2011-05-05 07:15:00 CEST
2011-05-05 07:15:05 CEST
REGULATED INFORMATION
PKC Group Oyj - Interim report (Q1 and Q3)
PKC GROUP'S INTERIM REPORT 1-3/2011
PKC Group Oyj INTERIM REPORT 5 May 2011 8.15 a.m.
PKC GROUP'S INTERIM REPORT 1-3/2011
-- Consolidated net sales grew 59.3% on the comparison period (1-3/2010),
totalling EUR 96.9 million (EUR 60.8 million).
-- Consolidated operating profit was EUR 9.7 million (EUR 2.8 million) i.e.
10.0% (4.6%) of net sales. Comparable operating profit without
non-recurring items was EUR 9.7 million (EUR 3.4 million), 10.0% (5.8%) of
net sales.
-- Profit for the report period amounted to EUR 7.6 million (EUR 0.2 million).
-- Diluted earnings per share were EUR 0.38 (EUR 0.01).
-- Cash flows after investments were EUR 0.1 million (EUR 2.8 million
negative).
-- Gearing was 3.8% negative (40.4%).
-- Equity ratio was 52.4% (46.1%)
-- Net liabilities were EUR 4.6 million negative (EUR 32.1 million).
-- PKC Group announced on 28 February 2011 that it had signed an agreement for
the purchase of shares in the Segu companies. The requirements of closing
have been fulfilled and the closing became effective on April 30, 2011.
KEY FIGURES 1-3/11 1-3/10 1-12/10
Net sales, EUR 1,000 96,886 60,835 316,081
Operating profit, EUR 1,000 9,670 2,827 29,689
% of net sales 10.0 4.6 9.4
Profit for the report period, EUR 1,000 7,592 246 19,683
Earnings per share (EPS), EUR 0.38 0.01 1.09
ROI,% 28.3 17.4 25.8
Net liabilities, EUR 1,000 -4,624 32,064 -2,068
Gearing, % -3.8 40.4 -1.7
Average number of personnel 6,027 4,291 5,039
HARRI SUUTARI, PRESIDENT AND CEO:
“The manufacture of commercial vehicles continued its growth in our key market
areas in Europe and Brazil. The manufacture of recreational vehicles also
continued to grow in Europe and North America. PKC's Wiring Harnesses business
continued to grow, by about 10% over the previous quarter. The orders received
by our truck customers were about 10% higher than the deliveries made within
the same period.
In February we reported that we will purchase the Segu companies that
manufacture wiring harnesses in Germany, Poland and Ukraine. The acquisition
was concluded at the end of April. This acquisition is a continuance to the
acquisition carried out in Poland for over two years ago. The Segu companies
and PKC's Polish unit will form a business unit servicing the West-European
markets with annual sales of about EUR 100 million and about 2,500 employees.
The acquisition of the Segu companies brings not only new OEM customers but
also a strategically important foothold in German-speaking Europe, benefit of
scale and increased credibility for PKC. The Segu companies also have technical
expertise which will benefit PKC's Wiring Harnesses business.
Deliveries of the Electronics business fell from the level of the previous
quarter, owing to the postponement of some customer projects. We expect that
the net sales of the Electronics business will grow in comparison with the
previous year. Production transfers to lower cost countries were continued in
the report period. During the transfer projects, the costs have differed from
the long-term target level.
In line with our strategy, our aim is not only organic growth but also business
growth through acquisitions.”
OPERATING ENVIRONMENT
Wiring Harness business
Truck markets in Europe strengthened during the report period. The
registrations of heavy-duty trucks increased in Europe (the EU countries,
Switzerland and Norway) by 65% over the comparison period. Vehicle orders
received by our customers exceeded the deliveries made during the report period
by about 9%. In the first quarter, a total of almost 58,000 new heavy-duty
trucks were registered, and sales for the whole year are forecast to increase
to between 220,000 and 240,000 vehicles.
The Brazilian commercial vehicles market profited from the strong economic
growth and the increased overall demand for capital goods. Vehicle orders
received by our customers exceeded the deliveries made during the report period
by about 20%. In addition, the Brazilian government continued its investment
subsidy program, which also applies to trucks. In Brazil, the registrations of
heavy-duty trucks increased by about a fifth over the previous year's first
quarter. The changes in emissions regulations scheduled to enter into force at
the end of this year are expected to increase production towards the end of the
year. In 2010, about 110,000 heavy-duty trucks were registered in Brazil.
Industry expects registrations for the whole year to increase by about 10% over
the previous year.
