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2013-10-22 08:00:00 CEST 2013-10-22 08:00:04 CEST REGULATED INFORMATION Ponsse Oyj - Interim report (Q1 and Q3)PONSSE’S INTERIM REPORT FOR 1 JANUARY – 30 SEPTEMBER 2013Vieremä, Finland, 2013-10-22 08:00 CEST (GLOBE NEWSWIRE) -- PONSSE PLC, STOCK EXCHANGE RELEASE, 22 OCTOBER 2013, 9:00 a.m. PONSSE'S INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2013 - Net sales amounted to EUR 211.3 (Q1-Q3/2012 217.7) million. - Q3 net sales amounted to EUR 66.0 (Q3/2012 66.6) million. - Operating result totalled EUR 12.7 (Q1-Q3/2012 15.7) million, equalling 6.0 (7.2) per cent of net sales. - Q3 operating result totalled EUR 4.2 (Q3/2012 5.0) million, equalling 6.4 (7.5) per cent of net sales. - Profit before taxes was EUR 7.5 (Q1-Q3/2012 13.9) million. - Cash flow from business operations was EUR 21.6 (-0.2) million. - Earnings per share were EUR 0.15 (0.29). - Equity ratio was 32.5 (40.3) per cent. - Order books stood at EUR 97.2 (62.5) million. PRESIDENT AND CEO JUHO NUMMELA: During the third quarter of the year, our order intake and order books grew strongly. The forest machine market was challenging during the first half of the year, but a clear turn for the better took place during the third quarter. At period end, the company's order books amounted to EUR 97.2 (62.5) million, which is 55.5 per cent more than in the comparison period. The new Scorpion harvester accounted for a significant share of the order books, and the product will enter serial production in early 2014. Of the market areas, North America, Russia and Finland were at a good level in terms of both invoicing and order intake. The Central European forest machine market is recovering at a slow rate, and the Swedish market is about to remain at approximately one half of its normal level. Deliveries in Latin America proceeded according to plan. Net sales of maintenance services continued to grow during the period under review, while the growth in net sales of used machines began to increase again. Net sales for the third quarter amounted to EUR 66.0 (66.6) million. Net sales for the period under review amounted to EUR 211.3 (217.7) million, representing a change of -2.9 per cent from the comparable period. The operating result for the past quarter was EUR 4.2 (5.0) million, and EUR 12.7 (15.7) million for the period under review. Cash flow from business operations amounted to EUR 21.6 (-0.2) million in the period under review. Inventories remained at their normal level, but due to the growth in volume, fast growth in trade payables increased the cash flow from business operations significantly. The factory in Vieremä has been operating in two shifts since the beginning of June. During the past quarter, the company terminated the adjustment operations started in the beginning of the year. NET SALES Consolidated net sales for the period under review amounted to EUR 211.3 (217.7) million, which is 2.9 per cent less than in the comparison period. International business operations accounted for 68.7 (66.5) per cent of net sales. Net sales were regionally distributed as follows: Northern Europe 45.8 (54.5) per cent, Central and Southern Europe 14.7 (17.9) per cent, Russia and Asia 17.0 (13.5) per cent, North and South America 22.5 (14.0) per cent and other countries 0.0 (0.0) per cent. PROFIT PERFORMANCE The operating result amounted to EUR 12.7 (15.7) million. The operating result equalled 6.0 (7.2) per cent of net sales for the period under review. Consolidated return on capital employed (ROCE) stood at 8.8 (16.3) per cent. Staff costs for the period totalled EUR 35.1 (37.0) million. Other operating expenses stood at EUR 22.3 (22.6) million. The net total of financial income and expenses amounted to EUR -5.1 (-1.8) million. Exchange rate gains and losses with a net effect of EUR -3.8 (-0.6) million were recognised under financial items for the period. Profit for the period under review totalled EUR 4.5 (9.3) million. Diluted and undiluted earnings per share (EPS) came to EUR 0.15 (0.29). The interest on the subordinated loan for the period, less tax, has been taken into account in the calculation of EPS. 