PONSSE’S FINANCIAL STATEMENTS 2016
Juho Nummela, President and CEO (February 14, 2017):
The year 2016 was a year of strong growth for Ponsse. During the first half of the year, our business operations developed favourably, but during the second half we did not reach the previous year’s excellent level of profitability. We were able to keep our profitability still at a moderately good level of 10.7%, grow about 12%, and reach a positive cash flow from business operations of EUR 53.7 million. Exports made up 76.6% of our operations.
Our order flow remained strong throughout the year, and at the end of 2016, our order books settled at EUR 123.9 million. A record number of forest machines were produced at the Vieremä factory during the period under review.
The outlook is still good for the forest industry, and investments are broadly made in the industry. Of our market areas Russia, Central Europe and Sweden grew strongly. Even the United States and Uruguay performed well. Russia's situation was good from Ponsse's point of view throughout the year and machine deliveries showed good growth. At the same time the economic situation in the United States remained good, which also had a positive impact on demand for forest machines. The organisational changes made in Ponsse's subsidiary in Sweden have had a significant impact on our situation, and we were able to grow our market share in and improve our services in Sweden. The situation in Central Europe has been good, and most of our markets there have grown.
The growth of sales of new machines was very strong, and also our service business continued to grow at a steady rate. There was positive development also in our used machine sales towards the end of the year. The cumulative net sales rose to a historical level of EUR 517.4 (461.9) million and operating profit amounted to EUR 55.2 (56.0). From the beginning of the year, the growth of the company's net sales was 12.0 per cent and change in the operating profit was -1.5 per cent year-on-year. Operating profit accounted for 10.7 (12.1) per cent of the turnover during the period under review.
Cash flow from business operations amounted to EUR 53.7 (44.0) million in the period under review. The new machine stock was at an almost optimal level at year end, but the size of the used machine stock had a significant impact on the amount of tied-up capital.
The company's balance sheet continued to grow stronger and the positive development of our solidity continued. The company's equity ratio was 50.3 (44.8) per cent.
We develop Ponsse with a long-term focus in order to strengthen the business of our customers. Continuous renewal of our operations and our products is important. We have invested increasingly in both fixed assets and R&D. Since 2010, we have invested roughly EUR 67 million in R&D and approximately EUR 115 million in fixed assets.
We have continued to invest as planned in both our service business network and the operations of the Vieremä factory. During the period under review new facilities were completed in our service network in both the United States and in Russia. In addition, the expansion of the Iisalmi logistics centre servicing our international network was completed. Currently, new PONSSE service centres are being built in Uruguay, France and the UK, which will be completed during the current year. Development is heavily focused on the development of productivity and the quality production ability throughout the manufacturing network. The expansion of the Vieremä factory is progressing as planned and the construction will be completed at the end of 2017. With the investments we enhance our ability to manufacture PONSSE forest machines in Finland and to meet the needs of the market.