2009-04-30 07:15:00 CEST
2009-04-30 07:15:20 CEST
REGULATED INFORMATION
PKC Group Oyj - Interim report (Q1 and Q3)
PKC GROUP'S INTERIM REPORT JANUARY-MARCH/2009
PKC Group Oyj INTERIM REPORT 30 APRIL 2009 8.15 a.m. PKC GROUP'S INTERIM REPORT JANUARY-MARCH/2009 PKC Group's net sales in the January-March period decreased by 36.8% from the previous year to EUR 53.8 million (85.1 million in Jan.-Mar. 2008). Operating profit was EUR 0.1 million (9.3 million) and profit before taxes was EUR 1.9 million negative (7.3 million positive). Diluted earnings per share were EUR 0.20 negative (0.26 positive). Cash flows after investing activities during the report period were EUR 23.5 million (8.6 million). HARRI SUUTARI, PRESIDENT AND CEO: “The rapid decline in production volumes in our customer sectors, particularly in the heavy commercial vehicle industry, led to a sharp drop in our operational result. The PKC Group's production volume fell by about 42% on the same period a year earlier. Thanks to cost-cutting measures carried out in the past 12 months, consolidated comparable operating expenses in the first quarter declined by about 30%. Reorganisation and cost-cutting measures will be continued. The result in the first quarter was burdened by EUR 0.3 million in non-recurring rationalisation expenses.” OPERATING ENVIRONMENT Demand for heavy trucks saw a very sharp decline during the first quarter in all of our market areas. In Europe, our main market, the volume of deliveries dropped to half and the value of new orders received by our customers reached only a third of what it had been a year earlier. In South America, deliveries and new orders fell by half. Deliveries to the mechanical engineering industry were only about a third of last year's level. The production and deliveries of recreational products were halved in North America. Our customers succeeded in reducing their stocks of finished goods early in the year, but report that they are continuing to empty their stocks, cutting the volume of production in the second quarter. Despite the difficult market situation, PKC is participating in several competitive bid processes concerning new customer relationships. Success in these processes might lead to new long-term delivery relationships and strengthening of the company's market position. With the exception of the Asian markets, investments made by the industrial sector fell significantly early in the year, reducing the Group's industrial electronics deliveries by about a quarter. NET SALES AND FINANCIAL PERFORMANCE January-March 2009 Consolidated net sales in January-March amounted to EUR 53.8 million (85.1 million), down 36.8% on the same period a year earlier. Consolidated operating profit totalled EUR 0.1 million (9.3 million), accounting for 0.2% of net sales (11.0%). Depreciations amounted to EUR 2.7 million (2.0 million). Financial income and expenses were EUR 2.0 million negative (2.0 million negative). Profit before taxes was EUR 1.9 million negative (7.3 million positive). Profit for the report period totalled EUR 3.3 million negative (4.6 million positive). Diluted earnings per share were EUR 0.20 negative (0.26 positive). Net sales generated by the Wiring Harnesses business in the report period amounted to EUR 41.7 million (69.3 million), or 40.0% less than in the comparative period. The segment's share of consolidated net sales was 77.6% (81.5%). It generated an operating profit of EUR 0.6 million negative (7.0 million positive), equivalent to 1.4% negative of the segment's net sales (10.1% positive). Without the acquisition of MAN Nutzfahrzeuge AG's wiring harness business in Poland in 2008, the segment's net sales would have shrunk to less than half of the previous year's figure. Net sales generated by the Electronics business decreased by 24.6% to EUR 12.1 million positive (15.8 million positive). The segment's share of consolidated net sales was 22.4% (18.5%). It generated an operating profit of EUR 0.7 million positive (2.3 million positive), equivalent to 5.7% of the segment's net sales (14.7%). BALANCE SHEET AND FINANCING Consolidated total assets at 31 March 2009 stood at EUR 168.1 million (171.8 million). Interest-bearing liabilities totalled EUR 56.3 million at the close of the report period (46.2 million). The Group's equity ratio was 42.9% (46.0%). Net liabilities totalled EUR 34.8 million (37.1 million) and gearing was 48.3% (46.9%). Inventories amounted to EUR 41.5 million (45.0 million). Current receivables totalled EUR 46.8 million (71.1 million). Cash flows after investing activities during the report period were EUR 23.5 million (8.6 million). Cash in hand and at bank amounted to EUR 21.5 million (9.1 million). In order to ensure financing flexibility, PKC has available credit facilities. CAPITAL EXPENDITURES During the report period, the Group's gross capital expenditures totalled EUR 1.9 million (2.5 million), representing 3.6% of net sales (2.9%). Capital expenditures consisted mostly of the acquisition of production machinery and equipment. RESEARCH AND DEVELOPMENT Research and development expenditure totalled EUR 1.5 million (1.6 million), representing 2.7% (1.8%) of consolidated net sales. At the end of the report period, 106 (94) people were employed in product development. PERSONNEL During the report period, the Group had an