Sweden; Ponsse AS,
Norway; Ponssé S.A.S., France; Ponsse UK Ltd, the United Kingdom; Ponsse North
America, Inc., the United States; Ponsse Latin America Ltda, Brazil; Ponsse
Uruguay S.A., Uruguay; OOO Ponsse, Russia; Ponsse Asia-Pacific Ltd, Hong Kong;
Ponsse China Ltd, China and Epec Oy, Finland. The Group includes also the
property company OOO Ocean Safety Center, Russia. Sunit Oy, Finland, is an
associate in which Ponsse Plc has a holding of 34 per cent.
R&D AND CAPITAL EXPENDITURE
Group’s R&D expenses during the period under review totalled EUR 3.1 (2.9)
million, of which EUR 0.5 (0.5) million was capitalised.
Capital expenditure totalled EUR 4.5 (4.8) million. It consisted in addition to
capitalised R&D expenses of investments in buildings and ordinary maintenance
and replacement investments for machinery and equipment.
MANAGEMENT
The following persons were members of the Management Team: Juho Nummela,
President and CEO, acting as the chairman; Petri Härkönen, CFO; Juha Inberg,
Technology and R&D Director; Tapio Mertanen, Service Director; Paula Oksman, HR
Director; Tommi Väänänen, Director of Delivery Chain Process and Jarmo Vidgrén,
Deputy CEO, Sales and Marketing Director. The company management has regular
management liability insurance.
The area director organisation of sales is led by Jarmo Vidgrén, Group’s Sales
and Marketing Director and Tapio Mertanen, Service Director. The geographical
distribution and the responsible persons are presented below:
Northern Europe: Jarmo Vidgrén (Finland), Carl-Henrik Hammar (Sweden, Denmark),
Marko Mattila (the Baltic countries) and Sigurd Skotte (Norway),
Central and Southern Europe: Janne Vidgrén (Austria, Poland, Romania, Germany,
Slovakia, the Czech Republic and Hungary), Clément Puybaret (France), Jussi
Hentunen (Spain, Italy and Portugal) and Gary Glendinning (the United Kingdom)
Russia and Asia: Jaakko Laurila (Russia, Belarus), Norbert Schalkx (Japan,
Australia and South Africe) and Risto Kääriäinen (China),
North and South America: Pekka Ruuskanen (the United States), Marko Mattila
(North American dealers and Chile), Teemu Raitis (Brazil) and Martin Toledo
(Uruguay).
PERSONNEL
The Group had an average staff of 1,389 (1,277) during the period and employed
1,401 (1,293) people at period-end.
SHARE PERFORMANCE
The company’s registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January – 31 March 2016 totalled
695,203, accounting for 2.5 per cent of the total number of shares. Share
turnover amounted to EUR 12.9 million, with the period’s lowest and highest
share prices amounting to EUR 15.57 and EUR 22.50, respectively.
At the end of the period, shares closed at EUR 22.01, and market capitalisation
totalled EUR 616.3 million.
At the end of the period under review, the company held 33,092 treasury shares.
ANNUAL GENERAL MEETING
A separate release was issued on 12 April 2016 regarding the authorizations
given to the Board of Directors and other resolutions at the AGM.
GOVERNANCE
In its decision-making and administration, the company observes the Finnish
Limited Liability Companies Act, other regulations governing publicly listed
companies and the company’s Articles of Association. The company’s Board of
Directors has adopted the Code of Governance that complies with the Finnish
Corporate Governance Code approved by the Board of the Securities Market
Association in 2010. The purpose of the code is to ensure that the company is
professionally managed and that its business principles and practices are of a
high ethical and professional standard.
The Code of Governance is available on Ponsse’s website in the Investors
section.
RISK MANAGEMENT
Risk management is based on the company’s values, as well as strategic and
financial objectives. Risk management aims to support the achievement of the
objectives specified in the company’s strategy, as well as to ensure the
financial development of the company and the continuity of its business.
Furthermore, risk management aims to identify, assess and monitor
business-related risks which may influence the achievement of the company’s
strategic and financial goals or the continuity of its business. Decisions on
the necessary measures to anticipate risks and react to observed risks are made
on the basis of this information.
Risk management is a part of regular daily business, and it is also included in
the management system. Risk management is controlled by the risk management
policy approved by the Board.
A risk is any event that may prevent the company from reaching its objectives
or that threatens the continuity of business. On the other hand, a risk may
also be a positive event, in which case the risk is treated as an opportunity.
Each risk is assessed on the basis of its impact and probability. Methods of
risk management include avoiding, mitigating and transferring risks. Risks can
also be managed by controlling and minimising their impact.
SHORT-TERM RISK MANAGEMENT
The prolonged insecurity in the world economy and weak economic situation may
result in a decline in the demand for forest machines. The uncertainty may be
increased by the volatility of developing countries’ foreign exchange markets.
The geopolitical situation, in particular, will increase the uncertainty
through financial market operations and sanctions.
The parent company monitors the changes in the Group’s internal and external
trade receivables and the associated risk of impairment.
