Tulikivi Oyj - Interim report (Q1 and Q3)

Tulikivi Corporation´s interim report 1 January - 31 March 2015

TULIKIVI CORPORATION                         INTERIM REPORT 1-3/2015

                                                                   29 April 
2015, at  12.00 p.m. 



Tulikivi Corporation

Interim report, 1 January - 31 March 2015: Demand exceptionally weak,
additional saving measures launched 

29 April 2015 at 12.00 p.m.



- The Tulikivi Group's first-quarter net sales were EUR 6.2 million (EUR 8.3
million in Q1/2014), the operating result in the first quarter was EUR -2.5
(-1.6) million and the result before taxes EUR -2.7 (-1.8) million. 

 The first-quarter operating result before non-recurring expenses was EUR -2.3
(-1.2) million. 

- Net cash flow from operating activities was EUR -2.2 (-2.4) million in the
reporting period. 

- Order books at the end of the period amounted to EUR 5.5 (6.1) million.

- Future outlook: Due to an uncertain market outlook, the company will not
issue a net sales or profit outlook for the 2015 financial year. 



Summary of the interim report 1-3/2015. The full interim report is attached to
this release. 

Key financial ratios



                                                1-3/     1-3/  Change,     1-12/
                                                2015     2014        %      2014
Sales, MEUR                                      6.2      8.3    -26.0      39.3
Operating profit/loss, MEUR                     -2.5     -1.6    -54.7      -2.4
Operating profit/loss before non-recurring      -2.3     -1.2    -88.4      -1.0
 expenses, MEUR                                                                 
Profit before tax, MEUR                         -2.7     -1.8    -46.3     - 3.3
Total comprehensive income for the period,      -2.6     -1.5    -73.2      -2.6
 MEUR                                                                           
Earnings per share, Euro                       -0.04    -0.03              -0.04
Net cash flow from operating activities,        -2.2     -2.4               -2.1
 MEUR                                                                           
Equity ratio, %                                 36.1     38.9               39.0
Net indebtness ratio, %                        120.7     81.5               89.8
Return on investments, %                       -26.7    -15.6               -5.4



Comments by Heikki Vauhkonen, Managing Director:



Tulikivi Group's net sales in the first quarter were exceptionally low. In
Finland demand for fireplaces and interior stone products was weak as a result
of the low number of construction and renovation projects. After a weak autumn
season in Central Europe, the inventories of our main customers were at a high
level and the number of new deliveries was low in the first quarter. Net sales
in Russia were also low at the start of the year as a result of the sharp drop
in the value of the rouble in December. 

Europe's persistent recession in the construction sector has increased price
competition in the fireplace business. In France, the government relaunched its
programme to support energy-efficient construction, which has increased
consumer interest in our products. The company's flow of orders has improved
from the level in January, but as a whole the market situation still remains
uncertain and so far there are no signs of its improvement. 

Order books at the end of the period amounted to EUR 5.5 (6.1) million.

Due to the weak demand, the company will cut fixed costs by EUR 2.5 million
this year, which is about EUR 2 million more than the previous target.
Furthermore, the company will release working capital by decreasing its
inventory levels. As products were not manufactured for inventories as they had
been in previous years, the lower capacity utilisation of factories also
contributed to lower production profitability in the first quarter. 

Of the new product groups, saunas achieved favourable net sales. The updated
range of ceramic products was also positively received, and as a result
Tulikivi concluded a number of agreements in the home-building industry in the
past months. 



TULIKIVI CORPORATION



Board of Directors



Distribution: NASDAQ OMX Helsinki

Key media

www.tulikivi.com



Additional information: Heikki Vauhkonen, Managing Director, tel. +358 207 636
555 



ATTACHEMENT: Interim Report 1-3/2015

Attachments:

Interim Report 01--03 2015.pdf