Tulikivi Oyj - Interim report (Q1 and Q3)

Tulikivi Corporation´s interim report 1-6/2014

TULIKIVI CORPORATION                         INTERIM REPORT 1-6/2014

                                                                   8  August
2014, at 10.0 a.m. 



Tulikivi Corporation

Interim report, 1 January - 30 June 2014: Demand down, profitability up

8 August 2014, 10.00 a.m.



- The Tulikivi Group's second-quarter net sales were EUR 10.6 million (Q2/2013:
EUR 10.6 million), the operating result was EUR -0.8 (-0.8) million and the
result before taxes was EUR -1.0 (-1.0) million. The second-quarter operating
result before non-recurring expenses was EUR -0.3 (-0.8) million. 

- The Group's net sales for the reporting period 1 January - 30 June 2014 were
EUR 18.9 million (1 January - 30 June 2013: EUR 19.8 million), the operating
result was EUR -2.4 (-2.5) million and the result before taxes was EUR -2.8
(-3.0) million. The reporting period operating result before non-recurring
expenses was EUR -1.5 (-2.5) million. 

- Net cash flow from operating activities was EUR -3.5 (-1.5) million in the
reporting period. 

- Order books at the end of the period stood at EUR 4.9 (7.2) million.

- Future outlook: The level of demand for Tulikivi products is closely linked
to changes in consumer confidence and in the construction sector. The
performance improvement programme that started in 2013 includes sales and
production efficiency measures and cost-saving measures. The results of these
measures will begin to show in 2014. Full-year net sales are expected to be at
the same level as in 2013, and the operating result is expected to be positive. 

Summary of the interim report 1-6/2014.  The full interim report is attached to
this release. 

Key financial ratios



                     1-6/   1-6/  Change,  1-12/   4-6/   4-6/
                     2014   2013        %   2013   2014   2013
Sales, MEUR          18.9   19.8     -4.7   43.7   10.6   10.6
Operating profit/    -2.4   -2.5      2.7   -4.3   -0.8   -0.8
loss, MEUR                                                    
Operating result     -1.5   -2.5     38.6   -1.4   -0.3   -0.8
before non-                                                   
recurring                                                     
expenses, MEUR                                                
Profit before tax,   -2.8   -3.0      6.3   -5.3   -1.0   -1.0
MEUR                                
Total                -2.3   -2.3     -2.3   -4.5   -0.8   -0.7
comprehensive                                                 
income for the                                                
period, MEUR                                                  
Earnings per        -0.04  -0.06           -0.11  -0.01  -0.02
share,  Euro                                                  
Net cash flow        -3.5   -1.5             2.6   -1.1    1.0
from operating                                                
activities, MEUR                                              
Equity ratio, %      38.3   30.2            38.1              
Net indebtness       92.9  143.6            59.3              
ratio,  %                                                     
Return on           -11.6  -11.6            -9.8   -1.9   -1.8
investments, %                                                



Comments by Heikki Vauhkonen, Managing Director:

Net sales of Tulikivi products in the second quarter were unchanged from the
same period the previous year. In Finland, the volume of low-rise housing
construction starts and renovation projects was low, which reduced the number
of deliveries. Net sales of exports were at the previous year's level. Net
sales in Central Europe were down due to the difficult market conditions. In
Russia and the Nordic and Baltic countries, net sales showed a positive trend. 

Despite the challenging market, net sales kept growing for the company's newest
products: saunas, design fireplaces and the new-generation Hiisi fireplace
collection. 

The progress made with the performance improvement programme in the second
quarter helped to improve the company's relative profitability from the
previous year's level. Performance was improved through savings in fixed costs. 

In addition to savings in fixed costs, the performance improvement programme
includes a reorganisation of production. Having centralised soapstone fireplace
production in the spring, a transfer to outsourced tiles in ceramic fireplaces
was achieved during the second quarter. The measures taken will improve
profitability in the second half of the year. 

The flow of orders from Tulikivi's main market areas in the second quarter fell
short of the previous year's level, due to weak consumer confidence in Finland,
an early end to the fireplace purchasing season as a result of warm weather in
Central Europe, and the uncertain situation in Russia. Order books at the end
of the reporting period amounted to EUR 4.9 (7.2) million. 

Owing to the weak market conditions, the impact of the sales efficiency
measures that form part of the performance improvement programme will be felt
more slowly than anticipated, during the latter part of 2014 and in 2015. 

TULIKIVI CORPORATION

Board of Directors



Distribution: NASDAQ OMX Helsinki

Key media

www.tulikivi.com

Additional information: Tulikivi Corporation, FIN-83900 Juuka, Finland, tel.
+358 207 636 000, www.tulikivi.com 

- Harri Suutari, Chairman of the Board, tel. +358 400 384 937

- Heikki Vauhkonen, Managing Director, tel. +358 207 636 555



ATTACHEMENT: Interim Report 1-6/2014

Attachments:

Interim report 01-062014.pdf