Orders for heavy-duty trucks continued to be very strong in North America
during the first quarter. The order book of manufacturers increased to 108,000
vehicles, which is 150% more than the same time a year ago. It is estimated
that whole-year sales will reach between 230,000 and 250,000 vehicles.
PKC's deliveries of wiring harnesses for recreational vehicles increased in the
first quarter in North America by 38% over the corresponding period the
previous year.
The sales of agricultural tractors in Europe increased by 18% boosted by the
price increase of food grain. A growth in demand for energy wood and an
increased market price for pulp have also boosted demand for forestry equipment
in Europe. Production volumes of these machines increased over the
corresponding period the previous year.
Although PKC Group does not have its own wiring harness production in Asia,
growing export to Asia by our customers is supporting the growth of PKC's
production volumes. The natural catastrophe in Japan had no effect on PKC's
Wiring Harnesses business in the first quarter.
Electronics business
Deliveries by PKC's Electronics business increased over the comparison period,
but fell from the level of the previous quarter on account of the postponement
of some customer projects.
Due to the global growth of the electronics industry, there have still been
problems in the availability of electronics components. The natural catastrophe
in Japan had no significant effect on PKC's Electronics business in the first
quarter.
NET SALES AND FINANCIAL PERFORMANCE
January-March 2011
Consolidated net sales from January-March amounted to EUR 96.9 million (EUR
60.8 million), up 59.3% on the same period a year earlier. Consolidated
operating profit totalled EUR 9.7 million (EUR 2.8 million), accounting for
10.0% of net sales (4.6%). During the comparison period were reported EUR 0.6
million in non-recurring expenses. Depreciation amounted to EUR 2.8 million
(EUR 2.8 million). Financial items were EUR 0.3 million negative (EUR 2.5
million negative). Financial items consist of EUR 0.5 million interest
expenses, as well as exchange rate profit caused mainly by Group's internal
liabilities totalling EUR 0.2 million net. Profit before taxes was EUR 9.4
million (EUR 0.4 million). Profit for the report period totalled EUR 7.6
million (EUR 0.2 million). Diluted earnings per share were EUR 0.38 (EUR 0.01).
Net sales generated by the Wiring Harness business in the report period
amounted to EUR 78.2 million (EUR 45.7 million), or 70.9% more than in the
comparison period. The segment's share of the consolidated net sales was 80.7%
(75.2%). Wiring Harness business generated an operating profit of EUR 10.1
million (EUR 2.0 million), equivalent to 12.9% of the segment's net sales
(4.4%). The result of comparison period was burdened in total by EUR 0.6
million in non-recurring expenses. The improvement of operating profit is due
to increased delivery volumes and efficient cost base.
Net sales generated by the Electronics business increased by 23.9% to EUR 18.7
million (EUR 15.1 million). The segment's share of the consolidated net sales
was 19.3% (24.8%). Electronics business generated an operating profit of EUR
0.4 million (EUR 1.3 million), equivalent to 2.4% of the segment's net sales
(8.6%). The decline of operating profit is due to postponement of some customer
projects and costs related to production transfers.
FINANCIAL POSITION AND CASH FLOW
Consolidated total assets at 31 March 2011 amounted to EUR 230.2 million (EUR
172.4 million). Interest-bearing liabilities totalled EUR 32.4 million at the
close of the report period (EUR 41.6 million). The Group's equity ratio was
52.4% (46.1%). Net liabilities totalled EUR 4.6 million negative (EUR 32.1
million) and the gearing was 3.8% negative (40.4%).
Inventories amounted to EUR 63.4 million (EUR 39.9 million). Current
receivables totalled EUR 65.3 million (EUR 55.9 million). Cash flows after
investments during the report period were EUR 0.1 million (EUR 2.8 million
negative). Cash and cash equivalents amounted to EUR 37.0 million (EUR 9.5
million). In order to ensure financing flexibility, PKC has available a total
of EUR 15 million financing and credit facilities, of which EUR 15 million has
remained unused.
CAPITAL EXPENDITURE
During the report period, the Group's gross capital expenditure totalled EUR
2.5 million (EUR 1.3 million), representing 2.6% of net sales (2.2%). The
capital expenditure consisted mostly of the acquisition of production machinery
and equipment.
RESEARCH & DEVELOPMENT
Research and development costs totalled EUR 1.6 million (EUR 1.4 million),
representing 1.6% (2.4%) of the consolidated net sales. At the end of the
report period, 110 (106) people worked in product development.
PERSONNEL
During the report period, the Group had an average payroll of 6,027 employees
(4,291). At the end of the report period, the Group's personnel numbered 6,197
employees (4,492), of whom 5,800 (4,031) worked abroad and 397 (461) in
Finland. In addition the Group had at the end of the report period 1,016 rented
employees.
