2015-10-20 08:00:01 CEST
2015-10-20 08:00:05 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 30 SEPTEMBER 2015
Vieremä, Finland, 2015-10-20 08:00 CEST (GLOBE NEWSWIRE) --
PONSSE PLC, STOCK EXCHANGE RELEASE, 20 OCTOBER 2015, 9:00 a.m.
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2015
- Net sales amounted to EUR 310.2 (Q1-Q3/2014 270.0) million.
- Q3 net sales amounted to EUR 103.6 (Q3/2014 86.4) million.
- Operating result totalled EUR 34.2 (Q1-Q3/2014 27.5) million, equalling 11.0
(10.2) per cent of net sales.
- Q3 operating result totalled EUR 12.2 (Q3/2014 9.5) million, equalling 11.7
(11.0) per cent of net sales.
- Profit before taxes was EUR 28.5 (Q1-Q3/2014 27.4) million.
- Cash flow from business operations was EUR 13.3 (13.8) million.
- Earnings per share were EUR 0.85 (0.80).
- Equity ratio was 41.4 (38.9) per cent.
- Order books stood at EUR 173.7 (155.5) million.
- Group's euro-denominated operating profit is expected to be significantly
higher than in 2014. The previous guidance stated that Group´s euro-denominated
operating profit for 2015 is slightly higher than in 2014.
PRESIDENT AND CEO JUHO NUMMELA:
Demand for PONSSE forest machines continued to be good. The market situation
remained stable, and no major changes took place in demand. During the past
quarter, strong order intake increased the order books further from the level
of the previous quarter. The order books totalled EUR 173.7 (155.5) million at
the end of the period under review. The order books grew by 12 per cent
compared with the comparable period. International business operations
accounted for 75.0 (73.5) per cent of net sales.
The company's growth and profitability were at a good level, and net sales for
the first three quarters totalled EUR 310.2 (270.0) million and operating
profit EUR 34.2 (27.5) million. The growth in net sales was 15.0 per cent. The
operating result equalled 11.0 (10.2) per cent of net sales for the period
under review. During the third quarter, the company's net sales amounted to EUR
103.6 (86.4) million and operating profit to EUR 12.2 (9.5) million. The
operating profit equalled 11.7 (11.0) per cent of net sales for the quarter.
Due to the favourable development of the Company, we are revising the guidance
for 2015 so that we expect our operating profit to be significantly higher than
in 2014.
North and South America's share of net sales increased significantly, while the
share of Russia and Northern Europe decreased. The situation in Russia is
expected to improve during the fourth quarter. Central Europe's share of net
sales was at the normal level. Service operations continued their growth and
the trade-in machine business grew strongly during the past quarter. The
accelerated growth in services is related both to the growing machine base and
new business concepts in services.
Ponsse has successfully commenced the serial production of the 2015 product
range. The Vieremä factory was steadily on schedule during the quarter as the
production of new products stabilised. At the same time, the reorganisation of
the factory and Ponsse's supply chain yielded results, and the development of
the factory's operations progressed strongly.
Cash flow from business operations also increased strongly during the past
quarter. Cumulative cash flow amounted to EUR 13.3 (13.8) million.
NET SALES
Consolidated net sales for the period under review amounted to EUR 310.2
(270.0) million, which is 14.9 per cent more than in the comparison period.
International business operations accounted for 75.0 (73.5) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 38.8 (40.9)
per cent, Central and Southern Europe 18.9 (20.6) per cent, Russia and Asia
10.6 (14.6) per cent, North and South America 31.5 (23.8) per cent and other
countries 0.3 (0.1) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 34.2 (27.5) million. The operating result
equalled 11.0 (10.2) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 25.5 (28.4) per cent.
Staff costs for the period totalled EUR 47.3 (41.2) million. Other operating
expenses stood at EUR 29.3 (26.1) million. The net total of financial income
and expenses amounted to EUR -5.7 million (-3 thousand). Exchange rate gains
and losses with a net effect of EUR -4.6 (1.4) million were recognised under
financial items for the period. Profit for the period under review totalled EUR
23.7 (22.3) million. Diluted and undiluted earnings per share (EPS) came to EUR
0.85 (0.80).