average payroll of 5,216 employees (5,538). At the end of the report period, the Group's personnel numbered 4,879 employees (5,597), of whom 4,260 (4,857) worked abroad and 619 (740) in Finland. Personnel cuts have been made at various units within the Group. A total of EUR 0.3 million in non-recurring expenses arising from the termination of employee contracts was recorded in the first quarter. As a result of the co-determination negotiations concluded in January 2009, it was decided to temporarily lay off almost the entire personnel of PKC Group Oyj's Kempele unit, a total of 250 people, with the duration of the layoffs varying between a week and longer periods, as well as 60 employees at PKC Electronics Oy's Raahe factory for a maximum of three months. Co-determination negotiations for closing the wiring harness production in Kempele and its effects to the personnel were initiated in Kempele unit on 19 March 2009 due to production and financial reasons. These negotiations concern the personnel of PKC Group Oyj's Kempele plant organisation's personnel, and maylead to the termination of the employment contracts of a maximum of 226 employees. With a view to serving other units and customers, the possibility of rearranging work and/or reorganising operations is also being considered, which may decrease the number of staff cuts. QUALITY AND THE ENVIRONMENT The Wiring Harnesses business operations at the Haapsalu, Keila, Kempele, Kostomuksha and Nogales production units have been certified in accordance with the ISO/TS 16949 and ISO 9001 standards as well as the ISO 14001 standard. The Curitiba production unit is certified under the ISO/TS 16949 and ISO 14001 standards. The certification process at the wiring harness factory in Poland has been began. During the report period, the Curitiba unit concluded the process of certifying its OHSAS 18001 occupational health and safety system. The Group's Electronics business operations at the Kostomuksha, Suzhou and Raahe production units have been certified in accordance with the ISO 9001 and ISO 14001 standards. The Group's Electronics business will continue to prepare for the adoption and certification of its operations under the ISO/TS 16949 standard. A preliminary assessment of compliance with the ISO/TS 16949 standard was carried out at the Raahe unit during the report period. The implementation and development of the best quality practices in the Group's Wiring Harnesses business forms one of the Group's strategic objectives. These best practices support continuous development by involving personnel more extensively in day-to-day quality enhancement work. During the report period, the best quality practices were audited internally and enhanced in the spirit of continuous improvement and based on feedback received. Progress is being monitored actively by the Group's Executive Board. MANAGEMENT The Annual General Meeting on 27 March 2009 resolved to pay a dividend of EUR 0.15 per share, or a total of around EUR 2.7 million. The dividend was paid out on 8 April 2009. The Annual General Meeting re-elected Endel Palla, Olli Pohjanvirta, Matti Ruotsala and Jyrki Tähtinen to seats on the Board of Directors. Outi Lampela was elected as a new member to the Board. At its organisation meeting, the Board of Directors elected Matti Ruotsala Chairman and Jyrki Tähtinen Vice Chairman. The Authorized Public Accountant Firm Ernst & Young Oy will continue as the company's auditor, with Juhani Rönkkö, Authorized Public Accountant, acting as the principal auditor. SHARE TURNOVER AND SHAREHOLDERS PKC Group Oyj's share turnover on NASDAQ OMX Helsinki Oy from 1 January to 31 March 2009 was 1,946,791 shares (4,551,043 shares), representing 10.9% of the average number of shares (25.6%). Shares were traded to a total value of EUR 6.7 million (34.7 million). The lowest share value during the report period was EUR 2.70 (6.88) and the highest EUR 4.44 (9.48). The closing price on the last trading day of the report period was EUR 2.70 (7.04) and the average price during the period was EUR 3.42 (7.58). The company's market capitalisation at 31 March 2009 was EUR 48.0 million (121.2 million). Shares held by Board members, related individuals and corporations in which they have a controlling interest accounted for 0.7% (2.9%) of the total number of shares at the end of the report period. PKC Group Oyj had 7,640 shareholders (7,172) at the end of the report period. The proportion of shares held by foreigners and by way of nominee registrations at the close of the report period was 24.0% of the shares outstanding (25.2%). SHARE CAPITAL The Board of Directors has been 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. The Board of Directors does not have a valid authorisation to acquire the company's own shares, and the company does not have any own shares (treasury shares) in its possession. STOCK OPTION SCHEMES In 2006, PKC launched a stock option scheme according to which the maximum total number of stock options to be issued is 697,500, and they are divided into A, B and C warrants. At the close of the report period, the company's key personnel had a total of 202,500 2006A warrants, 232,500 2006B warrants and 253,840 2006C warrants in their possession. The subscription period for shares through the exercise of stock options granted under the 2006 scheme shall be during the years 2009-2013. The share subscription price for stock options shall be 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 10.49 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 234,673.67. The 2006 stock options are subject to a share ownership plan. Key personnel are obligated 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 obligated to own these shares for the duration of his managerial contract. The Annual General Meeting held on 27 March 2009 resolved to issue stock options to the key personnel of the Company and its subsidiaries. The maximum total number of stock options issued will be 600,000 and they are divided into A, B and C options. 