2012-10-23 08:00:03 CEST
2012-10-23 08:00:11 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
PONSSE'S INTERIM REPORT FOR 1 JANUARY – 30 SEPTEMBER 2012
Vieremä, Finland, 2012-10-23 08:00 CEST (GLOBE NEWSWIRE) --
PONSSE PLC STOCK EXCHANGE RELEASE 23 OCTOBER 2012 AT 9:00 A.M.
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2012
- Net sales amounted to EUR 217.7 (Q1-Q3/2011 225.5) million.
- Q3 net sales were EUR 66.6 (Q3/2011 72.3) million.
- Operating result totalled EUR 15.7 (Q1-Q3/2011 18.6)) million, equalling 7.2
(8.2) per cent of net sales.
- Q3 operating result was EUR 5.0 (Q3/2011 8.2) million, equalling 7,5 (11.4)
per cent of net sales.
- Profit before taxes was EUR 13.9 (Q1-Q3/2011 14.1) million.
- Cash flow from business operations was EUR -0.2 (9.3) million.
- Earnings per share were EUR 0.29 (0.22).
- Equity ratio was 40.3 (41.1) per cent.
- Order books stood at EUR 62.5 (110.8) million.
- Group's euro-denominated operating profit for the year 2012 is expected to
remain smaller than in 2011. The earlier profitability management for 2012
expected the Group's euro-denominated operating profit to remain at the same
level as in 2011.
PRESIDENT AND CEO JUHO NUMMELA:
The economic uncertainty affected the demand for forest machines during the
past period. The active trade fair season momentarily improved the situation
and enabled maintaining normal order books. At period end, the company's order
books amounted to EUR 62.5 (110.8) million, which was 43.6 per cent less than
in the exceptionally good comparison period. Forest machines continued to be
manufactured in two shifts according to normal plan.
Net sales of the past quarter were EUR 66.6 (72.3) million, representing a
change of -7.9 per cent compared with the comparison period. Service business
has slightly decreased. Net sales of the period under review were EUR 217.7
million, which is 3.5 per cent smaller than in the comparison period. Despite
the challenging market situation, net sales have remained at a planned level.
The operating result amounted to EUR 5.0 (8.2) million during the third
quarter, equalling 7.5 (11.4) per cent of net sales. The operating result for
the period under review amounted to EUR 15.7 (18.6) million.
Cash flow from business operations amounted to EUR -0.2 (9.3) million during
the period under review. The stock of new products consisted of machines on
their way to customers and was at a normal level. The stock of trade-in
machines was at a higher level than planned.
The investments in the Iisalmi logistics centre and the service centres in
Pitkäranta, Russia, and Jyväskylä, Finland, are progressing as planned.
NET SALES
Consolidated net sales for the period under review amounted to EUR 217.7
(225.5) million, i.e. 3.5 per cent less than in the comparison period.
International business operations accounted for 66.5 (67.9) per cent of total
net sales.
Net sales were regionally distributed as follows: Northern Europe 54.5 (51.1)
per cent, Central and Southern Europe 17.9 (19.2) per cent, Russia and Asia
13.5 (14.6) per cent, North and South America 14.0 (15.1) per cent and other
countries 0.0 (0.0) per cent.
PROFIT PERFORMANCE
The operating result was EUR 15.7 (18.6) million. The operating result of the
comparison period includes a non-recurring cost item of EUR 2.6 million. The
operating result percentage equals 7.2 (8.2) per cent of net sales in the
period under review. Consolidated return on capital employed (ROCE) stood at
16.3 (18.0) per cent.
Staff costs for the period under review totalled EUR 37.0 (35.9) million. Other
operating expenses were EUR 22.6 (25.2) million. The net total of financial
income and expenses was EUR -1.8 (-4.3) million. Exchange rate gains and losses
due to currency rate fluctuations were recognised under financial items, and
their net impact during the period under review totalled EUR -0.6 (-3.2)
million. Profit for the period totalled EUR 9.3 (7.3) million. Diluted and
undiluted earnings per share (EPS) were EUR 0.29 (0.22). The interest on the
subordinated loan for the period, less tax, has been taken into account in the
calculation of EPS.