The key objective of the company’s financial risk management policy is to
manage liquidity, interest and currency risks. The company ensures its
liquidity through credit limit facilities agreed with a number of financial
institutions. The effect of adverse changes in interest rates is minimised by
utilising credit linked to different reference rates and by concluding interest
rate swaps. The effects of currency rate fluctuations are mitigated through
derivative contracts.
Changes taking place in the fiscal and customs legislation in countries to
which Ponsse exports may hamper the company’s export trade or its
profitability.
OUTLOOK FOR THE FUTURE
After the very strong performance in 2015, the Group’s euro-denominated
operating profit is expected to be on a par with 2015 in 2016.
Ponsse's strongly reformed and competitive product range and new service
solutions have significantly grown the company. Our investments are focused on
developing the level of service and capacity of the supply chain and spare part
logistics and developing the service network in Finland and abroad.
EVENTS AFTER THE PERIOD
The Board of Directors of Ponsse Plc decided to launch a new incentive scheme
for the company's key employees. The new incentive scheme is a group pension
insurance plan aimed at the members of the Management Team responsible for the
company's strategy and finances. This group comprises the CEO, Deputy CEO and
CFO of Ponsse Plc. The company pays an annual premium to each member of this
group, amounting to 20 percent of the annual earnings of the policyholder on
which their statutory pension is based. The lowest possible retirement age
under the group pension insurance plan is 60 years. In the plan, the company
can determine the payment schedule and validity of the insurance itself.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
IFRS IFRS IFRS
1-3/16 1-3/15 1-12/15
NET SALES 115,114 91,206 461,928
Increase (+)/decrease (-) in inventories of finished 7,734 9,009 -1,021
goods and work in progress
Other operating income 598 392 2,152
Raw materials and services -80,256 -66,145 -289,294
Expenditure on employment-related benefits -17,290 -15,693 -67,554
Depreciation and amortisation -2,896 -2,128 -9,890
Other operating expenses -10,901 -9,350 -40,335
OPERATING RESULT 12,103 7,291 55,987
Share of results of associated companies 49 -59 -50
Financial income and expenses -145 162 -5,552
RESULT BEFORE TAXES 12,007 7,395 50,385
Income taxes -2,518 -1,879 -9,105
NET RESULT FOR THE PERIOD 9,489 5,516 41,280
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units 434 1,806 880
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 9,923 7,322 42,160
Diluted and undiluted earnings per share* 0.34 0.20 1.48
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
IFRS IFRS IFRS
ASSETS 31 Mar 16 31 Mar 15 31 Dec 15
NON-CURRENT ASSETS
Intangible assets 18,023 16,009 18,009
Goodwill 3,841 3,440 3,842
Property, plant and equipment 60,906 49,912 59,294
Financial assets 105 105 105
Investments in associated companies 866 887 817
Non-current receivables 2,033 3,261 2,134
Deferred tax assets 3,104 1,745 2,786
TOTAL NON-CURRENT ASSETS 88,878 75,358 86,988
CURRENT ASSETS
Inventories 112,175 104,705 104,584
Trade receivables 39,245 31,141 40,199
Income tax receivables 179 175 104
Other current receivables 9,570 7,727 9,288
Cash and cash equivalents 14,438 8,444 26,495
TOTAL CURRENT ASSETS 175,607 159,192 180,670
TOTAL ASSETS 264,844 227,550 267,658
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital 7,000 7,000 7,000
Other reserves 2,452 2,552 2,452
Translation differences -362 130 -796
Treasury shares -346 -346 -346
Retained earnings 119,091 86,424 109,602
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 127,835 95,760 117,912
NON-CURRENT LIABILITIES
Interest-bearing liabilities 39,395 33,526 39,346
Deferred tax liabilities 750 721 905
Other non-current liabilities 0 0 7
TOTAL NON-CURRENT LIABILITIES 40,144 34,247 40,259
CURRENT LIABILITIES
Interest-bearing liabilities 17,606 25,291 23,056
Provisions 6,360 5,201 6,120
Tax liabilities for the period 1,038 1,833 1,906
Trade creditors and other current liabilities 71,501 65,218 78,405
TOTAL CURRENT LIABILITIES 96,505 97,543 109,487
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 264,484 227,550 267,658
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS IFRS
1-3/16 1-3/15 1-12/15
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 9,489 5,516 41,280
Adjustments:
Financial income and expenses 145 -162 5,552
Share of the result of associated companies -49 59 50
Depreciation and amortisation 2,896 2,128 9,890
Income taxes 2,518 1,879 9,105
Other adjustments -366 -595 -26
Cash flow before changes in working capital 14,633 8,824 65,850
Change in working capital:
Change in trade receivables and other receivables 1,251 -8,032 -19,666
Change in inventories -7,591 -11,971 -11,850
Change in trade creditors and other liabilities -8,123 2,322 17,238
Change in provisions for liabilities and charges 240 453 1,373
Interest received 53 36 224
Interest paid -194 -137 -1,069
Other financial items -235 258 723
Income taxes paid -2,372 -582 -8,840
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) -2,337 -8,829 43,982
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -4,520 -4,813 -24,360
Proceeds from sale of tangible and intangible assets 0 0 193
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -4,520 -4,813 -24,167
