2009-02-12 07:15:00 CET
2009-02-12 07:15:07 CET
REGULATED INFORMATION
PKC Group Oyj - Financial Statement Release
THE PKC GROUP'S FINANCIAL STATEMENTS BULLETIN, 1 JANUARY - 31 DECEMBER 2008
PKC Group Oyj FINANCIAL STATEMENTS BULLETIN, 12 FEBRUARY 2009 8:15 a.m. THE PKC GROUP'S FINANCIAL STATEMENTS BULLETIN, 1 JANUARY - 31 DECEMBER 2008 Consolidated net sales grew 8% over the previous year, totalling EUR 311.7 million (288.6 million). Operating profit was EUR 21.0 million (28.2 million) and profit before taxes EUR 15.2 million (25.6 million). Diluted earnings per share were EUR 0.31 (0.98). A dividend of EUR 0.15 per share will be proposed. HARRI SUUTARI, PRESIDENT AND CEO: The impact of the decrease of orders for commercial vehicles started to show in the last quarter of 2008. Our main customers' order backlogs shrank considerably, due to the financial crisis and the downturn in the global economy. We started rationalisation measures in our units in the second quarter. We decreased fixed costs by reducing management and administration expenses and cutting the number of personnel. We also decided to close the wiring harness factories in Pskov, Russia, and Suzhou, China. The full-year result is burdened by expenses of EUR 9,1 million resulting from rationalisation measures and goodwill write-downs. Measures to improve efficiency will be continued during the current year. We acquired commercial vehicles manufacturer MAN's cable harness production in Poland at the end of the year. At the same time, we signed a long-term supplier agreement with MAN Nutzfahrzeuge AG. This customer relationship will bring a significant addition to our business operations, with the new factory improving our chances of acquiring new clients in Europe. Growth in demand for electronics design and manufacturing services levelled off, but remained high throughout the year. The most significant event of 2008 was the successful start-up of our electronics factory in China. OPERATING ENVIRONMENT AND DELIVERIES The demand for commercial vehicles decreased significantly during 2008, continuing its decline towards the end of the year. Our main customers' order backlogs also shrank due to the financial crisis and the downturn in the global economy. The most significant event of the year was the acquisition of MAN Nutzfahrzeuge AG's wiring harness business. Growth in demand for electronics design and manufacturing services levelled off, but remained high throughout the year. In the electronics business the most significant event of the year was the successful start-up of the factory in China. ACQUISITION OF CABLE HARNESS BUSINESS IN POLAND The PKC Group acquired the cable harness business of MAN Nutzfahrzeuge AG from MAN Star Trucks & Buses Sp. z o.o. located in Starachowice in Poland. The acquisition price was about EUR 21,6 million, of which EUR 5.5 million was recorded as goodwill. PKC's Polish subsidiary, PKC Group Poland Sp. z o.o., will be responsible for the cable harness business operations. The business currently employs about 800 people and its net sales in 2008 amounted to about EUR 66 million. This business has been included in the PKC Group's consolidated financial statements as of 31 December 2008. The acquisition brought a significant addition to PKC's customer base as the German MAN Group became a customer of PKC on the basis of a long-term supplier agreement signed at the same time. NET SALES AND FINANCIAL PERFORMANCE October-December 2008 Consolidated net sales in October-December amounted to EUR 64.7 million (78.1 million), down 17.2% from the same period a year earlier. Consolidated operating profit totalled EUR 3.9 million negative (6.8 million positive), accounting for -6.1% of net sales (+8.7%). Depreciations amounted to EUR 3.3 million (2.0 million). Financial income and expenses were EUR 3.5 million negative (1.2 million negative). Profit before taxes was EUR 7.4 million negative (5.6 million positive). Profit for the report period totalled EUR 9.5 million negative (3.3 million positive). Diluted earnings per share were EUR -0.53 (+0.19). Net sales generated in the report period by the Wiring Harnesses business amounted to EUR 50.8 million (62.0 million), 18% less than in the comparative period. The segment's share of consolidated net sales was 78.5% (79.4%). It generated an operating profit of EUR 6.2 million negative (4.6 million positive), equivalent to -12.2% of the segment's net sales (+7.4%). Net sales generated by the Electronics business decreased by 13.7% to EUR 13.9 million (16.1 million). The segment's share of consolidated net sales was 21.5% (20.6%). It generated an operating profit of EUR 2.3 million (2.2 million), equivalent to 16.4% of the segment's net sales (13.6%). January-December 2008 Consolidated net sales in the financial year totalled EUR 311.7 million (288.6 million), increasing by 8% on the previous year. Consolidated operating profit totalled EUR 21.0 million (28.2 million), accounting for 6.7% of net sales (9.8%). Depreciations amounted to EUR 9.4 million (7.6 million). Financial income and expenses were EUR 5.8 million negative (2.5 million negative). Profit before taxes was EUR 15.2 million (25.6 million). Profit for the financial year totalled EUR 5.6 million (17.6 million). Earnings per share were EUR 0.31 (0.98). Net sales generated by the Wiring Harnesses business during the report year grew by 7.2% to EUR 246.7 million (230.0 million). The segment's share of consolidated net sales was 79.1% (79.7%). The Wiring Harnesses business reported an operating profit of EUR 9.7 million (18.7 million), or 4.0% of the segment's net sales (8.2%). The