2013-10-22 08:00:00 CEST
2013-10-22 08:00:04 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 30 SEPTEMBER 2013
Vieremä, Finland, 2013-10-22 08:00 CEST (GLOBE NEWSWIRE) --
PONSSE PLC, STOCK EXCHANGE RELEASE, 22 OCTOBER 2013, 9:00 a.m.
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2013
- Net sales amounted to EUR 211.3 (Q1-Q3/2012 217.7) million.
- Q3 net sales amounted to EUR 66.0 (Q3/2012 66.6) million.
- Operating result totalled EUR 12.7 (Q1-Q3/2012 15.7) million, equalling 6.0
(7.2) per cent of net sales.
- Q3 operating result totalled EUR 4.2 (Q3/2012 5.0) million, equalling 6.4
(7.5) per cent of net sales.
- Profit before taxes was EUR 7.5 (Q1-Q3/2012 13.9) million.
- Cash flow from business operations was EUR 21.6 (-0.2) million.
- Earnings per share were EUR 0.15 (0.29).
- Equity ratio was 32.5 (40.3) per cent.
- Order books stood at EUR 97.2 (62.5) million.
PRESIDENT AND CEO JUHO NUMMELA:
During the third quarter of the year, our order intake and order books grew
strongly. The forest machine market was challenging during the first half of
the year, but a clear turn for the better took place during the third quarter.
At period end, the company's order books amounted to EUR 97.2 (62.5) million,
which is 55.5 per cent more than in the comparison period. The new Scorpion
harvester accounted for a significant share of the order books, and the product
will enter serial production in early 2014.
Of the market areas, North America, Russia and Finland were at a good level in
terms of both invoicing and order intake. The Central European forest machine
market is recovering at a slow rate, and the Swedish market is about to remain
at approximately one half of its normal level. Deliveries in Latin America
proceeded according to plan.
Net sales of maintenance services continued to grow during the period under
review, while the growth in net sales of used machines began to increase again.
Net sales for the third quarter amounted to EUR 66.0 (66.6) million. Net sales
for the period under review amounted to EUR 211.3 (217.7) million, representing
a change of -2.9 per cent from the comparable period.
The operating result for the past quarter was EUR 4.2 (5.0) million, and EUR
12.7 (15.7) million for the period under review.
Cash flow from business operations amounted to EUR 21.6 (-0.2) million in the
period under review. Inventories remained at their normal level, but due to the
growth in volume, fast growth in trade payables increased the cash flow from
business operations significantly.
The factory in Vieremä has been operating in two shifts since the beginning of
June. During the past quarter, the company terminated the adjustment operations
started in the beginning of the year.
NET SALES
Consolidated net sales for the period under review amounted to EUR 211.3
(217.7) million, which is 2.9 per cent less than in the comparison period.
International business operations accounted for 68.7 (66.5) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 45.8 (54.5)
per cent, Central and Southern Europe 14.7 (17.9) per cent, Russia and Asia
17.0 (13.5) per cent, North and South America 22.5 (14.0) per cent and other
countries 0.0 (0.0) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 12.7 (15.7) million. The operating result
equalled 6.0 (7.2) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 8.8 (16.3) per cent.
Staff costs for the period totalled EUR 35.1 (37.0) million. Other operating
expenses stood at EUR 22.3 (22.6) million. The net total of financial income
and expenses amounted to EUR -5.1 (-1.8) million. Exchange rate gains and
losses with a net effect of EUR -3.8 (-0.6) million were recognised under
financial items for the period. Profit for the period under review totalled EUR
4.5 (9.3) million. Diluted and undiluted earnings per share (EPS) came to EUR
0.15 (0.29). The interest on the subordinated loan for the period, less tax,
has been taken into account in the calculation of EPS.
