PKC Group Oyj - Financial Statement Release

PKC Group Financial Statement Release January-December 2016

PKC Group Plc       Financial Statement Release   9 February 2017   8.15 a.m.



PKC Group Financial Statement Release January-December 2016





Key figures (from continuing  7-12/16  7-12/15  Change  1-12/16  1-12/15  Change
 operations unless otherwise                         %                         %
 noted)                                                                         
EUR 1,000 (unless otherwise                                                     
 noted)                                                                         
Revenue                       412,582  432,133    -4.5  845,672  847,338    -0.2
EBITDA*                        31,104   30,612    +1.6   64,357   59,528    +8.1
% of revenue                      7.5      7.1              7.6      7.0        
Items affecting                -5,353   -2,839           -5,353   -8,782        
 comparability                                                                  
Operating profit                8,903   11,572   -23.1   26,537   20,230   +31.2
% of revenue                      2.2      2.7              3.1      2.4        
Earnings per share (EPS),        0.12     0.17   -27.6     0.43     0.23   +92.9
 EUR                                                                            
                                                                                
Revenue by geographical                                                         
 locations                                                                      
Europe                        142,096  141,079    +0.7  301,571  253,581   +18.9
North America                 225,616  259,467   -13.0  458,942  539,078   -14.9
South America                  20,423   14,134   +44.5   36,591   35,430    +3.3
APAC                           24,448   17,453   +40.1   48,568   19,250  +152.3
                                                                                
Net cash from operating        54,346   39,980   +35.9   35,464   14,813   139.4
 activities**                                                                   
Working capital**                                        89,880   92,711        
Net debt**                                               46,591   49,375        
ROCE, % **                                                  9.7      9.9        
Gearing, %**                                               30.2     31.4        
Equity ratio, %**                                          27.4     29.0        
Average headcount              22,296   21,785    +2.3   21,920   20,855    +5.1
* before items affecting comparability                           
** comparison periods include assets and liabilities of discontinued      
 operations                                                               
                                                                                





Dividend proposal



  -- Motherson Sumi Systems Limited’s voluntary public tender offer announced in
     January 19, 2017 is recommended by the Board of Directors and should the
     offer be completed no dividend shall be paid.
  -- Dividend proposal is EUR 0.70 per share (EUR 0.70 per share) conditional
     upon Motherson Sumi Systems Limited’s voluntary public tender offer having
     not been completed.



Matti Hyytiäinen, President & CEO:



In the financial year 2016, PKC achieved the set operational targets. Revenue
from the company’s continuing business operations remained at the level of the
previous year at 846 EUR million (847 EUR million), whilst its comparable
EBITDA from continuing business operations increased to 64 EUR million (59 EUR
million). 



The key projects in the 2016 financial year focused on the implementation of
our growth strategy. 

  -- The rolling stock business acquired in 2015 was successfully integrated as
     part of PKC. The rolling stock business began strongly profitable growth
     during the financial year, one sign of which was the global framework
     agreement concluded with Bombardier Transportation.
  -- Expansion into the Chinese truck market made progress. Together with PKC’s
     Chinese team, the management of the Huakai-PKC joint venture that began
     operations in 2015 demonstrated excellent skill in combining PKC’s
     production expertise with the requirements of Huakai’s customers. The
     result was profitable and growing business. During the financial year, we
     established a joint venture with the JAC Group of China. This joint venture
     is expected to start operations by the end of Q2/17.
  -- In Europe, the reorganisation of plants and production reached a conclusion
     by the end of the financial year. PKC now has at its disposal a competitive
     and modern production network to serve the needs of its customers.



PKC’s market position remained strong in all product and geographical areas of
operation throughout the financial year. This achievement would not have been
possible without the excellent professional skill of PKC’s personnel. For this
I would like to express my warmest thanks to all those working at PKC. 



In 2017, we expect the market environment to be fluctuating. The production of
trucks in North America is forecast to decline further. In Europe, production
volumes are expected to remain the same. With regard to the Brazilian market,
we are cautious and we believe that production volumes will remain at the level
of the previous year. In China, truck production is expected to remain on the
same level but, from PKC’s point of view, what is essential is the continued
rise in average prices brought about by increasing complexity of electrical
distribution systems. The rolling stock market is expected to grow, and the
order books of PKC’s rolling stock customers are on a good level. 



In January 2017 Motherson Sumi Systems Limited published voluntary public
tender offer for all PKC shares and option rights. By combining both companies
the target is to create world leading wiring harness and component company to
serve transportation industry. This is exciting development for our company and
employees, offering us new opportunities in many areas. 



Events after the financial year



Motherson Sumi Systems Limited’s public tender offer



Motherson Sumi Systems Limited launches a voluntary recommended public tender
offer for all shares and stock options in PKC Group Plc, which was announced on
19 January 2017. The target is to combine the two companies and create a
leading supplier of wiring systems and components for the worldwide
transportation industry. The Finnish Financial Supervisory Authority has on 3
February 2017 approved the tender offer document relating to the Tender Offer.
The offer period for the Tender Offer will commence on February 6, 2017 at 9:30
a.m. (Finnish time) and expire on March 21, 2017 at 4:00 p.m. (Finnish time),
unless the offer period is extended or any extended offer period is
discontinued 



The divestment of PKC Electronics business



On 27 January PKC Group announced the divestment of PKC Electronics to Enics
AG. The divestment is expected to be completed during the first quarter of
2017. 



Market outlook



In 2017 the production of heavy-duty and medium-duty trucks in both in Europe
and China is expected to remain at the same level as in 2016. In 2017 the
production of heavy-duty and medium-duty trucks in North America is expected to
decrease by about 7% compared to 2016 and the decrease is expected mainly to
take place in heavy-duty trucks. In 2017 the production of heavy-duty and
medium-duty trucks in Brazil is expected to remain on the level of previous
year. The demand for the rolling stock is expected to continue to grow
steadily. 



PKC Group’s outlook for 2017



PKC Group estimates that with prevailing exchange rates 2017 revenue and
comparable EBITDA will be in the same order of magnitude as in 2016. This
estimate includes the negative impact of lower North American heavy duty truck
production volumes and the divestment of some light vehicle programs which took
place in fourth quarter of 2016. In 2016, PKC’s revenue from continuing
operations was EUR 845.7 million and comparable EBITDA from continuing
operations was EUR 64.4 million. 



PKC Group Plc

Board of Directors



Matti Hyytiäinen

President & CEO



For additional information, contact:

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



Press conference



A press conference on the financial statement will be arranged for analysts and
investors today, 9 February 2017, at 10.00 a.m., at the address Event Arena
Bank, Unioninkatu 20, Helsinki. 



Attachment



PKC Financial Statement Release 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,
Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the USA. The
Group's revenue from continuing operations in 2016 totalled EUR 846 million.
PKC Group Plc is listed on Nasdaq Helsinki.

Priedai:

PKC Financial Statement Release 2016.pdf