PKC Group Oyj - Interim report (Q1 and Q3)

PKC GROUP’S INTERIM REPORT 1-6/2013:

SOLID PERFORMANCE CONTINUED



PKC Group Plc       INTERIM REPORT          8 August 2013         8.15 a.m.



PKC GROUP'S INTERIM REPORT 1-6/2013:

SOLID PERFORMANCE CONTINUED



APRIL - JUNE 2013 HIGHLIGHTS

  -- Revenue decreased 4.0% on the comparison period (4-6/2012), totalling EUR
     235.1 million (EUR 244.8 million).
  -- EBITDA before non-recurring items was EUR 20.6 million (EUR 22.9 million)
     and 8.8% (9.3%) of revenue.
  -- EBITA** was EUR 16.1 million (EUR 19.2 million) and 6.8% (7.8%) of revenue.
     During the report period PPA depreciation and amortisation totalled EUR 2.8
     million (EUR 4.0 million).
  -- Operating profit before non-recurring items was EUR 13.3 million (EUR 15.2
     million) and 5.6% (6.2%) of revenue.
  -- Diluted earnings per share were EUR 0.28 (EUR 0.46).
  -- Cash flow after investments was EUR 1.1 million (EUR 5.2 million).



JANUARY - JUNE 2013 HIGHLIGHTS

  -- Revenue decreased 5.4% on the comparison period (1-6/2012), totalling EUR
     460.3 million (EUR 486.8 million).
  -- EBITDA before non-recurring items was EUR 39.4 million (EUR 43.2 million)
     and 8.6% (8.9%) of revenue.
  -- EBITA** was EUR 30.3 million (EUR 35.3 million) and 6.6% (7.3%) of revenue.
     During the report period PPA depreciation and amortisation totalled EUR 5.7
     million (EUR 7.1 million).
  -- Operating profit before non-recurring items was EUR 24.6 million (EUR 28.2
     million) and 5.3% (5.8%) of revenue.
  -- Diluted earnings per share were EUR 0.42 (EUR 0.78).
  -- Cash flow after investments was EUR 1.3 million (EUR 28.3 million).



REVENUE AND OPERATING PROFIT ESTIMATES FOR 2013

  -- PKC Group's outlook: PKC Group estimates its full year 2013 revenue to be
     lower than in 2012 and estimates its comparable operating profit excluding
     non-recurring items not to reach 2012 level. In 2012 PKC's revenue was EUR
     928.2 million and comparable operating profit excluding non-recurring items
     was EUR 51.5 million.





KEY FIGURES           4-6/13   4-6/12  Change   1-6/13   1-6/12  Change  1-12/12
                                            %                         %         
EUR 1,000                                                                       
(unless otherwise noted)                                                        
Revenue              235,099  244,804    -4.0  460,261  486,771    -5.4  928,178
EBITDA*               20,597   22,883   -10.0   39,365   43,238    -9.0   82,954
% of revenue             8.8      9.3              8.6      8.9              8.9
EBITA**               16,068   19,162   -16.1   30,302   35,314   -14.2   65,358
% of revenue             6.8      7.8              6.6      7.3              7.0
Operating profit*     13,261   15,195   -12.7   24,576   28,191   -12.8   51,478
% of revenue             5.6      6.2              5.3      5.8              5.5
Non-recurring items    1,265    1,018    24.3    6,654    1,279   420.3    8,027
Operating profit      11,996   14,177   -15.4   17,923   26,912   -33.4   43,451
% of revenue             5.1      5.8              3.9      5.5              4.7
Profit before taxes    9,368   13,991   -33.0   14,078   24,464   -42.5   34,946
Net profit for the     6,042    9,731   -37.9    9,151   16,626   -45.0   23,999
 report period                                                                  
Earnings per share      0.28     0.46   -39.1     0.42     0.78   -46.2     1.12
 (EPS), EUR                                                                     
Cash flow after        1,109    5,206   -78.7    1,313   28,305   -95.4   63,673
 investments                                                                    
ROI,%                                             18.0     23.0             16.7
Gearing, %                                        45.2     57.9             34.4
Average number of     19,553   20,998    -6.9   19,544   21,478    -9.0   20,590
 personnel                                                                      
* before non-recurring items                                                    
** operating profit before PPA depreciation and amortisation and non-recurring  
 items                                                                          



MATTI HYYTIÄINEN, PRESIDENT & CEO:



