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2007-10-25 07:30:00 CEST 2007-10-25 07:30:00 CEST REGULATED INFORMATION Rocla Oyj - Quarterly reportROCLA OYJ INTERIM REPORT 1.1.-30.9.2007ROCLA OYJ INTERIM REPORT 1.1.-30.9.2007 CONTINUED GROWTH IN SALES, OPERATING PROFIT IMPROVES - The strong growth of sales from the first part of the year continued into the third quarter. - Net sales in January-September were EUR 89.6 million, a growth of 21.7% compared with the same period the year before. - Operating profit for the reporting period reached EUR 3.4 million (EUR 1.1 million). - The order book at the end of September stood at EUR 25.2 million, a growth of 17.0% over last year. BUSINESS OPERATIONS AND REPORTING The integration process of Rocla warehouse trucks and automated guided vehicles continues according to plan and will be completed by the end of the year. There is a shift from customized automated guided vehicles to standardized solutions and the order to delivery process will be integrated with that of warehouse trucks. The Group is managed as a one business entity and reporting is in one business segment. GENERAL DEVELOPMENT Rocla´s net sales continued to grow at the pace of around one fifth in the third quarter. Streamlined production and a boost in capacity reflected in shorter delivery times. Operating profit improved significantly as a result of increased deliveries and effective pricing. The order book that had grown to an exceptional level following delays in delivery has been brought to a normal level as the year has progressed. The growth in order bookings levelled off in the third quarter. The order book at the end of the period still remains significantly better than at the same time a year ago. NET SALES, OPERATING PROFIT AND ORDER BOOK The key business indicators of the Rocla Group developed as follows: Meur 1-9 1-9 Change 1-12 2007 2006 2006 Net sales 89.6 73.6 21.7% 104.4 Operating profit 3.4 1.1 208.0% 1.5 Orders received 71.8 63.6 12.9% 87.6 Order book at the end of the period 25.2 21.6 17.0% 26.8 MARKETS Demand for warehouse trucks has grown exceptionally strongly in Europe during the current year. The latest indicators, however, forecast slower growth, at least temporarily. Rocla´s strategy in its home markets is based on a broad offering of solutions and services and especially in a continuous development of the service concept. Sales of services continue to grow on the local market in line with expectations. In other parts of Europe Rocla keeps developing both its own sales network and cooperation with Mitsubishi Caterpillar Forklift Europe. Growth has been strong in both distribution channels this year. The continued growth of international materials flows requires that all players continue to develop their logistics solutions. The key features of truck-based short haulage are the professional skill of truck drivers, their work safety and the performance capability of truck fleets. This is further underlined by the shortage of labour experienced in many sectors. The role of automation is likely to keep growing. Rocla's development plans are strongly built on the expansion of automation, other intelligent solutions and services in the product offering. RESULTS Net sales in January-September were EUR 89.6 million, i.e. 21.7% above the corresponding period last year (EUR 73.6 million). Operating profit was EUR 3.4 million (EUR 1.1 million). The improvement in operating profit is mainly due to increased efficiency, cost control and adjustments in pricing. A significant development project has been started for the purpose of speeding up through-put times and reducing the need for working capital. The combination of more efficient operations and new product and service concepts create the prerequisites for continuous improvement of profitability. Consolidated profit before taxes for the first nine months came to EUR 2.2 million (EUR 0.2 million) and net income for the period was EUR 1.6 million (EUR 0.1 million). PROFITABILITY Consolidated return on investment, ROI, came to 7.9% p.a. for the first nine months of 2007 (3.0%). Return on equity, ROE, was 8.7% p.a. (0.4%). Earnings per share, EPS, in the period were 0.39 euros (0.02 euros). BALANCE SHEET AND FINANCING The consolidated balance sheet total at the end of September stood at EUR 85.9 million (EUR 77.3 million). At the turn of the year the balance sheet