Tulikivi Oyj - Financial Statement Release

Tulikivi Corporation´s Financial Statement Release 1-12/2015

TULIKIVI CORPORATION      FINANCIAL STATEMENT RELEASE  5  February, 2016  at 
1.00 p.m. 


Tulikivi Corporation Financial Statement Release 1–12/2015:  Sales continued to
be low, operational efficiency measures progressed as planned 5 February 2016
at 1 p.m. 

- The Tulikivi Group’s fourth-quarter net sales totalled EUR 9.0 million (EUR
10.7 million for Q4/2014). The operating result was EUR 0.1 (-0.2) million, and
the profit before taxes was EUR -0.3 (-0.5) million. The fourth-quarter
operating result before non-recurring expenses was EUR 0.1 (0.0) million. 
- The Tulikivi Group’s net sales in 2015 totalled EUR 32.0 million (EUR 39.3
million in 2014). The operating result was EUR -2.9 (-2.4) million, and the
result before taxes was EUR -3.9 (-3.3) million. The operating result before
non-recurring expenses in 2015 was EUR -2.2 (-1.0) million. 
- Net cash flow from operating activities during the financial year was EUR 0.8
(-2.1) million. 
- The year-end order books stood at EUR 3.9 (4.2) million.
- Future outlook: Net sales in 2016 are expected to be at the previous year’s
level, and the operating profit is expected to improve year-on-year. 

Summary of the financial statement release 1-12/2015. The full financial
statement release is attached to this release. 

Key financial ratios

                        1-12/  1-12/  Change,  10-12/  10-12/  Change,
                         2015   2014        %    2015    2014        %
                                                                      
Sales, MEUR              32.0   39.3    -18.7     9.0    10.7    -16.1
Operating profit/        -2.9   -2.4    -20.2     0.1    -0.2    142.9
loss, MEUR                                                            
Operating profit/loss   - 2.2   -1.0   -118.7     0.1     0.0    594.7
before non-recurring                                                  
expenses, MEUR                                                        
Profit before tax,       -3.9   -3.3    -18.5    -0.3    -0.5     42.7
MEUR                                                                  
Total comprehensive      -3.8   -2.6   - 43.1    -0.2    -0.4     35.7
income for the period,                                                
MEUR                                                                  
Earnings per share,     -0.06  -0.04             0.00    0.00         
Euro                                                                  
Net cash flow from        0.8   -2.1              0.7     2.7         
operating activities,                                                 
MEUR                                                                  
Equity ratio, %          36.9   39.0                                  
Net indebtness          113.4   89.8                                  
ratio, %                                                              
Return on                -7.7   -5.4              0.4    -0.2         
investments, %                                                        

Comments by Heikki Vauhkonen, Managing Director:

The demand for Tulikivi products was slightly lower than expected in the fourth
quarter, but remained similar to before. 

As a result of closer cooperation with the home-building industry, deliveries
of fireplaces to the new construction market have increased despite the
challenging market conditions. 

The challenging conditions were caused by the modest level of low-rise housing
construction, low heating energy prices and consumer uncertainty in purchasing
decisions. 

Estimates indicate that low-rise housing construction has returned to growth in
Finland, but there is no certainty of a more permanent change yet. 

In Germany and France, the main markets in Central Europe, the market
conditions improved during the second half of the year in comparison to the
first half. Net sales from fireplace exports to Germany and France in the
fourth quarter were at the same level as in the previous year. The most
significant decrease in net sales was recorded in Russia, as a result of
difficult economic circumstances. Sales from Tulikivi’s own sales office in
Moscow performed well and reduced the shortfall in net sales in Russia. 

In the fourth quarter, the company’s order intake was EUR 8.2 (9.3) million.
Its order intake in Finland was lower than in the previous year, due to weak
demand in the renovation market. In exports, the order intake from Russia and
Belgium decreased. 

Tulikivi’s order books at the end of the reporting period amounted to EUR 3.9
(4.2) million. 

The company continued to improve its operational efficiency because of
decreasing net sales. It managed to cut its fixed costs by EUR 2.3 million, or
around 20%, compared to the previous year’s level. 

As a result of the adjustment measures implemented during the fourth quarter,
the company’s profitability improved year-on-year, and its cash flow from
operating activities for the fourth quarter was positive, at EUR 0.7 million. 
Even though the operating environment is likely to remain challenging in 2016,
the company estimates that, as a result of successful sales efficiency
measures, its net sales will no longer decrease. The company expects its
profitability to improve in 2016 as a result of structural savings and
production efficiency measures. 

TULIKIVI CORPORATION

Board of Directors

Distribution: NASDAQ Helsinki
Key media
www.tulikivi.com

Additional information: Tulikivi Corporation, FIN-83900 Juuka, Finland,
tel. +358 207 636 000, www.tulikivi.com
- Heikki Vauhkonen, Managing Director, tel. +358 207 636 555

Enclosure:  Tulikivi Corportion´s  Financial Statement Release Jan-Dec 2015

Attachments:

Financial Statement Release Jan-Dec 2015.pdf