“PKC's business continued to develop steadily during the second quarter.
Revenue increased by 4% and operating profit before non-recurring items
improved by 17% on the previous quarter to EUR 13.3 million. Operating profit
before non-recurring items increased in both segments, although the losses at
the Brazilian unit continued to burden the profitability of Wiring Systems
business. Truck production volumes in the second quarter grew substantially in North
America and Brazil in comparison to the previous quarter. Although growth in
North America was significant, the actual production volumes fell short of the
comparison period of the previous year. The production volumes achieved in
Europe were slightly higher than in the previous quarter, but they still fell
short of the comparison period of last year. Some signs of recovery in the
truck business are evident in Europe, which is why the production volume
forecasts for the entire year have been revised upwards. It must be remembered,
however, that the entire year's production of heavy- and medium-duty trucks in
Europe and, in North America, of heavy-duty trucks is expected to fall short of
last year's level. In Brazil, production volumes are forecasted to remain at
the current level until the end of the year. 



Marketing work in Wiring Systems continued actively, and during the period we
organised several PKC Technology Days for existing and new customers.
Relocations of production in Wiring Systems were implemented, and shutdowns of
the Ukrainian and Irish factories continued as planned. Russian production in
the Electronics business was terminated and relocated to China. 



During the period, at an international exhibition in Shanghai the Electronics
business unveiled the first testers from the new Chameleon product family,
which are designed for the testing of mobile devices and other electronic
equipment that uses touch-screen technology. This cost-effective and smart
solution has aroused the interest of customers. 



Our customers have been satisfied with PKC's high-quality operations, which is
why I would like to thank our personnel, who have done excellent work for our
customers. 



We shall actively continue with PKC's long-term development, making every
effort to take corrective actions where needed and to utilise the market's
growth potential to the full.” 



MARKET OUTLOOK



European heavy and medium truck production in 2013 is estimated to decrease by
about 6% compared to 2012. The overall economic uncertainty is estimated to
keep the commercial vehicle demand in Europe at a lower level. However, the
production volumes are estimated to increase due to transition to Euro 6
emission standard in the last quarter. 



North American heavy duty truck production is estimated to decrease by 6%,
medium duty truck production to increase 7% and light vehicle production to
increase by 5% from 2012 level. It is estimated that the production volumes of
heavy trucks will increase gradually throughout the second half of the year. 



Brazilian heavy duty truck production is estimated to increase by 21% and
medium duty truck production by 54% compared to 2012. The governmental
incentive program to support the purchase of new trucks is currently valid
until the end of 2013. 



PKC's market outlook is further impacted by some light vehicle and component
programs that are near end-of-life-cycle and will be ramped-down in 2013. 



The demand of industrial electronic appliances is estimated to remain at the
previous level. Volumes of renewable-energy and energy saving products
including smart grid solutions are likely to increase. Also the demand in
telecommunications sector is expected to increase slightly. 



PKC GROUP'S OUTLOOK



PKC Group estimates its full year 2013 revenue to be lower than in 2012 and
estimates its comparable operating profit excluding non-recurring items not to
reach 2012 level. In 2012 PKC's revenue was EUR 928.2 million and comparable
operating profit excluding non-recurring items was EUR 51.5 million. 



DISCLOSING PROCEDURES OF FINANCIAL REVIEWS



PKC Group Plc follows the disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority, and discloses
relevant information related to its Interim Report with this release. PKC's
Interim Report for January-June 2013 is attached to this release and is also
available on company's website at www.pkcgroup.com. 



PKC GROUP PLC

Board of Directors



Matti Hyytiäinen

President & CEO



For additional information, contact:

Matti Hyytiäinen, President & CEO, PKC Group Plc, +358 400 710 968



PRESS CONFERENCE



A press conference on the interim report will be arranged for analysts and
investors today, 8 August 2013, at 10.00 a.m., at the address Event Arena Bank,
Unioninkatu 20, Helsinki. 



ATTACHMENT

PKC Interim Report Q2 2013



DISTRIBUTION



NASDAQ OMX

Main media

www.pkcgroup.com



PKC Group is a global partner, designing, manufacturing and integrating
electrical distribution systems, electronics and related architecture
components for the commercial vehicle industry and other selected segments. The
Group has production facilities in Brazil, China, Estonia, Finland, Germany,
Mexico, Poland, Russia, Ukraine and the USA. The Group's revenue in 2012
totalled EUR 928.2 million. PKC Group Plc is listed on NASDAQ OMX Helsinki Ltd.

Attachments:

PKC interim report Q2 2013.pdf