QUALITY AND THE ENVIRONMENT
All of the Group's Wiring Harness factories are certified in accordance with
requirements of the ISO/TS16949 quality standard for the automotive industry
and with the ISO9001 quality standard as well as with the ISO14001
environmental standard. Production unit in Curitiba (Brazil) has also
certification in accordance with the OHSAS18001 occupational health and safety
management system standard.
All of the Group's Electronic factories are certified in accordance with the
requirements of the ISO/TS16949 quality standard for the automotive industry
and with the ISO9001 quality standard as well as with the ISO14001
environmental standard. During 2011 occupational health and safety management
system will be implemented to all units in conformity with the OHSAS18001
standard.
Best Quality Practices are a part of PKC's strategy, and they enable the close
participation of each employee in daily quality work and the continuous
improvement of quality. The selected practices are tried and tested quality
tools and procedures that aid the development and standardisation of production
processes, methods, and products, ensuring that they are as uniform as
possible, regardless of production site. Best Quality Practices also include
Six Sigma, which is used in the Wiring Harness business in the implementation
of strategically important development projects. Also the Electronic business
has started implementing Best Quality Practices and Six Sigma. The progress of
practices is actively monitored in business segments and in the Group's
Executive Board. Best Quality Practices and monitoring the realisation of
Quality Best Practices is handled as part of the external system audits. The
effectiveness of processes in Wiring Harness business has been measured using
harmonised indicators. Indicators act as tools for continuous improvement and
this improves further the quality management in Group level.
MANAGEMENT
The Annual General Meeting held on 30 March 2011, re-elected Matti Hyytiäinen,
Outi Lampela, Endel Palla, Olli Pohjanvirta, Matti Ruotsala and Jyrki Tähtinen
as Board members. In the Board's organisation meeting, Matti Ruotsala was
elected as Chairman of the Board with Jyrki Tähtinen as Vice-Chairman.
Outi Lampela was elected as chairman of the Audit Committee with Matti
Hyytiäinen and Olli Pohjanvirta as its members. The Board of Directors also
elected Matti Ruotsala as chairman of the Nomination Committee and Endel Palla
and Jyrki Tähtinen as members.
Authorised public accounting firm KPMG Oy Ab, which has announced Virpi
Halonen, APA, to be the Auditor with principal responsibility, was selected as
auditor.
The Group's Executive Board consists of the following persons: Harri Suutari,
Chairman (President and CEO); Harri Ojala (President, Wiring Harnesses); Jarmo
Rajala (President, Electronics); Sanna Raatikainen (General Counsel); Marja
Sarajärvi (CFO); and Jarkko Kariniemi (Director, HR and Risk Management).
DIVIDEND FOR 2010
The annual general meeting held on 30 March 2011 resolved to pay a dividend of
EUR 0.55 per share: i.e. a total of about EUR 10.9 million. The dividend was
paid out on 11 April 2011.
SHARE TURNOVER AND SHAREHOLDERS
PKC Group Oyj's share turnover on NASDAQ OMX Helsinki Ltd from 1 January to 31
March 2011 was 2,884,673 shares (3,685,529 shares), representing 14.7% of the
average number of shares (20.7%). Shares were traded to a total value of EUR
43.3 million (EUR 32.4 million). The lowest share value during the report
period was EUR 13.90 (EUR 6.55) and the highest EUR 15.90 (EUR 10.60). The
closing price on the last trading day of the report period was EUR 15.63 (EUR
10.60) and the average price during the period was EUR 15.02 (EUR 8.74). The
company's market capitalisation at 31 March 2011 was EUR 309.5 million (EUR
188.5 million).
The shares held by Board members, their closely associated persons and
corporations in which they have a controlling interest accounted for 0.7%
(0.7%) of the total number of shares at the end of the report period. PKC Group
Oyj had a total of 8 096 shareholders (7,088) at the end of the report period.
The shares held by foreigners and through nominee registrations at the close of
the report period totalled 20.3% of the share capital (14.5%).
SHARES AND SHARE CAPITAL
PKC Group Oyj's shares and share capital has changed during the report period
as follows:
-- a total of 49,400 PKC Group Oyj's shares have been subscribed for with 2006
options (31,600 with 2006A options and 17,800 with 2006B options). The new
shares and the corresponding increase in the share capital, EUR 16,796,
have been entered into the Trade Register on 1 February 2011. The new
shares were traded on the main list of the NASDAQ OMX Helsinki Ltd together
with the old shares as of 2 February 2011. After the increase the Company's
registered share capital was EUR 5,999,523.36, divided into 19,601,332
shares.