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 191,7 (191.7) million. Inventories stood at
EUR 89.2 (97.9) million. Trade receivables totalled EUR 22.5 (24.5) million,
while liquid assets stood at EUR 15.7 (10.9) million. Group shareholders'
equity stood at EUR 61.5 (76.1) million and parent company shareholders' equity
(FAS) at EUR 81.1 (76.4) million. In the comparison period Group shareholders'
equity includes a hybrid loan of EUR 19 million issued on 31 March 2009 and
settled on 28 March 2013. A separate release was issued on 19 February 2013
regarding the settlement of the hybrid loan. The interest paid on the hybrid
loan totalling EUR 9.1 million, less tax, is recognised as a deduction from
Group equity. The amount of interest-bearing liabilities was EUR 75.5 (57.1)
million. The company has used 34 per cent of its credit facility limit. The
parent company's net receivables from other Group companies stood at EUR 77.0
(80.1) million. The parent company's receivables from subsidiaries mainly
consisted of trade receivables. Consolidated net liabilities totalled EUR 59.9
(46.1) million, and the debt-equity ratio (net gearing) was 97.4 (60.6) per
cent. The equity ratio stood at 32.5 (40.3) percent at the end of the period
under review.
Cash flow from business operations amounted to EUR 21.6 (-0.2) million. Cash
flow from investment activities came to EUR -8.0 (-10.6) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 266.8 (209.4) million, while
period-end order books were valued at EUR 97.2 (62.5) million.
DISTRIBUTION NETWORK
No changes took place in the Group structure during the period under review.
The subsidiaries included in the Ponsse Group are: Epec Oy, Finland; OOO
Ponsse, Russia; Ponsse AB, Sweden; Ponsse AS, Norway; Ponsse Asia-Pacific Ltd,
Hong Kong; Ponsse China Ltd, China; Ponsse Latin America Ltda, Brazil; Ponsse
North America, Inc., the United States; Ponssé S.A.S., France; Ponsse UK Ltd,
the United Kingdom; and Ponsse Uruguay S.A., Uruguay. Sunit Oy, based in
Kajaani, Finland, is an affiliated company in which Ponsse Plc has a holding of
34 per cent.
CAPITAL EXPENDITURE AND R&D
During the period under review, the Group's R&D expenses totalled EUR 7.2 (6.8)
million, of which EUR 2.2 (2.0) million was capitalised.
Capital expenditure totalled EUR 8.0 (10.6) 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; Juha Haverinen, Factory Director;
Petri Härkönen, CFO; Juha Inberg, Technology and R&D Director; Tapio Mertanen,
Service Director; Paula Oksman, HR Director and Jarmo Vidgrén, Deputy CEO,
Sales and Marketing Director. The company management has regular management
liability insurance.
Tommi Väänänen has been appointed Purchasing Director of Ponsse Plc as of 1
October 2013. Väänänen has also been invited to join the company's Management
Team. The release was issued on 7 August 2013.
The area director organisation of sales is lead 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), Eero Lukkarinen (Sweden, Denmark) and
Sigurd Skotte (Norway),
Central and Southern Europe: Janne Vidgrén (Austria, Poland, Romania, Germany,
the Czech Republic and Hungary), Clément Puybaret (France), Jussi Hentunen
(Spain, Italy, Portugal and Norrbotten/Sweden) and Gary Glendinning (the United
Kingdom),
Russia and Asia: Jaakko Laurila (Russia, Belarus), Norbert Schalkx (Japan and
the Baltic countries) and Risto Kääriäinen (China),
North and South America: Pekka Ruuskanen (the United States), Marko Mattila
(North American dealers), Teemu Raitis (Brazil) and Martin Toledo (Uruguay).
PERSONNEL
The Group had an average staff of 1,014 (997) during the period and employed
1,046 (988) 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 - 30 September 2013 totalled
1,990,912, accounting for 7.1 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 5.50 and EUR 7.39, respectively.
At the end of the period, shares closed at EUR 7.30, and market capitalisation
totalled EUR 204.4 million.
At the end of the period under review, the company held 212,900 treasury shares.
ANNUAL GENERAL MEETING
A separate release was issued on 16 April 2013 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 rapid escalation of the problems in the economies of Europe and the United
States in the financial market may have an impact on the availability of
customer financing.
