Investors

Ponsse’s interim report for 1 January – 30 September 2019

Ponsse’s interim report for 1 January – 30 September 2019

JUHO NUMMELA, PRESIDENT AND CEO (22 October, 2019)

Uncertainties in the global economy started to show during the quarter. Order intake returned to its normal level after some very busy quarters. Our order books were still strong at the end of the period under review, totalling EUR 326.4 million.

Forest damage caused by bark beetle has resulted in an oversupply of timber in Europe. The damage affects global flows of wood and sawn timber and the harvesting volumes
of roundwood outside Europe. The number of machine deliveries to Central Europe is increasing at the moment. Despite these uncertainties, the forest machine market is still working well as a whole.

The company’s net sales for the third quarter were EUR 148.3 (124.8) million and growth was significant compared to the reference period. The service businesses’ net sales continued to grow,
but the sales of trade-in machines decreased slightly from the year before. International business operations accounted for 77.9 (76.6) per cent of net sales.

The operating profit for the last quarter amounted to EUR 16.2 (9.9) million. The major difference in profitability and net sales compared to the reference period is mainly explained by the investment in the Vieremä factory in 2018 and its planned capacity restriction. The operating result for
the third quarter equalled 10.9 (7.9) per cent of net sales. Cash flow for the period under review amounted to EUR 14.1 (16.7) million. The value of the trade-in machine stock slightly increased when the market calmed down. At the same time, the number of deliveries for new machines was increasing.

Manufacturing volumes at our new Vieremä factory were still growing in the past quarter, and the long order books enable normal factory operations for the time being. Because of the uncertainties in the market, the company has enhanced the control of expenses, and it considers investments extremely carefully. The positive outlook in the forest industry remains unchanged in the long term.