Tulikivi Oyj - Interim report (Q1 and Q3)

Tulikivi Corporation´s interim report January - June 2015

TULIKIVI CORPORATION                         INTERIM REPORT 1-6/2015

                                                                   7 August
2015, at 12.00 noon 



Tulikivi Corporation

Interim report January-June 2015: Net sales still low, performance improvements
making progress 

7 August 2015 at 12.00  noon



- The Tulikivi Group's second-quarter net sales were EUR 8.5 million (Q2/2014:
EUR 10.6 million), the operating result was EUR -0.8 (-0.8) million and the
result before taxes was EUR -0.9 (-1.0) million. The second-quarter operating
result before non-recurring expenses was EUR -0.4 (-0.3) million. 

- The Group's net sales in the reporting period 1 January - 30 June 2015 were
EUR 14.7 million (1 January - 30 June 2014: EUR 18.9 million), the operating
result was EUR -3.3 (-2.4) million and the result before taxes was EUR -3.6
(-2.8) million. The operating result before non-recurring expenses was EUR -2.7
(-1.5) million in the reporting period. 

- Net cash flow from operating activities in the second quarter was EUR 1.2
(-1.1) million and EUR -1.0 (-3.5) million in the review period. 

- Order books at the end of the period amounted to EUR 4.4 (4.9) 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 1-6/2015. The full interim report is attached to
this release. 

Key financial ratios

                     1-6/   1-6/  Change,  1-12/   4-6/   4-6/  Change,
                     2015   2014        %   2014   2015   2014        %
Sales, MEUR          14.7   18.9    -22.3   39.3    8.5   10.6    -19.4
Operating profit/    -3.3   -2.4    -35.0   -2.4   -0.8   -0.8      5.7
loss, MEUR                                                             
Operating result     -2.7   -1.5    -75.0   -1.0   -0.4   -0.3    -18.6
before non-                                                            
recurring                                                              
expenses, MEUR                                                         
Profit before tax,   -3.6   -2.8    -28.1   -3.3   -0.9   -1.0      6.2
MEUR                                                                   
Total                -3.6   -2.3    -52.8   -2.6   -0.9   -0.8    -14.5
comprehensive                                                          
income for the                                                         
period, MEUR                                                           
Earnings per        -0.06  -0.04           -0.04  -0.02  -0.01         
share,  Euro                                                           
Net cash flow        -1.0   -3.5            -2.1    1.2   -1.1         
from operating                                                         
activities, MEUR                                                       
Equity ratio, %      34.8   38.3            39.0                       
Net indebtness      121.2   92.9            89.8                       
ratio,  %                                                              
Return on           -17.5  -11.6            -5.4   -2.0   -1.9         
investments, %                                                         

Comments by Heikki Vauhkonen, Managing Director:

Tulikivi Corporation's net sales in the second quarter were low. Demand for
fireplaces was weak in Finland as a result of the reduced level of low-rise
housing construction, low heating energy prices and low consumer confidence in
purchasing decisions. 

The winter season was weak in Central Europe and there were few new deliveries
in the second quarter. Net sales in Russia were also lower than in 2014 because
of the more challenging market resulting from increased economic uncertainty. 

In the second quarter the company's flow of orders was EUR 8.4 (8.7) million,
but as a whole the market situation still remains uncertain and so far there
are no signs of its improvement. 

Tulikivi's order books at the end of the reporting period amounted to EUR 4.4
(4.9) million. 

Due to decreased net sales, the company will continue to boost the efficiency
of its operations and is aiming for savings of EUR 2.5 million in fixed costs
in 2015. Furthermore, the company aims to release working capital by decreasing
its inventory levels by EUR 2.5 million. As products were not manufactured for
inventories as they had been in previous years, the lowered capacity
utilisation of factories also contributed to lower production profitability in
the first half of the year. 

Thanks to the adjustment measures implemented, the company's profitability in
the second quarter remained on the 2014 level and cash flow from operating
activities was EUR 1.2 million. 

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 1-6/2015

Attachments:

Interim Report 01-06 2015.pdf