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
The Group's euro-denominated operating profit is expected to remain lower than
in 2012.
In general, the positive work situation of the customers and Ponsse's strongly
renewed and competitive product portfolio and maintenance service solutions are
having a positive effect on the company's business operations.
In Europe the markets are still uneasy due to the economic situation.
Due to the improved order books, the factory capacity in Vieremä will be
increased during the last quarter. We estimate that the work situation of our
customers will also continue to be good in the near future.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
IFRS IFRS
1-9/13 1-9/12
NET SALES 211,292 217,656
Increase (+)/decrease (-) in inventories of finished goods 8,098 9,015
and work in progress
Other operating income 675 662
Raw materials and services -144,992 -147,828
Expenditure on employment-related benefits -35,144 -36,959
Depreciation and amortisation -4,920 -4,186
Other operating expenses -22,264 -22,631
OPERATING RESULT 12,745 15,729
Share of results of associated companies -138 -5
Financial income and expenses -5,060 -1,842
RESULT BEFORE TAXES 7,547 13,883
Income taxes -3,001 -4,578
NET RESULT FOR THE PERIOD 4,547 9,304
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units 1 415 -297
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 5,962 9,007
Diluted and undiluted earnings per share* 0.15 0.29
IFRS IFRS
7-9/13 7-9/12
NET SALES 66,007 66,566
Increase (+)/decrease (-) in inventories of finished goods and 6,382 488
work in progress
Other operating income 146 343
Raw materials and services -49,512 -43,385
Expenditure on employment-related benefits -10,207 -10,271
Depreciation and amortisation -1,635 -1,426
Other operating expenses -6,941 -7,294
OPERATING RESULT 4,240 5,021
Share of results of associated companies -33 48
Financial income and expenses -1,853 -456
RESULT BEFORE TAXES 2,354 4,613
Income taxes -1,042 -1,680
NET RESULT FOR THE PERIOD 1,312 2,933
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units 757 17
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 2,069 2,950
Diluted and undiluted earnings per share* 0.05 0.09
* The interest on the subordinated loan for the period, less tax, was taken
into account in this figure.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
IFRS IFRS
ASSETS 30 Sep 13 31 Dec 12
NON-CURRENT ASSETS
Intangible assets 13,106 11,898
Goodwill 3,440 3,440
Property, plant and equipment 37,428 35,525
Financial assets 111 111
Investments in associated companies 938 1,186
Non-current receivables 887 999
Deferred tax assets 1,641 1,628
TOTAL NON-CURRENT ASSETS 57,550 54,787
CURRENT ASSETS
Inventories 89,166 81,636
Trade receivables 22,492 25,954
Income tax receivables 177 1,959
Other current receivables 6,571 3,313
Cash and cash equivalents 15,674 14,083
TOTAL CURRENT ASSETS 134,080 126,944
TOTAL ASSETS 191,630 181,732
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000
Other reserves 30 19,030
Translation differences -123 -1,538
Treasury shares -2,228 -2,228
Retained earnings 56,780 59,180
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 61,459 81,444
NON-CURRENT LIABILITIES
Interest-bearing liabilities 49,719 21,474
Deferred tax liabilities 1,103 968
Other non-current liabilities 0 13
TOTAL NON-CURRENT LIABILITIES 50,822 22,455
CURRENT LIABILITIES
Interest-bearing liabilities 25,804 34,912
Provisions 4,854 4,977
Tax liabilities for the period 64 385
Trade creditors and other current liabilities 48,626 37,558
TOTAL CURRENT LIABILITIES 79,348 77,833
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 191,630 181,732
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS
1-9/13 1-9/12
CASH FLOW FROM BUSINESS OPERATIONS:
Net result for the period 4,547 9,304
Adjustments:
Financial income and expenses 5,060 1,842
Share of the result of associated companies 138 5
Depreciation and amortisation 4,920 4,186
Income taxes 3,001 4,538
Other adjustments 2,042 -390