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 247.1 (207.7) million. Inventories stood at
EUR 110.0 (98.1) million. Trade receivables totalled EUR 31.2 (26.6) million,
while liquid assets stood at EUR 10.6 (13.8) million. Group shareholders'
equity stood at EUR 101.1 (79.4) million and parent company shareholders'
equity (FAS) at EUR 115.9 (97.2) million. The amount of interest-bearing
liabilities was EUR 72.3 (64.6) million. The company has used 27 per cent of
its credit facility limit. The parent company's net receivables from other
Group companies stood at EUR 79.4 (78.4) million. The parent company's
receivables from subsidiaries mainly consisted of trade receivables.
Consolidated net liabilities totalled EUR 61.7 (50.8) million, and the
debt-equity ratio (net gearing) was 61.0 (64.0) per cent. The equity ratio
stood at 41.4 (38.9) percent at the end of the period under review.
Cash flow from business operations amounted to EUR 13.3 (13.8) million. Cash
flow from investment activities came to EUR -20.8 (-9.9) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 333.4 (327.6) million, while
period-end order books were valued at EUR 173.7 (155.5) million.
DISTRIBUTION NETWORK
No changes took place in the Group structure during the period under review.
The subsidiaries included in the Ponsse Group are Ponsse AB, Sweden; Ponsse AS,
Norway; Ponssé S.A.S., France; Ponsse UK Ltd, the United Kingdom; Ponsse North
America, Inc., the United States; Ponsse Latin America Ltda, Brazil; Ponsse
Uruguay S.A., Uruguay; OOO Ponsse, Russia; Ponsse Asia-Pacific Ltd, Hong Kong;
Ponsse China Ltd, China and Epec Oy, Finland. The Group includes also the
property company OOO Ocean Safety Center, Russia. Sunit Oy, Finland, is an
associate in which Ponsse Plc has a holding of 34 per cent.
The business operations of Ponsse's retailer AN Maskinteknik Ab in the
Norrbotten region in Northern Sweden were transferred to Ponsse's subsidiary
Ponsse AB on 31 August 2015. A separate release was issued on the matter on 10
June 2015.
CAPITAL EXPENDITURE AND R&D
During the period under review, the Group's R&D expenses totalled EUR 8.8 (7.6)
million, of which EUR 2.4 (1.9) million was capitalised.
Capital expenditure totalled EUR 20.8 (9.9) 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
(until 17 August 2015); Petri Härkönen, CFO; Juha Inberg, Technology and R&D
Director; Tapio Mertanen, Service Director; Paula Oksman, HR Director; Tommi
Väänänen, Purchasing Director and Jarmo Vidgrén, Deputy CEO, Sales and
Marketing Director. The company management has regular management liability
insurance.
Ponsse Plc will carry out changes in its organisational structure, which causes
also a change in the Ponsse´s management team. The objective of the change is
to improve the efficiency of the factory's delivery chain from the order to the
customer.
Ponsse's new organisational structure is based on three main processes: sales
and maintenance, the delivery chain, and R&D. In the future, the delivery chain
organisation will be responsible for an area which covers functions from the
receipt of customer orders all the way to production and the delivery of
machines.
Jarmo Vidgrén, sales and marketing director, will continue in the management of
sales and maintenance, and Juha Inberg, technology and R&D director, will be
responsible for R&D. Ponsse is looking for a new employee in the management of
the delivery chain process who will also replace Juha Haverinen, the current
factory director, in the Group's Management Team.
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), Carl-Henrik Hammar (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,
Australia and South Africa) and Risto Kääriäinen (China),
North and South America: Pekka Ruuskanen (the United States), Marko Mattila
(North American dealers, Chile and the Baltic countries), Teemu Raitis (Brazil)
and Martin Toledo (Uruguay).
Carl-Henrik Hammar has been appointed Managing Director of Ponsse Plc´s Swedish
subsidiary, Ponsse AB, as of 1 July 2015. A separate release was issued on the
matter on 14 January 2015.
PERSONNEL
The Group had an average staff of 1,318 (1,186) during the period and employed
1,351 (1,226) 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 2015 totalled
3,323,512, accounting for 11.9 per cent of the total number of shares. Share
turnover amounted to EUR 48.6 million, with the period's lowest and highest
share prices amounting to EUR 11.66 and EUR 15.95, respectively.
At the end of the period, shares closed at EUR 14.77, and market capitalisation
totalled EUR 413.6 million.