total was EUR 82.3 million. The main driver of the growth in the balance sheet was the increased need for working capital and especially sales receivables that followed from the growth in net sales. The need for working capital has been financed with borrowing which reflects in an increase in gearing. At the end of September 2005 the interest- bearing net debt of the Group was EUR 37.3 million (EUR 33.3 million), net gearing 142% (148%) and the equity to assets ratio 31.0% (29.6%). PRODUCTION, DEVELOPMENT AND INVESTMENTS The MP-10000 development plan for the Järvenpää factory is about to reach a significant objective as the annual production capacity is built up to 10,000 trucks by the end of the current year. This has been made possible through investments and reorganizations in assembly and especially through the increase of automation in mast production. The importance of automation continues to grow in production as well as products. This development is driven by the need to secure improved productivity and profitability in this era of labour shortage and rising materials costs. The ongoing integration of warehouse trucks and automated guided vehicles serves explicitly this objective. Manufacturing of automated guided vehicles in line with the new concept starts in the last quarter of the year and the first customer deliveries are scheduled to take place before the end of the year. Gross investments in fixed assets in the first nine months of 2007 were EUR 3.4 million (EUR 3.1 million), out of which product development expenses of EUR 1.5 million (EUR 1.0 million) were carried forward in line with IFRS-practices. PERSONNEL The shortage of skilled labour is posing a growing challenge in many sectors of business. Rocla invests particularly in recruiting service personnel for its customer services operations. This is a vital prerequisite for upholding customer satisfaction and service obligations. During the first nine months of 2007 the Group had an average personnel of 499 (459). At the end of September the number of employees was 507 (480), of whom 99 (82) worked outside Finland. AUTHORIZATIONS The Rocla Oyj Annual General Meeting on April 3, 2007 authorized the Board to decide on the acquisition of 194,535 Rocla Oyj shares and a new share issue, the transfer of treasury shares and/or the granting of special rights as defined in Chapter 10, paragraph 1 in the Companies Act. Based on this authorization the Board may issue a maximum of 565,000 shares in one or more decisions. The shares to be issued in a new share issue or based on special considerations are to be included in the aforementioned total number of shares. The authorization is for a paid share issue and remains in effect until the Annual General Meeting of 2008. The authorization has not been used. SHARES, OPTION RIGHTS AND SHARE CAPITAL Shares During the first three quarters of 2007 a total of 290,212 Rocla Oyj shares were traded at the Helsinki Exchanges. This constitutes 7.1% of the total number of shares. The highest share price in the period was 12.50 euros and the lowest 10.46 euros. The average price was 11.42 euros and the price at the end of September 2007 was 11.30 euros. The Rocla Oyj market capitalization at the end of September excluding treasury shares was EUR 47.8 million (EUR 42.8 million). Rocla Oyj holds 30,789 of its own shares. This corresponds to 0.7% of the total number of shares and votes. The share number is the same as it was at the turn of the year. Ownership Share subscriptions based on the 1998 warrant bond ended in April 2007. The new shares were registered in the trade register May 9, 2007 and trading of the new shares together with the old shares started at the Helsinki Exchanges on May 10, 2007. In January- September 2007 there were no other major changes in the Rocla Oyj ownership. The ten biggest shareholders of Rocla Oyj on September 20, 2007 were the following: Owner Number of shares % % of shares of votes 1. Etra-Invest Oy Ab 1,000,000 23.4 23.4 2. Mitsubishi Caterpillar 600,000 14.1 14.1 Forklift Europe B.V. 3. Mitsubishi Caterpillar 600,000 14.1 14.1 Forklift America Inc. 4. Aktia Capital Investment Fund 190,000 4.5 4.5 5. Henki-Sampo Insurance Company 171,200 4.0 4.0 6. EVK-Capital Oy 130,000 3.0 3.0 7. The City of Turku Indemnity Fund 64,889 1.5 1.5 8. Sr Arvo Finland Value Fund 60,209 1.4 1.4 9. Fennia Mutual Insurance Co 47,000 1.1 