WORLD MARKETS
Mixed results for Ponsse
in H1 financials
Finnish cut-to-length logging manufacturer Ponsse has returned poorer financials than in recent history with its half yearly report including a 50% reduction in profit figures and cash flow numbers that have been slashed by more than 60%. However, net sales were up and the value in the order books for the supplier is more than double that of this time last year
million for the corresponding N
period last year. In addition, €112.1 million sat on the order books against €50 million last year. Still, profit before tax was €7 million, down from €14.9 million in the first six months of 2010, while cash flow was €3.4 against last year’s €9.8 million. Earnings per share were way down at €0.06 (€0.56). President and Chief Executive Juho Nummela said demand for forest machines was strong in the company’s main market areas and the outlook from its customers was generally positive. This accounted for the strong sales and order book situation. He said the factory in Vieremä was performing as expected and could see no reason why orders should not be met and sales realised.
et sales for the first half of 2011 stood at €153.2 million compared to €117.1
The reduced operating result of
€5 million during the second quarter was burdened by impairment of €2 million related to external trade receivables in South America, which were included in other operating expenses. According to the current view, there is no need for the new recognition of impairment losses in South America. Meanwhile, operating costs (staff costs, depreciation and amortisation and other operating costs), excluding the impairment losses related to trade receivables, showed a planned increase of 30.3% during the period under review. Nummela said cash flow had been affected by the growth of business operations, which meant more capital had been tied up in inventories – mainly the stock of new machinery and trade-in machines. In addition, exchange rate differences in the period
Ponsse’s first half financials were not as strong as the company would have liked but robust demand for its machines indicates brighter numbers are on the way
under review affected the profit for the period, diminishing the cash flow.
Net sales
International business operations accounted for 67.7% (69.4%) of total net sales. Net sales were regionally distributed as follows: Northern Europe 51.9% (50.2%), Central and Southern Europe 19.6% (17.6%), Russia and Asia 13.7% (12.5%), North and South America 14.8% (19.7%).
Profit performance The operating result was €10.4 million (€9.8 million), equalling 6.8% (8.4%) of net sales in the period under review. Consolidated return on capital employed stood at 14.1% (28%). Staff costs for the period were €25.4 million (€18.3 million), including a €1.9 million cost, which consisted of, among others, profit bonus paid to the personnel of the group. Other operating expenses were
€18.4 million (€12.3 million). The net total of financial income and expenses was EUR -€3.3 million
14 International Forest Industries | AUGUST/SEPTEMBER 2011
(€5.2 million). Exchange rate gains and losses due to currency rate fluctuations were recognised under financial items, and their
net impact during the period was - €2.6 million (€5.7 million). The effect of the decisions of the Adjustment Board concerning the taxation of the parent company on taxes amounted to -€1.5 million (€1.5 million).
Statement of financial position Total consolidated statements of financial position was €164.6 million (€159.4 million). Inventories stood at €81.2 million (€73.6 million). Trade receivables totalled €29.1 million (€30.1 million), while liquid assets stood at €6.7 (€7.5 million).
Order intake and books Order intake for the period was €198.6 million (€147.4 million), while the period-end order books stood at €112.1 million (€50 million). The minimum order commitments of retailers are not included in the order book total.
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