2007-10-19 07:15:00 CEST
2007-10-19 07:15:00 CEST
REGULATED INFORMATION
PKC Group Oyj - Quarterly report
JANUARY-SEPTEMBER 2007
The PKC Group's net sales in the first nine months increased by 28.9% on the previous year to EUR 210.6 million (163.3 million). Operating profit was EUR 21.4 million (20.3 million) and profit before taxes was EUR 20.0 million (19.7 million). Diluted earnings per share were EUR 0.79 (0.76). MIKA KARI, PRESIDENT AND CEO: ”Consolidated net sales continued to grow strongly in both business segments and profitability remained at a good level. In Wiring Harnesses business we were able to meet increased demand and to achieve a good level of operating profitability. During the rest of the year we will put the extension to the production facilities in Pskov, Russia into service, effectively doubling the factory's available capacity. Thanks to the extension, we will be able to respond to growing demand on the European markets in the future as well. Growth in Electronics business exceeded earlier forecasts. We were able to meet increased volumes thanks to investments made earlier. The phasing of project delivery sales to the current quartile was also a factor in enabling us to post an excellent operating profit. Competition for new customer relationships remains stiff, which requires us to continue investing in new customer acquisition and in boosting our capacity in China. We are looking to become more competitive in both business segments by developing sourcing operations in Asia in order to meet the challenges of the future. Maintaining good competitiveness and a good level of profitability stipulates that we continue to improve cost-efficiency in both business segments.” OPERATING ENVIRONMENT The commercial vehicle market showed growth compared with the same period a year ago. Deliveries by the Wiring Harnesses business to the commercial vehicle industry in Europe and South America were at a high level. Deliveries for other types of vehicles were likewise at a good level. Sales of wiring harnesses and cabling to the telecommunications and electronics industries continued at a lower level than last year. The growth in electronics contract manufacturing and design exceeded previous forecasts. Investments by telecommunications customers have increased the volume of design deliveries and demand for industrial electronics remained strong. Competition for new supply contracts and customer relationships remains tough, which requires the adoption of cost-efficient operating models and the ability to rapidly respond to customers' global needs. NET SALES AND FINANCIAL PERFORMANCE July-September 2007 Consolidated net sales in July-September amounted to EUR 66.9 million (54.0 million), up 24.0% on the same period a year earlier. Consolidated operating profit totalled EUR 7.6 million (5.3 million), amounting to 11.3% of net sales (9.8%). Depreciation amounted to EUR 1.9 million (1.6 million). Financial income and expenses were EUR 0.1 million negative (0.1 million negative). Profit before taxes was EUR 6.8 million (5.2 million). Profit for the report period totalled EUR 4.4 million (3.7 million). Diluted earnings per share were EUR 0.25 (0.21). Net sales generated by the Wiring Harnesses business segment during the report period were EUR 50.2 million (42.2 million), up 19.0% on the comparison period. Its share of consolidated net sales was 74.9% (78.1%). Operating profit was EUR 3.3 million (3.3 million), or 6.6% of the segment's net sales (7.9%). Net sales generated by the Electronics business segment rose by 41.7% to EUR 16.8 million (11.8 million), representing 25.1% of consolidated net sales (21.9%). Operating profit was EUR 4.2 million (2.0 million), or 25.3% (16.0%) of the segment's net sales. January-September 2007 Consolidated net sales during the report period totalled EUR 210.6 million (163.3 million), a growth of 28.9% on the previous year. Consolidated operating profit totalled EUR 21.4 million (20.3 million), amounting to 10.1% of net sales (12.5%). Depreciation amounted to EUR 5.6 million (4.5 million). Financial income and expenses were EUR 1.4 million negative (0.6 million negative). Profit before taxes was EUR 20.0 million (19.7 million). Profit for the report period was EUR 14.2 million (13.5 million). Diluted earnings per share were EUR 0.79 (0.76). Net sales generated by the Wiring Harnesses business segment during the report period rose by 30.9% to EUR 168.0 million (128.4 million). Its share of consolidated net sales was 79.8% (78.6%). The operating profit of the Wiring Harnesses business totalled EUR 13.8 million (15.1 million), amounting to 8.2% of the segment's net sales (11.8%). The Electronics business segment saw a rise in net sales of 21.6% to EUR 42.5 million (35.0 million), accounting for 20.2% of consolidated net sales (21.4%). The Electronics business segment reported an operating profit of EUR 7.5 million (5.2 million), amounting to 17.8% of the segment's net sales (14.5%). The Group's full-year net sales grew in both business segments, and a good level of profitability was maintained. World market prices of raw materials have remained at a high level. We have hedged a part of our future consumption of copper with derivative instruments. The earnings trend of the company's North American operations has fallen below expectations. Preparations