2013-04-23 08:00:05 CEST
2013-04-23 08:00:12 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 31 MARCH 2013
Vieremä, Finland, 2013-04-23 08:00 CEST (GLOBE NEWSWIRE) --
PONSSE PLC, STOCK EXCHANGE RELEASE, 23 APRIL 2013, 9:00 a.m.
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2013
- Net sales amounted to EUR 61.6 (76.8) million.
- Operating result totalled EUR 0.1 (4.5) million, equalling 0.2 (5.9) per cent
of net sales.
- Profit before taxes was EUR 0.7 (4.0) million.
- Cash flow from business operations was EUR 12.2 (-1.9) million.
- Earnings per share were EUR 0.00 (0.09).
- Equity ratio was 32.3 (47.1) per cent.
- Order books stood at EUR 49.1 (67.3) million.
PRESIDENT AND CEO JUHO NUMMELA:
The picking up of detached house construction in North America was visible in
increased machine sales in the United States as well as Canada. The demand for
new machines was close to normal in Russia as well. Sales of new machines in
Russia, however, typically concentrate towards the end of the year. Of our main
markets, Central Europe and Sweden in particular were soft during the period
under review. Compared to other markets, the demand for new machines in Finland
was at higher level, but remained approximately 25% lower than for the
reference period.
Trade-in machine sales increased considerably during the period under review,
which was mainly due to the picking up of the Finnish trade-in machine market.
The net sales of maintenance services also increased as our customers' work
situation was mainly good in several of our markets. The demand for new
machines remained low during the period, and quantitative sales fell 46% short
of the reference period.
Due to the weak demand for new machines, adjustments had to be made to the
factory capacity. The company's order books continued to recover compared to
the order books at the turn of the year, amounting to EUR 49.1 (67.3) million,
or 27% less than for the reference period. The order books were not sufficient
for operating in two shifts throughout the period under review. Early in the
year, the factory operated in one shift and returned to two shifts in
mid-February. The factory has been operating in one shift since the beginning
of April.
Net sales for the period under review amounted to EUR 61.6 (76.8) million,
representing a change of -19.7 per cent compared with the corresponding period.
The operating result amounted to EUR 0.1 (4.5) million during the quarter. The
result was burdened by considerably lower invoicing for forest machines
compared with the reference period.
Cash flow from business operations amounted to EUR 12.2 (-1.9) million in the
period under review. The stock of new products decreased to a level higher than
normal when some of the invoicing for new machines was postponed to the second
quarter. The stock of trade-in machines decreased, mainly due to good trade-in
machine sales in Finland.
The hybrid loan, which has been included in the company's equity on the balance
sheet for four years, was paid back as planned at the end of the period under
review. The repayment of the hybrid loan can be seen as lower equity and the
company's equity ratio consequently decreasing to 32.3 per cent.
Our investments in R&D continued normally. Maintenance services, sales and the
subsidiary network also operated normally throughout the period under review.
NET SALES
Consolidated net sales for the period under review amounted to EUR 61.6 (76.8)
million, which is 19.7 per cent less than in the comparison period.
International business operations accounted for 60.1 (61.3) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 52.2 (59.8)
per cent, Central and Southern Europe 15.2 (15.7) per cent, Russia and Asia
13.9 (10.8) per cent, North and South America 18.7 (13.7) per cent and other
countries 0.0 (0.0) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 0.1 (4.5) million. The operating result
equalled 0.2 (5.9) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 3.4 (15.0) per cent.
Staff costs for the period totalled EUR 12.6 (13.1) million. Other operating
expenses stood at EUR 7.3 (8.2) million. The net total of financial income and
expenses amounted to EUR 0.7 (-0.5) million. Exchange rate gains and losses
with a net effect of EUR 1.0 (-0.1) million were recognised under financial
items for the period. Profit for the period under review totalled EUR 0.5 (2.8)
million. Diluted and undiluted earnings per share (EPS) came to EUR 0.00
(0.09). 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 consolidated statements of
financial position amounted to EUR 194.4 (174.2) million. Inventories stood at
EUR 87.6 (87.6) million. Trade receivables totalled EUR 19.1 (26.8) million,
while liquid assets stood at EUR 23.0 (9.8) million. Group shareholders' equity
stood at EUR 62.1 (81.7) million and parent company shareholders' equity at EUR
81.9 (78.7) million. In the comparison period Group shareholders' equity
includes a hybrid loan of EUR 19 million issued on 31 March 2009 and settled on
28 March 2013. A separate release was issued on 19 February 2013 regarding the
settlement of the hybrid loan. The interest paid on the hybrid loan totalling
EUR 9.1 million, less tax, is recognised as a deduction from Group equity. The
amount of interest-bearing liabilities was EUR 75.3 (38.1) million. The company
has used 40 per cent of its credit facility limit. The parent company's net
receivables from other Group companies stood at EUR 77.2 (78.4) million. The
parent company's receivables from subsidiaries mainly consisted of trade
receivables. Consolidated net liabilities totalled EUR 52.3 (28.3) million, and
the debt-equity ratio (gearing) was 121.2 (46.6) per cent. The equity ratio
stood at 32.3 (47.1) percent at the end of the period under review.