Electronics business segment saw its net sales increase by 11.2% to EUR 65.2 million (58.6 million), accounting for 20.9% of consolidated net sales (20.3%). It generated an operating profit of EUR 11.3 million (9.4 million), equivalent to 17.3% of the segment's net sales (16.1%). A programme for rationalising and improving the efficiency of operations was started during the second quarter and is still underway. The reorganisation of the North American operations was completed during the third quarter. In December, the PKC Group decided to close one of its two wiring harness factories in Russia and to move all of its production operations in China to one factory due to decreased production volumes and loss-making operations. The number of personnel was adapted to match the production volumes. Additional and non-recurring expenses totalling EUR 7,9 million were recorded during the financial year. Moreover, based on impairment testing, an amortisation of EUR 1.2 million was recorded on the goodwill of the North American businesses, and a write-down of EUR 1.5 million was recognised on the deferred tax assets of PKC's subsidiaries. BALANCE SHEET AND FINANCING Consolidated total assets at 31 December 2008 stood at EUR 187.4 million (175.9 million). Interest-bearing liabilities totalled EUR 72.0 million at the close of the report period (55.7 million). The Group's equity ratio was 41.9% (47.2%). Net liabilities totalled EUR 59.5 million (45.3 million) and gearing was 75.7% (54.5%). Inventories amounted to EUR 51.8 million (47.0 million). Current receivables totalled EUR 62.0 million (70.2 million). Cash flows after investing activities during the report period were EUR 6.2 million negative (0.2 million positive). Cash in hand and at bank amounted to EUR 12.5 million (10.4 million). In order to ensure financing flexibility, PKC has available credit facilities. CAPITAL EXPENDITURES During the report period, the Group's gross capital expenditures totalled EUR 27.4 million (10.8 million), representing 8.8% of net sales (3.7%). In addition to the business acquisition in Poland, capital expenditures mainly consisted of the acquisition of production machinery and equipment. RESEARCH AND DEVELOPMENT Research and development expenditure totalled EUR 5.8 million (5.5 million), representing 1.9% (1.9%) of consolidated net sales. At the end of the financial year, 101 (90) people were employed in product development. PERSONNEL During the period under review, the Group had an average payroll of 5,588 employees (4,971). At the end of the financial year, the Group's personnel numbered 5,652 employees (5,311), of whom 4,951 (4,576) worked abroad and 701 (735) in Finland. Personnel cuts were made at various units within the Group. Around 800 new employees were transferred to the Group at the end of the year in conjunction with the acquisition of the business in Poland. QUALITY AND THE ENVIRONMENT The Wiring Harnesses business's operations at the Haapsalu, Keila, Kempele, Kostomuksha, Nogales, Pskov and Suzhou production units have been certified in accordance with the ISO/TS 16949 and ISO 9001 standards as well as the ISO 14001 standard. The Curitiba production unit is certified under the ISO/TS 16949 and ISO 14001 standards. The certification processes in the wiring harness factory in Poland will start in 2009. Curitiba is also currently in the process of certifying its OHSAS 18001 occupational health and safety management system, which will be completed after the period under review. The Group's Electronics business operations at the Kostomuksha, Suzhou and Raahe production units have been certified in accordance with the ISO 9001 and ISO 14001 standards. Moreover, the Group's Electronics business has begun preparations for certification in accordance with the ISO/TS 16949 standard. The adoption of the best quality practices of the Wiring Harnesses business is proceeding at all production units. These practices are used to support continuous improvement by involving personnel more extensively in day-to-day quality development work. In 2009 the best quality practices will be internally audited and enhanced in the spirit of continuous improvement and based on feedback received. The progress of these activities will be actively monitored at the Executive Board's meetings. MANAGEMENT The Annual General Meeting on 27 March 2008 passed a resolution to pay a dividend of EUR 0.45 per share, or a total of about EUR 8.0 million. This dividend was paid out on 8 April 2008. The Annual General Meeting elected Matti Eestilä, Jaakko Niemelä, Endel Palla, Olli Pohjanvirta, Matti Ruotsala, Harri Suutari and Jyrki Tähtinen to the Board of Directors. At its organisation meeting, the Board of Directors elected Harri Suutari Chairman and Jyrki Tähtinen Vice Chairman. After the Board of Directors of PKC Group Oyj appointed Harri Suutari President and CEO as of 3 April 2008, Mr Suutari resigned from his membership of the Board. The Board of Directors then elected Matti Ruotsala as its new Chairman. President and CEO Mika Kari's employment contract expired on the same date. The Group's Executive Board is composed of Harri Suutari, President and CEO (Chairman); Pekka Korkala, Vice President, Wiring Harnesses; Jarmo Rajala, Vice President, Electronics; Jyri Kontio, Vice President (Sourcing, Quality and Technology); Sanna Raatikainen, General Counsel; and Marja Sarajärvi, CFO. After the close of the financial year, Jarkko Kariniemi has also been appointed to the Executive Board as Director of HR & Risk Management. AUDITORS The authorised public accounting firm Ernst & Young Oy carried out PKC Group Oyj's audit, with