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 price for these stock options will be the trade volume weighted average quotation of PKC Group's share in April 2009, 2010 and 2011 on the NASDAQ OMX Helsinki Ltd exchange plus 20%. The amount of the dividend decided after the period for the determination of the share subscription price, but before shares are subscribed for, shall be deducted from the share subscription price of the stock options on each dividend record date. The share subscription price will be recorded in the invested non-restricted equity fund. The share subscription period for 2009A stock options will be 1 April 2012 — 30 April 2014, for 2009B stock options 1 April 2013 — 30 April 2015 and for 2009C stock options 1 April 2014 — 30 April 2016. After the close of the report period, the Board of Directors has decided to grant 161,500 2009A warrants to key personnel and to transfer the rest of the stock options to the company's subsidiary to be distributed at a later date. SHORT-TERM RISKS AND UNCERTAINTIES The financial crisis and the resulting economic downturn have also had an impact on demand for the products of PKC's customers in the commercial vehicles and electronics product groups. Other main uncertainties include price pressures and demands for tighter contractual terms imposed by customers, the significant fluctuation of currency exchange rates as well as the impact of financial crisis on suppliers and the availability of raw materials and components. The risks of the last few years concerning fluctuations in the prices of raw materials have decreased. Suppliers and their financial situation are being actively monitored throughout the order and delivery chain. 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, www.pkcgroup.com. OUTLOOK FOR THE FUTURE At present, it is difficult to estimate how long the current economic downturn will continue. However, we foresee the weak predictability of commercial vehicle demand and uncertainty concerning financing in general, coupled with the emptying of the stocks of vehicle manufacturers, keeping demand for wiring harnesses exceptionally low. We also estimate that demand for electronics design and manufacturing services in the market will weaken compared with last year. In Asia, investments made in the infrastructure of mobile phone networks may have a positive effect on demand for PKC's products. We predict that the full-year net sales will decrease substantially and operating profit to be negative. Full year estimation contains significantly more uncertainty than usual. Thanks to low need for capital expenditures and decrease of working capital, cash flows after investments are expected to be positive. PKC's balance sheet, liquidity and good customer relationships enable improvement in PKC's relative competitive position. TABLES This unaudited interim report has been prepared in accordance with the accounting policies set out in International Accounting Standard 34 on Interim Financial Reporting and in the Group's Annual Report for 2008, except for the effects of the adoption of the standards described below: IFRS 8 Operating Segments The Group's reportable segments remain unchanged from those reported in previous interim reports. The adoption of this standard has had no impact on the reported results or financial position of the Group. IAS 1 Presentation of Financial Statements The revised standard has introduced a number of terminology changes and revised titles for the primary statements, however the adoption of this standard has had no impact on the reported results or financial position of the Group. -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF | 1-3/09 | 1-3/08 | 1-12/08 | | COMPREHENSIVE INCOME (1000 EUR) | 3 mon. | 3 mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | 53,751 | 85,092 | 311,713 | -------------------------------------------------------------------------------- | Other operating income | 582 | 366 | 1,304 | -------------------------------------------------------------------------------- | Increase (+) / decrease (-) in | -6,555 | -2,465 | 71 | | stocks of finished goods and work | | | | | in progress | | | | -------------------------------------------------------------------------------- | Materials and services | 26,643 | 44,873 | 172,198 | -------------------------------------------------------------------------------- | Employee benefits expenses | 13,279 | 19,244 | 76,049 | -------------------------------------------------------------------------------- | Depreciation | 2,700 | 1,950 | 8,177 | -------------------------------------------------------------------------------- | Impairment