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of treasury shares 0 1,882 1,118
Withdrawal/Repayment of current loans -5,240 7,362 3,000
Withdrawal of non-current loans 0 0 17,520
Repayment of non-current loans -342 0 -9,659
Payment of finance lease liabilities 181 25 -167
Change in non-current receivables -27 66 216
Dividends paid 0 0 -12,586
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -5,428 9,335 -558
Change in cash and cash equivalents (A+B+C) -12,285 -4,306 19,257
Cash and cash equivalents on 1 Jan 26,495 12,719 12,719
Impact of exchange rate changes 228 31 -5,481
Cash and cash equivalents on 31 Mar/31 Dec 14,438 8,444 26,495
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
A = Share capital
B = Share premium and other reserves
C = Translation differences
D = Treasury shares
E = Retained earnings
F = Total shareholders’ equity
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS
A B C D E F
SHAREHOLDERS’ EQUITY 1 JAN 2016 7,000 2,452 -796 -346 109,602 117,912
Translation differences 434 434
Result for the period 9,489 9,489
Total comprehensive income for 434 9,489 9,923
the period
Matching Share Plan 0
Other changes 0
SHAREHOLDERS' EQUITY 31 MAR 2016 7,000 2,452 -362 -346 119,091 127,835
SHAREHOLDERS’ EQUITY 1 JAN 2015 7,000 130 -1,676 -2,228 82,790 86,016
Translation differences 1,806 1,806
Result for the period 5,516 5,516
Total comprehensive income for 1,806 5,516 7,322
the period
Matching Share Plan 2,422 1,882 -1,882 2,422
Other changes 0
SHAREHOLDERS' EQUITY 31 MAR 2015 7,000 2,552 130 -346 86,424 95,761
31 Mar 16 31 Mar 15 31 Dec 15
1. LEASING COMMITMENTS (EUR 1,000) 1,017 1,144 914
2. CONTINGENT LIABILITIES (EUR 1,000) 31 Mar 16 31 Mar 15 31 Dec 15
Guarantees given on behalf of others 462 536 462
Repurchase commitments 4,398 2,815 4,290
Other commitments 224 41 276
TOTAL 5,084 3,392 5,028
3. PROVISIONS (EUR 1,000) Guarantee provision
1 January 2016 6,120
Provisions added 271
Provisions cancelled -31
31 March 2016 6,360
KEY FIGURES AND RATIOS 31 Mar 16 31 Mar 15 31 Dec 15
R&D expenditure (EUR million) 3.1 2.9 12.2
Capital expenditure (EUR million) 4.5 4.8 24.4
as % of net sales 3.9 5.3 5.3
Average number of employees 1,389 1,277 1,329
Order books (EUR million) 156.2 175.1 158.1
Equity ratio, % 48.9 42.5 44.8
Diluted and undiluted earnings per share (EUR) 0.34 0.20 1.48
Equity per share (EUR) 4.57 3.42 4.21
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before tax + financial expenses
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Shareholder´s equity + interest-bearing financial liabilities (average during
the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month. The calculation
has been adjusted for part-time employees.
Net gearing, %:
Interest-bearing financial liabilities – cash and cash equivalents
--------------------------------------------------------------------------------
---
Shareholders’ equity * 100
Equity ratio, %:
Shareholders’ equity + Non-controlling interests
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Balance sheet total - advance payments received * 100
Earnings per share:
Net result for the period - Non-controlling interests
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-----------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders’ equity
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Number of shares on the balance sheet date, adjusted for share issues
ORDER INTAKE (EUR million) 1-3/16 1-3/15 1-12/15
Ponsse Group 116.2 112.4 469.4
The stock exchange release for the interim report has been prepared observing
the recognition and valuation principles of IFRS standards, but not all of the
requirements of IAS 34 have been complied with. The same accounting principles
were observed for the interim report as for the annual financial statements
dated 31 December 2015.
The above figures have not been audited.
The above figures have been rounded and may therefore differ from those given
in the official financial statements.
This communication includes future-oriented statements that are based on the
assumptions currently made by the company’s management and its current
decisions and plans. Although the management believes that the future
expectations are well founded, there is no certainty that these expectations
will prove to be correct. This is why the results may significantly deviate
from the assumptions included in the future-oriented statements as a result of,
among other things, changes in the economy, markets, competitive conditions,
legislation or currency exchange rates.
Vieremä, 19 April 2016
PONSSE PLC
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 20 768 8914 or +358 400 495 690
Petri Härkönen, CFO, tel. +358 20 768 8608 or +358 50 409 8362
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com
Ponsse Plc is a company specialising in the sales, manufacture, servicing and
technology of cut-to-length method forest machines and is driven by genuine
interest in its customers and their business. Ponsse develops and manufactures
sustainable and innovative harvesting solutions based on customers’ needs.
The company was established by forest machine entrepreneur Einari Vidgrén in
1970, and it has been a leader in timber harvesting solutions based on the
cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland.
The company’s shares are quoted on the NASDAQ OMX Nordic List.
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