1,1 10. Eläke-Fennia Mutual Insurance Co 45,900 1.1 1.1 Total 10 biggest 2,909,198 68.2 68.2 Nominee-registered 536,000 12.6 12.6 Total 4,264,788 100.0 100.0 ORDER BOOK At the start of the year 2007 the Rocla Oyj order book stood at the record-level of EUR 26.8 million. At that time it was about twice as big as at the corresponding time a year earlier. At the end of September the order book was EUR 25.2 million. The corresponding figure a year ago was EUR 21.6 million. Growth is 17.0%. IMMINENT RISKS AND FACTORS OF UNCERTAINTY The major strategic and operational risks of the Group´s business activities are related to the management of business partnerships, launches of new products and estimations of competitiveness, price development of production factors and the obligations and estimates brought on by long-term agreements. In the case of operational risks especially the rise of materials costs continues to be significant and the availability of components is also always a risk factor in an up-cycle. The rise in materials costs has been held back reasonably well through development of sourcing and product pricing. The biggest increase came through the world market price of lead. That was offset by Rocla and other truck players by an increase in battery prices. In the sphere of strategic risks the transfer into a new concept for automated guided vehicles is the most current one. Success in this action will have a major bearing on the earnings potential of the entire Group. OUTLOOK The demand indicators of the business returned back to normal levels in the third quarter after the exceptional growth experienced earlier in the year. At the same time as this marks the passing of the growth peak it brings improved prospects for customer service and cost control. The developments in Rocla´s order-book and bid activity indicate that the steady development in net sales will continue in the fourth quarter of 2007. Growth in net sales for the year is estimated to be on the level of one fifth and the results will improve as indicated in the previous Interim Reports this year. FINANCIAL INFORMATION ACCOUNTING PRACTICES The Interim Report for the period January-June 2007 is drafted based on the IAS 34 Interim Statement standard. Rocla Oyj has adhered to the same accounting principles and reporting standards as in the Financial Statements for 2006. The key ratios presented in the Interim Report have been computed based on the same principles as the corresponding data presented in the latest financial statements. The calculation principles for the key ratios are presented on page 22 of the Financial Statements section in the Annual Report. The Interim Report is un-audited. CONSOLIDATED INCOME STATEMENT (Meur) 1-9/2007 1-9/2006 Change % 1-12/2006 NET SALES 89.6 73.6 21.7 104.4 Change in finished goods and work in progress 0.0 1.8 2.3 Other operating income 0.1 0.3 0.3 Materials and services -55.3 -45.9 20.4 -65.9 Personnel expenses -17.0 -15.3 11.3 -21.2 Depreciation -5.4 -4.9 11.3 -6.6 Other operating expenses -8.6 -8.6 1.1 -12.0 OPERATING PROFIT 3.4 1.1 208.0 1.5 Financial expenses (net) -1.2 -0.9 37.6 -1.1 INCOME BEFORE TAXES 2.2 0.2 921.7 0.4 Income taxes -0.6 -0.1 277.1 -0.1 NET INCOME FOR THE PERIOD 1.6 0.1 2512.1 0.3 Earnings per share euros 0.39 0.02 0.07 Earnings per share, euros (diluted) - 0.02 0.07 CONSOLIDATED BALANCE SHEET (Meur) 9/2007 9/2006 12/2006 ASSETS NON-CURRENT ASSETS Intangible assets 7.3 6.8 7.2 Consolidated goodwill 2.1 2.1 2.1 Tangible assets 29.5 26.9 26.7 Receivables 0.1 1.0 0.1 NON-CURRENT ASSETS TOTAL 39.0 36.8 36.2 CURRENT ASSETS Inventories 23.7 20.1 21.4 Sales receivables and other receivables 22.2 17.9 22.0 Cash and cash equivalents 0.9 2.4 2.7 CURRENT ASSETS TOTAL 46.9 40.5 46.2 ASSETS TOTAL 85.9 77.3 82.3 EQUITY AND LIABILITIES Share capital 4.3 3.9 3.9 Premium fund 6.8 4.3 4.6 Retained earnings 13.6 14.1 14.1 Income for the period 1.6 0.1 0.3 EQUITY TOTAL 26.3 22.5 23.0 NON-CURRENT LIABILITIES Interest-bearing debt 20.5 14.2 19.2 Deferred taxes 1.6 1.0 1.1 NON-CURRENT LIABILITIES TOTAL 22.2 15.1 20.3 CURRENT LIABILITIES Interest-bearing debt 17.6 21.5 17.1 Provisions 0.4 0.5 0.4 Non interest-bearing debt 19.4 17.7 21.5 CURRENT LIABILITIES TOTAL 37.4 39.7 39.0 LIABILITIES TOTAL 59.6 54.8 59.3 EQUITY AND LIABILITIES TOTAL 85.9 77.3 82.3 CHANGE IN EQUITY A=Share capital, B=Premium fund, C=Translation differences D=Current