loss for goodwill | 0 | 0 | 1,197 | -------------------------------------------------------------------------------- | Other operating expenses | 5,061 | 7,584 | 34,427 | -------------------------------------------------------------------------------- | OPERATING PROFIT/LOSS | 95 | 9,342 | 21,039 | -------------------------------------------------------------------------------- | Financial income | 5,039 | 906 | 8,406 | -------------------------------------------------------------------------------- | Financial expenses | -7,033 | -2,938 | -14,217 | -------------------------------------------------------------------------------- | PROFIT/LOSS BEFORE TAXES | -1,898 | 7,309 | 15,228 | -------------------------------------------------------------------------------- | Income tax expense | -1,353 | -2,684 | -9,661 | -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE REPORT PERIOD | -3,252 | 4,625 | 5,567 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other comprehensive income: | | | | -------------------------------------------------------------------------------- | Exchange differences on | -607 | -774 | -1,500 | | translating foreign operations | | | | -------------------------------------------------------------------------------- | Total comprehensive income for the | -3,859 | 3,851 | 4,067 | | period: | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/loss attributable to: | | | | -------------------------------------------------------------------------------- | Shareholders of the parent company | -3,252 | 4,602 | 5,519 | -------------------------------------------------------------------------------- | Minority intrest | 0 | -24 | -47 | -------------------------------------------------------------------------------- | Total | -3,252 | 4,625 | 5,566 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | From profit/loss attributable to | | | | | shareholders of the parent company | | | | -------------------------------------------------------------------------------- | Basic earnings per share (EPS), | -0.18 | 0.26 | 0.31 | | EUR | | | | -------------------------------------------------------------------------------- | Diluted earnings per share (EPS), | -0.20 | 0.26 | 0.31 | | EUR | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF | 3/09 | 3/08 | 12/08 | | FINANCIAL POSITION (1000 EUR) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Goodwill | 8,116 | 5,676 | 9,481 | -------------------------------------------------------------------------------- | Other intangible assets | 14,136 | 3,574 | 14,694 | -------------------------------------------------------------------------------- | Tangible assets | 33,857 | 34,624 | 34,931 | -------------------------------------------------------------------------------- | Deferred tax assets | 1,825 | 2,202 | 1,623 | -------------------------------------------------------------------------------- | Other receivables | 223 | 425 | 453 | -------------------------------------------------------------------------------- | Non-current assets total | 58,157 | 46,500 | 61,182 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSSETS | | | | -------------------------------------------------------------------------------- | Inventory | 41,526 | 45,007 | 51,815 | -------------------------------------------------------------------------------- | Receivables | | | | -------------------------------------------------------------------------------- | Trade receivables | 35,647 | 61,474 | 47,025 | -------------------------------------------------------------------------------- | Other receivables | 11,195 | 8,605 | 14,948 | -------------------------------------------------------------------------------- | Receivables total | 46,843 | 71,117 | 61,973 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 21,524 | 9,132 | 12,468 | -------------------------------------------------------------------------------- | Current assets total | 109,893 | 125,257 | 126,256 | -------------------------------------------------------------------------------- | ASSETS TOTAL | 168,050 | 171,757 | 187,437 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | EQUITY | | | | -------------------------------------------------------------------------------- | Share capital | 5,983 | 5,983 | 5,983 | -------------------------------------------------------------------------------- | Share premium account | 4,862 | 4,862 | 4,862 | -------------------------------------------------------------------------------- | Reserve fund | 370 | 239 | 370 | -------------------------------------------------------------------------------- | Translation difference | -2,305 | -816 | -1,841 | -------------------------------------------------------------------------------- | Share-based payments | 831 | 909 | 808 | -------------------------------------------------------------------------------- | Retained earnings | 65,557 | 62,364 | 62,557 | -------------------------------------------------------------------------------- | Profit/loss for the report period | -3,252 | 4,602 | 5,519 | -------------------------------------------------------------------------------- | Minority interest | 0 | 813 | 328 | -------------------------------------------------------------------------------- | EQUITY TOTAL | 72,046 | 78,956 | 78,586 