PONSSE?S INTERIM REPORT FOR 1 JANUARY TO
PONSSE OYJ STOCK EXCHANGE BULLETIN 17 July 2003 at 12am 1(6)
PONSSES INTERIM REPORT FOR 1 JANUARY TO 30 JUNE 2003
Ponsse Groups turnover for the first six months of 2003 was EUR
79.3 million (Jan-Jun/2002 EUR 58.6m). Exports and foreign business
operations accounted for 54.3 per cent (55.8%) of turnover. The
operating profit was EUR 5.7 million (EUR 4.0). At 30 June 2003, the
Groups back orders totalled EUR 30.6 million (EUR 21.9m).
TURNOVER AND RESULT
Group turnover rose by 35.4 per cent to EUR 79.3 million. Sales in
May and June in particular were much brisker than during the
corresponding period in 2002.
The operating profit for the period under review was EUR 5.7
million, up by EUR 1.7 million, or 41.5 per cent compared to a year
earlier. The operating profit was 7.2 per cent of turnover (6.9%).
The profit after financial items rose by 61.4 per cent on the year
to EUR 6.7 million (EUR 4.1m). The income from hedging currency
positions has been booked under financial income, which was EUR 0.9
million net (EUR 0.1m). There were no extraordinary items during the
period under review.
The profit for the period under review was EUR 4.4 million (EUR 2.6m).
Improved earnings were particularly made on the back of winding down
high stocks of finished products from Q1 and the high production and
sales volumes of new machines, especially at home. Even though
hedging through derivatives alleviated the impact of exchange rate
changes, a weakening of the US dollar against the euro eroded
earnings.
MARKET SITUATION
At home, the brisk market witnessed during Q1 continued into Q2.
Despite prevailing major economic uncertainty in some export
countries, there was improved demand for machines in Ponsses core
export markets compared to Q1.
The global economy remained marked by uncertainty during the period
under review, with conflicting estimates as to when the shift to a
faster growth track will occur.
NEW ORDERS AND BACK ORDERS
We secured new orders worth EUR 78.1 million (EUR 57.3m). Back
orders at 30 June 2003 were EUR 30.6 million (EUR 21.9m). In keeping
with previous practice, distributors minimum purchase commitments
are included in back orders.
2(6)
SUBSIDIARIES
During the period under review, Ponsse Oyj, the parent company,
acquired full ownership of the Groups French subsidiary, Ponssé
S.A., in which it previously had a 99.20 per cent stake.
No significant changes otherwise took place in the operations of
Ponsses marketing and after sales subsidiaries abroad.
BALANCE SHEET
The consolidated balance sheet total at 30 June 2003 was EUR 81.2
million (EUR 68.5m). Interest-bearing debts totalled EUR 25.2
million (EUR 21.1m). The equity ratio was 47.4 per cent (50.1%).
Cash assets totalled EUR 6.7 million (EUR 3.9m).
CAPITAL EXPENDITURE AND R&D
Investments during the first six months of 2003 totalled EUR 1.3
million (EUR 0.8m). These focused on an extension to the Vieremä
factory, other production machinery and information technology.
PERSONNEL
The Group employed an average of 550 (510) persons during the period
under review. At 30 June 2003, the Group employed 588 (559) persons.
ANNUAL GENERAL MEETING
The Annual General Meeting held on 20 March 2003 decided to pay a
dividend of EUR 0.65 per share. Dividends totalling EUR 4.6 million
were paid on 1 April 2003.
The Annual General Meeting also approved the proposal by the Board
of Directors that a bonus be paid to Ponsse Oyjs personnel. The
amount of bonuses paid totalled EUR 118,002.
Einari Vidgrén, Ilkka Kylävainio, Samuli Perttala, Orvo Siimestö,
Juha Vidgrén and Mika Vidgrén were elected as members of the Board
of Directors. In the formation meeting held after the Annual General
Meeting, Einari Vidgrén was elected Chairman of the Board of
Directors and Juha Vidgrén Deputy Chairman.
Authorised public accountants Ernst&Young Oy were appointed as
auditors.
SHARES
A total of 431,936 Ponsse Oyj shares, 6.2 per cent of the total
number, were traded between 1 January and 30 June 2003 for a total
3(6)
of EUR 4.6 million. The lowest and highest trading prices paid
during the period under review were EUR 9.50 and EUR 11.35 per share
respectively. The closing price at 30 June 2003 was EUR 10.00 and
the market capitalisation was EUR 70.0 million.
INTRODUCTION OF IAS/IFRS
Ponsse has made a start on preparations for the introduction of
IAS/IFRS. A project has been set up to ascertain the differences
between IAS/IFRS accounting principles and those of the Ponsse Group
and to outline new IAS/IFRS compliant principles for Ponsses
consolidated financial statements. The project will also study the
impact of the changes in accounting practice, revamp the Groups
accounting and reporting instructions and reporting systems.
Training within the organisation and setting up other preparations
for the new accounting standard will be put in place so that it will
be possible to produce quarterly benchmarking data in 2004 for 2005
Group reporting.
The first financial statements in compliance with IAS/IFRS will be
prepared for the financial year commencing 1 January 2005.
OUTLOOK FOR THE REMAINDER OF THE YEAR
The result for Q2 was good given the challenging market. Lower
production and delivery volumes owing to summer holidays mean that
Q3 turnover and earnings will be below those for the current period
under review. Turnover and earnings for the year as a whole are
expected to be higher than those for 2002. Continued general
economic uncertainty and a delay in the start of an upswing may slow
sales and earnings during the remainder of the year.