Rauno Sipilä, Authorised Public Accountant, acting as the principal auditor. SHARES AND SHAREHOLDERS PKC Group Oyj's share turnover on NASDAQ OMX Helsinki from 1 January to 31 December 2008 was 12,940,819 shares (17,639,780 shares), representing 72.8% of the average number of shares (99.2%). Shares were traded to a total value of EUR 85.9 million (185.1 million). The low during the period in review was EUR 2.82 (8.55) and the high was EUR 9.48 (12.40). The closing price on the last trading day of the period under review was EUR 3.25 (8.70) and the average price during the period was EUR 6.56 (10.48). The company's market capitalisation at 31 December 2008 was EUR 57.8 million (154.7 million). Shares held by Board members, their related persons and corporations in which they have a controlling interest, accounted for 3.2% (2.9%) of the total number of shares at the close of the period under review. PKC Group Oyj had 7,648 shareholders (6,505) at the end of the report period. The proportion of shares held by foreigners and by way of nominee registrations at 31 December 2008 was 25.8% of the shares outstanding (28.1%). THE BOARD'S AUTHORISATIONS The Board of Directors has been granted authorisation by the Annual General Meeting on 29 March 2007 to decide on one or more share issues and the granting of special rights as defined in Chapter 10, Section 1 of the Companies Act and on all the terms and conditions thereof. A maximum total of 3,500,000 shares may be issued or subscribed for on the basis of the authorisation. This authorisation includes the right to decide on a directed share issue. The authorisation shall remain in force for five years from the date of the resolution of the Annual General Meeting. The authorisation may be used at the Board's discretion for financing corporate acquisitions, for carrying out inter-company co-operation or similar arrangements, or for strengthening the company's financing and capital structure. The Board of Directors does not have a valid authorisation to acquire the company's own shares, and the company does not have any own shares (treasury shares) in its possession. STOCK OPTION SCHEMES In 2006, PKC launched a stock option scheme according to which the maximum total number of stock options to be issued is 697,500, and they are divided into A, B and C warrants. At the close of the financial year, the company's key personnel had a total of 190,780 2006A warrants, 220,120 2006B warrants and 249,910 2006C warrants in their possession. The subscription period for shares through the exercise of stock options shall be during the years 2009-2013. The share subscription price for stock options shall be the volume-weighted average price of the PKC Group Oyj share on Nasdaq OMX Helsinki, with dividend adjustments, as defined in the stock option terms (at present, EUR 10.64 for the 2006A, 2006B and 2006C warrants). Through the exercise of the 2006 stock options, the share capital of PKC Group Oyj may be increased by a maximum total of 697,500 new shares and EUR 234,673.67. The 2006 stock options are subject to a share ownership plan. Key personnel are obligated to subscribe for or purchase the company's shares with 20% of the gross income earned from stock options and to own these shares for two years. The company's President and CEO is obligated to own these shares for the duration of his managerial contract. EVENTS AFTER THE CLOSE OF THE FINANCIAL YEAR As a result of the co-determination negotiations completed in January 2009, almost the entire personnel of PKC Group Oyj in Kempele, or 300 employees, were temporarily laid off for periods of a week or longer, and 60 people were laid off at PKC Electronics Oy's Raahe factory for a maximum period of three months. SHORT-TERM RISKS AND UNCERTAINTIES The financial crisis and the resulting economic downturn have also had an impact on demand for the products of PKC's customers in the commercial vehicles and electronics product groups. Other main uncertainties include price pressures and demands for tighter contractual terms imposed by customers, the significant fluctuation of currency exchange rates as well as the impact of financial crisis on suppliers and the availability of raw materials and components. In the electronics industry, customer companies may postpone projects already planned in to be started. If this risk materialises, it will also have a direct effect on the volume of services and products ordered from PKC. The risks of the last few years concerning fluctuations in the prices of raw materials have subsided as raw material prices have declined and levelled off. Suppliers and their financial situation are being actively monitored throughout the order and delivery chain. The principles, objectives and organisation of the company's risk management as well as key risk areas are described in the risk management section of the Corporate Governance guidelines, which are available on the company's website, www.pkcgroup.com. OUTLOOK FOR THE FUTURE At present, it is difficult to estimate how long the current economic downturn will continue. However, we foresee the weak predictability of commercial vehicle demand and uncertainty concerning financing in general, coupled with the emptying of the stocks of vehicle manufacturers, keeping demand for wiring harnesses exceptionally low. We also estimate that demand for electronics design and manufacturing services in the market will weaken compared with last year. In Asia, investments made in the infrastructure of mobile phone networks may have a positive effect on demand for PKC's products. We predict that the operating profit continues