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 38,413 | 19,721 | 40,120 | -------------------------------------------------------------------------------- | Non-interest-bearing liabilities | | | | -------------------------------------------------------------------------------- | Provisions | 216 | 114 | 216 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 3,515 | 797 | 3,461 | -------------------------------------------------------------------------------- | Non-current liabilities total | 42,143 | 20,631 | 43,797 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 17,886 | 26,481 | 31,866 | -------------------------------------------------------------------------------- | Trade payables | 17,915 | 21,822 | 14,907 | -------------------------------------------------------------------------------- | Other liabilities | 18,059 | 23,867 | 18,281 | -------------------------------------------------------------------------------- | Current liabilities total | 53,861 | 72,170 | 65,055 | -------------------------------------------------------------------------------- | Liabilities total | 95,788 | 92,687 | 108,635 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES TOTAL | 168,050 | 171,757 | 187,437 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CASH | 1-3/09 | 1-3/08 | 1-12/08 | | FLOWS (1000 EUR) | 3 mon. | 3 mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from operating | | | | | activities | | | | -------------------------------------------------------------------------------- | Cash receipts from customers | 64,901 | 84,750 | 326,650 | -------------------------------------------------------------------------------- | Cash receipts from other operating | 1,122 | 194 | 1,304 | | activities | | | | -------------------------------------------------------------------------------- | Cash paid to suppliers and | -38,639 | -72,092 | -289,969 | | employees | | | | -------------------------------------------------------------------------------- | Cash flows from operations before | 27,385 | 12,851 | 37,985 | | financial income and expenses and | | | | | taxes | | | | -------------------------------------------------------------------------------- | Interest paid | -1,498 | -2,091 | -5,644 | -------------------------------------------------------------------------------- | Interest received and other | 74 | 986 | 233 | | financial income | | | | -------------------------------------------------------------------------------- | Income taxes paid | 431 | -786 | -7,275 | -------------------------------------------------------------------------------- | Net cash from operating activities | 25,392 | 10,961 | 25,299 | | (A) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investig | | | | | activities | | | | -------------------------------------------------------------------------------- | Purchase of tangible and | -1,566 | -2,509 | -9,906 | | intangible assets | | | | -------------------------------------------------------------------------------- | Proceeds from sale of tangible and | 129 | 100 | 4 | | intangible assets | | | | -------------------------------------------------------------------------------- | Investments | -485 | 0 | -21,589 | -------------------------------------------------------------------------------- | Loans granted | -1 | -4 | -9 | -------------------------------------------------------------------------------- | Amortisations of loan received | 1 | 3 | 44 | -------------------------------------------------------------------------------- | Dividends received | 0 | 0 | 1 | -------------------------------------------------------------------------------- | Net cash flow from investing | -1,922 | -2,410 | -31,455 | | activities (B) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financing | | | | | activities | | | | -------------------------------------------------------------------------------- | Drawing of credits | 0 | 148 | 37,313 | -------------------------------------------------------------------------------- | Amortasations of credits | -14,387 | -9,992 | -21,011 | -------------------------------------------------------------------------------- | Dividends paid | -27 | 0 | -8,104 | -------------------------------------------------------------------------------- | Net cash used in financing | -14,414 | -9,844 | 8,198 | | activities (C) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net increase (+) or decrease (-) | 9,056 | -1,293 | 2,042 | | in cash and equivalents | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FINANCIAL INDICATORS | 1-3/09 | 1-3/08 | 1-12/08 | | | 3 mon. | 3 mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 53,751 | 85,092 | 311,713 | -------------------------------------------------------------------------------- | Operating profit/loss, 1000 EUR | 95 | 9,342 | 21,039 | -------------------------------------------------------------------------------- | % of net sales | 0.2 | 11.0 | 6.7 | -------------------------------------------------------------------------------- | Profit/loss before taxes, 1000 EUR | -1,898 | 7,309 | 15,228 | -------------------------------------------------------------------------------- | % of net sales | -3.5 | 8.6 | 4.9 | -------------------------------------------------------------------------------- | Net profit/loss for the period, | -3,252 | 4,602 | 5,519 | | 1000 