Cash flow before changes in working capital 19,707 19,484
Change in working capital:
Change in trade receivables and other receivables 81 1,891
Change in inventories -7,529 -17,442
Change in trade creditors and other liabilities 12,032 5,436
Change in provisions for liabilities and charges -123 538
Interest received 169 117
Interest paid -678 -661
Other financial items -630 -964
Income taxes paid -1,455 -8,619
NET CASH FLOW FROM BUSINESS OPERATIONS (A) 21,573 -219
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets -8,030 -10,608
CASH OUTFLOW FROM INVESTMENT ACTIVITIES (B) -8,030 -10,608
FINANCING
Hybrid loan -19,000 0
Interest paid, hybrid loan -1,136 -2,280
Withdrawal/Repayment of current loans -6,043 13,414
Change in current interest-bearing liabilities 213 80
Withdrawal of non-current loans 29,194 10,000
Repayment of non-current loans -3,065 -5,586
Payment of finance lease liabilities -1,521 -401
Change in non-current receivables 113 94
Dividends paid -6,947 -9,725
NET CASH OUTFLOW FROM FINANCING (C) -8,192 5,596
Change in cash and cash equivalents (A+B+C) 5,350 -5,231
Cash and cash equivalents on 1 January 14,083 16,267
Impact of exchange rate changes -3,759 -125
Cash and cash equivalents on 30 September 15,675 10,912
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 2013 7,000 19,030 -1,538 -2,228 59,180 81,444
Translation differences 1,415 1,415
Result for the period 4,547 4,547
Total comprehensive income for 1,415 4,547 5,962
the period
Direct entries to retained
earnings*
Dividend distribution -6,947 -6,947
Other changes -19,000 -19,000
SHAREHOLDERS' EQUITY 30 SEP 7,000 30 -123 -2,228 56,780 61,459
2013
SHAREHOLDERS' EQUITY 1 JAN 2012 7,000 19,030 -1,975 -2,228 56,736 78,563
Translation differences -297 -297
Result for the period 9,304 9,304
Total comprehensive income for -297 9,304 9,007
the period
Direct entries to retained -1,721 -1,721
earnings*
Dividend distribution -9,725 -9,725
Other changes
SHAREHOLDERS' EQUITY 30 SEP 7,000 19,030 -2,272 -2,228 54,594 76,124
2012
* Consists of the interest paid, less tax, for the hybrid loan classified as
equity.
30 Sep 13 30 Sep 12 31 Dec 12
1. LEASING COMMITMENTS (EUR 1,000) 1,766 3,065 2,898
2. CONTINGENT LIABILITIES (EUR 1,000) 30 Sep 13 30 Sep 12 31 Dec 12
Guarantees given on behalf of others 503 1,420 1,601
Repurchase commitments 1,609 753 1,541
Other commitments 2,922 3,863 3,616
TOTAL 5,034 6,036 6,758
3. PROVISIONS (EUR 1,000) Guarantee provision
1 January 2013 4,977
Provisions added 698
Provisions cancelled -821
30 September 2013 4,854
KEY FIGURES AND RATIOS 30 Sep 13 30 Sep 12 31 Dec 12
R&D expenditure, MEUR 7.2 6.8 9.5
Capital expenditure, MEUR 8.0 10.6 18.1
as % of net sales 3.8 4.9 5.7
Average number of employees 1,014 997 994
Order books, MEUR 97.2 62.5 41.8
Equity ratio, % 32.5 40.3 45.1
Diluted and undiluted earnings per share (EUR) 0.15 0.29 0.44
Equity per share (EUR) 2.19 2.72 2.91
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
--------------------------------------------------------------------------------
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Shareholders' equity * 100
Equity ratio, %:
Shareholders' equity + Non-controlling interests
--------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Net income for the period - Non-controlling interests - Interest on hybrid loan
for the period less tax
--------------------------------------------------------------------------------
----------------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders' equity
--------------------------------------------------------------------------------
---------------
Number of shares on the balance sheet date, adjusted for share issues
ORDER INTAKE, MEUR 1-9/13 1-9/12 1-12/12
Ponsse Group 266.8 209.4 285.9
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 2012.
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, 22 October 2013
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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