Cash flow from business operations amounted to EUR 12.2 (-1.9) million. Cash
flow from investment activities came to EUR -3.0 (-2.4) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 69.0 (73.3) million, while period-end
order books were valued at EUR 49.1 (67.3) 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., the United States; Ponssé S.A.S., France; Ponsse UK Ltd,
the 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 2.4 (2.3)
million, of which EUR 623 (479) thousand was capitalised.
Capital expenditure totalled EUR 3.0 (2.4) million. It consisted in addition to
capitalised R&D expenses of investments in buildings and ordinary maintenance
and replacement investments for machinery and equipment.
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; 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 979 (981) during the period and employed 986
(988) people at period-end.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 31 March 2013 totalled
739,815, accounting for 2.6 per cent of the total number of shares. Share
turnover amounted to EUR 4.7 million, with the period's lowest and highest
share prices amounting to EUR 5.99 and EUR 6.89, respectively.
At the end of the period, shares closed at EUR 6.36, and market capitalisation
totalled EUR 178.1 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 16 April 2013 regarding the authorizations
given to the Board of Directors and other resolutions at 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 RISK MANAGEMENT
The prolonged insecurity in the world economy and weak economic situation may
result in a decline in the demand for forest machines.
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.
OUTLOOK FOR THE FUTURE
The Group's euro-denominated operating profit is expected to remain lower than
in 2012.
Due to the low level of the order books, the adaptation of the factory's
capacity will be continued in the second quarter of the year, if necessary.
Sales and maintenance functions will operate normally. We estimate that our
customers' work situation will remain good after the frost heaving period.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
IFRS IFRS IFRS
1-3/13 1-3/12 1-12/12
NET SALES 61,645 76,756 314,779
Increase (+)/decrease (-) in inventories of finished 12,016 3,428 -130
goods and work in progress
Other operating income 140 141 836
Raw materials and services -52,152 -53,129 -203,943
Expenditure on employment-related benefits -12,594 -13,092 -49,223
Depreciation and amortisation -1,648 -1,369 -5,862
Other operating expenses -7,315 -8,203 -31,986
OPERATING RESULT 93 4,531 24,471
Share of results of associated companies -84 -44 11
Financial income and expenses 704 -454 -3,968
RESULT BEFORE TAXES 713 4,033 20,513
Income taxes -202 -1,213 -6,623
NET RESULT FOR THE PERIOD 512 2,820 13,890
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units -843 303 437
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD -331 3,123 14,327
Diluted and undiluted earnings per share* 0.00 0.09 0.44
* 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 IFRS
ASSETS 31 Mar 13 31 Mar 12 31 Dec 12
NON-CURRENT ASSETS
Intangible assets 12,137 9,529 11,898
Goodwill 3,440 3,440 3,440
Property, plant and equipment 36,675 26,737 35,525
Financial assets 111 111 111
Investments in associated companies 992 1,250 1,186
Non-current receivables 1,048 1,364 999
Deferred tax assets 2,022 2,257 1,628
TOTAL NON-CURRENT ASSETS 56,426 44,688 54,787
CURRENT ASSETS
Inventories 87,623 87,576 81,636
Trade receivables 19,148 26,814 25,954
Income tax receivables 897 679 1,959
Other current receivables 7,268 4,644 3,313
Cash and cash equivalents 23,029 9,762 14,083
TOTAL CURRENT ASSETS 137,966 129,476 126,944
TOTAL ASSETS 194,391 174,164 181,732
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 30 19,030 19,030
Translation differences -2,381 -1,672 -1,538
Treasury shares -2,228 -2,228 -2,228
Retained earnings 59,692 59,556 59,180
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 62,113 81,686 81,444
NON-CURRENT LIABILITIES
Interest-bearing liabilities 41,471 18,623 21,474
Deferred tax liabilities 1,175 610 968
Other non-current liabilities 0 19 13