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total of consolidated statements of
financial position amounted to EUR 191.7 (177.0) million. Inventories stood at
EUR 97.9 (88.3) million. Trade receivables totalled EUR 24.5 (32.6) million,
while liquid assets stood at EUR 10.9 (8.5) million. Group shareholders' equity
stood at EUR 76.1 (71.8) million and parent company shareholders' equity at EUR
76.4 (65.4) million. Group shareholders' equity includes a hybrid loan of EUR
19 million issued on 31 March 2009. The interest paid on the hybrid loan (EUR
8.0 million) and the allocated interest for the following year according to the
dividend distribution decision (EUR 1.1 million), totalling EUR 9.1 million,
less tax, are recognised as a deduction from Group equity. The amount of
interest-bearing liabilities was EUR 57.1 (45.9) million. The company has used
48 per cent of its credit facility limit. The parent company's net receivables
from other Group companies stood at EUR 80.1 (72.0) million. The parent
company's receivables from subsidiaries mainly consisted of trade receivables.
Consolidated net liabilities totalled EUR 46.1 (37.4) million, and the
debt-equity ratio (gearing) was 74.9 (63.8) per cent. The equity ratio stood at
40.3 (41.1) per cent at the end of the period under review.
Cash flow from business operations amounted to EUR -0.2 (9.3) million. Cash
flow from investment activities amounted to EUR -10.6 (-5.5) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period under review totalled EUR 209.4 (269.8) million,
while the period-end order books stood at EUR 62.5 (110.8) million.
DISTRIBUTION NETWORK
No changes took place in the Group structure during the period under review.
The subsidiaries included in the Ponsse Group are: Epec Oy, Finland; OOO
Ponsse, Russia; Ponsse AB, Sweden; Ponsse AS, Norway; Ponsse Asia-Pacific Ltd,
Hong Kong; Ponsse China Ltd, China; Ponsse Latin America Ltda, Brazil; Ponsse
North America, Inc., United States; Ponssé S.A.S., France; Ponsse UK Ltd,
United Kingdom; and Ponsse Uruguay S.A., Uruguay. Sunit Oy, based in Kajaani,
Finland, is an affiliated company in which Ponsse Plc has a holding of 34 per
cent.
CAPITAL EXPENDITURE AND R&D
During the period under review, the Group's R&D expenses totalled EUR 6.8 (6.3)
million, of which EUR 2.0 (1.8) million was capitalised.
Capital expenditure totalled EUR 10.6 (5.5) million. It consisted in addition
to capitalised R&D expenses of ordinary maintenance and replacement investments
of machinery and equipment and investments in buildings.
MANAGEMENT
The following persons were members of the Management Team: Juho Nummela,
President and CEO, acting as the chairman; Pasi Arajärvi, Purchasing and
Logistics Director; Juha Haverinen, Factory Director; Petri Härkönen, CFO; Juha
Inberg, Technology and R&D Director; Timo Karppinen, Executive Director,
Corporate Development and Strategy; Tapio Mertanen, Service Director; Paula
Oksman, HR Director and Jarmo Vidgrén, Deputy CEO, Sales and Marketing
Director. The company management has regular management liability insurance.
The area director organisation of sales is lead by Jarmo Vidgrén, Group's Sales
and Marketing Director and Tapio Mertanen, Service Director. The geographical
distribution and the responsible persons are presented below:
Northern Europe: Jarmo Vidgrén (Finland), Eero Lukkarinen (Sweden, Denmark) and
Sigurd Skotte (Norway),
Central and Southern Europe: Janne Vidgrén (Austria, Poland, Romania, Germany,
the Czech Republic and Hungary), Clément Puybaret (France), Jussi Hentunen
(Spain, Italy, Portugal and Norrbotten/Sweden) and Gary Glendinning (the United
Kingdom),
Russia and Asia: Jaakko Laurila (Russia, Belarus), Norbert Schalkx (Japan and
the Baltic countries) and Risto Kääriäinen (China),
North and South America: Pekka Ruuskanen (the United States) Marko Mattila
(North American dealers), Teemu Raitis (Brazil) and Martin Toledo (Uruguay).
PERSONNEL
The Group had an average staff of 996 (938) during the period under review and
employed 989 (974) people at the end of the period under review.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 30 September 2012 totalled
982,569 shares, accounting for 3.5 per cent of the total number of shares.
Share net sales came to EUR 7.4 million, with the period's lowest and highest
share prices amounting to EUR 6.11 and EUR 8.55, respectively.
