The forest machine market remained challenging during the second quarter. Long-standing market uncertainty persisted, stemming from the global situation. Despite this, the order flow slightly exceeded the level of the comparison period, with orders received totalling EUR 179.2 (177.1) million. Factory capacity utilisation remained high relative to the market situation, and the company’s order books continued to decline and stood at EUR 160.0 (192.5) million at the end of the review period.

Ponsse’s new forest machine sales developed moderately during the period in the Nordic countries, the Baltic region and Central and Southern Europe. However, machine volumes in the Finnish and Swedish markets fell significantly short of the previous year’s level in the first half of the year, but Ponsse’s market share developed favourably in both markets. In North America, market sentiment was cautious, and machine sales remained subdued in both the United States and Canada. The customers’ investment decisions in most market areas are delayed due to the situation in the forest industry and the uncertainty of the operating environment, keeping the demand for new forest machines weak.

The Full Service agreement in Brazil expired during the second quarter. The ramp-down of the agreement was carried out according to plan and in good cooperation with the customer. Provisions made for the agreement proved to be sufficient, and the provisions that became unnecessary were reversed into the second-quarter result.

The factory returned to two shifts in week 11. Sales were good given the market situation, and factory capacity utilisation was maintained at a good level throughout the second quarter. The company’s net sales increased by around 9% from the previous year and amounted to EUR 187.1 (172.3) million in the second quarter. Growth was driven by the invoicing of new machines and Epec’s strong performance. First-half net sales fell slightly short of the previous year, standing at EUR 353.9 (357.7) million.

Second-quarter profitability developed favourably, supported by growth in net sales, Epec’s strong performance, and the reversal of provisions related to the Brazilian Full Service agreement. The company still has work to do in strengthening cost discipline. Relative profitability in the second quarter was 5.8 (4.3) per cent. However, first-half profitability lagged behind the previous year due to weak performance in the first quarter.

The cash flow for the review period was EUR 19.1 (4.6) million. Used machine sales remained subdued, and current sales volumes were not yet sufficient to turn used machine inventory into decline. The company’s solvency remained very strong, and its equity ratio remained at an excellent level.

We are looking forward to the upcoming busy autumn trade fair season. Fairs and other forestry events offer us the opportunity to engage closely with local customers and hear their views and feedback on our solutions.

We are aiming for success in the sale of new forest machines, used machines and digital services. At the same time, we will continue to take determined measures to strengthen cost-efficiency and improve profitability. We will also continue to invest in product development to renew our offering, strengthen our competitiveness and support sales development.