to be negative for the first half of the year, our full-year net sales will decrease substantially and operating profit to remain weak. Full year estimation contains significantly more uncertainty than usual. Thanks to low need for capital expenditures and decrease of working capital, cash flows after investments are expected to be positive. PKC's balance sheet, liquidity and good customer relationships enable improvement in PKC's relative competitive position. THE BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFITS The parent company's distributable funds are EUR 48.1 million, of which the net loss for the financial year amounts to EUR 1.6 million. The Board of Directors will propose to the Annual General Meeting to be held on Friday 27 March 2009 that a dividend of EUR 0.15 per share is to be paid, for a total of EUR 2.7 million and that remainder of distributable funds be transferred to shareholders' equity. The record date for the dividend payout is 1 April 2009. The payment date for dividends is 8 April 2009. In the view of the Board of Directors, the proposed dividend payout will not put the company's liquidity at risk. ANNUAL GENERAL MEETING AND FINANCIAL REPORTS IN 2009 The Annual General Meeting of PKC Group Oyj will be held on Friday 27 March 2009, at 4:00 p.m., at the parent company's offices in Kempele, at the address Vihikari 10. The Annual Report will be published on the company's website on Friday 6 March 2009. In 2009, the Interim Reports will be published as follows: Interim Report 1-3/2009 on Thursday 30 April 2009 at 8:15 a.m. Interim Report 1-6/2009 on Thursday 6 August 2009 at 8:15 a.m. Interim Report 1-9/2009 on Thursday 29 October 2009 at 8:15 a.m. The text section of this financial statement bulletin focuses on the annual accounts. Comparisons in accordance with IFRS standards have been made to the year 2007 figures for the comparison period, unless otherwise mentioned. The figures presented in the tables are independently rounded figures. TABLES -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 | | (1000 EUR) | 3 mon. | 3 mon. | 12 mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | 64 680 | 78 084 | 311 713 | 288 649 | -------------------------------------------------------------------------------- | Increase (+) / decrease (-) in | 1 853 | 2 169 | 71 | 4 668 | | stocks of finished goods and | | | | | | work in progress | | | | | -------------------------------------------------------------------------------- | Other operating income | 416 | 409 | 1 304 | 1 009 | -------------------------------------------------------------------------------- | Raw materials and services | 38 303 | 44 162 | 172 198 | 162 665 | -------------------------------------------------------------------------------- | Staff expenses | 18 384 | 19 821 | 76 049 | 66 824 | -------------------------------------------------------------------------------- | Depreciation | 3 280 | 2 022 | 9 374 | 7 644 | -------------------------------------------------------------------------------- | Other operating expenses | 10 910 | 7 858 | 34 427 | 29 022 | -------------------------------------------------------------------------------- | OPERATING PROFIT/LOSS | -3 928 | 6 799 | 21 039 | 28 171 | -------------------------------------------------------------------------------- | Interest and financial income | -1 003 | -593 | -2 930 | -2 310 | | and expenses | | | | | -------------------------------------------------------------------------------- | Other financial income and | -2 501 | -576 | -2 882 | -219 | | expenses | | | | | -------------------------------------------------------------------------------- | PROFIT/LOSS BEFORE TAXES | -7 432 | 5 630 | 15 228 | 25 642 | -------------------------------------------------------------------------------- | Income taxes | -2 032 | -2 285 | -9 661 | -8 063 | -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE REPORT | -9 464 | 3 345 | 5 567 | 17 579 | | PERIOD | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | | | -------------------------------------------------------------------------------- | Shareholders of the parent | -9 474 | 3 298 | 5 519 | 17 374 | | company | | | | | -------------------------------------------------------------------------------- | Minority interest | -10 | -47 | -47 | -205 | -------------------------------------------------------------------------------- | Total | -9 465 | 3 345 | 5 566 | 17 579 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | From profit attributable to | | | | | | shareholders of the parent | | | | | | company | | | | | -------------------------------------------------------------------------------- | Basic earnings per share (EPS), | -0.53 | 0.19 | 0.31 | 0.98 | | EUR | | | | | -------------------------------------------------------------------------------- | Diluted earnings per share | -0.53 | 0.19 | 0.31 | 0.98 | | (EPS), EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET (1000 EUR) | 12/08 | 12/07 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Goodwill | 9 481 | 6 214 | -------------------------------------------------------------------------------- | Other intangible assets | 14 694 | 3 534 | -------------------------------------------------------------------------------- | Tangible assets | 34 931 | 34 454 | -------------------------------------------------------------------------------- | Deferred tax assets | 1 623 | 3 804 | -------------------------------------------------------------------------------- | Other receivables | 453 | 388 | -------------------------------------------------------------------------------- | Non-current assets