2015-04-21 08:00:01 CEST
2015-04-21 08:00:05 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 31 MARCH 2015
Vieremä, Finland, 2015-04-21 08:00 CEST (GLOBE NEWSWIRE) --
PONSSE PLC, STOCK EXCHANGE RELEASE, 21 APRIL 2015, 9:00 a.m.
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2015
- Net sales amounted to EUR 91.2 (86.9) million.
- Operating result totalled EUR 7.3 (7.4) million, equalling 8.0 (8.5) per cent
of net sales.
- Result before taxes was EUR 7.4 (6.9) million.
- Cash flow from operating activities was EUR -8.8 (2.2) million.
- Earnings per share were EUR 0.20 (0.19).
- Equity ratio was 42.5 (37.9) per cent.
- Order books stood at EUR 175.1 (104.1) million.
PRESIDENT AND CEO JUHO NUMMELA:
Demand for PONSSE forest machines continued to be good during the first
quarter. Our order books increased further to EUR 175.1 (104.1) million. The
order books grew by 68 per cent compared with the comparable period.
International business operations accounted for 72.1 (69.7) per cent of net
sales.
The forest machine market situation in North America continues to be good, and
the market has continued its positive development in Europe. Russia's
proportional amount of net sales has decreased slightly, but machine sales are
still on almost normal level in Russia. In Latin America, the focus is on
developing service operations and fulfilling the obligations of agreements made
with major customers.
Ponsse's strong order book is a result from successful R&D solutions and
investments. The order book has lengthened the delivery times of forest
machines. We are increasing our factory capacity as planned and making sure
that the quality and reliability of the final products are at a high level.
Service business continued to grow at a strong rate. The accelerated growth in
services is on one hand related to the growing machine fleet and on the other
hand to new business concepts in services. During the past quarter, the
company's net sales amounted to EUR 91.2 (86.9) million and operating profit to
EUR 7.3 (7.4) million. The operating profit equalled 8.0 (8.5) per cent of net
sales for the period under review. The equity ratio continued to develop
favourably, amounting to 42.5 per cent.
The new PONSSE 2015 range has entered serial production with regard to
high-volume models. The extremely rapid launching of new products and start of
serial production temporarily decreased delivery volumes and was thereby also
reflected in invoicing and cash flow from operations. The trade in used
machines was at a normal level. Cash flow from business operations amounted to
EUR -8.8 (2.2) million.
Construction investments at the Vieremä factory and in the maintenance service
network proceeded according to plan.
NET SALES
Consolidated net sales for the period under review amounted to EUR 91.2 (86.9)
million, which is 5.0 per cent more than in the comparison period.
International business operations accounted for 72.1 (69.7) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 42.3 (42.7)
per cent, Central and Southern Europe 18.7 (19.1) per cent, Russia and Asia 9.9
(13.1) per cent, North and South America 28.9 (25.2) per cent and other
countries 0.1 (0.0) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 7.3 (7.4) million. The operating result
equalled 8.0 (8.5) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 21.2 (22.4) per cent.
Staff costs for the period totalled EUR 15.7 (13.5) million. Other operating
expenses stood at EUR 9.4 (8.4) million. The net total of financial income and
expenses amounted to EUR 0.2 (-0.5) million. Exchange rate gains and losses
with a net effect of EUR 0.4 (-0.2) million were recognised under financial
items for the period. Result for the period under review totalled EUR 5.5 (5.3)
million. Diluted and undiluted earnings per share (EPS) came to EUR 0.20
(0.19).
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 227.6 (191.1) million. Inventories stood at
EUR 104.7 (89.9) million. Trade receivables totalled EUR 31.1 (23.6) million,
while liquid assets stood at EUR 8.4 (10.2) million. Group shareholders' equity
stood at EUR 95.8 (72.1) million and parent company shareholders' equity (FAS)
at EUR 114.0 (91.9) million. The amount of interest-bearing liabilities was EUR
58.8 (61.2) million. The company has used 20 per cent of its credit facility
limit. The parent company's net receivables from other Group companies stood at
EUR 88.6 (78.0) million. The parent company's receivables from subsidiaries
mainly consisted of trade receivables. Consolidated net liabilities totalled
EUR 50.4 (50.9) million, and the debt-equity ratio (net gearing) was 52.6
(70.6) per cent. The equity ratio stood at 42.5 (37.9) percent at the end of
the period under review.
Cash flow from operating activities amounted to EUR -8.8 (2.2) million. Cash
flow from investment activities came to EUR -4.8 (-4.7) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 112.4 (92.3) million, while period-end
order books were valued at EUR 175.1 (104.1) 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 companies OOO Ocean Safety Center, Russia and Kiinteistö Oy Kouvolan
Kaupinkuja 3, Finland. Sunit Oy, Finland, is an associate in which Ponsse Plc
has a holding of 34 per cent.