EUR | | | | -------------------------------------------------------------------------------- | % of net sales | -6.0 | 5.4 | 1.8 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | -17.3 | 22.9 | 6.9 | -------------------------------------------------------------------------------- | Return on investments (ROI), % | 9.4 | 22.8 | 14.5 | -------------------------------------------------------------------------------- | Net liabilities, 1000 EUR | 34,775 | 37,070 | 59,518 | -------------------------------------------------------------------------------- | Gearing, % | 48.3 | 46.9 | 75.7 | -------------------------------------------------------------------------------- | Equity ratio, % | 42.9 | 46.0 | 41.9 | -------------------------------------------------------------------------------- | Current ratio | 2.0 | 1.7 | 1.9 | -------------------------------------------------------------------------------- | Gross capital expenditure, 1000 | 1,937 | 2,446 | 27,426 | | EUR | | | | -------------------------------------------------------------------------------- | % of net sales | 3.6 | 2.9 | 8.8 | -------------------------------------------------------------------------------- | R&D expenditures, 1000 EUR | 1,459 | 1,566 | 5,812 | -------------------------------------------------------------------------------- | % of net sales | 2.7 | 1.8 | 1.9 | -------------------------------------------------------------------------------- | Personnel average | 5,216 | 5,538 | 5,588 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PER-SHARE KEY FIGURES | 1-3/09 | 1-3/08 | 1-12/08 | | | 3 mon. | 3 mon. | 12 mon. | -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | -0.18 | 0.26 | 0.31 | -------------------------------------------------------------------------------- | Earnings per share (EPS),diluted, | -0.20 | 0.26 | 0.31 | | EUR | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 4.05 | 4.39 | 4.40 | -------------------------------------------------------------------------------- | Share price at close of period, | 2.70 | 7.04 | 3.25 | | EUR | | | | -------------------------------------------------------------------------------- | Lowest share price, EUR | 2.70 | 6.88 | 2.82 | -------------------------------------------------------------------------------- | Highest share price, EUR | 4.44 | 9.48 | 9.48 | -------------------------------------------------------------------------------- | Average share price, EUR | 3.42 | 7.58 | 6.56 | -------------------------------------------------------------------------------- | Turnover in shares, 1000 shares | 1,947 | 4,551 | 12,941 | -------------------------------------------------------------------------------- | Turnover in shares per (share | 10.9 | 25.6 | 72.8 | | issue adjusted) share capital, % | | | | -------------------------------------------------------------------------------- | Average number of shares, 1000 | 17,782 | 17,782 | 17,782 | | shares | | | | -------------------------------------------------------------------------------- | Average number of shares, | 16,358 | 17,585 | 17,782 | | diluted,1000 shares | | | | -------------------------------------------------------------------------------- | Shares at end of period, 1000 | 17,782 | 17,782 | 17,782 | | shares | | | | -------------------------------------------------------------------------------- | Market capitalisation , 1000 EUR | 48,010 | 121,182 | 57,790 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1. SEGMENT | | | | | | INFORMATION | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.1.-31.3.2009 (1 000 | Wiring | Electronic | Elimination | Group | | EUR) | Harness | s | s | Total | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to external | 41,704 | 12,048 | | 53,751 | | customers | | | | | -------------------------------------------------------------------------------- | Sales to other | 17 | 10 | -27 | 0 | | segment | | | | | -------------------------------------------------------------------------------- | Net sales to other | 41,721 | 12,058 | -27 | 53,751 | | segments, 1000 EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | -589 | 684 | | 95 | -------------------------------------------------------------------------------- | % of net sales | -1.4 | 5.7 | 0.0 | 0.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segments assets | 130,316 | 39,971 | -4,062 | 166,225 | -------------------------------------------------------------------------------- | Unallocated assets *) | | | | 1,825 | -------------------------------------------------------------------------------- | Assets total | 130,316 | 39,971 | -4,062 | 168,050 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | * Segments assets do not include deferred taxes | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.1.-31.3.2008 (1 000 | Wiring | Electronic | Elimination | Group | | EUR) | Harness | s | s | Total | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to external | 69,324 | 15,768 | | 85,092 | | customers | | | | | -------------------------------------------------------------------------------- | Sales to other | 67 | 228 | -295 | 0 | | segment | | | | | -------------------------------------------------------------------------------- | Net sales to other | 69,391 | 15,996 | -295 | 85,092 | | segments, 1000 EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | 7,018 | 2,324 | | 9,342 | -------------------------------------------------------------------------------- | % of net sales | 10.1 | 14.7 | | 11.