2016-05-04 07:15:01 CEST
2016-05-04 07:15:01 CEST
REGULATED INFORMATION
PKC Group Oyj - Interim report (Q1 and Q3)
PKC Group Q1/2016 Interim Statement
PKC Group Plc Interim Statement 4 May 2016 8.15 a.m.
PKC Group Q1/2016 Interim Statement
Good first quarter in Wiring Systems business, Joint venture development for
Electronics business started, Electronics business classified as discontinued
operations and outlook updated accordingly.
Key figures (from continuing operations 1-3/16 1-3/15 Change 1-12/15
unless otherwise noted) %
EUR 1,000 (unless otherwise noted)
Revenue 212,719 205,851 +3.3 847,338
EBITDA* 15,821 13,904 +13.8 59,528
% of revenue 7.4 6.8 7.0
Items affecting comparability - -582 -8,782
Operating profit 7,986 6,161 +29.6 20,230
% of revenue 3.8 3.0 2.4
Earnings per share (EPS), EUR 0.13 0.11 +18.7 0.23
Revenue by geographical locations
Europe 75,859 54,013 +40.4 253,581
North America 120,170 138,159 -13.0 539,078
South America 6,643 12,335 -46.1 35,430
APAC 10,047 1,344 +647.7 19,250
Net cash from operating activities** -33,981 -29,661 14,813
Working capital** 122,436 103,539 92,711
Net debt** 88,743 15,533 49,375
ROCE, % ** 9.7 9.8 9.9
Gearing, %** 56.4 8.8 31.4
Equity ratio, %** 29.7 35.8 29.0
Average headcount 21,294 19,854 +7.2 20,855
* before items affecting comparability
** comparison periods include assets and liabilities of discontinued operations
In accordance with Section 5c of Chapter 2 of the Securities Markets Act, PKC
Group will publish interim statements for the first three and nine months of
the year instead of interim reports. The information presented in this
statement is unaudited.
Matti Hyytiäinen, President & CEO:
PKC’s continuing operations developed favourably in the first quarter of the
year and EBITDA improved by 14% year on year.
Demand for our products varied by market.
-- In Europe, the demand for trucks weakened temporarily in the final quarter
of last year, but began to recover early this year. In the first quarter,
production volumes for trucks were 15% higher than in the comparison
period, but about 6% below the final quarter of 2015.
-- In China, truck production volumes began cautious growth over the
comparison period and the previous quarter.
-- In North America, the situation in the transport sector was weaker than the
general economic situation and, as a result, production volumes for trucks
declined by 12% over the comparison period and fell 10% short of the
production volumes in the final quarter of 2015. The fall in production
mainly concerned heavy-duty trucks.
-- In Brazil, economic and political uncertainty reduced the willingness to
invest and production volumes for trucks continued to fall. The production
of heavy-duty trucks decreased by 40% over the comparison period.
-- Order books of our rolling stock customers were on a good level and demand
for our products increased.
PKC’s continuing operations operating profit developed positively and increased
over the comparison period by 30% and was EUR 8.0 million (EUR 6.2 million).
Operating profit was improved by better productivity in Europe which improved
due to production arrangements as well as increased production in China and in
the rolling stock segment. The Brazilian operating loss decreased slightly. On
the other hand, operating profit in North America declined, owing to weakened
utilisation rates and an unfavourable product mix.
The implementation of PKC’s growth strategy is proceeding. During the period,
we signed an agreement on establishment of a joint venture with a Chinese JAC.
PKC is a reliable partner and we believe that we will be able to continue
strengthening our position in the Chinese truck market and with rolling stock
customers globally.
At the beginning of May, we announced signing an agreement to start
negotiations on creating a joint venture in Electronics business where PKC
would become a minority shareholder. Electronics business classified as a
non-current asset held for sale and reported as discontinued operations as of
Q1 2016 Interim Statement.
PKC employs more than 20,000 professionals representing more than 10
nationalities. We can be proud of PKC’s workforce, which once again has
succeeded excellently in its work with our customers.
Discontinued Operations
In 2015, the discontinued operations (Electronics business) revenue was EUR
61.5 million, net profit was EUR 1.5 million and total assets were EUR 37.7
million. PKC will publish comparison figures related to continued operations
and additional information on discontinued operations in connection with its
Half-Yearly report due August 10, 2016.
Market outlook
In 2016 the production of heavy-duty and medium-duty trucks in Europe is
expected to increase by about 7% and about 5% in China respectively compared to
2015. In 2016 the production of heavy-duty and medium-duty trucks in North
America is expected to decrease by about 17% compared to 2015 and decrease is
expected mainly to take place in heavy-duty trucks. In 2016 the production of
heavy-duty and medium-duty trucks in Brazil is expected to continue to
decrease. The demand for the rolling stock is expected to continue to grow
steadily.
PKC Group’s outlook for 2016
PKC Group estimates that with prevailing exchange rates 2016 revenue from
continuing operations (i.e. excluding Electronics business) will be at or above
previous year level and comparable EBITDA from continuing operations will be
higher than previous year level. In 2015, PKC’s revenue from continuing
operations was EUR 847.3 million and comparable EBITDA from continuing
operations was EUR 59.5 million.
Outlook includes higher than average uncertainty related to the North American
heavy-duty truck production volumes during rest of the year.
Previous outlook:
PKC Group estimates that with prevailing exchange rates 2016 revenue will be at
or above previous year level and comparable EBITDA will be higher than previous
year level. Revenue and comparable EBITDA improvement is to take place in the
second half of the year. In 2015, PKC’s revenue was EUR 908.0 million and
comparable EBITDA before non-recurring items was EUR 63.9 million.
PKC Group Plc
Board of Directors
Matti Hyytiäinen
President & CEO
For additional information, contact:
Matti Hyytiäinen, President & CEO, tel. +358 (0)400 710 968
Press conference
A press conference on the interim statement will be arranged for analysts and
investors today, 4 May 2016, at 10.00 a.m., at the address Event Arena Bank,
Unioninkatu 20, Helsinki.
Attachment
PKC Interim Statement Q1 2016
Distribution
Nasdaq Helsinki
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, rolling stock manufacturers and
other selected segments. The Group has production facilities in Brazil, China,
Estonia, Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the
USA. The Group's revenue from continuing operations in 2015 totalled EUR 847
million. PKC Group Plc is listed on Nasdaq Helsinki.
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