At the end of the period under review, the share price stood at EUR 6.71 and
market capitalisation was EUR 187.9 million.
At the end of the period under review, the company held 212,900 treasury shares.
ANNUAL GENERAL MEETING
A separate release was issued on 17 April 2012 regarding the authorisations
given to the Board of Directors and other resolutions by the AGM.
GOVERNANCE
In its decision-making and administration, the company observes the Finnish
Limited Liability Companies Act, other regulations governing publicly listed
companies and the company's Articles of Association. The company's Board of
Directors has adopted the Code of Governance that complies with the Finnish
Corporate Governance Code approved by the Board of the Securities Market
Association in 2010. The purpose of the code is to ensure that the company is
professionally managed and that its business principles and practices are of a
high ethical and professional standard.
The Code of Governance is available on Ponsse's website in the Investors
section.
RISK MANAGEMENT
Risk management is based on the company's values, as well as strategic and
financial objectives. Risk management aims to support the achievement of the
objectives specified in the company's strategy, as well as to ensure the
financial development of the company and the continuity of its business.
Furthermore, risk management aims to identify, assess and monitor
business-related risks which may influence the achievement of the company's
strategic and financial goals or the continuity of its business. Decisions on
the necessary measures to anticipate risks and react to observed risks are made
on the basis of this information.
Risk management is a part of regular daily business, and it is also included in
the management system. Risk management is controlled by the risk management
policy approved by the Board.
A risk is any event that may prevent the company from reaching its objectives
or that threatens the continuity of business. On the other hand, a risk may
also be a positive event, in which case the risk is treated as an opportunity.
Each risk is assessed on the basis of its impact and probability. Methods of
risk management include avoiding, mitigating and transferring risks. Risks can
also be managed by controlling and minimising their impact.
SHORT-TERM RISKS AND THEIR MANAGEMENT
The rapid escalation of the problems in the economies of Europe and the United
States in the financial market may have an impact on the availability of
customer financing.
The parent company monitors the changes in the Group's internal and external
trade receivables and the associated risk of impairment.
The key objective of the company's financial risk management policy is to
manage liquidity, interest and currency risks. The company ensures its
liquidity through credit limit facilities agreed with a number of financial
institutions. The effect of adverse changes in interest rates is minimised by
utilising credit linked to different reference rates and by concluding interest
rate swaps. The effects of currency rate fluctuations are mitigated through
derivative contracts.
Changes taking place in the fiscal and customs legislation in countries to
which Ponsse exports may hamper the company's export trade or its
profitability.
EVENTS AFTER THE PERIOD
Timo Karppinen (M.Sc. Economics) Ponsse Plc's Executive Director, Corporate
Development and Strategy and member of the Management Team at Ponsse Plc since
the beginning of 2011 will join a new employer as of 30 November 2012. The
areas of responsibility of Timo Karppinen will be shared between President and
CEO Juho Nummela, Sales and Marketing Director Jarmo Vidgrén and CFO Petri
Härkönen. A separate release was issued on 9 October 2012.
OUTLOOK FOR THE FUTURE
Group's euro-denominated operating profit for the year 2012 is expected to
remain smaller than in 2011.
The earlier profitability management for 2012 expected the Group's
euro-denominated operating profit to remain at the same level as in 2011.
The prolongation of the global financial uncertainty and weak world economy has
resulted in a decline in the demand for forest machines.
