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Juho Nummela, President and CEO (October 17, 2017):

 In the third quarter, demand for PONSSE forest machines was excellent. The order flow was strong, and the value of the order book at the end of the period under review was EUR 154.2 (163.2) million. The Russian market is growing very rapidly, and other markets are also functioning well. The markets in North America, the Nordic countries and Central Europe are in good situations.

During the period under review, the company’s turnover was EUR 398.3 (349.9) million, showing growth of 13.8 per cent. In the third quarter, the company’s turnover was EUR 139.6 (112.7) million, showing growth of 23.9 percent compared to the comparison period. The quarter was historically strong, with all business areas growing positively. The turnover of the after sales services continued to increase significantly, and that of trade-in machines grew strongly from the year before. International business accounted for 75.9 (77.4)
per cent of turnover.

The operating result for the period under review was EUR 46.8 (37.0) million, giving an operating margin of 11.8 (10.6) per cent. The operating result for the third quarter was EUR 18.6 (10.8) million, giving an operating margin of 13.3 (9.6) per cent. The machine and market distribution combined with the heavy growth in all our business areas had a significant impact on profitability. In addition, operating costs were well under control during the quarter.

Cash flow for the period was EUR 20.7 (14.9) million. The stock of trade-in machines is still higher than target level, even though it has decreased as a result of the notable increase in sales.

The factory has been able to improve its productivity during investments, and the number of machines has increased. The general economic recovery has an impact on our supplier network, and component delivery times are increasing.
Our investments are proceeding according to plan. New service centres have been completed in Uruguay and France, and our UK subsidiary's new facilities are ready and will open at the end of the year. The investment for the factory's expansion is on schedule. Construction work is nearly finished, and equipment installation has begun. The added benefits of the expansion will begin to be realised as planned, in the second half of 2018.

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