-- a total of 199,270 PKC Group Oyj's shares have been subscribed for with
2006 options (136,230 with 2006A options and 63,040 with 2006B options).
The new shares and the corresponding increase in the share capital, EUR
67,751.80, have been entered into the Trade Register on 29 March 2011. The
new shares were traded on the main list of the NASDAQ OMX Helsinki Ltd
together with the old shares as of 30 March 2011. After the increase the
Company's registered share capital was EUR 6,067,275.16, divided into
19,800,602 shares.
After the report period a total of 103,840 PKC Group Oyj's shares have been
subscribed for with 2006 options (32,060 with 2006A options, 20,780 with 2006B
options and 51,000 with 2006C options). The corresponding increase in the share
capital totals EUR 35,605.60. Thereby the Company's registered share capital
increases from EUR 6,067,275.16 to EUR 6,102,580.76 and the amount of shares
increase from 19,800,602 shares to 19,904,442 shares. The new shares and the
increase of share capital will be entered into the Trade Register approximately
on 12 May 2011. The listing of the new shares takes place approximately day
after registration into the Trade Register.
THE BOARD'S AUTHORISATIONS
Authorisation to the Board of Directors to decide on share issue
The Board of Directors was granted authorisation by the Annual General Meeting
on 30 March 2011 to decide on share issue and granting of special rights
defined in Chapter 10, Section 1 of the Companies Act and all the terms and
conditions thereof. A maximum total of 6,000,000 shares may be issued or
subscribed for on the basis of authorisation. The authorisation includes the
right to decide on directed share issue. The authorisation is in force for five
years from the date of the General Meeting's decision. At Board of Directors'
discretion the authorisation may be used e.g. in financing possible corporate
acquisitions, inter-company co-operation or similar arrangement, or
strengthening company's financial or capital structure etc.
The Board of Directors does not possess a valid authorisation to acquire
company's own shares, and the company does not have any own shares (treasury
shares) in its possession.
Donations to good causes
The Board of Directors was granted authorisation by the Annual General Meeting
on 30 March 2011 to decide on a donation of no more than EUR 150,000 to Finnish
universities either directly by the company or through its subsidiaries. The
Board of Directors has made decision that PKC Electronics Oy donates EUR
100,000 to the University of Oulu and EUR 50,000 to the University of Vaasa by
30 June 2011.
STOCK OPTION SCHEMES
2006 options
The stock option scheme initiated in 2006, comprises a total of 697,500 options
divided into A, B and C warrants. At the close of report period, the
outstanding options and options held by key personnel totals 34,260 2006A
warrants, 151,660 2006B warrants and 260,850 2006C warrants.
The share subscription price for the 2006 stock options is 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 9.54 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 237,150. After the registration of subscription
to be made on 12 May 2011, the Company's share capital can increase by a
maximum of 342,380 shares i.e. EUR 116,409.20 as a result of the exercise of
the remaining outstanding option rights. The share subscription period is for
2006A warrants 1 April 2009 - 30 April 2011, for 2006B warrants 1 April 2010 -
30 April 2012, and for 2006C warrants 1 April 2011 - 30 April 2013. The 2006
stock options are subject to a share ownership plan. Key personnel are obliged
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 obliged to own these shares for the duration of his
managerial contract.
The share subscription period for 2006A warrants has ended 30 April 2011.
During the share subscription period a total 200,300 shares were subscribed and
2,200 warrants remained unused.
2009 options
The Annual General Meeting held on 27 March 2009 decided to issue stock options
to key personnel in the company and its subsidiaries. The maximum total number
of stock options issued is 600,000 and they are divided into A, B and C
warrants. At the close of the report period, the outstanding options and
options held by key personnel totals 200,000 2009A and 200,000 2009B warrants.
The subscription price for shares through the exercise of the 2009 stock
options is the volume-weighted average price of the PKC Group Oyj share on
NASDAQ OMX Helsinki for April 2009, 2010 and 2011 + 20% with dividend
adjustments, (at present, EUR 2.90 for the 2009A warrants and EUR 12,71 for the
2009B warrants). The subscription price for shares will be recorded in the
invested non-restricted equity fund. The stock options entitle their owners to
subscribe for a maximum total of 600,000 new shares in the company or existing
shares held by the company. The share subscription period for 2009A warrants is
1 April 2012 — 30 April 2014, for 2009B warrants 1 April 2013 — 30 April 2015
and for 2009C warrants 1 April 2014 — 30 April 2016. The 2009 stock options are
subject to a share ownership plan. Key personnel are obliged 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 obliged to own these shares for the duration of his managerial contract.
