|
|||
2007-07-13 07:15:00 CEST 2007-07-13 07:15:00 CEST REGULATED INFORMATION PKC Group Oyj - Quarterly reportPKC GROUP QUARTERLY REPORT JANUARY-JUNE 2007The PKC Group's net sales in the January-June period increased by 31.4 % on the previous year to EUR 143.6 million (109.3 million). Operating profit was EUR 13.8 million (15.0 million) and profit before taxes was EUR 13.2 million (14.6 million). Diluted earnings per share were EUR 0.55 (0.55). MIKA KARI, PRESIDENT AND CEO: ”The Group continued to grow strongly in both business segments. Thanks to the actions we carried out, we were able to meet the need for increased capacity. With our main customers enjoying increased volumes and as we expanded into new market areas, net sales in our Wiring Harnesses business showed strong growth on the previous year. In spite of the expansion of operations, we achieved a good level of operating profit. In our Electronics business, we racked up significant growth in both contract manufacturing and design. During the latter part of the year, we will invest in starting up operations in China. The ability in the years ahead to offer cost-effective contract manufacturing services in China too will bring an improvement in our position as a partner of the telecommunications and electrotechnical industry. For our customer industries, the development outlook for the latter part of the year remains favourable. We are pushing ahead with actions to boost capacity and improve efficiency in order to meet growing customer needs and to maintain a good level of profitability in coming years as well.” OPERATING ENVIRONMENT The commercial vehicle market showed growth compared with the same period a year ago. Deliveries by the Wiring Harnesses business to the commercial vehicle industry in Europe and South America were at a high level. Deliveries for other types of vehicle were likewise at a good level. Sales of wiring harnesses and cabling to the telecommunications industry declined somewhat from the same period a year earlier owing to low demand from certain customers in the early part of the year. Demand for electronics contract design and manufacturing showed favourable growth in the report period. In the face of a tough competitive situation, suppliers must have cost-effective operational models in place and be able to respond swiftly to customers' changing needs, at home and worldwide. NET SALES AND FINANCIAL PERFORMANCE April-June 2007 Consolidated net sales in April-June amounted to EUR 73.7 million (EUR 54.8 million), up 34.4 % on the same period a year earlier. Consolidated operating profit totalled EUR 7.3 million (6.8 million), amounting to 10.0 % of net sales (12.5 %). Depreciation amounted to EUR 1.6 million (1.5 million). Financial income and expenses were EUR 0.2 million negative (0.6 million negative). Profit before taxes was EUR 7.1 million (6.2 million). Profit for the report period rose to EUR 5.4 million (EUR 4.0 million). Diluted earnings per share were EUR 0.30 (0.22). Net sales generated by the Wiring Harnesses business during the report period were EUR 59.8 million (42.8 million), up 39.7 % on the comparison period. Its share of consolidated net sales was 81.1 % (78.0 %). Operating profit was EUR 5.6 million (5.1 million), or 9.3 % (11.8 %) of the segment's net sales. Net sales generated by the Electronics business segment rose by 15.5 % to EUR 13.9 million (12.0 million), representing 19.0% of consolidated net sales (22.0 %). Operating profit was EUR 1.8 million (1.8 million), or 12.5 % (14.2 %) of the segment's net sales. January-June 2007 The PKC Group's net sales increased by 31.4 % on the previous year, reaching EUR 143.6 million (109.3 million). Consolidated operating profit totalled EUR 13.8 million (15.0 million), amounting to 9.6 % of net sales (13.7 %). Aggregate depreciation amounted to EUR 3.7 million (3.0 million). Financial income and expenses were EUR 0.6 million negative (0.4 million negative). Profit before taxes was EUR 13.2 million (14.6 million). Profit for the report period was EUR 9.7 million (EUR 9.9 million). Diluted earnings per share were EUR 0.55 (0.55). Net sales generated by the Wiring Harnesses business during the report period rose by 36.8 % to EUR 117.9 million (86.2 million). Its share of consolidated net sales was 82.1 % (78.8 %). Operating profit of the Wiring Harnesses business totalled EUR 10.5 million (11.8 million), amounting to 8.9 % of the segment's net sales (13.6 %). The Electronics business segment saw a