TOTAL NON-CURRENT LIABILITIES 42,646 19,252 22,455
CURRENT LIABILITIES
Interest-bearing liabilities 33,828 19,480 34,912
Provisions 4,763 4,947 4,977
Tax liabilities for the period 65 236 385
Trade creditors and other current liabilities 50,976 48,563 37,558
TOTAL CURRENT LIABILITIES 89,632 73,226 77,833
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 194,391 174,164 181,732
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS IFRS
1-3/13 1-3/12 1-12/12
CASH FLOW FROM BUSINESS OPERATIONS:
Net result for the period 512 2,820 13,890
Adjustments:
Financial income and expenses -704 454 3,968
Share of the result of associated companies 84 44 -11
Depreciation and amortisation 1,648 1,369 5,862
Income taxes 202 1,284 6,623
Other adjustments 546 557 -452
Cash flow before changes in working capital 2,286 6,528 29,880
Change in working capital:
Change in trade receivables and other receivables 2,238 1,611 4,256
Change in inventories -5,987 -7,101 -1,161
Change in trade creditors and other liabilities 13,580 -1,360 -8,600
Change in provisions for liabilities and charges -214 320 350
Interest received 57 32 195
Interest paid -76 -107 -1,334
Other financial items -421 -251 -1,561
Income taxes paid 704 -1,614 -10,509
NET CASH FLOW FROM BUSINESS OPERATIONS (A) 12,167 -1,941 11,516
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets -3,036 -2,412 -18,062
Proceeds from sale of tangible and intangible assets 0 0 62
CASH OUTFLOW FROM INVESTMENT ACTIVITIES (B) --3,036 -2,412 -18,000
FINANCING
Hybrid loan -19,000 0 0
Interest paid, hybrid loan -1,136 -1,136 -2,280
Withdrawal/Repayment of current loans 472 -1,105 14,478
Change in current interest-bearing liabilities 213 34 -100
Withdrawal of non-current loans 20,000 768 10,000
Repayment of non-current loans -342 -760 -8,184
Payment of finance lease liabilities -1,650 -16 1,029
Change in non-current receivables -49 16 380
Dividends paid 0 0 -9,725
NET CASH OUTFLOW FROM FINANCING (C) -1,492 -2,200 5,598
Change in cash and cash equivalents (A+B+C) 7,638 -6,553 -885
Cash and cash equivalents on 1 Jan 14,083 16,267 16,267
Impact of exchange rate changes 1,307 48 -1,299
Cash and cash equivalents on 31 Mar / 31 Dec 23,029 9,762 14,083
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 2013 7,000 19,030 -1,538 -2,228 59,180 81,444
Translation differences -843 -843
Result for the period 512 512
Total comprehensive income for -843 512 -331
the period
Other changes -19,000 -19,000
SHAREHOLDERS' EQUITY 31 MAR 7,000 30 -2,381 -2,228 59,692 62,113
2013
SHAREHOLDERS' EQUITY 1 JAN 2012 7,000 19,030 -1,975 -2,228 56,736 78,563
Translation differences 303 303
Result for the period 2,820 2,820
Total comprehensive income for 303 2,820 3,123
the period
Other changes 0
SHAREHOLDERS' EQUITY 31 MAR 7,000 19,030 -1,672 -2,228 59,556 81,686
2012
* Consists of the interest paid, less tax, for the hybrid loan classified as
equity.
31 Mar 13 31 Mar 12 31 Dec 12
1. LEASING COMMITMENTS (EUR 1,000) 2,441 3,734 2,898
2. CONTINGENT LIABILITIES (EUR 1,000) 31 Mar 13 31 Mar 12 31 Dec 12
Guarantees given on behalf of others 1,570 1,527 1,601
Repurchase commitments 1,389 721 1,541
Other commitments 1,661 3,391 1,159
TOTAL 4,620 5,640 4,302
3. PROVISIONS (EUR 1,000) Guarantee provision
1 January 2013 4,977
Provisions added 173
Provisions cancelled -388
31 March 2013 4,763
KEY FIGURES AND RATIOS 31 Mar 13 31 Mar 13 31 Dec 12
R&D expenditure, MEUR 2.4 2.3 9.5
Capital expenditure, MEUR 3.0 2.4 18.1
as % of net sales 4.9 3.1 5.7
Average number of employees 979 981 994
Order books, MEUR 49.1 67.3 41.8
Equity ratio, % 32.3 47.1 45.1
Diluted and undiluted earnings per share (EUR) 0.00 0.09 0.44
Equity per share (EUR) 2.22 2.92 2.91
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before tax + financial expenses
--------------------------------------------
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 1-3/13 1-3/12 1-12/12
Ponsse Group 69.0 73.3 285.9
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 2012.
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 April 2013
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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