EVENTS AFTER THE REPORT PERIOD
PKC Group announced on 28 February 2011 that it had signed an agreement for the
purchase of shares in the Segu companies. Under the share purchase agreement,
PKC Group's subsidiaries shall purchase all shares in Segu Systemelektrik GmbH
(Germany), Segu Polska Sp. z o.o. (Poland) and TZOV HBM Kabel Corp
(Ukraine).The requirements of closing have been fulfilled and ownership and
control transferred on April 30, 2011. The debt-free purchase price of the Segu
companies is EUR 20.0 million.
The Segu companies in Germany, Poland and Ukraine manufacture and develop
wiring harnesses for the automotive and construction equipment sectors. In
2010, the Segu companies generated consolidated net sales of EUR 37.9 million
(EUR 26.5 million in 2009), EBITDA was EUR 3.8 million (EUR 3.0 million in
2009) and had 1,078 employees at the end of the year (876 at the end of 2009).
The acquisition is estimated to have a positive impact on PKC Group's operating
profit in 2011.
SHORT-TERM RISKS AND UNCERTAINTIES
The public deficit and high indebtedness of European countries and the United
States may weaken market growth and availability of financing.
The unrest in the Arab countries might affect negatively on the demand for new
trucks.
Due to the global growth in industrial production, the prices and availability
of raw materials and components may develop in an unfavourable direction. This
might increase PKC's processing and freight costs during this year.
The natural catastrophe in Japan might have an impact on the availability of
components for the electronics industry.
A potential weakening of the euro against the Polish zloty and the Russian
rouble as well as the potential weakening of the USD against the Mexican peso
may increase PKC's processing costs.
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
at www.pkcgroup.com.
OUTLOOK FOR THE FUTURE
During the first quarter, the customers of PKC's Wiring Harnesses business
received significantly more new orders than the average level the previous
year.
We expect that net sales of the Wiring Harnesses business will grow in
comparison with the previous year.
During the first quarter, sales of customers of the Electronics business
increased over the average level of the previous year. We expect that the net
sales of the Electronics business will grow in comparison with the previous
year.
PKC Group estimates that its net sales and comparable operating profit will
increase in 2011 from the previous year's level. In 2010, net sales amounted to
EUR 316.1 million, and operating profit before non-recurring items was EUR 31.5
million.
FINANCIAL REPORTS IN 2011
In 2011, the Interim Reports will be published as follows:
Interim Report 1-6/2011 on Thursday 4 August 2011 at 8:15 a.m.
Interim Report 1-9/2011 on Thursday 3 November 2011 at 8:15 a.m.
The text section of this release focuses on the interim report. Comparisons in
accordance with IFRS standards have been made to the figures of the
corresponding period in 2010, unless otherwise mentioned. The figures presented
in the tables are independently rounded figures.
TABLES
The quarterly figures have not been audited. This interim report has been
prepared in accordance with IAS 34 (Interim Financial Reporting) standard. The
interim report has been prepared in accordance with the same principles as the
annual financial statements for 2010. The year 2011 IFRS standard changes have
not had any effect.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1-3/11 1-3/10 1-12/10
1,000) 3 mon. 3 mon. 12 mon.
NET SALES 96,886 60,835 316,081
Other operating income 657 556 4,597
Increase (+) / decrease (-) in stocks of finished goods 1,664 -318 5,983
and work in progress
Materials and services 60,220 34,886 190,940
Employee benefit expenses 18,725 14,468 66,442
Depreciation 2,813 2,767 10,684
Other operating expenses 7,780 6,125 28,906
OPERATING PROFIT 9,670 2,827 29,689
Interest expenses -538 -485 -1,964
Other financial income 247 22 132
Other financial expenses 0 -2,013 -2,829
PROFIT BEFORE TAXES 9,380 351 25,029
Income tax -1,788 -105 -5,346
PROFIT FOR THE REPORT PERIOD 7,592 246 19,683
