2014-04-23 08:00:02 CEST
2014-04-23 08:00:06 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 31 MARCH 2014
Vieremä, Finland, 2014-04-23 08:00 CEST (GLOBE NEWSWIRE) --
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2014
- Net sales amounted to EUR 86.9 (61.6) million.
- Operating result totalled EUR 7.4 (0.1) million, equalling 8.5 (0.2) per cent
of net sales.
- Result before taxes was EUR 6.9 (0.7) million.
- Cash flow from operating activities was EUR 2.2 (12.7) million.
- Earnings per share were EUR 0.19 (0.00).
- Equity ratio was 37.9 (32.3) per cent.
- Order books stood at EUR 104.1 (49.1) million.
PRESIDENT AND CEO JUHO NUMMELA:
The good outlook in the forestry sector had a positive impact. The demand for
forest machines was at a good level during the first quarter. The order volume
of new machines increased, and our order book continued to increase, ending up
at EUR 104.1 (49.1) million. The order book grew by 112 per cent compared with
the comparable period.
Russia, an important market area for us, was still at a normal level, and the
unstable situation in Ukraine has not had a substantial impact on the Russian
market. The positive trend in North America continues, and the market is
expected to develop favourably. With regard to European markets, Central Europe
has shown signs of recovery, while Sweden is still at a low level in terms of
overall market development.
Serial production of the PONSSE Scorpion range has began at the Vieremä
factory. The demand for the PONSSE Scorpion has continued to be active, and the
feedback from the demonstration tours has been extremely positive. The demand
for other product models has been at a good level as well, and as a result of
the active order intake, the factory operates in the normal two shifts.
The service business continued to grow significantly. At the same time, our
used machine sales continued its moderate growth. Sales of new machines
returned to the normal level from the weak comparable period, and the net sales
for the quarter were good for a first quarter, at EUR 86.9 (61.6) million. Net
sales increased by 41 per cent from the corresponding period.
The operating result amounted to EUR 7.4 (0.1) million during the first
quarter, equalling 8.5 (0.0) per cent of net sales.
Cash flow from business operations amounted to EUR 2.2 (12.7) million in the
period under review. The stock of new products was at a level slightly higher
than normal, while the capital tied up in raw materials and consumables
increased slightly, but the stock of trade-in machines was correspondingly at a
good level. The equity ratio continued to develop favourably, amounting to 37.9
per cent.
NET SALES
Consolidated net sales for the period under review amounted to EUR 86.9 (61.6)
million, which is 40.9 per cent more than in the comparison period.
International business operations accounted for 69.7 (60.1) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 42.7 (52.2)
per cent, Central and Southern Europe 19.1 (15.2) per cent, Russia and Asia
13.1 (13.9) per cent, North and South America 25.2 (18.7) per cent and other
countries 0.0 (0.0) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 7.4 (0.1) million. The operating result
equalled 8.5 (0.2) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 22.4 (3.4) per cent.
Staff costs for the period totalled EUR 13.5 (12.6) million. Other operating
expenses stood at EUR 8.4 (7.3) million. The net total of financial income and
expenses amounted to EUR -0.5 (0.7) million. Exchange rate gains and losses
with a net effect of EUR -0.2 (1.0) million were recognised under financial
items for the period. Result for the period under review totalled EUR 5.3 (0.5)
million. Diluted and undiluted earnings per share (EPS) came to EUR 0.19
(0.00). 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 191.1 (194.4) million. Inventories stood at
EUR 89.9 (87.6) million. Trade receivables totalled EUR 23.6 (19.1) million,
while liquid assets stood at EUR 10.2 (23.0) million. Group shareholders'
equity stood at EUR 72.1 (62.1) million and parent company shareholders' equity
(FAS) at EUR 91.9 (81.9) million. The amount of interest-bearing liabilities
was EUR 61.2 (75.3) million. The company has used 21 per cent of its credit
facility limit. The parent company's net receivables from other Group companies
stood at EUR 78.0 (77.2) million. The parent company's receivables from
subsidiaries mainly consisted of trade receivables. Consolidated net
liabilities totalled EUR 50.9 (52.3) million, and the debt-equity ratio (net
gearing) was 70.6 (84.2) per cent. The equity ratio stood at 37.9 (32.3)
percent at the end of the period under review.