rise in net sales of 11.3 % to EUR 25.8 million (23.1 million), accounting for 17.9 % of consolidated net sales (21.2 %). The Electronics business segment reported operating profit of EUR 3.3 million (3.3 million), amounting to 12.6 % of the segment's net sales (13.8 %). The Group's full-year net sales grew in both business segments, and a good level of profitability was maintained. World market prices of raw materials have remained at a high level. We were able to meet increased demand by increasing production capacity. The integration of operations in North America is moving ahead, but the earnings trend has not been in line with expectations. Production volumes at the new factory in Pskov, Russia were increased as planned. BALANCE SHEET AND FINANCING Consolidated total assets at 30 June 2007 stood at EUR 163.6 million (120.2 million). Interest-bearing liabilities totalled EUR 56.5 million at the close of the report period (25.9 million). The Group's equity ratio was 45.9 % (56.0 %). Net liabilities totalled EUR 48.6 million (22.8 million) and gearing was 64.7 % (33.9 %). Inventories amounted to EUR 37.5 million (27.7 million). Current receivables totalled EUR 74.2 million (53.7 million). Cash flows from investing activities were EUR 3.7 million negative (5.3 million). Cash in hand and at bank amounted to EUR 7.9 million (3.0 million). In order to ensure financing flexibility, PKC has available credit facilities. CAPITAL EXPENDITURES During the review period, the Group's gross capital expenditures totalled EUR 4.5 million (4.8 million), amounting to 3.2 % of net sales (4.4 %). Capital expenditures went mainly for production machinery and equipment. RESEARCH & DEVELOPMENT Research and development expenditure totalled EUR 2.7 million (2.4 million), representing 1.9% (2.2%) of consolidated net sales. At the end of the report period, 77 (70) people were employed in product development. PERSONNEL The Group had an average payroll during the report period of 4,816 employees (3,591). The Group's staff at the end of the report period numbered 4,892 employees (3,617), of whom 4,155 (2,897) worked abroad and 737 (720) in Finland. The increase in personnel strength was due to the acquisition of operations in North America as well as to the growth in production volumes at units abroad. QUALITY AND THE ENVIRONMENT The Group's Wiring Harnesses business has been certified under the ISO/TS 16949 and ISO 9001 standards and in accordance with the ISO 14001 certificate. The new factories n China and Russia are preparing for certification under ISO/TS 16949 and ISO 14001. The Wiring Harnesses operations in North America have been certified according to ISO/TS 16949 and the objective is to have the environmental system at the Mexico factory certified under ISO 14001 right at the start of 2008. The Electronics business has been certified according to the ISO 9001 standard. The development of operational quality is guided by the Group's quality strategy and the action plans based on it. In accordance with its environmental policy, PKC has given its commitment to continuously reduce the environmental impacts of its operations. ANNUAL GENERAL MEETING The Annual General Meeting on 29 March 2007 passed a resolution to pay a dividend of EUR 0.45 per share, or a total of about EUR 8.0 million. The dividend was paid out on 12 April 2007. The Annual General Meeting re-elected the following persons to seats on the Board of Directors: Matti Eestilä, Jaakko Niemelä, Endel Palla, Matti Ruotsala, Harri Suutari and Jyrki Tähtinen. Olli Pohjanvirta was elected to the Board of Directors as a new member. At its organisational meeting, the Board of Directors elected Harri Suutari chairman and Jyrki Tähtinen vice chairman. Ernst & Young Oy, Authorised Public Accountant Firm, will continue as the company's auditor, with Rauno Sipilä, Authorised Public Accountant, as the responsible auditor. In accordance with the proposals of the Board of Directors, the Annual General Meeting also resolved to authorise the Board to decide on one or more share issues and granting of special rights defined in Chapter 10, Section 1 of the Companies Act and on all the terms and conditions thereof. The authorisation shall remain in force for five years from the passing of the resolution of the Annual General Meeting. The Annual General meeting also resolved to amend the Articles of Association mainly due to the new Finnish Companies Act. MANAGEMENT CHANGES Sami Klemola (36), M.Sc. (admin.) LL.M. took