PONSSE’S INTERIM REPORT FOR 1 JANUARY – 31 MARCH 2016
Juho Nummela, President and CEO (April 19, 2016):
Demand for PONSSE forest machines continued to be good during the first quarter of the year. Order intake was good, and the order books remained on a par with the turn of the year. The order books were strong, totalling EUR 156.2 (175.1) million at the end of the period under review. International business operations accounted for 72.7 (72.1) percent of net sales.
The company's net sales for the first quarter were EUR 115.1 (91.2) million and the growth in net sales was 26 percent. The operating profit amounted to EUR 12.1 (7.3) million and accounted a growth of 66 percent compared to the comparison period. Underlying the strong performance is the fact that machine deliveries took place normally in the first quarter, whereas during the comparison period machine delivery volumes fell clearly short of the normal level due to the commencement of production of the new model range.The operating result equalled 10.5 (8.0) percent of net sales for the period under review. Cumulative cash flow improved compared to the comparison period and amounted to EUR -2.3 (-8.8) million.
North and South America accounted for a significant share of the net sales, and the demand for forest machines is active in North America. The demand for forest machines has showed signs of picking up in Russia, and Russia has slightly increased its share of net sales. The share of Northern Europe decreased slightly, while Central Europe's share of net sales was at the normal level. The market situation is good. 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.