Tulikivi Oyj - Interim report (Q1 and Q3)

Interim report 1-3/2012

TULIKIVI CORPORATION                                        Interim report
1-3/2012 
   24.4.2012 at  15.30 

Interim Report, January-March 2012



- The Tulikivi Group's net sales were EUR 10.7 million (EUR 12.6 million,
Q1/2011). 

- The Group´s operating result was of EUR -1.4 (-1.5) million.  Earnings per
share amounted to EUR -0.03 (-0.04). 

- Cash flow from operating activities before investments was EUR -3.5 (-2.2)
million. 

- Order books were at EUR 7.8 million on 31 March (EUR 9.7 million on 31 March
2011and EUR 5.7 million on 31 December 2011 ). 

- Future outlook: Full-year net sales in 2012 are expected to be about the same
as in 2011. The company has been carrying out a programme of centralisation and
adjustment measures to create significant savings and they are expected to turn
the operating result into a profit. 

Summary of the interim report 1-3/2012.  The full interim report is attached to
this release. 

Key financial ratios



                1-3/   1-3/   Change,  1-12/
                2012   2011   %        2011 
--------------------------------------------
Sales,           10.7   12.6    -14.8   58.8
MEUR                                        
--------------------------------------------
Operating        -1.4   -1.5     12.3   -2.4
profit/loss,                                
MEUR                                        
--------------------------------------------
Profit before    -1.6   -1.7      9.2   -3.1
tax, MEUR                                   
--------------------------------------------
Total            -1.2   -1.3      7.7   -2.4
comprehensive                               
income for                                  
the period,                                 
MEUR                                        
--------------------------------------------
Earnings per    -0.03  -0.04     25.0  -0.07
share/Euro                                  
--------------------------------------------
Net cash flow    -3.5   -2.2             1.4
from operating                              
activities,                                 
MEUR                                        
--------------------------------------------
Equity ratio,    31.8   35.6            33.3
%                                           
--------------------------------------------
Net indebt-     126.7   88.6            96.5
ness ratio, %                               
--------------------------------------------
Return on       -12.3  -12.7            -4.8
investments,                                
%                                           
--------------------------------------------



Managing Director's comments:

“After a difficult autumn in 2011, it is now easier to predict the demand for
our products. The slight rise in consumer confidence is also helping to support
consumers' purchasing decisions. In the first quarter, demand in fireplace
exports was better, especially in  Central Europe. 

On the Finnish market, the demand for fireplaces fell short of last year's
figures. In lining stone products, customers were again cautious, and this
showed in the demand at the start of the year. In sauna products, net sales
were in line with what was planned..  Our divestment from the utility ceramics
and building stone businesses reduced net sales, by about EUR 0.6 million. 

The Group's measures to achieve cost savings of EUR 3 million have proceeded as
planned. We also introduced a new enterprise resource planning (ERP) system at
the start of the year. This has required some additional effort from the
personnel, but there have been no significant extra costs. 

Net sales for the full year are expected to be about the same as for last year.
A contributory factor in this is the cooperation with Rautakesko Ltd, which
began in March. At the start of the year, there was a change in the personnel
responsible for sales in Russia and the Nordic countries.” 



Net sales and result

The Group's net sales amounted to EUR 10.7 million (EUR 12.6 million in
Q1/2011).  The figure for the first quarter in 2011 included EUR 0.6 million
from discontinued businesses. Net sales of the Fireplaces Business were EUR 9.6
(11.4) million and of the Interior Stone  Business EUR 1.1 (1.2) million. 

Net sales in Finland accounted for EUR 6.5 (6.8) million, or 60.7 (54.0) per
cent, of total net sales. Exports amounted to EUR 4.2 (5.8) million in net
sales. The principal export countries were France, Germany, Russia, Sweden and
Belgium. 

The consolidated operating result was EUR -1.4 (-1.5) million. In accordance
with the Group's segment reporting, the operating result in the Fireplaces
Business was EUR -0.8 (-0.9) million and in the Interior Stone  Business EUR
-0.2 (-0.2) million, while Other Items' expenses were EUR -0.4 (-0.4) million. 

The consolidated result before taxes was EUR -1.6 (-1.7) million, and net
result was  EUR -1.2 million (-1.3) million. Earnings per share amounted to EUR
-0.03 (-0.04). 

Financing and investments

Cash flow from operating activities before investments was EUR -3.5 (-2.2)
million. Working capital increased by EUR 2.8 million in the period and came to
EUR 9.7 million (EUR 9.2 million on 31 March 2011). Interest-bearing debt was
EUR 26.4 (25.9) million. Financial expenses net were EUR 0.2 (0.2) million. 

The Group's investments in production, quarrying and development were EUR 0.8
(1.0) million. Research and development costs were EUR 0.5 (0.7) million, i.e.
4.7 (5.2) per cent of net sales. EUR 0.2 (0.2) million of this figure, after
deduction of subsidies, was capitalised in the balance sheet. The focus in
research and development work during the period was on the development of
woodburning stoves and fireplace products. 

Near-term risks and uncertainties

The Group's near-term risks consist of unexpected negative fluctuations in the
economy. Risks also include intensified price competition during a time of weak
demand. 

Events following the end of the period
Resolutions of the Annual General Meeting

The Tulikivi Corporation Annual General Meeting of 12 April 2012 resolved not
to distribute any dividend on the 2011 financial year.  The other decisions of
the general meeting can be found in the separate release published in the date
of the meeting. 

Future outlook

Consumers in the company's main markets are still very cautious and are
considering their investment decisions carefully. 

Net sales in 2012 are expected to be at about the same level as in 2011. The
company has carried out centralisation and adjustment measures, and these will
create significant savings and they  are expected to  turn the operating result
into a profit. 

TULIKIVI CORPORATION



Board of Directors

Matti Virtaala Chairman of the Board



Distribution: NASDAQ OMX Helsinki Ltd

Central Media

www.tulikivi.com

Additional information: Tulikivi Corporation, 83900 Juuka, +358 207 636 000

www.tulikivi.com

Attachments:

Interim report 1-32012.pdf