over as Group`s CFO on 1 May 2007. His area of responsibility is Group finance and administration. SHARE TURNOVER AND SHAREHOLDERS The trade volume of the PKC Group Oyj share on the Helsinki Stock Exchange from 1 January to 30 June 2007 was 10,570,972 shares (6,411,634), representing 59.4 % of the average number of shares (36.2 %). Shares were traded to a total value of EUR 112.4 million (77.3 million). The low during the report period was EUR 9.17 (10.60) and the high was EUR 12.40 (14.08). The closing price on the last trading day of the report period was EUR 10.59 (12.95) and the average price during the period was EUR 10.65 (12.04). The company's market capitalisation at 30 June 2007 was EUR 188.3 million (230.3 million). Shares held by Board members and their closely associated persons and controlled corporations accounted for 2.9 % (5.0 %) of the total number of shares at the end of the report period. PKC Group Oyj had 6,539 shareholders (4,722) at the end of the period. The proportion of shares held by foreigners and by way of nominee registrations at 30 June 2007 was 27.8 % of the shares outstanding (28.0 %). AS Harju Elekter's proportion of PKC Group Oyj's voting rights and share capital fell below the one tenth (1/10) limit on 15 May 2007. SHARE CAPITAL 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 granting of special rights 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 authorisation. The authorisation includes the right to decide on directed share issue. The authorisation shall be in force for five years from the date of the resolution by the Annual General Meeting. At the Board's discretion, the authorisation may be used for financing corporate acquisitions, inter-company co-operation or similar arrangement, or strengthening the Company's financing and capital structure. The Board of Directors does not have a valid authorisation to acquire company's own shares and the company does not have own shares (treasury shares) in its possession. STOCK OPTION SCHEMES In 2006, PKC launched a stock option scheme according to which the total maximum number of stock options to be issued is 697,500 and they are divided into A, B and C warrants. During the report period, stock options were distributed to key personnel in accordance with the terms and conditions of the stock options by virtue of a decision taken by the Board of Directors on 29 March 2007. Key personnel were granted a total of 47,500 2006 A warrants and 221,000 2006 B warrants, after which key personnel held a total of 202,500 2006 A warrants and 221,000 2006 B warrants. The subscription period for shares through the exercise of stock options is 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 the Helsinki Stock Exchange, with dividend adjustments as defined in the stock option terms (at present, EUR 11.09 with the 2006 A and 2006 B warrants). Through the exercise of the 2006 stock options, the share capital of PKC Group Oyj may be increased by a total maximum of 697,500 new shares and EUR 234,673.67. The stock options 2006 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. SHORT-TERM RISKS AND UNCERTAINTIES The PKC Group strives to manage and limit any adverse effects of risks encountered in its operations. The main risks are the market trend in demand for the products of its main customers, price pressures imposed by customers and demands for tighter contractual terms, the availability of and changes in world market prices of raw materials and components as well as the adequacy of production capacity when demand rises rapidly. The principles, objectives and organisation of the company's risk management as well as key risk areas are described in the risk management section in the Corporate Governance guidelines, which are available on the company's website, www.pkcgroup.com. OUTLOOK FOR THE FUTURE The market for heavy trucks as well as vehicles and work machines is expected to grow further during the autumn, with the Group's delivery volumes forecast to keep rising. Deliveries of wiring harnesses to the telecommunications and automation industry are estimated to remain at the previous level or to grow somewhat. In the Wiring Harnesses business, full-year net sales are likewise expected to grow, even without the additional net sales brought by the operations in North America. It is estimated that the market for electronics contract design and manufacturing is estimated to grow over last year, with continuing tough competition. Net sales generated by the