Cash flow from operating activities amounted to EUR 2.2 (12.2) million. Cash
flow from investment activities came to EUR -4.7 (-3.0) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 92.3 (69.0) million, while period-end
order books were valued at EUR 104.1 (49.1) 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.
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled EUR 2.6 (2.4)
million, of which EUR 0.4 (0.6) million was capitalised.
Capital expenditure totalled EUR 4.7 (3.0) million. It consisted in addition to
capitalised R&D expenses of 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; Juha Haverinen, Factory Director;
Petri Härkönen, CFO; Juha Inberg, Technology and R&D Director; Tapio Mertanen,
Service Director; Paula Oksman, HR Director; Tommi Väänänen, Purchasing
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 1,136 (975) during the period and employed
1,158 (981) 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 2014 totalled
683,426, accounting for 2.4 per cent of the total number of shares. Share
turnover amounted to EUR 7.0 million, with the period's lowest and highest
share prices amounting to EUR 9.02 and EUR 10.75, respectively.
At the end of the period, shares closed at EUR 10.50, and market capitalisation
totalled EUR 294.0 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 15 April 2014 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 uncertainty may be
increased by the volatility of developing countries' foreign exchange markets.
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 be significantly
higher than in 2013.
Ponsse's strongly renewed and competitive product portfolio and maintenance
service solutions are having a positive effect on the company's business
operations.
Thanks to the strong order books, the factory is able to produce forest
machines at normal capacity. We estimate that the work situation of our
customers will also continue to be normal.
Our investments in the buildings of the Vieremä factory, product development
and maintenance services, development and renewal of production technology and
product development will continue.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
IFRS IFRS IFRS
1-3/14 1-3/13 1-12/13
NET SALES 86,859 61,645 312,825
Increase (+)/decrease (-) in inventories of finished 4,884 12,016 5,832
goods and work in progress
Other operating income 243 140 1,053
Raw materials and services -60,791 -52,152 -210,146
Expenditure on employment-related benefits -13,484 -12,594 -49,022
Depreciation and amortisation -1,849 -1,648 -6,568
Other operating expenses -8,440 -7,315 -31,472
OPERATING RESULT 7,422 93 22,501
Share of results of associated companies -38 -84 -45
Financial income and expenses -532 704 -8,208
RESULT BEFORE TAXES 6,852 713 14,248
Income taxes -1,503 -202 -5,150
NET RESULT FOR THE PERIOD 5,349 512 9,098
OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:
Translation differences related to foreign units -759 -843 2,955
TOTAL COMPREHENSIVE RESULT FOR THE PERIOD 4,590 -331 12,053
Diluted and undiluted earnings per share* 0.19 0.00 0.31
* 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 14 31 Mar 13 31 Dec 13
NON-CURRENT ASSETS
Intangible assets 14,254 12,137 14,278
Goodwill 3,440 3,440 3,440
Property, plant and equipment 38,014 36,675 37,766
Financial assets 104 111 104
Investments in associated companies 994 992 1,031
Non-current receivables 898 1,048 914
Deferred tax assets 1,468 2,022 1,374
TOTAL NON-CURRENT ASSETS 59,171 56,426 58,908
CURRENT ASSETS
Inventories 89,913 87,623 85,767
Trade receivables 23,587 19,148 23,108
Income tax receivables 259 897 207
Other current receivables 7,975 7,268 6,100
Cash and cash equivalents 10,234 23,029 11,958
TOTAL CURRENT ASSETS 131,968 137,966 127,140
TOTAL ASSETS 191,139 194,391 186,048
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 30 30 30
Translation differences 658 -2,381 1,417
Treasury shares -2,228 -2,228 -2,228
Retained earnings 66,680 59,692 61,331
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 72,140 62,113 67,550
NON-CURRENT LIABILITIES
Interest-bearing liabilities 39,098 41,471 38,810
Deferred tax liabilities 632 1,175 657
Other non-current liabilities 0 0 0
TOTAL NON-CURRENT LIABILITIES 39,730 42,646 39,466
CURRENT LIABILITIES
Interest-bearing liabilities 22,068 33,828 21,492