value fund, E=Retained earnings, F=Income for the period, G=Total 1-9/2007 A B C D E F G Beginning 3.9 4.6 0.0 0.0 14.4 - 23.0 Share subscriptions option-rights 0.3 2.1 2.4 Dividends paid -0.8 -0.8 Net income 1.6 1.6 Other changes -0.0 0.0 0.0 End 4.3 6.8 0.0 0.0 13.6 1.6 26.3 1-9/2006 A B C D E F G Beginning 3.9 4.2 0.1 01 14.9 - 23.1 Dividends paid -0.8 -0.8 Net income 0.1 0.1 Other changes 0.0 -0.0 0.0 0.0 End 3.9 4.3 0.0 0.1 14.1 0.1 22.5 1-12/2006 A B C D E F G Beginning 3.9 4.2 0.1 0.1 14.9 - 23.1 Share subscriptions option-rights 0.0 0.3 0.4 Dividends paid -0.8 -0.8 Net income 0.3 0.3 Transfer of treasury shares 0.0 0.0 0.0 Other changes -0.1 -0.0 0.0 End 3.9 4.6 0.0 0.0 14.1 0.3 23.0 CONSOLIDATED FUNDS STATEMENT 1-9/07 1-9/06 1-12/06 Cash flow from operations Net income 1.6 0.1 0.3 Adjustments: -Depreciation 5.4 4.9 6.6 -Financial income and expenses 1.2 0.9 1.1 -Taxes 0.6 0.2 0.1 -Other adjustments -0.0 -0.0 -0.0 Change in working capital -4.9 1.3 0.2 Interests paid -1.4 -1.1 -1.5 Interests received 0.3 0.0 0.0 Taxes paid -0.1 -0.0 -0.3 NET CASH FLOW FROM OPERATIONS 2.7 6.2 6.5 NET CASH FLOW FROM INVESTMENTS -3.4 -4.1 -9.8 Cash flow from financing Loans withdrawn 3.4 5.4 11.6 Loans repaid -4.3 -2.5 -2.8 Increase in equity 2.5 0.0 0.4 Sale of treasury shares 0.0 0.0 0.0 Payment of financial leasing debts -1.9 -2.4 -3.0 Dividends paid -0.8 -0.8 -0.8 NET CASH FLOW FROM FINANCING -1.1 -0.3 5.5 CHANGE IN LIQUID FUNDS -1.8 1.8 2.2 Liquid funds, beginning 2.7 0.6 0.6 Liquid funds, end 0.9 2.4 2.7 RELATED PARTY INFORMATION Business transactions with owner companies holding a significant position of influence in the Group. (Meur) 1-9/2007 1-9/2006 1-12/2006 Sales to closely related parties 40.7 27.7 38.6 Purchases from closely related parties 6.4 4.7 9.0 The Board of Directors decided to extend the share based reward scheme for management from 2006 into 2007. CONSOLIDATED CONTINGENT COMMITMENTS (Meur) 09/07 09/06 12/06 For own debt: Mortgages on real estate 0.5 0.5 0.5 Corporate mortgages 9.4 9.4 9.4 Other own commitments: Leasing commitments 0.8 0.8 0.8 Rental commitments 0.0 0.0 0.0 Repurchase commitments 1.2 0.7 0.7 No pledges or other commitments have been extended on behalf of management, shareholders or affiliated companies. INCOME STATEMENT BY QUARTER 7-9 4-6 1-3 10-12 7-9 4-6 1-3 2007 2007 2007 2006 2006 2006 2006 NET SALES 28.4 30.9 30.3 30.8 22.5 26.0 25.1 Change in finished goods and inventories 0.6 -0.3 -0.3 0.6 0.5 0.8 0.4 Other operating income 0.0 0.1 0.0 0.0 0.1 0.1 0.1 Materials and services -17.8 -18.8 -18.7 -20.0 -14.5 -16.4-15.0 Personnel expenses -5.2 -6.1 -5.8 -5.9 -4.8 -5.4 -5.1 Depreciation -1.8 -1.8 -1.8 -1.7 -1.8 -1.6 -1.5 Other operating expenses -2.9 -2.9 -2.9 -3.4 -2.7 -3.2 -2.7 OPERATING PROFIT 1.4 1.1 0.9 0.4 -0.6 0.5 1.3 Financial expenses (net) -0.5 -0.4 -0.4 -0.2 -0.6 -0.2 0.1 INCOME BEFORE TAXES 0.9 0.8 0.5 0.2 -1.2 0.2 1.2 Income taxes -0.2 -0.2 -0.1 0.0 0.3 -0.1 -0.3 INCOME FOR THE PERIOD 0.7 0.6 0.3 0.2 -0.9 0.1 0.8 EARNINGS PER SHARE euros 0.16 0.14 0.09 0.06 -0.24 0.03 0.22 EARNINGS PER SHARE euros, diluted - - 0.09 0.06 -0.23 0.03 0.21 KEY FIGURES 9/2007 9/2006 12/2006 Net sales, Meur 89.6 73.6 104.4 Operating profit, Meur 3.4 1.1 1.5 % of net sales 3.8 1.5 1.4 Income before taxes, Meur 2.2 0.2 0.4 % of net sales 2.4 0.3 0.4 Equity/share, euros 6.21 5.83 5.88 Equity/assets, % 31.0 29.6 28.4 Return on equity, % p.a. 8.7 0.4 1.2 Return on investment % p.a. 7.9 3.0 3.3 Gross investments, Meur 3.4 3.1 5.9 Personnel, average 499 459 467 Personnel, end of period 507 480 489 OTHER DATA Order book, Meur 25.2 21.6 26.8 Shares, 1,000 average 4,080 3,857 3,860 Shares, 1,000 diluted, average - 4,014 4,014 Shares, 1,000 end of period 4,234 3,860 3,909 Treasury shares are eliminated from the share numbers. FINANCIAL DISCLOSURE IN 2008 The Financial Statements Bulletin for 2007 will be published February 7, 2008. The Interim Reports in 2008 are published April 24, July 16 and October 23. The Annual Report is published in week 11 and the Annual General Meeting will be held on March 26, 2008. Järvenpää October 25, 2007 ROCLA OYJ Board of Directors Jussi Muikkku President and CEO For additional information, contact: Jussi Muikku, President and CEO, phone +358 20 778 1370 Hilkka Webb, CFO, phone +358 20 778 1316 Distribution: Helsinki Exchanges, The main media |
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