Electronics business are expected to grow compared with the previous year. The PKC Group will start up electronics component sourcing operations and contract manufacturing in China during the current year. Consolidated net sales are expected to grow both organically and due to acquisition in North America significantly compared with last year. The expectations for higher net sales are supported by the growth in demand forecast by customers. Despite high prices of raw materials and costs related to the capacity increase, relative profitability over the full year is forecast to continue to remain at a good level. Because of the consolidation trend in customer industries, the competitive situation is expected to tighten from the previous. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | 4-6/07 | 4-6/06 | 1-6/07 | 1-6/06 | 1-12/06 | | STATEMENT (1000 EUR) | 3 | 3 | 6 mon. | 6 mon. | 12 | | | mon. | mon. | | | mon. | -------------------------------------------------------------------------------- | NET SALES | 73,670 | 54,813 | 143,637 | 109,341 | 228,928 | -------------------------------------------------------------------------------- | Operating expenses | 64,707 | 46,463 | 126,116 | 91,353 | 198,369 | -------------------------------------------------------------------------------- | Depreciation and | 1,625 | 1,512 | 3,709 | 2,967 | 6,310 | | amortisation | | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 7,339 | 6,838 | 13,812 | 15,021 | 24,249 | -------------------------------------------------------------------------------- | Financial income and | -194 | -635 | -574 | -446 | -1,498 | | expenses | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 7,146 | 6,202 | 13,239 | 14,575 | 22,751 | -------------------------------------------------------------------------------- | Direct taxes | -1,703 | -2,129 | -3,422 | -4,618 | -7,044 | -------------------------------------------------------------------------------- | PROFIT BEFORE MINORITY | 5,443 | 4,074 | 9,817 | 9,956 | 15,708 | | INTEREST | | | | | | -------------------------------------------------------------------------------- | Minority interest | -59 | -32 | -112 | -92 | -155 | -------------------------------------------------------------------------------- | PROFIT FOR THE REPORT | 5,384 | 4,042 | 9,705 | 9,864 | 15,552 | | PERIOD | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | 0.30 | 0.23 | 0.55 | 0.56 | 0.88 | | (EPS), EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share | 0.30 | 0.22 | 0.55 | 0.55 | 0.87 | | (EPS), diluted, EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET (1000 EUR) | 6/07 | 6/06 | 12/06 | -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | Non-current assets | 43,978 | 35,754 | 43,647 | -------------------------------------------------------------------------------- | Intangible assets | 9,721 | 4,279 | 9,053 | -------------------------------------------------------------------------------- | Tangible assets | 31,639 | 29,689 | 31,468 | -------------------------------------------------------------------------------- | Available-for-sale investments | 15 | 15 | 15 | -------------------------------------------------------------------------------- | Deferred tax assets | 2,328 | 1,670 | 2,486 | -------------------------------------------------------------------------------- | Other receivables | 274 | 100 | 625 | -------------------------------------------------------------------------------- | Current assets | 119,641 | 84,426 | 107,369 | -------------------------------------------------------------------------------- | Inventories | 37,523 | 27,709 | 36,589 | -------------------------------------------------------------------------------- | Receivables | 74,215 | 53,669 | 62,720 | -------------------------------------------------------------------------------- | Cash in hand and at banks | 7,903 | 3,048 | 8,060 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 163,618 | 120,179 | 151,016 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | Shareholders equity | 75,101 | 67,295 | 72,544 | -------------------------------------------------------------------------------- | Share capital | 5,983 | 5,983 | 5,983 | -------------------------------------------------------------------------------- | Other equity | 68,405 | 60,680 | 65,915 | -------------------------------------------------------------------------------- | Minority interest | 713 | 632 | 646 | -------------------------------------------------------------------------------- | Long-term