for the start-up of electronics business operations in China have proceeded according to plan. Production volumes at the new factory in Pskov, Russia, were increased as planned. BALANCE SHEET AND FINANCING Consolidated total assets at 30 September 2007 stood at EUR 169.4 million (144.0 million). Interest-bearing liabilities totalled EUR 54.0 million at the close of the report period (39.1 million). The Group's equity ratio was 47.0% (49.3%). Net liabilities totalled EUR 46.0 million (33.3 million) and gearing was 57.8% (46.8%). Inventories amounted to EUR 41.5 million (35.6 million). Current receivables totalled EUR 74.3 million (60.3 million). Cash flows from investing activities were EUR 1.1 million negative (5.2 million negative). Cash in hand and at bank amounted to EUR 7.9 million (5.8 million). In order to ensure financing flexibility, PKC has available credit facilities. The preliminary purchase price calculation of Electro Canada companies presented in the annual report of 2006 did not have material changes as the final fair values were determined. CAPITAL EXPENDITURES During the report period, the Group's gross capital expenditures totalled EUR 6.5 million (15.4 million), amounting to 3.1% of net sales (9.8%). Capital expenditures consisted mainly of production machinery and equipment. RESEARCH & DEVELOPMENT Research and development expenditure totalled EUR 3.9 million (3.5 million), representing 1.8% of consolidated net sales (2.2%). At the end of the report period, 79 people were employed in product development (79). PERSONNEL The Group had an average payroll during the report period of 4,876 employees (3,768). The Group's staff at the end of the report period numbered 5,073 employees (4,459), of whom 4,345 (3,761) worked abroad and 728 (697) in Finland. The increase in personnel strength was due to the acquisition of operations in North America as well as to the growth in production volumes at units abroad. QUALITY AND THE ENVIRONMENT The Group's Wiring Harnesses business has been certified under the ISO/TS 16949 and ISO 9001 standards and in accordance with the ISO 14001 certificate. The new factories in China and Russia are preparing for certification under the ISO/TS 16949 and ISO 14001 standards. The Wiring Harnesses operations in North America have been certified according to ISO/TS 16949 and the objective is to have the environmental system at the Mexico factory certified under ISO 14001 right at the start of 2008. The Electronics business has been certified according to the ISO 9001 standard. The development of operational quality is guided by the Group's quality strategy and the action plans based on it. In accordance with its environmental policy, PKC is committed to continuously reducing the environmental impacts of its operations. ANNUAL GENERAL MEETING The Annual General Meeting on 29 March 2007 passed a resolution to pay a dividend of EUR 0.45 per share, or a total of about EUR 8.0 million. The dividend was paid out on 12 April 2007. The Annual General Meeting re-elected the following persons to seats on the Board of Directors: Matti Eestilä, Jaakko Niemelä, Endel Palla, Matti Ruotsala, Harri Suutari and Jyrki Tähtinen. Olli Pohjanvirta was elected to the Board of Directors as a new member. At its organisation meeting, the Board of Directors elected Harri Suutari Chairman and Jyrki Tähtinen Vice Chairman. Ernst & Young Oy, Authorised Public Accountant Firm, will continue as the company's auditors, with Rauno Sipilä, Authorised Public Accountant, as the responsible auditor. In accordance with the proposals of the Board of Directors, the Annual General Meeting also resolved to authorise the Board to decide on one or more share issues and the granting of special rights as defined in Chapter 10, Section 1 of the Companies Act and on all the terms and conditions thereof. The authorisation shall remain in force for five years from the date of the resolution of the Annual General Meeting. The Annual General meeting also decided on amendments to the Articles of Association that are for the most part due to the new Finnish Companies Act. SHARE TURNOVER AND SHAREHOLDERS The trade volume of the PKC Group Oyj share on the Helsinki Stock Exchange from 1 January to 30 September 2007 was 13,640,965 shares (8,302,915), representing 76.7% of the average number of shares (46.8%). Shares were traded to a total value of EUR 145.6 million (77.3 million). The low during the report period was EUR 9.17 (10.02) and the high was EUR 12.40 (14.08). The closing price on the last trading day of the report period was EUR 10.65 (10.2) and the average price during the period was EUR 10.69 (11.84). The company's market capitalisation at 30 September 2007 was EUR 189.4 million (181.4 million). Shares held by Board members and their closely associated persons and controlled corporations accounted for 2.9% (4.7%) of the total number of shares at the end of the report period. PKC Group Oyj had 6,436 shareholders (5,104) at the end of the period. The proportion of shares held by foreigners and by way of nominee registrations at 30 September 2007 was 28.0% of the shares outstanding (26.8%). SHARE CAPITAL The Board of Directors has been granted authorisation by the Annual General Meeting on 29 March 2007 to decide on one or more share issues and the granting of special rights as defined