Interim Report for 1 January - 30 September 2014
Juho Nummela, President and CEO:
(October 21, 2014)
The demand for Ponsse's forest machines continued to be very strong during the quarter. The monthly order volumes of new machines rose to new record figures and our order books increased strongly to EUR 155.5 (97.2) million. The order books grew by 60 per cent compared with the comparable period. International business operations accounted for 73.5 (68.7) per cent of net sales.
Current year has been a strong one in terms of both net sales and operating profit. The company's cumulative net sales amounted to EUR 270.0 (211.3) million and operating profit was EUR 27.5 (12.7) million. Net sales have increased by 28 per cent, while operating profit has increased by 116 per cent compared with the comparable period. The operating profit equalled 10.2 (6.0) per cent of net sales for the period under review. The equity ratio continued to develop favourably, amounting to 38.9 per cent.
The situation in the Russian forest machine market has continued to be positive in spite of the uncertainties. The sanctions have not had a direct effect on the sales or financing of forest machines for the time being. Spare part deliveries to Russia are also working normally. The forest machine market situation in North America continues to be good, and the situation is improving in Europe. In Latin America, the focus is on developing service operations and fulfilling the contractual obligations with major customers.
The serial production of the PONSSE Scorpion harvester range has become well established. During the past quarter, Ponsse launched the PONSSE Scorpion range and the PONSSE Bear harvester of the new product range in the United States. Ponsse launched the new PONSSE 2015 product range at the FinnMETKO fair, and these products will enter serial production gradually during 2015. The new product range is a continuum of the PONSSE Scorpion and Bear products. The ergonomics, serviceability and productivity of the machines have been developed and the design has been updated. At the same time, forest machines delivered in Europe will have new engines compliant with the EU Stage IV emission level meeting the new environment requirements.
Service operations grew at a strong rate during the period under review. The accelerated growth in service operations is associated with the growing machine fleet as well as the adoption of new service business concepts. The sales of new machines increased strongly from the comparison period and the net sales in the past quarter were EUR 86.4 (66.0) million. The net sales increased by 31 per cent from the corresponding period. The operating result amounted to EUR 9.5 (4.2) million during the third quarter, equalling 11.0 (6.4) per cent of net sales.
Cash flow from business operations amounted to EUR 13.8 (21.7) million in the period under review. The capital temporarily tied up in inventories resulted from the strong growth impaired the cash flows. The stock of used machines continued to be at a normal level.
Construction investments at the Vieremä factory and in the maintenance service network proceeded according to plan.