total | 61 182 | 48 393 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSSETS | | | -------------------------------------------------------------------------------- | Inventory | 51 815 | 46 954 | -------------------------------------------------------------------------------- | Receivables | | | -------------------------------------------------------------------------------- | Trade receivables | 47 025 | 61 176 | -------------------------------------------------------------------------------- | Other receivables | 14 948 | 9 001 | -------------------------------------------------------------------------------- | Receivables total | 61 973 | 70 176 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 12 468 | 10 426 | -------------------------------------------------------------------------------- | Current assets total | 126 428 | 127 556 | -------------------------------------------------------------------------------- | Assets total | 187 437 | 175 949 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | EQUITY | | | -------------------------------------------------------------------------------- | Share capital | 5 983 | 5 983 | -------------------------------------------------------------------------------- | Share premium account | 4 862 | 4 862 | -------------------------------------------------------------------------------- | Reserve fund | 370 | 239 | -------------------------------------------------------------------------------- | Translation difference | -1 841 | 5 | -------------------------------------------------------------------------------- | Share-based payments | 808 | 759 | -------------------------------------------------------------------------------- | Retained earnings | 62 557 | 52 970 | -------------------------------------------------------------------------------- | Profit for the reporting period | 5 519 | 17 374 | -------------------------------------------------------------------------------- | Minority interest | 328 | 789 | -------------------------------------------------------------------------------- | Equity total | 78 586 | 82 980 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 40 120 | 21 078 | -------------------------------------------------------------------------------- | Non-interest-bearing liabilities | | | -------------------------------------------------------------------------------- | Provisions | 216 | 114 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 3 461 | 560 | -------------------------------------------------------------------------------- | Non-current liabilities total | 43 797 | 21 752 | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 31 866 | 34 606 | -------------------------------------------------------------------------------- | Trade payables | 14 907 | 21 173 | -------------------------------------------------------------------------------- | Other non-interest bearing liabilities | 18 281 | 15 438 | -------------------------------------------------------------------------------- | Current liabilities total | 65 055 | 71 217 | -------------------------------------------------------------------------------- | Liabilities total | 108 635 | 92 855 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES TOTAL | 187 437 | 175 949 | -------------------------------------------------------------------------------- --------------------------------------------------------------------------------| CONSOLIDATED CASH FLOW STATEMENT (1000 | 1-12/08 12 | 1-12/07 | | EUR) | mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from operating activities | | | -------------------------------------------------------------------------------- | Cash receipts from customers | 326 650 | 282 362 | -------------------------------------------------------------------------------- | Cash receipts from other operating activities | 1 304 | 974 | -------------------------------------------------------------------------------- | Cash paid to suppliers and employees | -289 969 | -258 253 | -------------------------------------------------------------------------------- | Cash flows from operations before financial | 37 985 | 25 082 | | income and expenses and taxes | | | -------------------------------------------------------------------------------- | Interest paid | -5 644 | -2 745 | -------------------------------------------------------------------------------- | Interest received and other financial income | 233 | 817 | -------------------------------------------------------------------------------- | Income taxes paid | -7 275 | -10 497 | -------------------------------------------------------------------------------- | Net cash from operating activities (A) | 25 299 | 12 658 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing activities | | | -------------------------------------------------------------------------------- | Purchase of tangible and intangible assets | -9 906 | -11 143 | -------------------------------------------------------------------------------- | Proceeds from sale of tangible and intangible | 4 | 108 | | assets | | | -------------------------------------------------------------------------------- | Acquisition of subsidiaries | -21 589 | -1 380 | -------------------------------------------------------------------------------- | Loans granted | -9 | -11 | -------------------------------------------------------------------------------- | Amortisations of loan received | 44 | 9 | -------------------------------------------------------------------------------- | Dividends received | 1 | 1 | -------------------------------------------------------------------------------- | Net