in Chapter 10, Section 1 of the Companies Act and on all the terms and conditions thereof. A maximum total of 3,500,000 shares may be issued or subscribed for on the basis of the authorisation. The authorisation includes the right to decide on a directed share issue. The authorisation shall be in force for five years from the date of the resolution of the Annual General Meeting. The authorisation may be used at the Board's discretion for financing corporate acquisitions, for carrying out inter-company co-operation or similar arrangements, or for strengthening the company's financing and capital structure. The Board of Directors does not have a valid authorisation to acquire the company's own shares and the company does not have any own shares (treasury shares) in its possession. STOCK OPTION SCHEMES In 2006, PKC launched a stock option scheme according to which the maximum total number of stock options to be issued is 697,500 and they are divided into A, B and C warrants. Currently, key personnel holds a total of 202,500 2006A warrants and 221,000 2006B warrants. The subscription period for shares through the exercise of stock options shall be during the years 2009-2013. The share subscription price for stock options shall be the volume-weighted average price of the PKC Group Oyj share on the Helsinki Stock Exchange, with dividend adjustments, as defined in the stock option terms (at present, EUR 11.09 with the 2006A and 2006B warrants). Through the exercise of the 2006 stock options, the share capital of PKC Group Oyj may be increased by a maximum total of 697,500 new shares and EUR 234,673.67. The stock options 2006 are subject to a share ownership plan. Key personnel are obliged to subscribe for or purchase the company's shares with 20% of the gross income earned from stock options and to own these shares for two years. The company's President and CEO is obliged to own these shares for the duration of his managerial contract. SHORT-TERM RISKS AND UNCERTAINTIES The PKC Group strives to manage and limit any adverse effects of risks encountered in its operations. The main risks are the market trend in the demand for the products of its main customers, price pressures imposed by customers and demands for tighter contractual terms, the availability of raw materials and components and changes in their world market prices as well as the adequacy of production capacity should demand rise rapidly. The principles, objectives and organisation of the company's risk management as well as key risk areas are described in the risk management section in the Corporate Governance guidelines, which are available on the company's website, www.pkcgroup.com. OUTLOOK FOR THE FUTURE The market for heavy trucks as well as vehicles and work machines is expected to grow further, as a result of which the Group's delivery volumes are forecast to keep rising. Deliveries of wiring harnesses to the telecommunications and automation industry are estimated to remain at the previous level or to grow somewhat. In the Wiring Harnesses business, full-year net sales are likewise expected to grow, even without the additional net sales brought by the operations in North America. The market for electronics contract design and manufacturing is estimated to grow over last year. Competition will remain tough as customers seek more cost-efficient suppliers capable of offering global service. Net sales generated by the Electronics business are expected to grow considerably compared with the previous year. The PKC Group will start up electronics component sourcing operations and contract manufacturing in China during the current year, which will improve our ability to compete for new delivery contracts. Consolidated net sales are expected to grow significantly compared with last year. The expectations for higher net sales are supported by the growth in demand forecast by customers. Despite high prices of raw materials and costs related to the capacity increase, relative profitability over the full year is forecast to remain at a good level. Because of the continuing consolidation trend in customer industries, we expect the competitive situation to become stiffer in the future. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | 7-9/07 | 7-9/06 | 1-9/07 | 1-9/06 | 1-12/06 | | STATEMENT (1000 EUR) | 3 mon. | 3 mon. | 9 mon. | 9 mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | 66,927 | 53,994 | 210,565 | 163,335 | 228,928 | -------------------------------------------------------------------------------- | Increase (+) / | 1,444 | 206 | 2,499 | -1,928 | -339 | | decrease (-) in | | | | | | | stocks of finished | | | | | | | goods and work in | | | | | | | progress | | | | | | -------------------------------------------------------------------------------- | Other operating | 114 | 276 | 600 | 918 | 1,136 | | income | | | | | | -------------------------------------------------------------------------------- | Raw materials and | 37,635 | 29,633 | 118,503 | 83,981 | 122,549 | | services | | | | | | -------------------------------------------------------------------------------- | Staff expenses | 14,567 | 11,829 | 47,003 | 36,954 | 51,898 | -------------------------------------------------------------------------------- | Depreciation | 1,913 | 1,574 | 5,622 | 4,541 | 6,310 | -------------------------------------------------------------------------------- | Other operating | 6,810 | 6,124 | 21,164 | 16,512 | 24,719 | | expenses | | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 7,560 | 5,316 | 21,372 | 20,337 | 24,249 | -------------------------------------------------------------------------------- | Interest and | -613 | -284 | -1,717 | -671 | -1,117 | | financial income and | | | | | | | expenses | | | | | | -------------------------------------------------------------------------------- | Other financial | -172 | 142 | 357 | 82 | -381 | | income and expenses | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 6,774 | 5,174 | 20,012 | 19,748 | 22,751 | -------------------------------------------------------------------------------- | Income taxes | -2,356 | -1,477 | -5,778 | -6,096 | -7,044 | -------------------------------------------------------------------------------- | PROFIT FOR THE REPORT | 4,418 | 3,697 | 14,234 | 13,653 | 15,708 | | PERIOD | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | | | | -------------------------------------------------------------------------------- | Shareholders of the | 4,371 | 3,653 | 14,076 | 13,516 | 15,552 | | parent company | | | | | | -------------------------------------------------------------------------------- | Minority intrest | -46 | -44 | -158 | -136 | -155 | -------------------------------------------------------------------------------- | Total | 4,417 | 3,697 | 14,234 | 13,653 | 15,708 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | From profit | | | | | | | attributable to | | | | | | | shareholders of the | | | | | | | parent company | | | | | | -------------------------------------------------------------------------------- | Basic earnings per | 0.25 | 0.21 | 0.79 | 0.76 | 0.88 | | share (EPS), EUR | | | | | | -------------------------------------------------------------------------------- | Diluted earning per | 0.25 | 0.21 | 0.79 | 0.76 | 0.87 | | share (EPS), EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET | 9/07 | 9/06 | 12/06 | | (1000 EUR) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Goodwill | 6,226 | 5,713 | 5,723 | -------------------------------------------------------------------------------- | Other intangible assets | 3,346 | 3,268 | 3,330 | -------------------------------------------------------------------------------- | Tangible assets | 31,952 | 31,182 | 31,468 | -------------------------------------------------------------------------------- | Available-for-sale | 15 | 15 | 15 | | investments | | | | -------------------------------------------------------------------------------- | Deffered tax assets | 3,771 | 2,050 | 2,486 | -------------------------------------------------------------------------------- | Other receivables | 313 | 101 | 625 | -------------------------------------------------------------------------------- | Non-current assets total | 45,623 | 42,328 | 43,647 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSSETS | | | | -------------------------------------------------------------------------------- | Inventory | 41,509 | 35,609 | 36,589 | -------------------------------------------------------------------------------- | Receivables | | | | -------------------------------------------------------------------------------- | Trade receivables | 66,512 | 53,596 | 55,557 | -------------------------------------------------------------------------------- | Other receivables | 7,781 | 6,749 | 7,163 | -------------------------------------------------------------------------------- | Receivables total | 74,293 | 60,345 | 62,720 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 7,946 | 5,752 | 8,060 | -------------------------------------------------------------------------------- | Current assets total | 123,748 | 101,705 | 107,369 | -------------------------------------------------------------------------------- | ASSETS TOTAL | 169,371 | 144,034 | 151,016 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | EQUITY | | | | -------------------------------------------------------------------------------- | Share capital | 5,983 | 5,983 | 5,983 | -------------------------------------------------------------------------------- | Share premium account | 4,862 | 4,862 | 4,862 | -------------------------------------------------------------------------------- | Reserve fund | 258 | 166 | 166 | -------------------------------------------------------------------------------- | Translation difference | 178 | 0 | -403 | -------------------------------------------------------------------------------- | Share-based payment | 458 | 0 | 222 | -------------------------------------------------------------------------------- | Retained earnings | 53,038 | 45,541 | 45,516 | -------------------------------------------------------------------------------- | Profit for the reporting | 14,076 | 13,516 | 15,552 | | period | | | | -------------------------------------------------------------------------------- | Minority interest | 759 | 676 | 646 | -------------------------------------------------------------------------------- | EQUITY TOTAL | 79,612 | 70,745 | 72,544 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing | 30,176 | 26,476 | 18,947 | | liabilities | | | | -------------------------------------------------------------------------------- | Non-interest-bearing | 