PONSSE PLC, STOCK EXCHANGE RELEASE, 17 APRIL 2018, 9:00 a.m.
PONSSE’S INTERIM REPORT FOR 1 JANUARY – 31 MARCH 2018
– Net sales amounted to EUR 142.1 (129.9) million.
– Operating result totalled EUR 17.1 (14.3) million, equalling 12.0 (11.0) per cent of net sales.
– Profit before taxes was EUR 15.4 (14.5) million.
– Cash flow from business operations was EUR 19.3 (-5.4) million.
– Earnings per share were EUR 0.42 (0.40).
– Equity ratio was 53.2 (52.4) per cent.
– Order books stood at EUR 173.8 (118.6) million.
PRESIDENT AND CEO JUHO NUMMELA:
Performance for the first quarter was extremely good, and the demand for PONSSE forest machines was strong in all our market areas. Order intake for the first quarter was excellent, and the order books for the period under review showed a result of EUR 173.8 (118.6) million.
The company’s net sales for the first quarter were EUR 142.1 (129.9) million. Growth in net sales compared to the reference period was 9.4 percent. Net sales for after sales services greatly increased, and the net sales for used machines was at the same level as in the reference period. International business operations accounted for 73.9 (72.1) percent of net sales.
The operating result for the past quarter amounted to EUR 17.1 (14.3) million, with growth of 19.2 percent. The operating margin for the period under review was 12.0 (11.0) percent. Cash flow for the first quarter was EUR 19.3 (-5.4) million, an excellent level. The company’s working capital is well under control. Good operating result and the working capital situation reflected both to the company’s strong cash flow.
The Vieremä factory investment is proceeding on schedule. Over the course of the first quarter, we successfully deployed the new warehouse system. The development of warehouse automation and material flow is continuing at the same time as construction of the plant’s production lines begins in the new factory. The new assembly plant will be deployed after the summer holidays.
Consolidated net sales for the period under review amounted to EUR 142.1 (129.9) million, which is 9.4 per cent more than in the comparison period. International business operations accounted for 73.9 (72.1) per cent of net sales.
Net sales were regionally distributed as follows: Northern Europe 41.3 (47.0) per cent, Central and Southern Europe 20.2 (19.0) per cent, Russia and Asia 19.5 (15.8) per cent, North and South America 18.0 (17.8) per cent and other countries 1.0 (0.4) per cent.
The operating result amounted to EUR 17.1 (14.3) million. The operating result equalled 12.0 (11.0) per cent of net sales for the period under review. Consolidated return on capital employed (ROCE) stood at 25.3 (27.6) per cent.
Staff costs for the period totalled EUR 20.3 (18.6) million. Other operating expenses stood at EUR 12.8 (11.1) million. The net total of financial income and expenses amounted to EUR -1.7 (0.1) million. Exchange rate gains and losses with a net effect of EUR -0.7 (0.3) million were recognised under financial items for the period. Result for the period under review totalled EUR 11.7 (11.2) million. Diluted and undiluted earnings per share (EPS) came to EUR 0.42 (0.40).
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 362.3 (313.7) million. Inventories stood at EUR 132.1 (128.6) million. Trade receivables totalled EUR 35.8 (40.4) million, while liquid assets stood at EUR 54.7 (22.3) million. Group shareholders’ equity stood at EUR 186.7 (161.3) million and parent company shareholders’ equity (FAS) at EUR 177.2 (150.1) million. The amount of interest-bearing liabilities was EUR 67.8 (57.9) million. The company has used 0 per cent of its credit facility limit. The parent company’s net receivables from other Group companies stood at EUR 84.0 (94.9) million. The parent company’s receivables from subsidiaries mainly consisted of trade receivables. Consolidated net liabilities totalled EUR 13.0 (35.4) million, and the debt-equity ratio (net gearing) was 6.9 (22.0) per cent. The equity ratio stood at 53.2 (52.4) percent at the end of the period under review.
Cash flow from operating activities amounted to EUR 19.3 (-5.4) million. Cash flow from investment activities came to EUR -6.5 (-8.2) million.