PONSSE’S INTERIM REPORT FOR 1 JANUARY – 30 SEPTEMBER 2015
Juho Nummela, President and CEO (October 20, 2015):
Demand for PONSSE forest machines continued to be good. The market situation remained stable, and no major changes took place in demand. During the past quarter, strong order intake increased the order books further from the level of the previous quarter. The order books totalled EUR 173.7 (155.5) million at the end of the period under review. The order books grew by 12 per cent compared with the comparable period. International business operations accounted for 75.0 (73.5) per cent of net sales.
The company's growth and profitability were at a good level, and net sales for the first three quarters totalled EUR 310.2 (270.0) million and operating profit EUR 34.2 (27.5) million. The growth in net sales was 15.0 per cent. The operating result equalled 11.0 (10.2) per cent of net sales for the period under review. During the third quarter, the company's net sales amounted to EUR 103.6 (86.4) million and operating profit to EUR 12.2 (9.5) million. The operating profit equalled 11.7 (11.0) per cent of net sales for the quarter. Due to the favourable development of the Company, we are revising the guidance for 2015 so that we expect our operating profit to be significantly higher than in 2014.
North and South America's share of net sales increased significantly, while the share of Russia and Northern Europe decreased. The situation in Russia is expected to improve during the fourth quarter. Central Europe's share of net sales was at the normal level. Service operations continued their growth and the trade-in machine business grew strongly during the past quarter. The accelerated growth in services is related both to the growing machine base and new business concepts in services.
Ponsse has successfully commenced the serial production of the 2015 product range. The Vieremä factory was steadily on schedule during the quarter as the production of new products stabilised. At the same time, the reorganisation of the factory and Ponsse's supply chain yielded results, and the development of the factory's operations progressed strongly.
Cash flow from business operations also increased strongly during the past quarter.Cumulative cash flow amounted to EUR 13.3 (13.8) million.