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled EUR 2.9 (2.3)
million, of which EUR 0.5 (0.4) million was capitalised.
Capital expenditure totalled EUR 4.8 (4.7) 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; Tommi Väänänen, Purchasing
Director and Jarmo Vidgrén, Deputy CEO, Sales and Marketing Director. The
company management has regular management liability insurance.
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).
Carl-Henrik Hammar has been appointed Managing Director of Ponsse Plc´s Swedish
subsidiary, Ponsse AB, as of 1 July 2015. Hammar transferred to Ponsse on 16
March 2015. Eero Lukkarinen, current Managing Director of Ponsse AB, will
transfer to exports and sales within Ponsse Group in Finland.
PERSONNEL
The Group had an average staff of 1,277 (1,136) during the period and employed
1,293 (1,158) people at period-end.
KEY EMPLOYEE INCENTIVE PLAN AND RELATED SHARE ISSUES
The Board of Directors of Ponsse Plc has decided to launch a new share-based
incentive plan for the Group key employees on 16 February 2015. The aim of the
long-term plan, which commits the key employees to shareholding in the Company,
is to combine the objectives of the shareholders and the key employees in order
to increase the value of the Company in the long-term, and to offer them a
competitive reward plan based on acquisition and ownership of the Company´s
shares.
The Matching Share Plan 2015 is directed to approximately 80 people. The
rewards to be paid on the basis of the plan amount to an approximate maximum
total of 212,900 Ponsse Plc shares and cash proportion corresponding to taxes
and tax-related costs arising from the shares to the key employees.
The prerequisite for participating in the plan is that a key employee owns the
Company´s shares up to the number determined by the Board of Directors, or
acquires them from the market or in the Company's directed share issue.
Furthermore, receiving of reward is tied to the validity of the key employee's
employment or service upon reward payment.
The company has communicated the Matching Share Plan and the related issues on
20 March 2015.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 31 March 2015 totalled
1,208,728, accounting for 4.3 per cent of the total number of shares. Share
turnover amounted to EUR 17.0 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 14.64, and market capitalisation
totalled EUR 409.9 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 slightly 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 in phases 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
1-3/15 1-3/14 1-12/14
NET SALES 91,206 86,859 390,831
Increase (+)/decrease (-) in inventories of finished 9,009 4,884 3,173
goods and work in progress
Other operating income 392 243 1,185
Raw materials and services -66,145 -60,791 -251,067
Expenditure on employment-related benefits -15,693 -13,484 -58,583
Depreciation and amortisation -2,128 -1,849 -7,962
Other operating expenses -9,350 -8,440 -35,875
OPERATING RESULT 7,291 7,422 41,704
Share of results of associated companies -59 -38 1
Financial income and expenses 162 -532 -3,745
RESULT BEFORE TAXES 7,395 6,852 37,959
Income taxes -1,879 -1,503 -8,164
NET RESULT FOR THE PERIOD 5,516 5,349 29,795
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units 1,806 -759 -3,093
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 7,322 4,590 26,702
Diluted and undiluted earnings per share* 0.20 0.19 1.07
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
IFRS IFRS IFRS
ASSETS 31 Mar 15 31 Mar 14 31 Dec 14
NON-CURRENT ASSETS
Intangible assets 16,009 14,254 15,954
Goodwill 3,440 3,440 3,440
Property, plant and equipment 49,912 38,014 47,282
Financial assets 105 104 104
Investments in associated companies 887 994 946
Non-current receivables 3,261 898 832
Deferred tax assets 1,745 1,468 1,267
TOTAL NON-CURRENT ASSETS 75,358 59,171 69,285
CURRENT ASSETS
Inventories 104,705 89,913 92,734
Trade receivables 31,141 23,587 25,226
Income tax receivables 175 259 591
Other current receivables 7,727 7,975 4,701
Cash and cash equivalents 8,444 10,234 12,719
TOTAL CURRENT ASSETS 159,192 131,968 135,971
TOTAL ASSETS 227,550 191,139 205,796
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 2,552 30 130
Translation differences 130 658 -1,676
Treasury shares -346 -2,228 -2,228
Retained earnings 86,424 66,680 82,790
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 95,760 72,140 86,016
NON-CURRENT LIABILITIES
Interest-bearing liabilities 33,526 39,098 33,712
Deferred tax liabilities 721 632 867
Other non-current liabilities 0 0 0
TOTAL NON-CURRENT LIABILITIES 34,247 39,730 34,580
