Interim Report for 1 January - 30 June 2014
Juho Nummela, President and CEO:
(August 5, 2014)
The demand for forest machines was at an extremely good level during the past quarter. The order volume of new machines increased further and as a result our order books increased to EUR 124.6 (57.7) million, which is the highest in the company’s history . The order books grew by 116 per cent compared with the comparable period. Consolidated net sales for the period under review amounted to EUR 183.6 (145.3) million, which is 26.4 per cent more than in the comparison period. The operating result amounted to EUR 18.0 (8.5) million, which has an increase of 112 per cent. The operating result equalled 9.8 (5.9) per cent of net sales for the period under review.The equity ratio continued to develop favourably after dividend payments, amounting to 36.1 per cent.
With regard to our market areas, Russia continued at a good level. The international political situation is alarming, but so far the unstable conditions have not had a substantial effect on the forest machine market. The positive trend in North America continued, and the market is expected to develop favourably. With regard to European markets, Central Europe has shown signs of growth, overall market development in Sweden remains at a low level. During the second quarter we expanded to Chile and Australia, where we concluded contracts with new dealers.
The serial production of the PONSSE Scorpion product line has proceeded according to plan and products continue to be brought to market. During the past quarter, the Scorpion harvester models were introduced in Estonia, Germany, Austria, the UK and France. During the period under review, the updated PONSSE Bear harvester and PONSSE H77 harvester head for harvesting eucalyptus were launched for Ponsse's 2015 Product Line. The demand for other product models has been good as well, resulting in strong growth in the order books and a pre-planned capacity increase for the autumn. However, product quality and reliability remain our first priority.
The maintenance services grew significantly, and simultaneously our used machine sales continued to grow. The sales of new machines increased well from the comparison period and the net sales in the past quarter were EUR 96.8 (83.6) million. The net sales increased by 16 per cent from the corresponding period.
The operating result amounted to EUR 10.6 (8.4) million during the second quarter, equalling 10.9 (10.1) per cent of net sales.
Cash flow from business operations amounted to EUR 2.8 (7.5) million in the period under review. The stock of new products was at a level slightly higher than normal as some of the machines were still on their way to customers at the end of the period under review. At the same time the capital tied up in raw materials and consumables increased slightly, but the stock of used machines was correspondingly at a good level.
Investments in developing maintenance service and factory facilities began during the past quarter.