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 191,7 (191.7) million. Inventories stood at EUR 89.2 (97.9) million. Trade receivables totalled EUR 22.5 (24.5) million, while liquid assets stood at EUR 15.7 (10.9) million. Group shareholders' equity stood at EUR 61.5 (76.1) million and parent company shareholders' equity (FAS) at EUR 81.1 (76.4) million. In the comparison period Group shareholders' equity includes a hybrid loan of EUR 19 million issued on 31 March 2009 and settled on 28 March 2013. A separate release was issued on 19 February 2013 regarding the settlement of the hybrid loan. The interest paid on the hybrid loan totalling EUR 9.1 million, less tax, is recognised as a deduction from Group equity. The amount of interest-bearing liabilities was EUR 75.5 (57.1) million. The company has used 34 per cent of its credit facility limit. The parent company's net receivables from other Group companies stood at EUR 77.0 (80.1) million. The parent company's receivables from subsidiaries mainly consisted of trade receivables. Consolidated net liabilities totalled EUR 59.9 (46.1) million, and the debt-equity ratio (net gearing) was 97.4 (60.6) per cent. The equity ratio stood at 32.5 (40.3) percent at the end of the period under review. Cash flow from business operations amounted to EUR 21.6 (-0.2) million. Cash flow from investment activities came to EUR -8.0 (-10.6) million. ORDER INTAKE AND ORDER BOOKS Order intake for the period totalled EUR 266.8 (209.4) million, while period-end order books were valued at EUR 97.2 (62.5) million. DISTRIBUTION NETWORK No changes took place in the Group structure during the period under review. The subsidiaries included in the Ponsse Group are: Epec Oy, Finland; OOO Ponsse, Russia; Ponsse AB, Sweden; Ponsse AS, Norway; Ponsse Asia-Pacific Ltd, Hong Kong; Ponsse China Ltd, China; Ponsse Latin America Ltda, Brazil; Ponsse North America, Inc., the United States; Ponssé S.A.S., France; Ponsse UK Ltd, the United Kingdom; and Ponsse Uruguay S.A., Uruguay. Sunit Oy, based in Kajaani, Finland, is an affiliated company in which Ponsse Plc has a holding of 34 per cent. CAPITAL EXPENDITURE AND R&D During the period under review, the Group's R&D expenses totalled EUR 7.2 (6.8) million, of which EUR 2.2 (2.0) million was capitalised. Capital expenditure totalled EUR 8.0 (10.6) 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; Petri Härkönen, CFO; Juha Inberg, Technology and R&D Director; Tapio Mertanen, Service Director; Paula Oksman, HR Director and Jarmo Vidgrén, Deputy CEO, Sales and Marketing Director. The company management has regular management liability insurance. Tommi Väänänen has been appointed Purchasing Director of Ponsse Plc as of 1 October 2013. Väänänen has also been invited to join the company's Management Team. The release was issued on 7 August 2013. 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), Eero Lukkarinen (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 and the Baltic countries) and Risto Kääriäinen (China), North and South America: Pekka Ruuskanen (the United States), Marko Mattila (North American dealers), Teemu Raitis (Brazil) and Martin Toledo (Uruguay). PERSONNEL The Group had an average staff of 1,014 (997) during the period and employed 1,046 (988) 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 2013 totalled 1,990,912, accounting for 7.1 per cent of the total number of shares. Share turnover amounted to EUR 12.9 million, with the period's lowest and highest share prices amounting to EUR 5.50 and EUR 7.39, respectively. At the end of the period, shares closed at EUR 7.30, and market capitalisation totalled EUR 204.4 million. At the end of the period under review, the company held 212,900 treasury shares. ANNUAL GENERAL MEETING A separate release was issued on 16 April 2013 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 rapid escalation of the problems in the economies of Europe and the United States in the financial market may have an impact on the availability of customer financing. 