Tulikivi Oyj - Interim report (Q1 and Q3)

Tulikivi Corporation´s interim report 1-3/2016

TULIKIVI CORPORATION   INTERIM REPORT 1-3/2016   28.4.2016 at 1.00 p.m.

Tulikivi Corporation

Interim report 1–3/2016: Net sales at last year’s level, operational efficiency
measures progress as planned 

28 April 2016, at 1.00 p.m.

- The Tulikivi Group’s first-quarter net sales were EUR 6.3 million (EUR 6.2
million in Q1/2015), the operating result in the first quarter was EUR -1.3
(-2.5) million and the result before taxes EUR -1.5 (-2.7) million. The
first-quarter operating result before non-recurring expenses was EUR -1.3
(-2.3) million. 

- Net cash flow from operating activities in the first quarter was EUR -0.5
(-2.2) million. 

- Order books at the end of the period amounted to EUR 4.6 (5.5) 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 interim report 1-3/2016. The full interim report is attached to
this release. 

Key financial ratios

                         1-3/   1-3/  Change,  1-12/
                         2016   2015        %   2015
                                                    
Sales, MEUR               6.3    6.2      1.8   32.0
Operating profit/       - 1.3   -2.5     46.9   -2.9
loss, MEUR                                          
Operating profit/loss    -1.3   -2.3     42.4   -2.2
before non-recurring                                
expenses, MEUR                                      
Profit before tax,       -1.5   -2.7     43.8   -3.9
MEUR                                                
Total comprehensive      -1.5   -2.6     41.9   -3.8
income for the period,                              
MEUR                                                
Earnings per share,     -0.03  -0.04           -0.06
Euro                                                
Net cash flow from       -0.5   -2.2             0.8
operating activities,                               
MEUR                                                
Equity ratio, %          33.5   36.1            36.9
Net indebtness          131.8  120.7           113.4
ratio, %                                            
Return on               -17.1  -26.7            -7.7
investments, %                                      



Comments by Heikki Vauhkonen, Managing Director:

In the first quarter, demand for Tulikivi products was similar to that of last
year, both domestically and in exports. 

Improved cooperation with the home-building industry has led to an increased
market share for Tulikivi in Finland and deliveries of fireplaces to the new
construction market have grown despite challenging market conditions. 

The challenging conditions on the market have been caused by a 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. 

Conditions in Germany and France, the main markets in Central Europe, continue
to be relatively poor. Net sales from fireplace exports to Germany and France
during the first quarter were at last year’s level but a turn for the better is
not in sight in the fireplace market, despite economic improvement. 

In Russia, net sales declined in the first quarter but order books developed
favourably on last year. 

In the first quarter, the company’s flow of orders was EUR 6.8 (7.0) million.
The order flow was better in Finland than it was a year ago. In exports the
order flow slowed in lining stone products and from Central-European markets. 

Tulikivi’s order books amounted to EUR 4.6 (5.5) million at the end of the
review period. 

As a result of the adjustment measures implemented in 2015, the company’s
profitability improved year-on-year in the first quarter. Following the growth
in net sales, an improved sales margin and lower fixed costs and
depreciation/amortisation, the operating result improved EUR by 1.2 million. 

As a result of better profitability and lower working capital, the company’s
net cash flow from operating activities was EUR 1.7 million more than in 2015. 

Even though the operating environment in exports is likely to remain
challenging in 2016, the company believes that net sales will no longer
decrease thanks to its successful sales efficiency measures. The company
expects its profitability to improve in 2016 as a result of structural savings
and production efficiency measures. 

TULIKIVI CORPORATION

Board of Directors



Distriburion: Nasdaq Helsinki

Key media

www.tulikivi.com



Additional information: Heikki Vauhkonen, Managing Director, tel. +358 207 636
555 

ATTACHEMENT: Interim Report 1-3/2016

Attachments:

Interim report 01-03 2016.pdf