cash flow from investing activities (B) | -31 455 | -12 416 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financing activities | | | -------------------------------------------------------------------------------- | Share issues | | | -------------------------------------------------------------------------------- | Drawing of credits | 37 313 | 18 843 | -------------------------------------------------------------------------------- | Amortisations of credits | -21 011 | -8 642 | -------------------------------------------------------------------------------- | Dividends paid | -8 104 | -8 077 | -------------------------------------------------------------------------------- | Net cash used in financing activities (C) | 8 198 | 2 123 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net increase (+) or decrease (-) in cash and | 2 042 | 2 365 | | equivalents (A+B+C) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY FINANCIAL INDICATORS | 1-12/08 12 | 1-12/07 | | | mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 311 713 | 288 649 | -------------------------------------------------------------------------------- | Operating profit, 1000 EUR | 21 039 | 28 171 | -------------------------------------------------------------------------------- | % of net sales | 6.7 | 9.8 | -------------------------------------------------------------------------------- | Profit before taxes, 1000 EUR | 15 228 | 25 642 | -------------------------------------------------------------------------------- | % of net sales | 4.9 | 8.9 | -------------------------------------------------------------------------------- | Net profit for the period, 1000 EUR | 5 519 | 17 374 | -------------------------------------------------------------------------------- | % of net sales | 1.8 | 6.0 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 6.9 | 22.6 | -------------------------------------------------------------------------------- | Return on investments (ROI), % | 14.5 | 17.0 | -------------------------------------------------------------------------------- | Net liabilities, 1000 EUR | 59 518 | 45 258 | -------------------------------------------------------------------------------- | Gearing, % | 75.9 | 54.5 | -------------------------------------------------------------------------------- | Equity ratio, % | 41.9 | 47.2 | -------------------------------------------------------------------------------- | Current ratio | 1.9 | 1.8 | -------------------------------------------------------------------------------- | Gross capital expenditure, 1000 EUR | 27 426 | 10 791 | -------------------------------------------------------------------------------- | % of net sales | 8.8 | 3.7 | -------------------------------------------------------------------------------- | R&D expenditures, 1000 EUR | 5 812 | 5 511 | -------------------------------------------------------------------------------- | % of net sales | 1.9 | 1.9 | -------------------------------------------------------------------------------- | Personnel average | 5 588 | 4 971 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP PER-SHARE KEY FIGURES | 1-12/08 12 | 1-12/07 | | | mon. | 12 mon. | -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | 0.31 | 0.98 | -------------------------------------------------------------------------------- | Earnings per share (EPS),diluted, EUR | 0.31 | 0.98 | -------------------------------------------------------------------------------- | Equity per share, EUR | 4.40 | 4.62 | -------------------------------------------------------------------------------- | Share price at end of period, EUR | 3.25 | 8.70 | -------------------------------------------------------------------------------- | Lowest share price, EUR | 2.82 | 8.55 | -------------------------------------------------------------------------------- | Highest share price, EUR | 9.48 | 12.40 | -------------------------------------------------------------------------------- | Average share price, EUR | 6.56 | 10.48 | -------------------------------------------------------------------------------- | Turnover in shares, 1000 shares | 12 941 | 17 640 | -------------------------------------------------------------------------------- | Turnover in shares per (share issue adjusted) | 72.78 | 99.20 | | share capital, % | | | -------------------------------------------------------------------------------- | Average number of shares, 1000 shares | 17 782 | 17 782 | -------------------------------------------------------------------------------- | Average number of shares, diluted, 1000 | 17 782 | 17 782 | | shares | | | -------------------------------------------------------------------------------- | Shares at end of period, 1000 shares | 17 782 | 17 782 | -------------------------------------------------------------------------------- | Market capitalisation , 1000 EUR | 57 790 | 154 699 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1. SEGMENT INFORMATION | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY BUSINESS SEGMENTS | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 | | | 3 mon. | 3 mon. | 12 mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 EUR | 50 811 | 62 014 | 246 680 | 230 183 | -------------------------------------------------------------------------------- | Net sales to other segments, | -42 | -50 | -193 | -170 | | 1000 EUR | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, total, 1000 | 50 769 | 61 966 | 246 487 | 230 013 | | EUR | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, % of net sales | 78.5 | 79.4 | 79.1 | 79.