CURRENT LIABILITIES
Interest-bearing liabilities 25,291 22,068 17,997
Provisions 5,201 4,362 4,747
Tax liabilities for the period 1,833 958 812
Trade creditors and other current liabilities 65,218 51,881 61,644
TOTAL CURRENT LIABILITIES 97,543 79,270 85,200
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 227,550 191,139 205,796
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS IFRS
1-3/15 1-3/14 1-12/14
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 5,516 5,349 29,795
Adjustments:
Financial income and expenses -162 532 3,745
Share of the result of associated companies 59 38 -1
Depreciation and amortisation 2,128 1,849 7,962
Income taxes 1,879 1,503 8,164
Other adjustments -595 -380 -2,049
Cash flow before changes in working capital 8,824 8,891 47,616
Change in working capital:
Change in trade receivables and other receivables -8,032 -226 -920
Change in inventories -11,971 -4,146 -6,967
Change in trade creditors and other liabilities 2,322 -829 9,251
Change in provisions for liabilities and charges 453 -256 129
Interest received 36 42 187
Interest paid -137 -152 -1,071
Other financial items 258 196 -2,080
Income taxes paid -582 -884 -8,675
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) -8,829 2,244 37,472
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -4,813 -4,690 -19,154
Proceeds from sale of tangible and intangible assets 0 0 147
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -4,813 -4,690 -19,007
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of treasury shares 1,882 0 0
Withdrawal/Repayment of current loans 7,362 1,428 -3,540
Change in current interest-bearing liabilities 0 0 0
Withdrawal of non-current loans 0 245 5,000
Repayment of non-current loans 0 -760 -9,773
Payment of finance lease liabilities 25 -48 -280
Change in non-current receivables 66 -32 -4
Dividends paid 0 0 -8,336
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) 9,335 833 -16,933
Change in cash and cash equivalents (A+B+C) -4,306 -1,613 1,532
Cash and cash equivalents on 1 Jan 12,719 11,958 11,958
Impact of exchange rate changes 31 -110 -770
Cash and cash equivalents on 31 Mar/31 Dec 8,444 10,234 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 2015 7,000 130 -1,676 -2,228 82,790 86,016
Translation differences 1,806 1,806
Result for the period 5,516 5,516
Total comprehensive income for the 1,806 5,516 7,322
period
Matching Share Plan 2,422 1,882 -1,882 2,422
Other changes 0
SHAREHOLDERS' EQUITY 31 MAR 2015 7,000 2,552 130 -346 86,424 95,761
SHAREHOLDERS' EQUITY 1 JAN 2014 7,000 30 1,417 -2,228 61,331 67,550
Translation differences -759 -759
Result for the period 5,349 5,349
Total comprehensive income for the -759 5,349 4,590
period
Other changes 0
SHAREHOLDERS' EQUITY 31 MAR 2014 7,000 30 658 -2,228 66,680 72,140
31 Mar 15 31 Mar 14 31 Dec 14
1. LEASING COMMITMENTS (EUR 1,000) 1,144 1,490 1,326
2. CONTINGENT LIABILITIES (EUR 1,000) 31 Mar 15 31 Mar 14 31 Dec 14
Guarantees given on behalf of others 536 463 479
Repurchase commitments 2,815 1,030 1,966
Other commitments 41 1,516 137
TOTAL 3,392 3,009 2,579
3. PROVISIONS (EUR 1,000) Guarantee provision
1 January 2015 4,747
Provisions added 503
Provisions cancelled -50
31 March 2015 5,201
KEY FIGURES AND RATIOS 31 Mar 15 31 Mar 14 31 Dec 14
R&D expenditure (EUR million) 2.9 2.3 10.3
Capital expenditure (EUR million) 4.8 4.7 19.2
as % of net sales 5.3 5.4 4.9
Average number of employees 1,277 1,136 1,200
Order books (EUR million) 175.1 104.1 158.4
Equity ratio, % 42.5 37.9 42.0
Diluted and undiluted earnings per share (EUR) 0.20 0.19 1.07
Equity per share (EUR) 3.42 2.58 3.07
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before tax + financial expenses
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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
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Shareholders' equity * 100
Equity ratio, %:
Shareholders' equity + Non-controlling interests
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Balance sheet total - advance payments received * 100
Earnings per share:
Net result for the period - Non-controlling interests
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-----------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders' equity
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Number of shares on the balance sheet date, adjusted for share issues
ORDER INTAKE (EUR million) 1-3/15 1-3/14 1-12/14
Ponsse Group 112.4 92.3 451.7
The stock exchange release for 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, 21 April 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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