Other comprehensive income:
Foreign currency translation differences - foreign -2,739 7,597 10,499
operations
Total comprehensive income for the period 4,853 7,844 30,182
Attributable to equity holders of the parent company:
Basic earnings per share (EPS), EUR 0.39 0.01 1.09
Diluted earnings per share (EPS), EUR 0.38 0.01 1.09
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 3/11 3/10 12/10
1,000)
ASSETS
NON-CURRENT ASSETS
Goodwill 15,256 15,372 15,662
Other intangible assets 8,588 11,174 9,196
Property, plant and equipment 36,060 35,508 36,232
Deferred tax assets 4,585 4,973 4,794
Other receivables 40 65 38
Total non-current assets 64,529 67,092 65,923
CURRENT ASSETS
Inventories 63,372 39,906 58,127
Receivables
Trade receivables 47,651 45,440 45,797
Other receivables 17,627 10,428 12,005
Total receivables 65,278 55,868 57,803
Cash and cash equivalents 36,986 9,538 37,104
Total current assets 165,636 105,312 153,034
Total assets 230,165 172,404 218,956
EQUITY AND LIABILITIES
EQUITY
Share capital 6,067 5,983 5,983
Share premium account 7,291 4,846 4,850
Invested non-restricted equity fund 21,840 370 21,852
Translation reserve 842 657 958
Share-based payments 1,845 1,126 1,663
Retained earnings 75,078 66,187 68,789
Profit for the report period 7,592 246 19,683
Total equity 120,555 79,414 123,776
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 24,310 32,817 26,097
Non-interest-bearing liabilities
Provisions 449 449 472
Deferred tax liabilities 5,751 2,409 4,804
Total non-current liabilities 30,509 35,675 31,373
Current liabilities
Interest-bearing liabilities 8,053 8,785 8,939
Trade payables 36,007 21,990 33,291
Other non-interest-bearing liabilities 35,041 26,540 21,577
Total current liabilities 79,101 57,315 63,807
Total liabilities 109,610 92,990 95,180
TOTAL EQUITY AND LIABILITIES 230,165 172,404 218,956
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000) 1-3/11 1-3/10 1-12/10
3 mon. 3 mon. 12 mon.
Cash flows from operating activities
Cash receipts from customers 96,562 50,504 305,662
Cash receipts from other operating activities 624 -734 4,625
Cash paid to suppliers and employees -94,771 -48,811 -284,392
Cash flows from operations before financial income 2,416 959 25,895
and expenses and taxes
Interest paid -449 -402 -1,915
Translation difference 553 -1,219 857
Interest received and other financial income 29 22 342
Income taxes paid -132 -917 -2,244
Net cash from operating activities (A) 2,415 -1,557 22,935
Cash flows from investing activities
Acquisition of property and equipment and intangible -2,468 -1,374 -8,542
assets
Proceeds from sale of property and equipment and 179 114 466
intangible assets
Loans granted 0 -1 -1
Proceeds from repayments of loans 0 0 17
Net cash used in investment activities (B) -2,289 -1,260 -8,060
Cash flows after investments 127 -2,817 14,875
Cash flows from financing activities
Share issue 2,509 23 21,708
Repayment of short-term/long-term borrowings -2,607 -2,279 -8,697
Dividends paid 0 0 -7,113
Net cash used in financing activities (C) -98 -2,256 5,898
Net increase (+) or decrease (-) in cash and 29 -5,072 20,774
equivalents (A+B+C)
Cash and cash equivalents in the beginning of the 37,104 14,611 15,326
period
Effect of exchange rate fluctuations -147 698 1,004
Cash and cash equivalents in the end of the period 36,986 9,538 37,104
KEY FINANCIAL INDICATORS 1-3/11 1-3/10 1-12/10
3 mon. 3 mon. 12 mon.
Net sales, EUR 1,000 96,886 60,835 316,081
Operating profit, EUR 1,000 9,670 2,827 29,689
% of net sales 10.0 4.6 9.4
Profit before taxes, EUR 1,000 9,380 352 25,029
% of net sales 9.7 0.6 7.9
Net profit for the period, EUR 1,000 7,592 246 19,683
% of net sales 7.8 0.4 6.2
Return on equity (ROE), % 24.9 1.2 19.4
Return on investments (ROI), % 28.3 17.4 25.8
Net liabilities, EUR 1,000 -4,624 32,064 -2,068
Gearing, % -3.8 40.4 -1.7
Equity ratio, % 52.4 46.1 56.5
Current ratio 2.1 1.8 2.4
Gross capital expenditure, EUR 1,000 2,535 1,342 8,575
% of net sales 2.6 2.2 2.7
R&D expenditures, EUR 1,000 1,579 1,443 5,692
% of net sales 1.6 2.4 1.8
Personnel average 6,027 4,291 5,039
PER-SHARE KEY INDICATORS 1-3/11 1-3/10 1-12/10
3 mon. 3 mon. 12 mon.