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 13 997 | 16 303 | 65 897 | 59 471 | -------------------------------------------------------------------------------- | Net sales to other segments, | -86 | -185 | -671 | -835 | | 1000 EUR | | | | | -------------------------------------------------------------------------------- | Electronics, total, 1000 EUR | 13 911 | 16 118 | 65 226 | 58 636 | -------------------------------------------------------------------------------- | Electronics, % of net sales | 21.5 | 20.6 | 20.9 | 20.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group Total | 64 680 | 78 084 | 311 713 | 288 649 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT BY BUSINESS | | | | | | SEGMENTS | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 EUR | -6 216 | 4 609 | 9 744 | 18 746 | -------------------------------------------------------------------------------- | Wiring Harnesses, % of net sales | -12.2 | 7.4 | 4.0 | 8.2 | -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 2 288 | 2 190 | 11 295 | 9 424 | -------------------------------------------------------------------------------- | Electronics, % of net sales | 16.4 | 13.6 | 17.3 | 16.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group Total | -3 928 | 6 799 | 21 039 | 28 171 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY GEOGRAPHICAL | | | | | | SEGMENTS (1000 EUR) | | | | | -------------------------------------------------------------------------------- | Finland | 13 103 | 13 812 | 58 621 | 54 411 | -------------------------------------------------------------------------------- | Other Europe | 29 717 | 42 868 | 151 701 | 153 727 | -------------------------------------------------------------------------------- | North America | 7 135 | 7 031 | 33 427 | 30 692 | -------------------------------------------------------------------------------- | South America | 10 501 | 9 502 | 48 510 | 36 145 | -------------------------------------------------------------------------------- | Other Countries | 4 224 | 4 871 | 19 453 | 13 673 | -------------------------------------------------------------------------------- | Total | 64 680 | 78 084 | 311 713 | 288 649 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. RECONCILIATION OF EQUITY | | | (MILLION EUR) | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A = Share Capital | | -------------------------------------------------------------------------------- | B = Share premium account | | -------------------------------------------------------------------------------- | C = Fair value and other | | | reserves | | -------------------------------------------------------------------------------- | D = Retained earnings | | -------------------------------------------------------------------------------- | E = Minority interest | | -------------------------------------------------------------------------------- | F = Total equity | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | A | B | C | D | E | F | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity 1.1.2007 | 6.0 | 4.9 | 0.2 | 60.9 | 0.6 | 72.5 | -------------------------------------------------------------------------------- | Profit for the period | 0.0 | 0.0 | 0.0 | 17.4 | 0.2 | 17.6 | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.0 | 0.0 | -8.0 | 0.0 | -8.0 | -------------------------------------------------------------------------------- | Share options used | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Translation differences | 0.0 | 0.0 | 0.0 | 0.5 | 0.0 | 0.5 | -------------------------------------------------------------------------------- | Other changes | 0.0 | 0.0 | 0.0 | 0.4 | 0.0 | 0.4 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 71.2 | 0.8 | 83.1 | | 31.12.2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity 1.1.2008 | 6.0 | 4.9 | 0.2 | 71.1 | 0.8 | 83.0 | -------------------------------------------------------------------------------- | Profit for the period | 0 | 0 | 0 | 5.3 | 0.0 | 5.3 | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.1 | -------------------------------------------------------------------------------- | Share-based payments | 0 | 0 | 0 | 0.0 | 0 | 0.0 | -------------------------------------------------------------------------------- | Translation differences | 0 | 0 | 0 | -1.3 | 0 | -1.3 | -------------------------------------------------------------------------------- | Other changes | 0 | 0 | 0.1 | 0.0 | 0 | 0 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.1 | 0.3 | 78.6 | | 31.12.2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. GROUP CONTINGENT LIABILITIES AT END OF | 12/08 | 12/07 | | PERIOD (1000 EUR) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Leasing liabilities | 11 745 | 5 668 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities for derivate instruments | | | -------------------------------------------------------------------------------- | Nominal values | | | -------------------------------------------------------------------------------- | Currency derivates | | | -------------------------------------------------------------------------------- | Forward contracts | 3 307 | 5 740 | -------------------------------------------------------------------------------- | Option agreements | | | -------------------------------------------------------------------------------- | Call | 757 | 1 598 | -------------------------------------------------------------------------------- | Total | 4 063 | 7 338 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | -------------------------------------------------------------------------------- | Currency derivates | | | -------------------------------------------------------------------------------- | Forward