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segments assets | 137,942 | 31,613 | -3,868 | 169,555 | -------------------------------------------------------------------------------- | Unallocated assets *) | | | | 2,202 | -------------------------------------------------------------------------------- | Assets total | 137,942 | 31,613 | -3,868 | 171,757 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | * Segments assets do not include deferred taxes | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.1.-31.12.2008 (1 | Wiring | Electronic | Elimination | Group | | 000 EUR) | Harness | s | s | Total | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to external | 246,487 | 65,226 | | 311,713 | | customers | | | | | -------------------------------------------------------------------------------- | Sales to other | 193 | 671 | -864 | 0 | | segment | | | | | -------------------------------------------------------------------------------- | Net sales to other | 246,680 | 65,897 | -864 | 311,713 | | segments, 1000 EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | 9,744 | 11,295 | | 21,039 | -------------------------------------------------------------------------------- | % of net sales | 4.0 | 17.3 | | 6.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segments assets | 152,765 | 38,044 | -4,994 | 185,815 | -------------------------------------------------------------------------------- | Unallocated assets *) | | | | 1,623 | -------------------------------------------------------------------------------- | Assets total | 152,765 | 38,044 | -4,994 | 187,438 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | * Segments assets do not include deferred taxes | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY | | | | | | GEOGRAPHICAL SEGMENTS | | | | | | (1000 EUR) | | | | | -------------------------------------------------------------------------------- | Finland | 10,552 | 15,606 | 58,621 | | -------------------------------------------------------------------------------- | Other Europe | 28,904 | 45,040 | 151,701 | | -------------------------------------------------------------------------------- | North America | 4,860 | 9,338 | 33,427 | | -------------------------------------------------------------------------------- | South America | 5,253 | 10,711 | 48,510 | | -------------------------------------------------------------------------------- | Other Countries | 4,183 | 4,396 | 19,453 | | -------------------------------------------------------------------------------- | Total | 53,751 | 85,092 | 311,713 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. RECONCILIATION OF EQUITY | | | | | | | | (MILLION EUR) | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A = Share Capital | | | | | | | -------------------------------------------------------------------------------- | B = Share premium account | | | | | | | -------------------------------------------------------------------------------- | C = Fair value and other | | | | | | | | reserves | | | | | | | -------------------------------------------------------------------------------- | D = Retained earnings | | | | | | | -------------------------------------------------------------------------------- | E = Minority interest | | | | | | | -------------------------------------------------------------------------------- | F = Total equity | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | A | B | C | D | E | F | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 71.1 | 0.8 | 83.0 | | 1.1.2008 | | | | | | | -------------------------------------------------------------------------------- | Profit/loss for the period | 0.0 | 0.0 | 0.0 | 4.6 | 0.0 | 4.6 | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.0 | 0.0 | -8.0 | 0.0 | -8.0 | -------------------------------------------------------------------------------- | Share options used | 0.0 | 0.0 | 0.0 | 0.2 | 0.0 | 0.2 | -------------------------------------------------------------------------------- | Translation differences | 0.0 | 0.0 | 0.0 | -0.8 | 0.0 | -0.8 | -------------------------------------------------------------------------------- | Other changes | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 | 0.1 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.3 | 67.1 | 0.8 | 79.1 | | 31.3.2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.1 | 0.3 | 78.6 | | 1.1.2009 | | | | | | | -------------------------------------------------------------------------------- | Profit/loss for the period | 0.0 | 0.0 | 0.0 | -3.3 | 0.0 | -3.3 | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.0 | 0.0 | -2.7 | 0.0 | -2.7 | -------------------------------------------------------------------------------- | Share-based payments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Translation differences | 0.0 | 0.0 | 0.0 | -0.6 | 0.0 | -0.6 | -------------------------------------------------------------------------------- | Aquisitions of minority | 0.0 | 0.0 | 0.0 | 0.3 | -0.3 | 0.0 | | interest | | | | | | | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.4 | 60.8 | 0.0 | 72.1 | | 31.3.2009 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. CONTINGENT