Earnings per share (EPS), EUR 0.39 0.01 1.09
Earnings per share (EPS),diluted, EUR 0.38 0.01 1.09
Equity per share, EUR 6.09 4.47 6.33
Share price at close of period, EUR 15.63 10.60 15.40
Lowest share price, EUR 13.90 6.55 6.55
Highest share price, EUR 15.90 10.60 15.58
Average share price, EUR 15.02 8.74 10.72
Turnover in shares, 1,000 shares 2,885 3,686 10,173
Turnover in shares per (share issue adjusted) share 14.7 20.7 56.5
capital, %
Average number of shares, 1,000 shares 19,591 17,782 17,990
Average number of shares, diluted, 1,000 shares 19,999 17,778 18,054
Shares at end of period, 1,000 shares 19,801 17,782 19,552
Market capitalisation, EUR 1,000 309,483 188,484 301,100
1. SEGMENT INFORMATION
1.1.-31.3.2011 (EUR 1,000) Wiring Electro Unallocated amounts Group
Harness nics and eliminations Total
Sales to external customers 78,174 18,712 96,886
Sales to other segments 153 16 -169
Net sales, EUR 1,000 78,327 18,728 96,886
Operating profit before 10,103 443 -876 9,670
non-recurring expenses
% of net sales 12.9 2.4 10.0
Total non-recurring expenses 0 0 0
Operating profit 10,103 443 -876 9,670
% of net sales 12.9 2.4 10.0
Segment's assets 165,633 48,575 11,372 225,580
Unallocated assets *) 4,585 4,585
Total assets 165,633 48,575 15,957 230,165
* )Segment's assets do not include deferred taxes
1.1.-31.3.2010 (EUR 1,000) Wiring Electro Unallocated amounts Group
Harness nics and eliminations Total
Sales to external customers 45,730 15,105 60,835
Sales to other segments 318 54 -371 0
Net sales, EUR 1,000 46,047 15,159 60,835
Operating profit before 2,649 1,303 -479 3,474
non-recurring expenses
% of net sales 5.8 8.6 5.7
Non-recurring employee 646 0 646
benefit expenses
Operating profit 2,003 1,303 -479 2,827
% of net sales 4.4 8.6 4.6
Segment's assets 119,498 37,468 10,465 167,431
Unallocated assets *) 4,973 4,973
Total assets 119,498 37,468 15,438 172,404
*) Segment's assets do not include deferred taxes
1.1.-31.12.2010 (EUR 1,000) Wiring Electro Unallocated amounts Group
Harness nics and eliminations Total
Sales to external customers 242,384 73,697 316,081
Sales to other segments 411 243 -654 0
Net sales, EUR 1,000 242,795 73,940 316,081
Operating profit before 26,260 7,691 -2,452 31,499
non-recurring expenses
% of net sales 10.8 10.4 10.0
Non-recurring employee 1,363 0 0 1,363
benefit expenses
Non-recurring other 447 0 0 447
operating expenses
Total non-recurring expenses 1,810 1,810
Operating profit 24,450 7,691 -2,452 29,689
% of net sales 10.1 10.4 9.4
Segment's assets 151,634 52,348 10,181 214,162
Unallocated assets *) 4,794 4,794
Total assets 151,634 52,348 14,975 218,956
* )Segment's assets do not include deferred taxes
NET SALES BY GEOGRAPHICAL LOCATIONS (EUR 1,000) 1-3/11 1-3/10 1-12/10
3 mon. 3 mon. 12 mon.
Finland 15,586 10,819 53,720
Other Europe 54,825 29,339 154,588
North America 6,370 4,916 20,732
South America 15,782 11,855 56,958
Other countries 4,322 3,906 30,083
Total 96,886 60,835 316,081
2. CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY (EUR MILLION)
A = Share Capital
B = Share premium account
C = Invested non-restricted equity fund
D = Translation difference
E = Retained earnings
F = Total equity
A B C D E F
Equity at 1.1.2010 6.0 4.9 0.4 -2.9 70.3 78.6
Dividends 0.0 0.0 0.0 0.0 -7.1 -7.1
Share-based payments 0.0 0.0 0.0 0.0 0.1 0.1
Comprehensive income for the period 0.0 0.0 0.0 7.5 0.2 7.7
Equity at 31.3.2010 6.0 4.9 0.4 4.6 63.5 79.4
Equity at 1.1.2011 6.0 4.9 21.8 7.6 83.5 123.7
Dividends 0.0 0.0 0.0 0.0 -10.7 -10.7
Share-based payments 0.0 0.0 0.0 0.0 0.2 0.2
Subscription of shares 0.1 2.4 0.0 0.0 0.0 2.5
Comprehensive income for the period 0.0 0.0 -2.7 0.0 7.6 4.9
Other changes 0.0 0.0 0.0 0.0 -0.1 -0.1
Equity at 31.3.2011 6.1 7.3 19.1 7.6 80.5 120.6