contracts | -195 | -105 | -------------------------------------------------------------------------------- | Option agreements | | | -------------------------------------------------------------------------------- | Call | 0 | -144 | -------------------------------------------------------------------------------- | Total | -195 | -249 | -------------------------------------------------------------------------------- Currency derivates are used only in hedging currency risks. PKC Group does not apply hedge accounting to derivate instruments in accordance with IAS 39. Fair values of the derivates are entered directly in the income statement. -------------------------------------------------------------------------------- | 4. QUARTERLY KEY | 7-9/07 | 10-12 | 1-3/08 | 4-6/08 | 7-9/08 | 10-12/0 | | FIGURES, | 3 mon. | /07 | 3 mon. | 3 mon. | 3 mon. | 8 3 | | CONSOLIDATED | | 3 | | | | mon. | | | | mon. | | | | | -------------------------------------------------------------------------------- | Net sales, EUR million | 66.93 | 78.08 | 85.09 | 88.57 | 73.37 | 64.68 | -------------------------------------------------------------------------------- | Operating profit, EUR | 7.56 | 6.8 | 9.34 | 9.63 | 6.0 | -3.93 | | million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 11.3 | 8.7 | 11.0 | 10.9 | 8.2 | -6.1 | -------------------------------------------------------------------------------- | Profit before taxes, | 6.77 | 5.63 | 7.31 | 9.81 | 5.54 | -7.43 | | EUR million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 10.1 | 7.2 | 8.6 | 11.1 | 7.6 | -11.5 | -------------------------------------------------------------------------------- | Equity ratio, % | 47.0 | 47.2 | 46.0 | 48.6 | 50.0 | 41.9 | -------------------------------------------------------------------------------- | Earnings per share | 0.25 | 0.19 | 0.26 | 0.41 | 0.17 | -0.53 | | (EPS), diluted (EUR) | | | | | | | -------------------------------------------------------------------------------- | Shareholders equity | 4.43 | 4.62 | 4.39 | 4.82 | 5.06 | 4.40 | | per share, EUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY FIGURES, | | | | | | | | WIRING HARNESSESS | | | | | | | -------------------------------------------------------------------------------- | Net sales, EUR million | 50.16 | 61.97 | 69.32 | 69.29 | 56.95 | 50.77 | -------------------------------------------------------------------------------- | Operating profit, EUR | 3.31 | 4.61 | 7.02 | 5.09 | 3.86 | -3.93 | | million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 6.6 | 7.4 | 10.1 | 7.3 | 6.8 | -6.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY FIGURES, | | | | | | | | ELECTRONICS | | | | | | | -------------------------------------------------------------------------------- | Net sales, EUR million | 16.77 | 16.12 | 15.77 | 19.28 | 16.42 | 13.91 | -------------------------------------------------------------------------------- | Operating profit, EUR | 4.25 | 2.19 | 2.32 | 4.54 | 2.14 | 2.29 | | million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 25.3 | 13.6 | 14.7 | 23.5 | 13.1 | 16.4 | -------------------------------------------------------------------------------- CALCULATION OF INDICATORS Return on equity (ROE), % = 100 x Profit/loss / Shareholders' equity (average) Return on investments (ROI), % = 100 x (Profit/loss + financial expenses) / Balance sheet total + interest-bearing liabilities (average) Gearing, % = 100 x (Interest-bearing liabilities - cash in hand and at bank and investments) / Shareholders' equity + minority interest Equity ratio, % = 100 x (Shareholders' equity + minority interest) / Balance sheet total - advance payments received Quick ratio = Receivables and cash in hand and at bank / Current liabilities - advance payments received Current ratio Receivables and cash in hand and at bank + inventories / Current liabilities Earnings per share (EPS), EUR Profit before extraordinary items - income taxes +/- minority interest / Average share issue-adjusted number of shares Shareholders' equity per share, EUR Shareholders' equity / Share issue-adjusted number of shares on the balance sheet date Market capitalisation Number of shares at the end of the financial period x the last trading price of the financial period All the future estimates and forecasts presented in this stock exchange release are based on the best current knowledge of the company's management. The estimates and forecasts contain certain elements of risk and uncertainty which, if they materialise, may lead to results that differ from present estimates. The main factors of uncertainty are related, among other things, to the general economic situation, the trend in the operating environment and the sector as well as the success of the Group's strategy. PKC GROUP OYJ Board of Directors Harri Suutari President and CEO For additional information, contact: Harri Suutari, President & CEO, PKC Group Oyj, +358 400 384 937 PRESS CONFERENCE A press conference on the Interim Report will be arranged for analysts and investors today, 12 February 2009, at 9.30 a.m., at the address World Trade Center, Meeting room 3, Aleksanterinkatu 17, Helsinki. DISTRIBUTION NASDAQ OMX Main media www.pkcgroup.com The PKC Group offers design and contract manufacturing services for wiring harnesses, cabling and electronics. The Group has production facilities in Finland, Brazil, China, Mexico, Estonia and Russia, and employs about 5,600 people. The Group's net sales in 2008 totalled EUR 311.7 million. PKC Group Oyj is listed on NASDAQ OMX Helsinki Ltd.
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