It has become increasingly difficult to forecast the near-term outlook.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
IFRS IFRS
1-9/12 1-9/11
NET SALES 217,656 225,484
Increase (+)/decrease (-) in inventories of finished goods 9,015 9,918
and work in progress
Other operating income 662 812
Raw materials and services -147,828 -152,738
Expenditure on employment-related benefits -36,959 -35,870
Depreciation and amortisation -4,186 -3,799
Other operating expenses -22,631 -25,206
OPERATING RESULT 15,729 18,600
Share of results of associated companies -5 -185
Financial income and expenses -1,842 -4,273
RESULT BEFORE TAXES 13,883 14,142
Income taxes -4,578 -6,860
NET RESULT FOR THE PERIOD 9,304 7,282
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units -297 -157
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 9,007 7,125
Diluted and undiluted earnings per share * 0.29 0.22
IFRS IFRS
7-9/12 7-9/11
NET SALES 66,566 72,278
Increase (+)/decrease (-) in inventories of finished goods and 488 2,975
work in progress
Other operating income 343 375
Raw materials and services -43,385 -48,842
Expenditure on employment-related benefits -10,271 -10,499
Depreciation and amortisation -1,426 -1,246
Other operating expenses -7,294 -6,818
OPERATING RESULT 5,021 8,222
Share of results of associated companies 48 -42
Financial income and expenses -456 -1,003
RESULT BEFORE TAXES 4,613 7,177
Income taxes -1,680 -2,526
NET RESULT FOR THE PERIOD 2,933 4,651
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units 17 -493
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 2,950 4,158
Diluted and undiluted earnings per share * 0.09 0.15
* The interest on the subordinated loan for the period, less tax, was taken
into account in this figure.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
IFRS IFRS
ASSETS 30.9.12 31.12.11
NON-CURRENT ASSETS
Intangible assets 10,884 9,057
Goodwill 3,440 3,440
Property, plant and equipment 30,761 26,165
Financial assets 111 111
Investments in associated companies 1,170 1,294
Non-current receivables 1,285 1,535
Deferred tax assets 2,443 2,826
TOTAL NON-CURRENT ASSETS 50,094 44,428
CURRENT ASSETS
Inventories 97,917 80,475
Trade receivables 24,545 28,258
Income tax receivables 1,325 4
Other current receivables 6,899 4,499
Cash and cash equivalents 10,912 16,267
TOTAL CURRENT ASSETS 141,598 129,504
TOTAL ASSETS 191,692 173,932
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000
Other reserves 19,030 19,030
Translation differences -2,272 -1,975
Treasury shares -2,228 -2,228
Retained earnings 54,594 56,736
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 76,124 78,563
NON-CURRENT LIABILITIES
Interest-bearing liabilities 28,770 18,630
Deferred tax liabilities 619 1,110
Other non-current liabilities 20 20
TOTAL NON-CURRENT LIABILITIES 29,409 19,760
CURRENT LIABILITIES
Interest-bearing liabilities 28,283 20,434
Provisions 5,165 4,627
Tax liabilities for the period 609 3,527
Trade creditors and other current liabilities 52,101 47,022
TOTAL CURRENT LIABILITIES 86,159 75,609
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 191,692 173,932
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS
1-9/12 1-9/11
CASH FLOW FROM BUSINESS OPERATIONS:
Net result for the period 9,304 7,282
Adjustments:
Financial income and expenses 1,842 4,273
Share of the result of associated companies 5 185
Depreciation and amortisation 4,186 3,799
Income taxes 4,538 7,298
Other adjustments -390 410
Cash flow before changes in working capital 19,484 23,247
Change in working capital:
Change in trade receivables and other receivables 1,891 389
Change in inventories -17,442 -15,906
Change in trade creditors and other liabilities 5,436 7,328
Change in provisions for liabilities and charges 538 136
Interest received 117 134
Interest paid -661 -853
Other financial items -964 87
Income taxes paid -8,619 -5,294
NET CASH FLOW FROM BUSINESS OPERATIONS (A) -219 9,268
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets -10,608 -5,521
CASH OUTFLOW FROM INVESTMENT ACTIVITIES (B) -10,608 -5,521
FINANCING
Acquisition of treasury shares 0 0
Interest paid, hybrid loan -2,280 -2,280
Withdrawal/Repayment of current loans 13,414 -463
Change in current interest-bearing receivables 80 78
Withdrawal/Repayment of non-current loans 4,414 9,873
Payment of finance lease liabilities -401 -403
Change in non-current receivables 94 150
Dividends paid -9,725 -9,725
NET CASH OUTFLOW FROM FINANCING (C) 5,596 -2,770
Change in cash and cash equivalents (A+B+C) -5,231 977
Cash and cash equivalents on 1 January 16,267 11,036
Impact of exchange rate changes -125 -3,521
Cash and cash equivalents on 30 September 10,912 8,492
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
A = Share capital
B = Share premium and other reserves
C = Translation differences
D = Treasury shares
E = Retained earnings
F = Total shareholders' equity
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS
A B C D E F
SHAREHOLDERS' EQUITY 1 JAN 2012 7,000 19,030 -1,975 -2,228 56,736 78,563
Translation differences -297 -297
Result for the period 9,304 9,304
Total comprehensive income for -297 9,304 9,007
the period
Direct entries to retained -1,721 -1,721
earnings *
Dividend distribution -9,725 -9,725
Purchase of treasury shares 0
Other changes 0
SHAREHOLDERS' EQUITY 30 SEP 2012 7,000 19,030 -2,272 -2,228 54,594 76,124
SHAREHOLDERS' EQUITY 1 JAN 2011 7,000 19,030 -1,032 -2,228 53,356 76,126
Translation differences -157 -157
Result for the period 7,282 7,282
Total comprehensive income for -157 7,282 7,125
the period
Direct entries to retained -1,687 -1,687
earnings *
Dividend distribution -9,725 -9,725
Purchase of treasury shares 0
Other changes 0
SHAREHOLDERS' EQUITY 30 SEP 2011 7,000 19,030 -1,189 -2,228 49,226 71,839
* Consists of the interest paid for the hybrid loan classified as equity.