At the end of the period under review, the company held 33,092 treasury shares.
ANNUAL GENERAL MEETING
A separate release was issued on 14 April 2015 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 uncertainty may be
increased by the volatility of developing countries' foreign exchange markets.
The geopolitical situation, in particular, will increase the uncertainty
through financial market operations and sanctions
.
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
After the very strong performance in 2014, the Group's euro-denominated
operating profit is expected to be significantly higher in 2015 than in 2014.
Ponsse's strongly reformed and competitive product range and new service
solutions have significantly increased the company's net sales. The PONSSE 2015
product range will enter serial production during 2015
.
Due to the strong order books, the capacity of the factory will be increased.
Our investments will concern new service centers in France, the United States
and Uruguay, and the development of production technology and R&D.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
IFRS IFRS IFRS
1-9/15 1-9/14 1-12/14
NET SALES 310,199 270,003 390,831
Increase (+)/decrease (-) in inventories of 9,471 5,849 3,173
finished goods and work in progress
Other operating income 1,310 972 1,185
Raw materials and services -202,998 -176,201 -251,067
Expenditure on employment-related benefits -47,265 -41,163 -58,583
Depreciation and amortisation -7,186 -5,885 -7,962
Other operating expenses -29,332 -26,090 -35,875
OPERATING RESULT 34,199 27,486 41,704
Share of results of associated companies -10 -58 1
Financial income and expenses -5,733 -3 -3,745
RESULT BEFORE TAXES 28,456 27,426 37,959
Income taxes -4,714 -5,173 -8,164
NET RESULT FOR THE PERIOD 23,742 22,253 29,795
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE
RESULT:
Translation differences related to foreign units 1,584 -2,053 -3,093
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 25,326 20,200 26,702
Diluted and undiluted earnings per share 0.85 0.80 1.07
IFRS IFRS
7-9/15 7-9/14
NET SALES 103,561 86,384
Increase (+)/decrease (-) in inventories of -3,249 396
finished goods and work in progress
Other operating income 539 330
Raw materials and services -62,835 -54,691
Expenditure on employment-related benefits -13,839 -12,206
Depreciation and amortisation -2,582 -2,035
Other operating expenses -9,445 -8,690
OPERATING RESULT 12,150 9,487
Share of results of associated companies 36 10
Financial income and expenses -4,920 -84
RESULT BEFORE TAXES 7,266 9,413
Income taxes -510 -1,832
NET RESULT FOR THE PERIOD 6,757 7,581
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE
RESULT:
Translation differences related to foreign units -210 -1,031
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 6,547 6,550
Diluted and undiluted earnings per share 0.24 0.27
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
IFRS IFRS IFRS
ASSETS 30 Sep 15 30 Sep 14 31 Dec 14
NON-CURRENT ASSETS
Intangible assets 16,787 15,047 15,954
Goodwill 3,822 3,440 3,440
Property, plant and equipment 59,666 41,052 47,282
Financial assets 105 104 104
Investments in associated companies 857 888 946
Non-current receivables 3,101 868 832
Deferred tax assets 3,205 1,802 1,267
TOTAL NON-CURRENT ASSETS 87,542 63,201 69,285
CURRENT ASSETS
Inventories 110,003 98,050 92,734
Trade receivables 31,229 26,601 25,226
Income tax receivables 595 706 591
Other current receivables 7,167 5,327 4,701
Cash and cash equivalents 10,602 13,780 12,719
TOTAL CURRENT ASSETS 159,596 144,465 135,971
TOTAL ASSETS 247,138 207,667 205,796
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 2,452 30 130
Translation differences -92 -636 -1,676
Treasury shares -346 -2,228 -2,228
Retained earnings 92,064 75,248 82,790
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 101,078 79,414 86,016
NON-CURRENT LIABILITIES
Interest-bearing liabilities 48,854 43,510 33,712
Deferred tax liabilities 710 859 867
Other non-current liabilities 2,436 0 0
TOTAL NON-CURRENT LIABILITIES 51,999 44,369 34,580
CURRENT LIABILITIES
Interest-bearing liabilities 23,421 21,104 17,997
Provisions 6,255 3,802 4,747
Tax liabilities for the period 2,315 2,453 812
Trade creditors and other current liabilities 62,069 56,525 61,644
TOTAL CURRENT LIABILITIES 94,060 83,884 85,200