LIABILITIES AT | 3/09 | 3/08 | 12/08 | | | END OF PERIOD (1000 EUR) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Leasing liabilities | 10,124 | 5,414 | 11,745 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities for derivate | | | | | | instruments | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Nominal values | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | -------------------------------------------------------------------------------- | Forward contracts | 3,068 | 2,055 | 3,307 | | -------------------------------------------------------------------------------- | Option agreements | | | | | -------------------------------------------------------------------------------- | Call | 739 | 791 | 757 | | -------------------------------------------------------------------------------- | Total | 3,807 | 2,846 | 4,064 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | -------------------------------------------------------------------------------- | Forward contracts | -18 | -223 | -195 | | -------------------------------------------------------------------------------- | Option agreements | | | | | -------------------------------------------------------------------------------- | Call | 0 | 176 | 0 | | -------------------------------------------------------------------------------- | Total | -18 | -47 | -195 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Currency derivates are used only in hedging currency 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. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 4. QUARTERLY KEY | 10-12/0 | 1-3/08 | 3-6/08 | 7-9/08 | 10-12/0 | 1-3/09 | | FIGURES, | 7 3 | 3 mon. | 3 mon. | 3 mon. | 8 3 | 3 mon. | | CONSOLIDATED | mon. | | | | mon. | | -------------------------------------------------------------------------------- | Net sales, 1000 | 78.08 | 85.09 | 88.57 | 73.37 | 64.68 | 53.75 | | EUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 6.80 | 9.34 | 9.63 | 6.00 | -3.93 | 0.1 | | profit/loss, | | | | | | | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 8.7 | 11.0 | 10.9 | 8.2 | -6.1 | 0.2 | -------------------------------------------------------------------------------- | Profit/loss | 5.63 | 7.31 | 9.81 | 5.54 | -7.43 | -1.9 | | before taxes, | | | | | | | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 7.2 | 8.6 | 11.1 | 7.6 | -11.5 | -3.5 | -------------------------------------------------------------------------------- | Equity ratio, % | 47.2 | 46.0 | 48.6 | 50.0 | 41.9 | 42.9 | -------------------------------------------------------------------------------- | Earnings per | 0.19 | 0.26 | 0.41 | 0.17 | -0.53 | -0.20 | | share (EPS), | | | | | | | | diluted (EUR) | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 4.62 | 4.39 | 4.82 | 5.06 | 4.40 | 4.05 | | equity per | | | | | | | | share, EUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, WIRING | | | | | | | | HARNESSESS | | | | | | | -------------------------------------------------------------------------------- | Net sales, 1000 | 61.97 | 69.32 | 69.29 | 56.95 | 50.77 | 41.7 | | EUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 4.61 | 7.02 | 5.09 | 3.86 | -3.93 | -0.59 | | profit/loss, | | | | | | | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 7.4 | 10.1 | 7.3 | 6.8 | -12.2 | -1.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, | | | | | | | | ELECTRONICS | | | | | | | -------------------------------------------------------------------------------- | Net sales, 1000 | 16.12 | 15.77 | 19.28 | 16.42 | 13.91 | 12.05 | | EUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 2.19 | 2.32 | 4.54 | 2.14 | 2.29 | 0.68 | | profit/loss, | | | | | | | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 13.6 | 14.7 | 23.5 | 13.1 | 16.4 | 5.7 | -------------------------------------------------------------------------------- CALCULATION OF INDICATORS Return on equity (ROE), % = 100 x Profit/loss / Shareholders' equity (average) Return on investments (ROI), % = 100 x (Profit/loss + financial expenses) / Balance sheet total + interest-bearing liabilities (average) Gearing, % = 100 x (Interest-bearing liabilities - cash in hand and at bank and investments) / Shareholders' equity + minority interest Equity ratio, % = 100 x (Shareholders' equity + minority interest) / Balance sheet total - advance payments received Quick ratio = Receivables and cash in hand and at bank / Current liabilities - advance payments received Current ratio Receivables and cash in hand and at bank + inventories / Current liabilities Earnings per share (EPS), EUR Profit before extraordinary items - income taxes +/- minority interest / Average share issue-adjusted number of shares Shareholders' equity per share, EUR Shareholders' equity / Share issue-adjusted number of shares on the balance sheet date 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 Interim Report will be arranged for analysts and investors today, 30 April 2009, at 11.30 a.m., at the address Garnegie, 4th floor, Eteläesplanadi 12, Helsinki. Registrations to heta.toropainen@pkcgroup.com no later than at 9.00 a.m. 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, and employs about 5,000 people. The Group's net sales in 2008 totalled EUR 311.7 million. PKC Group Oyj is listed on NASDAQ OMX Helsinki Ltd.
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