PKC Group Oyj - Financial Statement Release

PKC GROUP’S FINANCIAL STATEMENT RELEASE 1.1-31.12.2013: STABLE MARKET SHARE DEVELOPMENT, BEST QUARTERLY CASH FLOW OF 2013

PKC Group Plc   FINANCIAL STATEMENT RELEASE    14 February 2014  8.15 a.m.



PKC GROUP'S FINANCIAL STATEMENT RELEASE 1 January-31 December 2013:

STABLE MARKET SHARE DEVELOPMENT, BEST QUARTERLY CASH FLOW OF 2013



OCTOBER - DECEMBER 2013 HIGHLIGHTS

  -- Revenue decreased 0.9% on the comparison period (10-12/2012), totalling EUR
     212.1 million (EUR 214.0 million).
  -- EBITDA before non-recurring items was EUR 13.9 million (EUR 17.2 million)
     and 6.6% (8.5%) of revenue.
  -- EBITA** was EUR 9.8 million (EUR 12.1 million) and 4.6% (5.7%) of revenue.
     During the report period PPA depreciation and amortisation totalled EUR 3.2
     million (EUR 3.2 million).
  -- Operating profit before non-recurring items was EUR 6.7 million (EUR 8.9
     million) and 3.1% (4.2%) of revenue.
  -- Diluted earnings per share were EUR 0.08 (EUR 0.03).
  -- Cash flow after investments was EUR 18.5 million (EUR 11.6 million).



JANUARY - DECEMBER 2013 HIGHLIGHTS

  -- Revenue decreased 4.8% on the comparison period (1-12/2012), totalling EUR
     884.0 million (EUR 928.2 million).
  -- EBITDA before non-recurring items was EUR 70.3 million (EUR 83.0 million)
     and 8.0% (8.9%) of revenue.
  -- EBITA** was EUR 52.5 million (EUR 65.4 million) and 5.9% (7.0%) of revenue.
     During the report period PPA depreciation and amortisation totalled EUR
     11.6 million (EUR 13.9 million).
  -- Operating profit before non-recurring items was EUR 40.9 million (EUR 51.5
     million) and 4.6% (5.5%) of revenue.
  -- Diluted earnings per share were EUR 0.62 (EUR 1.12).
  -- Cash flow after investments was EUR 24.9 million (EUR 63.7 million).
  -- Dividend proposal is EUR 0.70 per share (EUR 0.70 per share).



PKC GROUP'S OUTLOOK FOR 2014

  -- PKC Group estimates that 2014 revenue and comparable EBITDA will be lower
     than in 2013. In 2013, PKC's revenue was EUR 884.0 million and comparable
     EBITDA before non-recurring items was EUR 70.3 million.
  -- Revenue estimate is based on current business structure. Revenue will be
     affected by light vehicle build-outs in North America and by changes in
     exchange rates. As a result of the above, comparable EBITDA is expected to
     be lower than in 2013. Comparable EBITDA in 2014 will also be affected by
     reorganisation and program transfers in Europe and expenditures related to
     the implementation of PKC's growth strategy.





KEY FIGURES                 10-12/1  10-12/1   Change  1-12/13  1-12/12   Change
                                  3        2        %                          %
EUR 1,000                                                                       
(unless otherwise noted)                                                        
Revenue                     212,109  213,960     -0.9  883,986  928,178     -4.8
EBITDA*                      13,946   17,173    -18.8   70,341   82,954    -15.2
% of revenue                    6.6      8.5               8.0      8.9         
EBITA**                       9,813   12,137    -19.1   52,461   65,358    -19.7
% of revenue                    4.6      5.7               5.9      7.0         
Operating profit*             6,661    8,888    -25.1   40,873   51,478    -20.6
% of revenue                    3.1      4.2               4.6      5.5         
Non-recurring items           2,061    4,868    -57.7   10,409    8,027     29.7
Operating profit              4,599    4,020     14.4   30,463   43,451    -29.9
% of revenue                    2.2      1.9               3.4      4.7         
Profit before taxes           1,942      697    178.4   21,562   34,946    -38.3
Net profit for the report     1,783      707    152.0   13,947   23,999    -41.9
 period                                                                         
Earnings per share (EPS),      0.08     0.03    140.9     0.62     1.12    -44.5
 EUR                                                                            
Cash flow after              18,513   11,589     59.7   24,941   63,673    -60.8
 investments                                                                    
ROI,%                                                     14.7     16.7         
Gearing, %                                                -1.1     34.4         
Average number of            18,946   19,566     -3.2   19,206   20,590     -6.7
 personnel                                                                      
* before non-recurring items                                                    
** operating profit before PPA depreciation and amortisation and non-recurring  
 items                                                                          