0 | 141 | 112 | | liabilities | | | | -------------------------------------------------------------------------------- | Provisions | 223 | 236 | 223 | -------------------------------------------------------------------------------- | Deffered tax liabilities | 222 | 709 | 658 | -------------------------------------------------------------------------------- | Non-current liabilities | 30,621 | 27,562 | 19,440 | | total | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing | 23,809 | 12,604 | 26,068 | | liabilities | | | | -------------------------------------------------------------------------------- | Trade payables | 21,240 | 19,580 | 18,394 | -------------------------------------------------------------------------------- | Other liabilities | 14,090 | 13,543 | 14,068 | -------------------------------------------------------------------------------- | Current liabilities total | 59,138 | 45,727 | 58,531 | -------------------------------------------------------------------------------- | Liabilities total | 89,536 | 73,053 | 78,249 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | 169,371 | 144,034 | 151,016 | | TOTAL | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW | 1-9/07 | 1-9/06 | 1-12/06 12 | | STATEMENT (1000 EUR) | 9 mon. | 9 mon. | mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from operating | | | | | activities | | | | -------------------------------------------------------------------------------- | Cash receipts from | 199,826 | 158,014 | 217,714 | | customers | | | | -------------------------------------------------------------------------------- | Cash receipts from other | 384 | 781 | 1,070 | | operating activities | | | | -------------------------------------------------------------------------------- | Cash paid to suppliers and | -184,796 | -139,527 | -199,711 | | employees | | | | -------------------------------------------------------------------------------- | Cash flows from operations | 15,413 | 19,758 | 19,074 | | before financial income and | | | | | expenses and taxes | | | | -------------------------------------------------------------------------------- | Interest paid | -1,597 | -738 | -2,413 | -------------------------------------------------------------------------------- | Interest received and other | 942 | 332 | 2,086 | | financial income | | | | -------------------------------------------------------------------------------- | Income taxes paid | -6,924 | -7,883 | -8,766 | -------------------------------------------------------------------------------- | Net cash from operating | 7,834 | 11,469 | 9,980 | | activities (A) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing | | | | | activities | | | | -------------------------------------------------------------------------------- | Purchase of tangible and | -6,025 | -6,736 | -9,237 | | intangible assets | | | | -------------------------------------------------------------------------------- | Proceeds | 200 | 342 | 534 | | from sale of tangible and | | | | | intangible assets | | | | -------------------------------------------------------------------------------- | Investments | -1,298 | -10,260 | -9,985 | -------------------------------------------------------------------------------- | Loans granted | -30 | -13 | -12 | -------------------------------------------------------------------------------- | Amortisation of loan | 7 | 12 | 14 | | received | | | | -------------------------------------------------------------------------------- | Dividens received | 1 | 1 | 1 | -------------------------------------------------------------------------------- | Net cash flow from | -8,958 | -16,654 | -18,685 | | investing activities (B) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financing | | | | | activities | | | | -------------------------------------------------------------------------------- | Share issues | 0 | 441 | 441 | -------------------------------------------------------------------------------- | Drawing of credits | 15,555 | 16,877 | 25,393 | -------------------------------------------------------------------------------- | Amortasation of credits | -5,981 | -3,238 | -5,891 | -------------------------------------------------------------------------------- | Dividends paid | -8,046 | -8,033 | -8,068 | -------------------------------------------------------------------------------- | Net cash used in financing | 1,009 | 6,047 | 11,876 | | activities (C) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net increase (+) or | -114 | 862 | 3,171 | | decrease (-) in cash and | | | | | equivalents | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY FINANCIAL | 1-9/07 | 1-9/06 | 1-12/06 12 | | INDICATORS | 9 mon. | 9 mon. | mon. | -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 210,565 | 163,335 | 228,928 | -------------------------------------------------------------------------------- | Operating profit, 1000 EUR | 21,372 | 20,337 | 24,249 | -------------------------------------------------------------------------------- | % of net sales | 10.1 | 12.5 | 10.6 | -------------------------------------------------------------------------------- | Profit before taxes, 1000 | 20,012 | 19,748 | 22,751 | | EUR | | | | -------------------------------------------------------------------------------- | % of net sales | 9.5 | 12.1 | 9.9 | -------------------------------------------------------------------------------- | Net profit for the period, | 14,076 | 13,516 | 15,552 | | 1000 EUR | | | | -------------------------------------------------------------------------------- | % of net sales | 6.7 | 8.3 | 6.8 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 24.9 | 26.7 | 22.8 | -------------------------------------------------------------------------------- | Return on investments | 24.1 | 27.2 | 24.1 | | (ROI), % | | | | -------------------------------------------------------------------------------- | Net liabilities, 1000 EUR | 46,038 | 33,328 | 36,955 | -------------------------------------------------------------------------------- | Gearing, % | 57.8 | 46.8 | 50.9 | -------------------------------------------------------------------------------- | Equity ratio, % | 47.0 | 49.3 | 48.0 | -------------------------------------------------------------------------------- | Current ratio | 2.1 | 2.2 | 1.8 | -------------------------------------------------------------------------------- | Gross capital expenditure, | 6,482 | 15,383 | 20,012 | | 1000 EUR | | | | -------------------------------------------------------------------------------- | % of net sales | 3.1 | 9.4 | 8.7 | -------------------------------------------------------------------------------- | R&D expenditures, 1000 EUR | 3 871 | 3 536 | 4,906 | -------------------------------------------------------------------------------- | % of net sales | 1.8 | 2.2 | 2.1 | -------------------------------------------------------------------------------- | Personnel average | 4,876 | 3,768 | 4,013 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP PER-SHARE KEY FIGURES | 1-9/07 | 1-9/06 | 1-12/06 12 | | | 9 mon. | 9 mon. | mon. | -------------------------------------------------------------------------------- | Earnings per share (EPS), | 0.79 | 0.76 | 0.88 | | EUR | | | | -------------------------------------------------------------------------------- | Earnings per share (EPS), | 0.79 | 0.76 | 0.87 | | diluted, EUR | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 4.43 | 3.96 | 4.04 | -------------------------------------------------------------------------------- | Share price at close of | 10.65 | 10.20 | 12.25 | | period, EUR | | | | -------------------------------------------------------------------------------- | Lowest share price, EUR | 9.17 | 10.02 | 10.02 | -------------------------------------------------------------------------------- | Highest share price, EUR | 12.40 | 14.08 | 14.08 | -------------------------------------------------------------------------------- | Average share price, EUR | 10.69 | 11.84 | 11.69 | -------------------------------------------------------------------------------- | Turnover in shares, 1000 | 13,641 | 8,303 | 11,403 | | shares | | | | -------------------------------------------------------------------------------- | Turnover in shares per | 76.7 | 46.8 | 64.2 | | (share issue adjusted) | | | | | share capital, % | | | | -------------------------------------------------------------------------------- | Average number of shares, | 17,782 | 17,748 | 17,756 | | 1000 shares | | | | -------------------------------------------------------------------------------- | Average number of shares, | 17,768 | 17,770 | 17,774 | | diluted, 1000 shares | | | | -------------------------------------------------------------------------------- | Shares at end of period, | 17,782 | 17,782 | 17,782 | | 1000 shares | | | | -------------------------------------------------------------------------------- | Market capitalisation, 1000 | 189,373 | 181,372 | 217,824 | | EUR | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1. SEGMENT | 7-9/07 | 7-9/06 | 1-9/07 | 1-9/06 | 1-12/06 | | INFORMATION | 3 mon. | 3 mon. | 9 mon. | 9 mon. | 12 mon. | -------------------------------------------------------------------------------- | NET SALES BY BUSINESS | | | | | | | SEGMENTS | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, | 50,225 | 42,128 | 168,168 | 128,503 | 182,161 | | 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Net sales to other | -65 | 34 | -122 | -144 | -155 | | segments, 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, | 50,160 | 42,163 | 168,047 | 128,359 | 182,006 | | total, 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, % | 74.9 | 78.1 | 79.8 | 78.6 | 79.5 | | of net sales | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 17,030 | 12,312 | 43,169 | 35,967 | 48,034 | -------------------------------------------------------------------------------- | Net sales to other | -263 | -481 | -651 | -992 | -1,112 | | segments, 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Electronics, total, | 16,767 | 11,831 | 42,518 | 34,976 | 46,922 | | 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Electronics, % of net | 25.1 | 21.9 | 20.2 | 21.4 | 20.5 | | sales | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group Total | 66,927 | 53,994 | 210,565 | 163,335 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT BY | | | | | | | BUSINESS SEGMENTS | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, | 3,314 | 3,342 | 13,825 | 15,107 | 17,899 | | 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, % | 6.6 | 7.9 | 8.2 | 11.8 | 9.8 | | of net sales | | | | | | -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 