Provisions 4,362 4,763 4,618
Tax liabilities for the period 958 65 920
Trade creditors and other current liabilities 51,881 50,976 52,002
TOTAL CURRENT LIABILITIES 79,270 89,632 79,032
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 191,139 194,391 186,048
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS IFRS
1-3/14 1-3/13 1-12/13
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 5,349 512 9,098
Adjustments:
Financial income and expenses 532 -704 8,208
Share of the result of associated companies 38 84 45
Depreciation and amortisation 1,849 1,648 6,568
Income taxes 1,503 202 5,150
Other adjustments -380 546 2,637
Cash flow before changes in working capital 8,891 2,286 31,706
Change in working capital:
Change in trade receivables and other receivables -226 2,238 -81
Change in inventories -4,146 -5,987 -4,131
Change in trade creditors and other liabilities -829 13,580 15,557
Change in provisions for liabilities and charges -256 -214 -359
Interest received 42 57 227
Interest paid -152 -76 -1,143
Other financial items -196 105 -1,063
Income taxes paid -884 704 -2,260
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 2,244 12,693 38,453
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -4,690 -3,036 -11,188
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -4,690 -3,036 -11,188
CASH FLOWS FROM FINANCING ACTIVITIES
Hybrid loan 0 -19,000 -19,000
Interest paid, hybrid loan 0 -1,136 -1,136
Withdrawal/Repayment of current loans 1,428 472 -14,500
Change in current interest-bearing liabilities 0 213 -136
Withdrawal of non-current loans 245 20,000 29,322
Repayment of non-current loans -760 -342 -10,668
Payment of finance lease liabilities -48 -1,650 -239
Change in non-current receivables -32 -49 172
Dividends paid 0 0 -6,947
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) 833 -1,493 -23,132
Change in cash and cash equivalents (A+B+C) -1,613 8,164 4,133
Cash and cash equivalents on 1 Jan 11,958 14,083 14,083
Impact of exchange rate changes -110 781 -6,259
Cash and cash equivalents on 31 Mar/31 Dec 10,234 23,029 11,958
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 2014 7,000 30 1,417 -2,228 61,331 67,550
Translation differences -759 -759
Result for the period 5,349 5,349
Total comprehensive income for -759 5,349 4,590
the period
Other changes 0
SHAREHOLDERS' EQUITY 31 MAR 7,000 30 658 -2,228 66,680 72,140
2014
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
31 Mar 14 31 Mar 13 31 Dec 13
1. LEASING COMMITMENTS (EUR 1,000) 1,490 2,441 1,691
2. CONTINGENT LIABILITIES (EUR 1,000) 31 Mar 14 31 Mar 13 31 Dec 13
Guarantees given on behalf of others 463 1,570 487
Repurchase commitments 1,030 1,389 1,138
Other commitments 4,462 4,121 4,224
TOTAL 5,955 7,080 5,850
3. PROVISIONS (EUR 1,000) Guarantee provision
1 January 2014 4,618
Provisions added 126
Provisions cancelled -382
31 March 2014 4,362
KEY FIGURES AND RATIOS 31 Mar 14 31 Mar 13 31 Dec 13
R&D expenditure (EUR million) 2.6 2.4 9.7
Capital expenditure (EUR million) 4.7 3.0 11.2
as % of net sales 5.4 4.9 3.6
Average number of employees 1,136 975 1,027
Order books (EUR million) 104.1 49.1 99.8
Equity ratio, % 37.9 32.3 36.5
Diluted and undiluted earnings per share (EUR) 0.19 0.00 0.31
Equity per share (EUR) 2.58 2.22 2.41
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before tax + financial expenses
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-------------------------------------
Shareholder´s equity + interest-bearing financial liabilities (average during
the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month. The calculation
has been adjusted for part-time employees.
Net gearing, %:
Interest-bearing financial liabilities - cash and cash equivalents
--------------------------------------------------------------------------------
---
Shareholders' equity * 100
Equity ratio, %:
Shareholders' equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Net result 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 (EUR million) 1-3/14 1-3/13 1-12/13
Ponsse Group 92.3 69.0 371.0
The stock exchange release for 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 2013.
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 2014
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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