PONSSE’S INTERIM REPORT FOR 1 JANUARY – 30 SEPTEMBER 2016
Juho Nummela, President and CEO (October 18, 2016):
Demand for PONSSE forest machines continued to be good. Order intake was good during the third quarter and the order books were strong, totalling EUR 163.2 (173.7) million at the end of the period under review. International business operations accounted for 77.4 (75.0) percent of net sales.
The company's net sales for the third quarter were EUR 112.7 (103.6) million and the growth in net sales was 8.8 percent compared with the comparable period. Compared with the comparable period, the growth in net sales for the first three quarters was 12.8 percent. Net sales of service operations continued to grow, but the net sales of the trade-in machine business took a downward turn in the third quarter.
The operating profit for the quarter amounted to EUR 10.8 (12.2) million and for the first three quarters of the year EUR 37.0 (34.2) million, representing an increase of 8.2 percent. The operating result equalled 9.6 (11.7) percent of net sales for the period under review and 10.6 (11.0) percent for the first three quarters of the year. In terms of invoicing, the quarter fell short of the expectations with regard to both new and trade-in machines, which contributed to the increase in capital tied up in business operations. However, cumulative cash flow amounted to EUR 14.9 (13.3) million.
Our investments in the service network and the Vieremä factory are progressing nicely. Investments have been made in new service centres in France, Uruguay and the United States, and the expansion of the Iisalmi logistics centre is complete. Earthwork and piling are in progress at the expansion of the Vieremä factory. The expansion is due for completion in late 2017.