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 The Group's euro-denominated operating profit is expected to remain lower than in 2012. In general, the positive work situation of the customers and Ponsse's strongly renewed and competitive product portfolio and maintenance service solutions are having a positive effect on the company's business operations. In Europe the markets are still uneasy due to the economic situation. Due to the improved order books, the factory capacity in Vieremä will be increased during the last quarter. We estimate that the work situation of our customers will also continue to be good in the near future. PONSSE GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000) IFRS IFRS 1-9/13 1-9/12 NET SALES 211,292 217,656 Increase (+)/decrease (-) in inventories of finished goods 8,098 9,015 and work in progress Other operating income 675 662 Raw materials and services -144,992 -147,828 Expenditure on employment-related benefits -35,144 -36,959 Depreciation and amortisation -4,920 -4,186 Other operating expenses -22,264 -22,631 OPERATING RESULT 12,745 15,729 Share of results of associated companies -138 -5 Financial income and expenses -5,060 -1,842 RESULT BEFORE TAXES 7,547 13,883 Income taxes -3,001 -4,578 NET RESULT FOR THE PERIOD 4,547 9,304 OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT: Translation differences related to foreign units 1 415 -297 TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 5,962 9,007 Diluted and undiluted earnings per share* 0.15 0.29 IFRS IFRS 7-9/13 7-9/12 NET SALES 66,007 66,566 Increase (+)/decrease (-) in inventories of finished goods and 6,382 488 work in progress Other operating income 146 343 Raw materials and services -49,512 -43,385 Expenditure on employment-related benefits -10,207 -10,271 Depreciation and amortisation -1,635 -1,426 Other operating expenses -6,941 -7,294 OPERATING RESULT 4,240 5,021 Share of results of associated companies -33 48 Financial income and expenses -1,853 -456 RESULT BEFORE TAXES 2,354 4,613 Income taxes -1,042 -1,680 NET RESULT FOR THE PERIOD 1,312 2,933 OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT: Translation differences related to foreign units 757 17 TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 2,069 2,950 Diluted and undiluted earnings per share* 0.05 0.09 * The interest on the subordinated loan for the period, less tax, was taken into account in this figure. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000) IFRS IFRS ASSETS 30 Sep 13 31 Dec 12 NON-CURRENT ASSETS Intangible assets 13,106 11,898 Goodwill 3,440 3,440 Property, plant and equipment 37,428 35,525 Financial assets 111 111 Investments in associated companies 938 1,186 Non-current receivables 887 999 Deferred tax assets 1,641 1,628 TOTAL NON-CURRENT ASSETS 57,550 54,787 CURRENT ASSETS Inventories 89,166 81,636 Trade receivables 22,492 25,954 Income tax receivables 177 1,959 Other current receivables 6,571 3,313 Cash and cash equivalents 15,674 14,083 TOTAL CURRENT ASSETS 134,080 126,944 TOTAL ASSETS 191,630 181,732 SHAREHOLDERS' EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Share capital 7,000 7,000 Other reserves 30 19,030 Translation differences -123 -1,538 Treasury shares -2,228 -2,228 Retained earnings 56,780 59,180 EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 61,459 81,444 NON-CURRENT LIABILITIES Interest-bearing liabilities 49,719 21,474 Deferred tax liabilities 1,103 968 Other non-current liabilities 0 13 TOTAL NON-CURRENT LIABILITIES 50,822 22,455 CURRENT LIABILITIES Interest-bearing liabilities 25,804 34,912 Provisions 4,854 4,977 Tax liabilities for the period 64 385 Trade creditors and other current liabilities 