liabilities | 32,062 | 15,603 | 19,717 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 31,834 | 14,974 | 18,947 | -------------------------------------------------------------------------------- | Non interest-bearing liabilities | 0 | 287 | 112 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 228 | 341 | 658 | -------------------------------------------------------------------------------- | Short-term liabilities | 56,455 | 37,282 | 58,754 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 24,671 | 10,891 | 26,068 | -------------------------------------------------------------------------------- | Non interest-bearing liabilities | 31,784 | 26,391 | 32,686 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | 163,618 | 120,179 | 151,016 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP CASH FLOW STATEMENT | 1-6/07 | 1-6/06 | 1-12/06 | | | 6 | 6 | 1 | | | mon. | mon. | 2 mon. | -------------------------------------------------------------------------------- | Cash flows from operating activities | | | -------------------------------------------------------------------------------- | Cash flows from operations before | | | -------------------------------------------------------------------------------- | financial income and expenses and taxes | 6,010 | 15,511 | 19,074 | -------------------------------------------------------------------------------- | Financial income and expenses and taxes | -4,431 | -5,403 | -9,094 | -------------------------------------------------------------------------------- | NET CASH FROM OPERATING ACTIVITIES | 1,579 | 10,108 | 9,980 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing activities | | | -------------------------------------------------------------------------------- | Capital expenditure | -3,749 | -4,780 | -9,237 | -------------------------------------------------------------------------------- | Proceeds from sale of assets | -182 | 0 | 537 | -------------------------------------------------------------------------------- | Acquisition of subsidiaries | -1,298 | 0 | -9,985 | -------------------------------------------------------------------------------- | NET CASH USED IN INVESTING ACTIVITIES | -5,229 | -4,780 | -18,685 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financial activities | | | -------------------------------------------------------------------------------- | Proceeds from issuance of share capital | 0 | 440 | 441 | -------------------------------------------------------------------------------- | Change of loans | 11,539 | 424 | 19,502 | -------------------------------------------------------------------------------- | Dividends paid | -8,046 | -8,033 | -8,068 | -------------------------------------------------------------------------------- | NET CASH USED IN FINANCIAL ACTIVITIES | 3,493 | -7,169 | 11,876 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET INCREASE/DECREASE IN CASH AND CASH | -157 | -1,841 | 3,171 | | EQUIVALENTS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY FINANCIAL INDICATORS | 1-6/07 | 1-6/06 | 1-12/06 | | | 6 | 6 | 1 | | | mon. | mon. | 2 mon. | -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 143,637 | 109,341 | 228,928 | -------------------------------------------------------------------------------- | Operating profit, 1000 EUR | 13,812 | 15,021 | 24,249 | -------------------------------------------------------------------------------- | % of net sales | 9.6 | 13.7 | 10.6 | -------------------------------------------------------------------------------- | Profit before taxes, 1000 EUR | 13,239 | 14,575 | 22,751 | -------------------------------------------------------------------------------- | % of net sales | 9.2 | 13.3 | 9.9 | -------------------------------------------------------------------------------- | Net profit for the period, 1000 EUR | 9,705 | 9,864 | 15,552 | -------------------------------------------------------------------------------- | % of net sales | 6.8 | 9.0 | 6.8 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 26.6 | 30.1 | 22.8 | -------------------------------------------------------------------------------- | Return on investments (ROI), % | 23.7 | 32.7 | 24.1 | -------------------------------------------------------------------------------- | Gearing, % | 64.7 | 33.9 | 50.9 | -------------------------------------------------------------------------------- | Equity ratio, % | 45.9 | 56.0 | 48.0 | -------------------------------------------------------------------------------- | Current