MATTI HYYTIÄINEN, PRESIDENT & CEO:



PKC's revenue was EUR 884.0 million and operating profit before non-recurring
items EUR 40.9 million. The decrease in revenue was particularly affected by
production volumes for heavy-duty trucks in North America falling short of the
previous year's level and the unfavourable exchange rate between the euro and
the US dollar. European truck production remained at the level of the previous
year despite the market boost caused by transition to Euro 6 standard in the
last quarter of the financial year. Brazilian production volumes increased in
comparison with the previous year. The revenue recorded was also affected by
some product programmes for light vehicles and components reaching the end of
their life cycles during the financial year. 



Cash flow for the entire year was at a moderate level, EUR 24.9 million after
investments. As a result of the positive cash flow and a directed share issue
implemented during the financial year, the company is free of net debt, with
gearing at 1.1% negative. 



PKC's market position remained strong in all geographical areas of operation
throughout the financial year. 



PKC's Wiring Systems segment's operating profit before non-recurring items fell
short of that of the previous year owing to lower volumes in North America and
the losses recorded at the Brazilian unit. Moreover, as a result of uneven
order flows, our production efficiency suffered. During the financial year,
several new production programmes ramp-ups and transfers of production were
also ongoing. 



PKC's Electronics segment's operating profit before non-recurring items
improved significantly over the previous year as a result of the measures
implemented during the financial year that streamlined the cost structure and
of the growing share of ODM products in revenue. 



In 2014, truck production volumes are expected to fall in Europe and Brazil and
to increase in North America. The market demand for Electronics segment's
products is expected to remain at the present level. 



In many ways, 2013 was challenging, and I would like to express my thanks to
all PKC's personnel for a job well done. 



During 2014, we are continuing with the implementation of the strategy
programme published in spring 2013 and PKC is on track to achieving the set
strategic targets. 



MARKET OUTLOOK



Production of heavy-duty trucks in Europe is expected to decline by 4% in 2014,
and production of medium-duty trucks by 3% compared to the previous year. The
Euro 6 emission standard that entered into force at the beginning of 2014
caused an increase in the demand for trucks at the end of 2013. Second half of
2014 volumes are expected to be higher than those of the first half. 



Production of heavy-duty trucks in North America is expected to increase by
10%, production of medium-duty trucks by 5% and production of light vehicles by
2% compared to 2013. Quarterly production volumes for heavy-duty trucks are
expected to increase steadily during the year. 



Production of heavy-duty trucks in Brazil is expected to decline by 5%, and
production of medium-duty trucks to increase by 24% compared to 2013. The
governmental incentive program to support the purchase of new trucks continues
to be valid until further notice, although the terms have been weakened
somewhat. 



The market demand for Electronics segment's products is expected to remain at
the present level. 



PKC GROUP'S OUTLOOK FOR 2014



PKC Group estimates that 2014 revenue and comparable EBITDA will be lower than
in 2013. In 2013, PKC's revenue was EUR 884.0 million and comparable EBITDA
before non-recurring items was EUR 70.3 million. 



Revenue estimate is based on current business structure. Revenue will be
affected by light vehicle build-outs in North America and by changes in
exchange rates. As a result of the above, comparable EBITDA is expected to be
lower than in 2013. Comparable EBITDA in 2014 will also be affected by
reorganisation and program transfers in Europe and expenditures related to the
implementation of PKC's growth strategy. 



DISCLOSING PROCEDURES OF FINANCIAL REVIEWS



PKC Group Plc follows the disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority, and discloses
relevant information related to its Interim Report with this release. PKC's
financial statement release for 2013 is attached to this release and is also
available on company's website at www.pkcgroup.com. 



PKC GROUP PLC

Board of Directors



Matti Hyytiäinen

President & CEO



For additional information, contact:

Matti Hyytiäinen, President & CEO, PKC Group Plc, +358 400 710 968



PRESS CONFERENCE



A press conference on the financial statement will be arranged for analysts and
investors today, 14 February 2014, at 10.00 a.m., at the address Event Arena
Bank, Unioninkatu 20, Helsinki. 



ATTACHMENT

PKC financial statement release 2014



DISTRIBUTION



NASDAQ OMX

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 and other selected segments. The
Group has production facilities in Brazil, China, Estonia, Finland, Germany,
Mexico, Poland, Russia and the USA. The Group's revenue in 2013 totalled EUR
884.0 million. PKC Group Plc is listed on NASDAQ OMX Helsinki Ltd.

Attachments:

PKC financial statement release Q4 2013.pdf