4,246 | 1,975 | 7,547 | 5,230 | 6,350 | -------------------------------------------------------------------------------- | Electronics, % of net | 25.3 | 16.0 | 17.8 | 15.0 | 13.5 | | sales | | | | | | -------------------------------------------------------------------------------- | Group Total | 7,560 | 5,316 | 21,372 | 20,337 | 24,249 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY | | | | | | | GEOGRAPHICAL SEGMENTS | | | | | | | (1000 EUR) | | | | | | -------------------------------------------------------------------------------- | Finland | 14,226 | 11,552 | 40,599 | 35,972 | 47,824 | -------------------------------------------------------------------------------- | Other Europe | 31,375 | 26,955 | 110,859 | 91,204 | 128,484 | -------------------------------------------------------------------------------- | North America | 7,257 | 5,758 | 23,661 | 8,928 | 16,534 | -------------------------------------------------------------------------------- | South America | 9,331 | 7,686 | 26,643 | 22,058 | 29,149 | -------------------------------------------------------------------------------- | Other Countries | 4,737 | 2,042 | 8,802 | 5,172 | 6,937 | -------------------------------------------------------------------------------- | Total | 66,927 | 53,994 | 210,565 | 163,335 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. RECONCILIATION OF EQUITY (EUR MILLION) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A = Share Capital | -------------------------------------------------------------------------------- | B = Share premium account | -------------------------------------------------------------------------------- | C = Fair value and other reserves | -------------------------------------------------------------------------------- | D = Retained earnings | -------------------------------------------------------------------------------- | E = Minority interest | -------------------------------------------------------------------------------- | F = Total equity | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | A | B | C | D | E | F | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' | 6.0 | 4.5 | 0.3 | 53.8 | 0.6 | 65.0 | | equity 1.1.2006 | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 0 | 0 | 0 | 13.5 | 0.1 | 13.6 | | period | | | | | | | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.0 | -------------------------------------------------------------------------------- | Share options used | 0 | 0.4 | 0 | 0 | 0 | 0.4 | -------------------------------------------------------------------------------- | Translation | 0 | 0 | 0 | -0.3 | 0 | -0.3 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other changes | 0 | 0 | -0.1 | 0 | 0 | -0.1 | -------------------------------------------------------------------------------- | Shareholders' | 6.0 | 4.9 | 0.2 | 59.0 | 0.7 | 70.7 | | equity 30.9.2006 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' | 6.0 | 4.9 | 0.2 | 60.9 | 0.6 | 72.5 | | equity 1.1.2007 | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 0 | 0 | 0 | 14.2 | 0.2 | 14.4 | | period | | | | | | | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.0 | -------------------------------------------------------------------------------- | Share-based | 0 | 0 | 0 | 0.2 | 0 | 0.2 | | payments | | | | | | | -------------------------------------------------------------------------------- | Translation | 0 | 0 | 0 | 0.5 | 0 | 0.5 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other changes | 0 | 0 | 0.1 | -0.1 | 0 | 0 | -------------------------------------------------------------------------------- | Shareholders' | 6.0 | 4.9 | 0.3 | 67.8 | 0.8 | 79.6 | | equity 30.9.2007 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. GROUP CONTINGENT LIABILITIES | | | | | AT END OF PERIOD (1000 EUR) | | | | -------------------------------------------------------------------------------- | Leasing liabilities | 6,895 | 6,703 | 6,911 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities for derivate | | | | | instruments | | | | -------------------------------------------------------------------------------- | Nominal values | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | -------------------------------------------------------------------------------- | Forward contracts | 5,804 | 6,455 | 5,917 | -------------------------------------------------------------------------------- | Option agreements | | | | -------------------------------------------------------------------------------- | Call | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Put | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total | 5,804 | 6,455 | 5,917 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | -------------------------------------------------------------------------------- | Forward contracts | -83 | -49 | -38 | -------------------------------------------------------------------------------- | Option agreements | | | | -------------------------------------------------------------------------------- | Call | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Put | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total | -83 | -49 | -38 | -------------------------------------------------------------------------------- Currency derivates are used only in hedging currency risks. PKC Group does not apply hedge accounting to