4(6)
Ponsse Group key indicators
Profit and loss account 1-6/03 1-6/02 1-12/02
EUR 1000 EUR 1000 EUR 1000
Turnover 79 310 58 594 133 171
Increase (+) or decrease (-) in stocks
of finished goods and work in progress -462 2 556 1 776
Other operating income 738 553 1 199
Raw materials and services -53 031 -38 025 -87 510
Staff expenses -12 226 -11 457 -22 714
Depreciation -1 295 -1 389 -2 766
Other operating expenses -7 341 -6 809 -13 776
Operating profit 5 693 4 023 9 380
Share of results of associated
undertakings 38 37 157
Financial income and expenses 937 71 265
Result before appropriations and taxes 6 668 4 131 9 802
Income taxes -2 544 -1 870 -2 894
Change in deferred tax liability 232 328 0
Minority interest 0 1 -1
Result for the period under review 4 356 2 590 6 907
Balance sheet 30.6.03 30.6.02 31.12.02
EUR 1000 EUR 1000 EUR 1000
Assets
Fixed assets and other non-current assets
Intangible assets 1 375 1 324 1 157
Tangible assets 13 754 13 614 13 987
Financial assets 491 365 495
Stocks and current assets
Stocks 37 438 32 552 33 920
Receivables 21 384 16 719 12 358
Cash in hand and at banks 6 722 3 921 11 950
Total 81 164 68 495 73 867
Shareholders equity and liabilities
Shareholders equity
Share capital 3 500 3 500 3 500
Other equity 34 896 30 813 35 072
Minority interest 0 1 3
Creditors
Non-current 16 000 13 608 10 930
Current 26 768 20 573 24 362
Total 81 164 68 495 73 867
Receivables at 30 June 2003 include deferred tax assets of EUR 533
thousand (30 June 2002, EUR 671 thousand, 31 December 2002, EUR 438
thousand). Non-current creditors at 30 June 2003 includes a deferred
tax liability of EUR 845 thousand (30 June 2002, EUR 1,024 thousand,
31 December 2002 EUR 952 thousand).
5(6)
Cash flow statement
1-6/03 1-6/02 1-12/02
Cash flow from operations: EUR 1000 EUR 1000 EUR 1000
Operating profit 5 693 4 023 9 380
Depreciation and value adjustments 1 295 1 389 2 766
Other reconciliations 81 16 0
Cash flow before change in working
capital 7 069 5 428 12 146
Change in working capital:
Increase (-)/ decrease in interest-free
operating receivables -8 943 -3 169 913
Increase /-)/decrease (+) in stocks -3 518 -2 395 -3 763
Increase (+)/decrease (-) in
current interest-free creditors 4 615 1 593 3 240
Cash flow from operations before
financial items and taxes -777 1 457 12 536
Interest received 937 71 211
Interest paid 0 0 -844
Other financial items 0 0 330
Taxes paid -2 544 -1 870 -4 047
Cash flow from operations: -2 384 -342 8 186
Pledges given, contingent and other liabilities
30.6.03 30.6.02 31.12.02
EUR 1000 EUR 1000 EUR 1000
1. 1. For own debt
Debts for which mortgages have been pledged as collateral
Loans from credit institutions 15 972 13 391 13 838
Mortgages given on land and buildings 3 866 3 826 3 866
Chattel mortgages given 2 893 2 893 2 893
Mortgages pledged as collateral,
total 6 759 6 719 6 759
2. Leasing commitments 2 037 2 108 2 143
3. Contingent liabilities on behalf of Group companies
Guarantees given on behalf of
Group companies 1 111 227 1 221
4. Liabilities arising from derivative contracts
4.1 Nominal values
Currency derivatives
Options 1 492 1 881 1 475
Forward contracts 11 500 8 846 12 128
4.2 Market values
Currency derivatives
Options 2 28 11
Forward contracts 88 380 342
6(6)
5. Other contingent liabilities
Guarantees given on behalf of others 526 591 803
Repurchase commitments 7 019 9 152 6 557
Other liabilities 0 311 0
Total 7 545 10 199 7 360
Key indicators 30.6.03 30.6.02 31.12.02
R&D expenditure, EUR million 1.7 1.5 3.2
Fixed asset investments, EUR million 1.3 0.8 2.5
as % of turnover 1.6 1.4 1.9
Average number of staff 550 510 520
Back orders, EUR million 30.6 21.9 32.1
Equity ratio, % 47.4 50.1 52.4
Earnings per share, EUR 0.62 0.37 0.99
Shareholders equity per share, EUR 5.49 4.90 5.51
Taxes corresponding to profit for the period under review have been
included as income taxes in the Profit and Loss Account and in
earnings per share.
New orders 1-6/03 1-6/02 1-12/02
EUR mill.EUR mill. EUR mill.
Ponsse Group 78.1 57.3 142.0
Quarterly information 4-6/02 7-9/02 10-12/02 1-3/03 4-6/03
EUR 1000 EUR 1000 EUR 1000 EUR 1000 EUR 1000
Turnover 30 831 27 509 47 068 36 060 43 250
Operating profit 2 399 1 411 3 946 1 551 4 142
Result before appropriations
and taxes 2 780 1 546 4 125 2 050 4 618
The figures in the Interim Report are unaudited.
Vieremä, 17 July 2003
PONSSE OYJ
Mikko Paananen
Chief Financial Officer, CFO
Further information:
Tommi Ruha, President, CEO, tel. +358 (0)17 768 4621 and
Mikko Paananen, CFO, tel +358 (0)17 768 4648
www.ponsse.com
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