3. PROPERTY, PLANT AND EQUIPMENT (EUR 1,000) 3/11 3/10
Acquisition cost 1.1. 76,969 73,772
+/- Translation difference 1.1. -699 1,800
+ Additions 2,241 1,292
- Disposals -331 -360
Acquisition cost 31.3. 78,180 76,504
Accumulated depreciation 1.1. 40,737 39,395
+/- Translation difference 1.1. -359 0
- Accumulated depreciation on disposals -174 -277
+ Depreciation 1,902 1,878
Depreciation 31.3. 42,106 40,996
Carrying amount 31.3. 36,073 35,508
4. OTHER INTANGIBLE ASSETS (EUR 1,000) 3/11 3/10
Acquisition cost 1.1. 39,636 37,167
+/- Translation difference 1.1. -428 1,635
+ Additions 294 51
- Disposals 0 -62
Acquisition cost 31.3. 39,502 38,791
Accumulated depreciation 1.1. 13,516 11,418
+/- Translation difference 1.1. 1,247 -62
+ Depreciation 896 889
Depreciation 31.3. 15,659 12,245
Carrying amount 31.3. 23,843 26,546
5. CONTINGENT LIABILITIES AT END OF PERIOD (EUR 1,000) 3/11 3/10 12/10
Leasing liabilities 2,715 2,803 2,982
Liabilities for derivative instruments
Nominal values
Currency derivatives
Forward contracts 355 0 0
Copper derivatives
Forward contracts 2,477 1,362 2,010
Total 2,833 1,362 2,010
Fair values
Currency derivatives
Forward contracts -3 0 0
Copper derivatives
Forward contracts -155 83 307
Total -158 83 307
Currency and copper derivates are used only in hedging currency and copper
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.
6. QUARTERLY KEY INDICATORS, 10-12/0 1-3/10 4-6/10 7-9/10 10-12/1 1-3/11
CONSOLIDATED 9 3 mon. 3 mon. 3 mon. 0 3 mon.
3 mon. 3 mon.
Net sales, 55.4 60.8 81.0 82.3 91.9 96.9
EUR million
Operating profit, 2.6 2.8 7.6 9.5 9.8 9.7
EUR million
% of net sales 4.8 4.6 9.4 11.5 10.6 10.0
Profit before taxes, EUR 1.8 0.4 4.7 13.4 6.6 9.4
million
% of net sales 3.3 0.6 5.8 16.2 7.2 9.7
Equity ratio, % 49.2 46.1 47.7 50.2 56.5 52.4
Earnings per share (EPS), 0.19 0.01 0.24 0.56 0.29 0.38
diluted (EUR)
Equity per share, EUR 4.42 4.47 4.95 5.15 6.33 6.09
QUARTERLY KEY INDICATORS,
WIRING HARNESS
Net sales, 40.3 45.7 64.1 61.8 70.8 78.2
EUR million
Operating profit, 1.0 2.0 7.0 6.8 8.7 10.1
EUR million
% of net sales 2.4 4.4 10.9 11.0 12.3 12.9
QUARTERLY KEY INDICATORS,
ELECTRONICS
Net sales, 15.1 15.1 16.9 20.5 21.1 18.7
EUR million
Operating profit, 1.7 1.3 1.1 3.3 2.0 0.4
EUR million
% of net sales 12.2 8.6 6.5 15.9 9.6 2.4
CALCULATION OF INDICATORS
Return on equity (ROE), %
= 100 x (Profit/loss) / Shareholders' equity (average)
Return on investments (ROI), %
= 100 x (Profit before taxes + financial expenses) / Shareholders' equity +
interest-bearing liabilities (average)
Gearing, %
= 100 x (Interest-bearing liabilities - cash and cash equivalents and
investments) / Shareholders' equity + non-controlling interests
Equity ratio, %
= 100 x (Shareholders' equity + non-controlling interests) / Total of statement
of financial position - advance payments received
Quick ratio
= Receivables and cash and cash equivalents / Current liabilities - advance
payments received
Current ratio
= Receivables and cash and cash equivalents + inventories / Current liabilities
Earnings per share (EPS), EUR
= Profit/loss +/- non-controlling interests / Average share issue-adjusted
number of shares
Shareholders' equity per share, EUR
= Shareholders' equity / Share issue-adjusted number of shares at the date of
the statement of financial position
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, 5 May 2011, at 10.00 a.m., at the address World Trade Center,
Aleksanterinkatu 17, meeting room 2, 2nd floor, 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,
Brazil, China, Estonia, Finland, Germany, Mexico, Poland, Russia and Ukraine.
The Group's net sales in 2010 totalled EUR 316.1 million. PKC Group Oyj is
listed on NASDAQ OMX Helsinki Ltd.
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