derivate instruments in accordance with IAS 39. Fair values of the derivates are entered directly in the income statement. -------------------------------------------------------------------------------- | 4. QUARTERLY KEY | 4-6/06 | 7-9/06 | 10-12/ | 1-3/07 | 4-6/07 | 6-9/07 | | FIGURES,CONSOLIDATED | 3 mon. | 3 mon. | 06 | 3 mon. | 3 mon. | 3 mon. | | | | | 3 mon. | | | | -------------------------------------------------------------------------------- | Net sales, EUR | 54.81 | 53.99 | 65.59 | 69.97 | 73.67 | 66.93 | | MILLION | | | | | | | -------------------------------------------------------------------------------- | Operating profit, | 6.84 | 5.32 | 3.91 | 6.47 | 7.34 | 7.56 | | EUR MILLION | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 12.5 | 9.8 | 6.0 | 9.3 | 10.0 | 11.3 | -------------------------------------------------------------------------------- | Profit before taxes, | 6.20 | 5.17 | 3.00 | 6.09 | 7.14 | 6.77 | | EUR MILLION | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 11.3 | 9.6 | 4.6 | 8.7 | 9.7 | 10.1 | -------------------------------------------------------------------------------- | Equity ratio, % | 56.0 | 49.1 | 48.0 | 44.2 | 45.9 | 47.0 | -------------------------------------------------------------------------------- | Earnings per share | 0.22 | 0.21 | 0.11 | 0.24 | 0.30 | 0.25 | | (EPS), diluted (EUR) | | | | | | | -------------------------------------------------------------------------------- | Shareholders equity | 3.75 | 3.94 | 4.04 | 3.84 | 4.18 | 4.43 | | per share, EUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, WIRING | | | | | | | | HARNESSESS | | | | | | | -------------------------------------------------------------------------------- | Net sales, EUR | 42.78 | 42.16 | 53.65 | 58.12 | 59.77 | 50.16 | | MILLION | | | | | | | -------------------------------------------------------------------------------- | Operating profit, | 5.08 | 3.34 | 2.79 | 4.94 | 5.57 | 3.31 | | EUR MILLION | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 11.8 | 7.9 | 5.2 | 8.5 | 9.3 | 6.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, | | | | | | | | ELECTRONICS | | | | | | | -------------------------------------------------------------------------------- | Net sales, EUR | 12.03 | 11.83 | 11.95 | 11.85 | 13.91 | 16.77 | | MILLION | | | | | | | -------------------------------------------------------------------------------- | Operating profit, | 1.76 | 1.77 | 1.12 | 1.53 | 1.77 | 4.25 | | EUR MILLION | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 14.2 | 16.7 | 9.4 | 12.9 | 12.7 | 25.3 | -------------------------------------------------------------------------------- CALCULATION OF INDICATORS Return on equity (ROE), % = 100 x (Profit before extraordinary items - taxes) / Shareholders' equity + minority interest (average) Return on investments (ROI), % = 100 x (Profit before extraordinary items - interest and other financial expenses) / Balance sheet total - non-interest-bearing liabilities (average) Gearing, % = 100 x (Interest-bearing liabilities - cash in hand and at bank and investments) / Shareholders' equity + minority interest Equity ratio, % = 100 x (Shareholders' equity + minority interest) / Balance sheet total - advance payments received Quick ratio Receivables and cash in hand and at bank / Current liabilities - advance payments received Current ratio Receivables and cash in hand and at bank + inventories / Current liabilities Earnings per share (EPS), EUR Profit before extraordinary items - income taxes +/- minority interest / Average share issue-adjusted number of shares Shareholders' equity per share, EUR Shareholders' equity / Share issue-adjusted number of shares on the balance sheet date Market capitalisation Number of shares at the end of the financial period x the last trading price of the financial period The figures presented in this Interim Report have not been audited. The Interim Report has been prepared according to IFRS standards. All the future estimates and forecasts presented in this stock exchange release are based on the current views of the company's management. Estimates and forecasts involve risks and factors of uncertainty which, should they materialise, can lead to results that differ from present estimates. The main factors of uncertainty are related, among other things, to the general economic situation, the trend in the operating environment and sector as well as the success of the Group's strategy. PKC GROUP OYJ Board of Directors Mika Kari President & CEO For additional information, contact: Mika Kari, President & CEO, PKC Group Oyj, +358 20 1752 350 Sami Klemola, CFO, PKC Group Oyj, +358 20 1752 362 PRESS CONFERENCE A press conference on the Interim Report will be arranged for analysts and investors today, 19 October 2007, at 1.00 pm at the address World Trade Center, Marskin Sali (Marski Hall), 2nd Floor, Aleksanterinkatu 17, Helsinki. DISTRIBUTION Helsinki Stock Exchange Main media www.pkcgroup.com The PKC Group offers design and contract manufacturing services for wiring harnesses, cabling and electronics. The Group has production facilities in Finland, Brazil, China, Mexico, Estonia and Russia, and it employs about 5,100 people. The Group had net sales in 2006 of EUR 229 million. PKC Group Oyj is listed on the Helsinki Stock Exchange.
© 2023 Nasdaq, Inc. All Rights Reserved |