ratio | 2.1 | 2.3 | 1.8 | -------------------------------------------------------------------------------- | Gross capital expenditure, 1000 EUR | 4,529 | 4,761 | 20,012 | -------------------------------------------------------------------------------- | % of net sales | 3.2 | 4.4 | 8.7 | -------------------------------------------------------------------------------- | R&D expenditures, 1000 EUR | 2,681 | 2,389 | 4,906 | -------------------------------------------------------------------------------- | % of net sales | 1.9 | 2.2 | 2.1 | -------------------------------------------------------------------------------- | Personnel average | 4,816 | 3,591 | 4,013 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP PER-SHARE KEY FIGURES | 1-6/07 | 1-6/06 | 1-12/06 | | | 6 | 6 | 1 | | | mon. | mon. | 2 mon. | -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | 0.55 | 0.56 | 0.88 | -------------------------------------------------------------------------------- | Earnings per share (EPS),diluted, EUR | 0.55 | 0.55 | 0.87 | -------------------------------------------------------------------------------- | Equity per share, EUR | 4.18 | 3.75 | 4.04 | -------------------------------------------------------------------------------- | Share price at close of period, EUR | 10.59 | 12.95 | 12.25 | -------------------------------------------------------------------------------- | Lowest share price, EUR | 9.17 | 10.60 | 10.02 | -------------------------------------------------------------------------------- | Highest share price, EUR | 12.40 | 14.08 | 14.08 | -------------------------------------------------------------------------------- | Average share price, EUR | 10.65 | 12.04 | 11.69 | -------------------------------------------------------------------------------- | Turnover in shares, 1000 shares | 10,571 | 6,412 | 11,403 | -------------------------------------------------------------------------------- | Turnover in shares per (share issue | 59.4 | 36.2 | 64.2 | | adjusted) share capital, % | | | | -------------------------------------------------------------------------------- | Average number of shares, 1000 shares | 17,782 | 17,731 | 17,756 | -------------------------------------------------------------------------------- | Average number of shares, diluted, 1000 | 17,768 | 17,893 | 17,774 | | shares | | | | -------------------------------------------------------------------------------- | Shares at end of period, 1000 shares | 17,782 | 17,782 | 17,782 | -------------------------------------------------------------------------------- | Market capitalisation , 1000 EUR | 188,306 | 230,271 | 217,824 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1. SEGMENT INFORMATION | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY BUSINESS | 4-6/07 | 4-6/06 | 1-6/07 | 1-6/06 | 1-12/06 | | SEGMENTS | 3 | 3 mon. | 6 | 6 | 12 mon. | | | mon. | | mon. | mon. | | -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 | 59,811 | 42,924 | 117,943 | 86,375 | 182,161 | | EUR | | | | | | -------------------------------------------------------------------------------- | Net sales to other | -45 | -145 | -56 | -179 | -155 | | segments, 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, total, | 59,765 | 42,779 | 117,886 | 86,196 | 182,006 | | 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, % of | 81.1 | 78.0 | 82.1 | 78.8 | 79.5 | | net sales | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 14,119 | 12,390 | 26,138 | 23,656 | 48,034 | -------------------------------------------------------------------------------- | Net sales to other | -214 | -356 | -387 | -511 | -1,112 | | segments, 1000 EUR | | | | | | -------------------------------------------------------------------------------- | Electronics, total, 1000 | 13,905 | 12,035 | 25,751 | 23,145 | 46,922 | | EUR | | | | | | -------------------------------------------------------------------------------- | Electronics, % of net | 18.9 | 22.0 | 17.9 | 21.2 | 20.5 | | sales | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group Total | 73,670 | 54,813 | 143,637 | 109,341 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT BY | | | | | | | BUSINESS SEGMENTS | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 | 5,570 | 5,081 | 10,510 | 11,765 | 17,899 | | EUR | | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, % of | 9.3 | 11.8 | 8.9 | 13.6 | 9.8 | | net sales | | | | | | -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 1,769 | 