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Juho Nummela, President and CEO (October 23, 2018):

During the third quarter, Ponsse’s order intake reached a new record. Demand for PONSSE forest machines was up, increasing our order books to EUR 281.6 (154.2) million. Demand remained high in nearly all of our market areas.

Our renewed factory started operations during the quarter, which had an impact on the number of machines manufactured. The impact of the factory start-up on the number of delivered machines was about one fourth less than on comparison period. During the start-up of production lines, the factory’s capacity was limited as planned and increased towards the end of September. Now machines are being manufactured as planned. There remains challenges in the availability of components but, at the moment the situation is relatively normal for Ponsse. The factory investment is a significant step forward in terms of the factory's logistics and production system, and puts us in an excellent position considering the future.

The factory investment and the deployment of the new production system deteriorated the net sales during the third quarter. During the period under review, the company’s net sales were EUR 415.9 (398.3) million, showing an increase of 4.4 per cent. During the third quarter, the company’s net sales were EUR 124.8 (139.6) million, showing a decrease of 10.6 per cent from the reference period. Net sales of service businesses and trade-in machines continued their strong growth year-on-year. International businesses accounted for 76.6 (75.9) per cent of net sales.

Profit for the period under review stood at EUR 39.3 (46.8) million, giving an operating margin of 9.5 (11.8) per cent. Profit for the third quarter was EUR 9.9 (18.6) million, giving an operating margin of 7.9 (13.3) per cent. Invoicing for new machines remained lower than during the reference period, having an impact on our profitability, while operating expenses remained at a normal level. Cash flow for the period under review amounted to EUR 21.0 (20.7) million.

The factory investment is nearing the finish line. A significant part of equipment has been installed and the investment will be completed during the final quarter.

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