PKC Group Oyj - Half Year financial report

PKC Group Half Year Financial Report January-June 2016

PKC Group Plc       Half year financial report     10 August 2016   8.15 a.m.



PKC Group Half Year Financial Report January-June 2016



January-June 2016 highlights



  -- Revenue from continuing operations increased 4.3% on the comparison period
     (1-6/2015), totalling EUR 433.1 million (EUR 415.2 million).
  -- Comparable EBITDA from continuing operations increased 15.0% on the
     comparison period (1-6/2015), totalling EUR 33.3 million (EUR 28.9 million)
     and 7.7% (7.0%) of revenue.
  -- Net cash from operating activities was EUR -18.9 million (EUR -25.2
     million) including discontinued operations during the comparison period.



PKC Group slightly adjusts its revenue outlook for 2016



  -- PKC Group estimates that with prevailing exchange rates 2016 revenue from
     continuing operations (i.e. excluding Electronics business) will be close
     to previous year level. PKC’s previous outlook for its revenue was to be at
     or above previous year level. PKC Group’s outlook for its comparable EBITDA
     remains unchanged to be higher than previous year level.





Key figures (from continuing operations         1-6/16   1-6/15  Change  1-12/15
 unless otherwise noted)                                              %         
EUR 1,000 (unless otherwise noted)                                              
Revenue                                        433,090  415,206    +4.3  847,338
EBITDA*                                         33,253   28,916   +15.0   59,528
% of revenue                                       7.7      7.0              7.0
Items affecting comparability                        -   -5,943           -8,782
Operating profit                                17,634    8,658  +103.7   20,230
% of revenue                                       4.1      2.1              2.4
Earnings per share (EPS), EUR                     0.35     0.06  +533.1     0.23
                                                                                
Revenue by geographical locations                                               
Europe                                         159,475  112,502   +41.8  253,581
North America                                  233,326  279,611   -16.6  539,078
South America                                   16,168   21,296   -24.1   35,430
APAC                                            24,120    1,797  +1,242   19,250
                                                                     .3         
                                                                                
Net cash from operating activities**           -18,883  -25,167           14,813
Working capital**                              122,345   96,491           92,711
Net debt**                                      91,202   32,168           49,375
ROCE, % **                                        10.6     10.9              9.9
Gearing, %**                                      62.7     21.1             31.4
Equity ratio, %**                                 27.3     32.6             29.0
Average headcount                               21,309   19,926    +6.9   20,855
* before items affecting comparability                                          
** comparison periods include assets and liabilities of discontinued operations 





Matti Hyytiäinen, President & CEO:



PKC's continuing operations developed favourably in the first half of the year
and comparable EBITDA improved by 15% over the comparison period. 



PKC’s market position continued to strengthen in China and remained stable in
other truck markets. The number of trucks manufactured varied by region: 

  -- In North America, demand for heavy-duty trucks continued to decline and, as
     a result, production volumes were 25% below the comparison period. Demand
     for medium-duty trucks continued to grow and production volumes increased
     by 10% over the comparison period.
  -- In Europe, production of heavy-duty trucks increased by about 14% over the
     comparison period, but for medium-duty trucks production volumes remained
     the same.
  -- In China, production of trucks increased over the comparison period, by
     about 16% for heavy-duty trucks and about 25% for medium-duty trucks.
  -- In Brazil, production volumes for heavy-duty trucks fell by about 30% from
     the comparison period.



Demand in the rolling stock market remained on a good level. During the period,
we concluded a significant global partnership agreement with Bombardier
Transportation, and its impact was evident in increasing volumes of orders at
the end of the period. PKC has today published a press release related to a
major order in rolling stock business. 



PKC’s operating profit from continuing business operations developed favourably
and increased over the comparison period by 103.7%, totalling EUR 17.6 million
(EUR 8.7 million). The impact of volumes in China and the rolling stock segment
and production arrangements in Europe improved operating profit. The Brazilian
unit, which had been loss-making for a long time, achieved a positive result in
June. On the other hand, operating profit in North America declined owing to a
fall in production volumes and unfavourable product mix. 



European production arrangements continued throughout the period. As a result
of increasing demand, during the period we decided to increase production
capacity for rolling stock products in Poland. In addition to the Drawsko
Pomorski factory, the Białogard factory is also now focused on the production
of rolling stock products. In connection with this, production at the Grodzisk
Wielkopolski factory (Poland) was wound up and its business transferred to
other European PKC factories. 



The establishment of a joint venture with JAC of China is proceeding as
planned. The joint venture is expected to begin operations in the turn of the
year. 



Owing to the markets and production arrangements, the first half of the year
has been a busy time for our personnel all over the world. I would like to
thank the skilled personnel of PKC for their positive input for the benefit of
our customers and for the company. 



Market outlook



In 2016 the production of heavy-duty and medium-duty trucks in Europe is
expected to increase by about 6% and about 7% in China respectively compared to
2015. In 2016 the production of heavy-duty and medium-duty trucks in North
America is expected to decrease by about 15% compared to 2015 and decrease is
expected mainly to take place in heavy-duty trucks. In 2016 the production of
heavy-duty and medium-duty trucks in Brazil is expected to continue to
decrease. The demand for the rolling stock is expected to continue to grow
steadily. 





PKC Group Plc

Board of Directors



Matti Hyytiäinen

President & CEO



For additional information, contact:

Matti Hyytiäinen, President & CEO, PKC Group Plc, tel. +358 (0)400 710 968



Press conference



A press conference on the half year financial report will be arranged for
analysts and investors today, 10 August 2016, at 10.00 a.m., at the address
Event Arena Bank, Unioninkatu 20, Helsinki 



Attachment



PKC half year financial report January-June 2016



Distribution



Nasdaq Helsinki

Main media

www.pkcgroup.com



PKC Group is a global partner, designing, manufacturing and integrating
electrical distribution systems, electronics and related architecture
components for the commercial vehicle industry, rolling stock manufacturers and
other selected segments. The Group has production facilities in Brazil, China,
Estonia, Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the
USA. The Group's revenue from continuing operations in 2015 totalled EUR 847
million. PKC Group Plc is listed on Nasdaq Helsinki.

Viðhengi:

PKC Half Year Financial Report January-June 2016.pdf