1,757 | 3,302 | 3,256 | 6,350 | -------------------------------------------------------------------------------- | Electronics, % of net | 12.5 | 14.2 | 12.6 | 13.8 | 13.2 | | sales | | | | | | -------------------------------------------------------------------------------- | Group Total | 7,339 | 6,838 | 13,812 | 15,021 | 24,249 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY | 4-6/07 | 4-6/06 | 1-12/06 | 1-6/06 | 1-12/06 | | GEOGRAPHICAL SEGMENTS | 3 | 3 mon. | 12 mon. | 6 | 12 mon. | | (1000 EUR) | mon. | | | mon. | | -------------------------------------------------------------------------------- | Finland | 13,885 | 12,720 | 26,372 | 24,420 | 47,824 | -------------------------------------------------------------------------------- | Other Europe | 39,679 | 31,921 | 79,484 | 64,249 | 128,484 | -------------------------------------------------------------------------------- | North America | 8,257 | 1,377 | 16,404 | 3,169 | 16,534 | -------------------------------------------------------------------------------- | South America | 9,508 | 7,297 | 17,312 | 14,372 | 29,149 | -------------------------------------------------------------------------------- | Other Countries | 2,341 | 1,497 | 4,065 | 3,130 | 6,937 | -------------------------------------------------------------------------------- | Total | 73,670 | 54,813 | 143,637 | 109,341 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 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 | 6.0 | 4.5 | 0.3 | 53.8 | 0.6 | 65.0 | | 1.1.2006 | | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 0 | 0 | 0 | 9.9 | 0.1 | 10.0 | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.1 | -------------------------------------------------------------------------------- | Share options used | 0 | 0.4 | 0 | 0 | 0 | 0.4 | -------------------------------------------------------------------------------- | Other changes | 0 | 0 | -0.1 | 0 | 0 | -0.1 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 55.7 | 0.6 | 67.3 | | 30.6.2006 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 60.9 | 0.6 | 72.5 | | 1.1.2007 | | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 0 | 0 | 0 | 9.7 | 0.1 | 9.8 | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.0 | -------------------------------------------------------------------------------- | Share-based payments | 0 | 0 | 0 | 0.2 | 0 | 0.2 | -------------------------------------------------------------------------------- | Translation differences | 0 | 0 | 0 | 0.5 | 0 | 0.5 | -------------------------------------------------------------------------------- | Other changes | 0 | 0 | 0.1 | -0.1 | 0 | 0.0 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.3 | 63.2 | 0.7 | 75.1 | | 30.6.2007 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. GROUP CONTINGENT LIABILITIES AT | 6/07 | 6/06 | 12/06 | | END OF PERIOD (1000 EUR) | | | | -------------------------------------------------------------------------------- | Leasing liabilities | 6,901 | 6,668 | 6,911 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities for derivate | | | -------------------------------------------------------------------------------- | instruments 1000 EUR | | | | -------------------------------------------------------------------------------- | Nominal values | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | -------------------------------------------------------------------------------- | Forward contracts | 6,258 | 4,632 | 5,917 | -------------------------------------------------------------------------------- | Option agreements | | | | -------------------------------------------------------------------------------- | Call | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Put | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total | 6,258 | 4,632 | 5,917 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | -------------------------------------------------------------------------------- | Forward contracts | -74 | -120 | -38 | -------------------------------------------------------------------------------- | Option agreements | | | | -------------------------------------------------------------------------------- | Call | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Put | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total | -74 | -120 | -38 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 | 1-3/06 | 4-6/06 | 7-9/06 | 10-12/06 | 1-3/07 | 4-6/07 | | KEY FIGURES | 3 | 3 mon. | 3 | 3 mon. | 3 mon. | 3 