48,626 37,558 TOTAL CURRENT LIABILITIES 79,348 77,833 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 191,630 181,732 CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000) IFRS IFRS 1-9/13 1-9/12 CASH FLOW FROM BUSINESS OPERATIONS: Net result for the period 4,547 9,304 Adjustments: Financial income and expenses 5,060 1,842 Share of the result of associated companies 138 5 Depreciation and amortisation 4,920 4,186 Income taxes 3,001 4,538 Other adjustments 2,042 -390 Cash flow before changes in working capital 19,707 19,484 Change in working capital: Change in trade receivables and other receivables 81 1,891 Change in inventories -7,529 -17,442 Change in trade creditors and other liabilities 12,032 5,436 Change in provisions for liabilities and charges -123 538 Interest received 169 117 Interest paid -678 -661 Other financial items -630 -964 Income taxes paid -1,455 -8,619 NET CASH FLOW FROM BUSINESS OPERATIONS (A) 21,573 -219 CASH FLOW FROM INVESTMENTS Investments in tangible and intangible assets -8,030 -10,608 CASH OUTFLOW FROM INVESTMENT ACTIVITIES (B) -8,030 -10,608 FINANCING Hybrid loan -19,000 0 Interest paid, hybrid loan -1,136 -2,280 Withdrawal/Repayment of current loans -6,043 13,414 Change in current interest-bearing liabilities 213 80 Withdrawal of non-current loans 29,194 10,000 Repayment of non-current loans -3,065 -5,586 Payment of finance lease liabilities -1,521 -401 Change in non-current receivables 113 94 Dividends paid -6,947 -9,725 NET CASH OUTFLOW FROM FINANCING (C) -8,192 5,596 Change in cash and cash equivalents (A+B+C) 5,350 -5,231 Cash and cash equivalents on 1 January 14,083 16,267 Impact of exchange rate changes -3,759 -125 Cash and cash equivalents on 30 September 15,675 10,912 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 2013 7,000 19,030 -1,538 -2,228 59,180 81,444 Translation differences 1,415 1,415 Result for the period 4,547 4,547 Total comprehensive income for 1,415 4,547 5,962 the period Direct entries to retained earnings* Dividend distribution -6,947 -6,947 Other changes -19,000 -19,000 SHAREHOLDERS' EQUITY 30 SEP 7,000 30 -123 -2,228 56,780 61,459 2013 SHAREHOLDERS' EQUITY 1 JAN 2012 7,000 19,030 -1,975 -2,228 56,736 78,563 Translation differences -297 -297 Result for the period 9,304 9,304 Total comprehensive income for -297 9,304 9,007 the period Direct entries to retained -1,721 -1,721 earnings* Dividend distribution -9,725 -9,725 Other changes SHAREHOLDERS' EQUITY 30 SEP 7,000 19,030 -2,272 -2,228 54,594 76,124 2012 * Consists of the interest paid, less tax, for the hybrid loan classified as equity. 30 Sep 13 30 Sep 12 31 Dec 12 1. LEASING COMMITMENTS (EUR 1,000) 1,766 3,065 2,898 2. CONTINGENT LIABILITIES (EUR 1,000) 30 Sep 13 30 Sep 12 31 Dec 12 Guarantees given on behalf of others 503 1,420 1,601 Repurchase commitments 1,609 753 1,541 Other commitments 2,922 3,863 3,616 TOTAL 5,034 6,036 6,758 3. PROVISIONS (EUR 1,000) Guarantee provision 1 January 2013 4,977 Provisions added 698 Provisions cancelled -821 30 September 2013 4,854 KEY FIGURES AND RATIOS 30 Sep 13 30 Sep 12 31 Dec 12 R&D expenditure, MEUR 7.2 6.8 9.5 Capital expenditure, MEUR 8.0 10.6 18.1 as % of net sales 3.8 4.9 5.7 Average number of employees 1,014 997 994 Order books, MEUR 97.2 62.5 41.8 Equity ratio, % 32.5 40.3 45.1 Diluted and undiluted earnings per share (EUR) 0.15 0.29 0.44 Equity per share (EUR) 2.19 2.72 2.91 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 - Interest on hybrid loan for the period less tax -------------------------------------------------------------------------------- ---------------------------------------------- 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 1-9/13 1-9/12 1-12/12 Ponsse Group 266.8 209.4 285.9 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 2012. 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, 22 October 2013 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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