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Ponsse´s Half-year Report for 1 January - 30 June 2021

Ponsse´s Half-year Report for 1 January - 30 June 2021

JUHO NUMMELA, PRESIDENT AND CEO (10 August, 2021)
The forest machine market continued its very positive development during the second quarter of the year. The good situation in the forest industry and among our customers was reflected favourably in all our business areas. Ponsse’s order flow totalled EUR 236.3 million for the second quarter, increasing our order books to EUR 355.5 million. Our factory operated efficiently during the period under review, and we manufactured all the PONSSE forest machines included in our production programme as planned.

Demand for forest machines remained excellent in nearly all of our market areas. During the second quarter, we grew strongly and all our business areas developed positively. The steady work situation of our customers has been evidenced by the strong growth of our maintenance services. In addition, demand for trade-in machines has been high, and the rotation of our trade-in machine stock has developed in a positive direction. Our trade-in machine stock is showing slight growth driven by the strong invoicing for new machines. Nevertheless, our working capital has remained at a good level and our cash flow has been very strong considering the period.

The availability of parts and components continues to be a challenge due to high demand for machine and equipment manufacturing. Our organisation has cooperated excellently with our supplier and manufacturing network, and we have been able to secure the availability of parts for PONSSE forest machines. Our manufacturing lines were on schedule when our Vieremä factory was closed for summer holidays in July. Pressures related to increasing the costs of parts and components continue to be high. What makes this challenging for Ponsse is that these increased costs cannot be transferred as a whole directly to our customers. This is affected by the far-reaching order books in our production, the pricing of already agreed machine deals and our customers’ challenges in their business operations amidst increasing harvesting costs. Together with our suppliers, we are continuously seeking sustainable solutions to curb cost increases.

Ponsse’s personnel have worked remotely since the outbreak of the coronavirus pandemic, apart from our production, sales and maintenance service personnel. We also started this autumn by working remotely to protect our production and maintenance service network. It is vital to keep our personnel healthy and serve our customers at full efficiency.