30.9.12 30.9.11 31.12.11
1. LEASING COMMITMENTS (EUR 1,000) 3,065 4,323 4,085
2. CONTINGENT LIABILITIES (EUR 1,000) 30.9.12 30.9.11 31.12.11
Guarantees given on behalf of others 668 857 859
Repurchase commitments 1,506 1,841 1,765
Other commitments 3,682 4,249 3,391
TOTAL 6,036 6,947 6,014
3. PROVISIONS (EUR 1,000) Guarantee provision
1 JAN 2012 4,627
Provisions added 922
Provisions cancelled -383
30 SEP 2012 5,165
KEY FIGURES AND RATIOS 30.9.12 30.9.11 31.12.11
R&D expenditure, MEUR 6.8 6.3 8.8
Capital expenditure, MEUR 10.6 5.5 9.4
as % of net sales 4.9 2.4 2.9
Average number of employees 996 938 948
Order books, MEUR 62.5 110.8 71.9
Equity ratio, % 40.3 41.1 45.2
Diluted and undiluted earnings per share (EUR) 0.29 0.22 0.47
Equity per share (EUR) 2.72 2.57 2.81
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before tax + financial expenses
--------------------------------------------------------------------------------
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Shareholder´s equity + interest-bearing financial liabilities (average during
the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month. The calculation
has been adjusted for part-time employees.
Gearing, %:
Interest-bearing financial liabilities
-----------------------------------------------
Shareholders' equity * 100
Equity ratio, %:
Shareholders' equity + Non-controlling interests
--------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Net income for the period - Non-controlling interests - Interest on hybrid loan
for the period less tax
--------------------------------------------------------------------------------
---------------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders' equity
--------------------------------------------------------------------------------
---------------
Number of shares on the balance sheet date, adjusted for share issues
ORDER INTAKE, MEUR 1-9/12 1-9/11 1-12/11
Ponsse Group 209.4 268.8 332.6
The interim report has been prepared observing the recognition and valuation
principles of IFRS standards, but not all of the requirements of IAS 34 have
been complied with. The same accounting principles were observed for the
interim report as for the annual financial statements dated 31 December 2011.
The above figures have not been audited.
The above figures have been rounded and may therefore differ from those given
in the official financial statements.
This communication includes future-oriented statements that are based on the
assumptions currently made by the company's management and its current
decisions and plans. Although the management believes that the future
expectations are well founded, there is no certainty that these expectations
will prove to be correct. This is why the results may significantly deviate
from the assumptions included in the future-oriented statements as a result of,
among other things, changes in the economy, markets, competitive conditions,
legislation or currency exchange rates.
Vieremä, 23 October 2012
PONSSE PLC
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 20 768 8914 or +358 400 495 690
Petri Härkönen, CFO, tel. +358 20 768 8608 or +358 50 409 8362
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com
Ponsse Plc is a company specialising in the sales, manufacture, servicing and
technology of cut-to-length method forest machines and is driven by genuine
interest in its customers and their business. Ponsse develops and manufactures
sustainable and innovative harvesting solutions based on customers' needs.
The company was established by forest machine entrepreneur Einari Vidgrén in
1970, and it has been a leader in timber harvesting solutions based on the
cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland.
The company's shares are quoted on the NASDAQ OMX Nordic List.
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