2007-10-25 07:30:00 CEST
2007-10-25 07:30:00 CEST
REGULATED INFORMATION
Rocla Oyj - Quarterly report
ROCLA OYJ INTERIM REPORT 1.1.-30.9.2007
ROCLA 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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