Interim Report for 1 January - 31 March 2014
Juho Nummela, President and CEO:
(April 23, 2014)
The good outlook in the forestry sector had a positive impact. The demand for forest machines was at a good level during the first quarter. The order volume of new machines increased, and our order book continued to increase, ending up at EUR 104.1 (49.1) million. The order book grew by 112 per cent compared with the comparable period.
Russia, an important market area for us, was still at a normal level, and the unstable situation in Ukraine has not had a substantial impact on the Russian market. The positive trend in North America continues, and the market is expected to develop favourably. With regard to European markets, Central Europe has shown signs of recovery, while Sweden is still at a low level in terms of overall market development.
Serial production of the PONSSE Scorpion range has began at the Vieremä factory. The demand for the PONSSE Scorpion has continued to be active, and the feedback from the demonstration tours has been extremely positive. The demand for other product models has been at a good level as well, and as a result of the active order intake, the factory operates in the normal two shifts.
The service business continued to grow significantly. At the same time, our used machine sales continued its moderate growth. Sales of new machines returned to the normal level from the weak comparable period, and the net sales for the quarter were good for a first quarter, at EUR 86.9 (61.6) million. Net sales increased by 41 per cent from the corresponding period.
The operating result amounted to EUR 7.4 (0.1) million during the first quarter, equalling 8.5 (0.0) per cent of net sales.
Cash flow from business operations amounted to EUR 2.2 (12.7) million in the period under review. The stock of new products was at a level slightly higher than normal, while the capital tied up in raw materials and consumables increased slightly, but the stock of trade-in machines was correspondingly at a good level. The equity ratio continued to develop favourably, amounting to 37.9 per cent.