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 247,138 207,667 205,796
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS IFRS
1-9/15 1-9/14 1-12/14
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 23,742 22,253 29,795
Adjustments:
Financial income and expenses 5,733 3 3,745
Share of the result of associated companies 10 58 1
Depreciation and amortisation 7,186 5,885 7,962
Income taxes 4,714 5,173 8,164
Other adjustments -425 -379 -2,049
Cash flow before changes in working capital 40,960 32,992 47,616
Change in working capital:
Change in trade receivables and other receivables -8,318 -3,059 -920
Change in inventories -17,269 -12,283 -6,967
Change in trade creditors and other liabilities 1,139 3,419 9,251
Change in provisions for liabilities and charges 1,508 -816 129
Interest received 129 111 187
Interest paid -712 -712 -1,071
Other financial items 1,068 -1,317 -2,080
Income taxes paid -5,230 -4,544 -8,675
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 13,275 13,791 37,472
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -20,785 -9,941 -19,154
Proceeds from sale of tangible and intangible assets 0 0 147
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -20,785 -9,941 -19,007
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of treasury shares 1,882 0 0
Withdrawal/Repayment of current loans 7,936 3,000 -3,540
Withdrawal of non-current loans 12,436 5,000 5,000
Repayment of non-current loans -3,265 -3,591 -9,773
Withdrawal/Repayment of finance lease liabilities 4,966 -97 -280
Change in non-current receivables 237 -41 -4
Dividends paid -12,586 -8,336 -8,336
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) 11,606 -4,065 -16,933
Change in cash and cash equivalents (A+B+C) 4,096 -214 1,532
Cash and cash equivalents on 1 Jan 12,719 11,958 11,958
Impact of exchange rate changes -6,213 2,037 -770
Cash and cash equivalents on 30 Sep/31 Dec 10,602 13,780 12,719
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 7,000 130 -1,676 -2,228 82,790 86,016
2015
Translation differences 1,584 1,584
Result for the period 23,742 23,742
Total comprehensive income 1,584 23,742 25,326
for the period
Dividend distribution -12,586 -12,586
Matching Share Plan 2,422 1,882 -1,882 2,422
Other changes -100 -100
SHAREHOLDERS' EQUITY 30 SEP 7,000 2,452 -92 -346 92,064 101,078
2015
SHAREHOLDERS' EQUITY 1 JAN 7,000 30 1,417 -2,228 61,331 67,550
2014
Translation differences -2,053 -2,053
Result for the period 22,253 22,253
Total comprehensive income -2,053 22,253 20,200
for the period
Dividend distribution -8,336 -8,336
SHAREHOLDERS' EQUITY 30 SEP 7,000 30 -636 -2,228 75,248 79,414
2014
30 Sep 15 30 Sep 31 Dec
14 14
1. LEASING COMMITMENTS (EUR 1,000) 857 1,293 1,326
2. CONTINGENT LIABILITIES (EUR 1,000) 30 Sep 15 30 Sep 14 31 Dec 14
Guarantees given on behalf of others 486 503 479
Repurchase commitments 3,518 3,056 1,966
Other commitments 26 136 137
TOTAL 4,030 3,695 2,579
3. PROVISIONS (EUR 1,000) Guarantee provision
1 January 2015 4,747
Provisions added 1,790
Provisions cancelled -282
30 September 2015 6,255
KEY FIGURES AND RATIOS 30 Sep 15 30 Sep 14 31 Dec 14
R&D expenditure, MEUR 8.8 7.6 10.3
Capital expenditure, MEUR 20,8 9.9 19.2
as % of net sales 6.7 3.7 4.9
Average number of employees 1,318 1,186 1,200
Order books, MEUR 173.7 155.5 158.4
Equity ratio, % 41.4 38.9 42.0
Diluted and undiluted earnings per share (EUR) 0.85 0.80 1.07
Equity per share (EUR) 3.61 2.84 3.07
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before tax + financial expenses
--------------------------------------------------------------------------------
---------------------------------------
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
--------------------------------------------------------------------------------
-----
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
--------------------------------------------------------------------------------
--------------------------------
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 1-9/15 1-9/14 1-12/14
Ponsse Group 333.4 327.6 451.7
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 2014.
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, 20 October 2015
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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