mon. | | | mon. | | mon. | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED | | | | | | | -------------------------------------------------------------------------------- | Net sales, | 54,527 | 54,813 | 53,994 | 65,594 | 69,967 | 73,670 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 8,183 | 6,838 | 5,316 | 3,912 | 6,473 | 7,339 | | profit, 1000 | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- | % of net | 15.0 | 12.5 | 9.8 | 6.0 | 9.3 | 10.0 | | sales | | | | | | | -------------------------------------------------------------------------------- | Profit before | 8,372 | 6,202 | 5,174 | 3,003 | 6,093 | 7,146 | | taxes, 1000 | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- | % of net | 15.4 | 11.3 | 9.6 | 4.6 | 8.7 | 9.7 | | sales | | | | | | | -------------------------------------------------------------------------------- | Equity ratio, | 50.7 | 56.0 | 49.3 | 48.0 | 44.2 | 45.9 | | % | | | | | | | -------------------------------------------------------------------------------- | Earnings per | | | | | | | | share (EPS), | | | | | | | -------------------------------------------------------------------------------- | diluted, EUR | 0.33 | 0.22 | 0.21 | 0.11 | 0.24 | 0.30 | -------------------------------------------------------------------------------- | Shareholders | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | per share, | 3.51 | 3.75 | 3.96 | 4.04 | 3.84 | 4.18 | | EUR | | | | | | | -------------------------------------------------------------------------------- | WIRING | | | | | | | | HARNESSESS | | | | | | | -------------------------------------------------------------------------------- | Net sales, | 43,417 | 42,779 | 42,163 | 53,647 | 58,121 | 59,765 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 6,684 | 5,081 | 3,342 | 2,792 | 4,940 | 5,570 | | profit, 1000 | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- | % of net | 15.4 | 11.8 | 7.9 | 5.2 | 8.5 | 9.3 | | sales | | | | | | | -------------------------------------------------------------------------------- | ELECTRONICS | | | | | | | -------------------------------------------------------------------------------- | Net sales, | 11,110 | 12,035 | 11,831 | 11,946 | 11,846 | 13,905 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 1,499 | 1,757 | 1,975 | 1,120 | 1,533 | 1,769 | | profit, 1000 | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- | % of net | 13.3 | 14.2 | 16.7 | 9.4 | 12.8 | 12.5 | | sales | | | | | | | -------------------------------------------------------------------------------- CALCULATION OF INDICATORS Return on equity (ROE), % = 100 x (Profit before extraordinary items - taxes) / Shareholders equity + minority interest (average) Return on investments (ROI), % = 100 x (Profit before extraordinary items + interest and other financial expenses) / Balance sheet total - interest free liabilities (average) Gearing, % = 100 x (Interest-bearing liabilities - cash in hand and at banks 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 banks / Current creditors - advance payments received Current ratio Receivables and cash in hand and at banks + inventories /Current creditors 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 date of the financial statement Market capitalisation Number of shares at the end of financial period x the last trading price of the financial period The information presented in this Interim Report has not been audited. The interim report has been prepared according to IFRS standards. All the forward-looking estimates and forecasts presented in this press release are based on the current views of the Company's management. Estimates and forecasts involve risks and factors of uncertainty, which, should they materialise, can 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 sector as well as the success of the Group's strategy. PKC Group Oyj Board of Directors Mika Kari President & CEO For additional information, contact: Mika Kari, President & CEO, PKC Group Oyj, +358 20 1752 350 Sami Klemola, CFO, PKC Group Oyj, +358 20 1752 362 PRESS CONFERENCE A press conference on the quarterly report will be arranged for analysts and investors today, 13 July 2007, at 1.00 pm at the address Graniittitalo Meeting Centre, meeting rooms Safiiri and Rubiini, Jaakonkatu 3, 2. floor, 00100 HELSINKI. DISTRIBUTION Helsinki Stock Exchange 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 it employs about 4,800 people. The Group had net sales in 2006 of EUR 229 million. PKC Group Oyj is listed on the Helsinki Stock Exchange. |
|||
|