PONSSE?S INTERIM REPORT FOR 1 JANUARY TO
PONSSE OYJ STOCK EXCHANGE BULLETIN 16 April 2003 at 2pm 1(5)
PONSSES INTERIM REPORT FOR 1 JANUARY TO 31 MARCH 2003
Ponsse Groups turnover for Q1 of 2003 was EUR 36.1 million (Q1/2002
EUR 27.8m). Exports and foreign business operations accounted for
45.4 per cent (56.9%) of turnover. The operating profit was EUR 1.6
million (EUR 1.6) and at 31 March 2003, back orders rose to a
historical high of EUR 41.4 million (EUR 22.1m at 31 March 2002).
TURNOVER AND RESULT
Group turnover rose by 29.9 per cent to EUR 36.1 million. Finland
especially witnessed a brisk trade in forest machines towards the
end of last year. Higher turnover is largely owing to the
capitalisation of sales made in late 2002 during the period under
review.
In monetary terms, sales in our core export markets were slightly
higher than a year earlier. There was strong growth in stocks of
finished products compared to the situation at the turn of the year.
This was because of machines on their way to subsidiaries and in the
delivery chain.
The operating profit for the period under review was EUR 1.6
million, the same as in 2002. The operating profit was 4.3 per cent
of turnover (5.8%). The value of machines in stock was higher than
usual at the end of Q1 2003. The weakening of the dollar had little
impact during the period under review.
The profit after financial items was EUR 2.1 million (EUR 1.4m).
Financial income, which amounted to EUR 0.5 million net (-EUR 0.3m)
contributed to this encouraging performance. There were no
extraordinary items during the period under review.
The profit for Q1 2003 financial year was EUR 1.0 million (EUR
0.9m).
MARKET SITUATION
As in Q4 of 2002, the Finnish market was brisk during the first
three months of 2003. The mood on Ponsses core export markets was
one of waiting, although prospects seemed brighter towards the end
of Q1 2003, when back orders started to grow.
Uncertainty marked the global economy during the period under review
and investment decisions have been postponed, especially in our
export markets. There are conflicting estimates as to when the
global economy will shift to a faster growth track.
NEW ORDERS AND BACK ORDERS
New orders were received in the amount of EUR 55.4 million (EUR
25.4m) and back orders at 31 March 2003 were EUR 41.4 million (EUR
22.1m), a record high. In keeping with previous practice,
distributors minimum purchase commitments are included in back
orders, which at the end of the year under review were a record
high. The Road Show, held in February to mark the 60th birthday of
chairman of Ponsses Board of Directors, Einari Vidgrén, Counsellor
of Industry (Hon), had a major impact on this positive development.
On its three-week tour, the Road Show visited ten different places
throughout Finland.
SUBSIDIARIES
No significant changes took place in the operations of Ponsses
marketing and after sales subsidiaries abroad.
BALANCE SHEET 2
The consolidated balance sheet total at 31 March 2003 was EUR 73.2
million (EUR 69.4m). Interest-bearing debts totalled EUR 23.0
million (EUR 19.2m). The equity ratio was 47.9 per cent (47.0%).
Cash assets totalled EUR 7.7 million (EUR 10.9m). The dividend of
EUR 4.6 million was debited from the balance sheet at the end of the
period under review.
CAPITAL EXPENDITURE AND R&D
During the period under review capital expenditure amounted to just
EUR 0.6 million (EUR 0.6m). Capital expenditure was mainly on
production equipment and information technology.
In the United States, Ponsse USA Inc.s new head office in
Rhinelander, Wisconsin was completed towards the end of the period
under review and opened in early April. The total investment was
around USD 1 million.
Ponsses Beaver harvest received a commendation in the Fennia Prize
design competition held in Finland in January.
PERSONNEL
The Group employed an average number of 536 (493) persons during the
period under review. At 31 March 2003, the Group employed 535 (491)
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 0.1 million.
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 were appointed as
auditors.
SHARES
A total of 388,796 Ponsse Oyj shares, 5.6 per cent of the total
number, were traded between 1 January and 31 March 2003 for a total
of EUR 4.1 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 31 March 2003 was EUR 10.00 and
the market capitalisation was EUR 70.0 million.
Notifications to Disclose Pertaining to Section 9 of Chapter 2 of
the Securities Market Act
On 6 February 2003, Harri Suutaris holding in the company decreased
to below one tenth. Ponsse received information about this on 6
February 2003 and issued a stock exchange bulletin accordingly on 11
February 2003.
OUTLOOK FOR THE REMAINDER OF THE YEAR
Ponsses first quarter was positive but not particularly good. The 3
result for Q2 of 2003 is expected to be similar to that of the
period under review. Turnover and earnings for the year as a whole
are expected to be higher than those of 2002 if demand on our export
markets does not weaken in the wake of global economic recession and
continued sluggish economic growth.
Ponsse Group key indicators
Profit and loss account 1-3/03 1-3/02 1-12/02
EUR 1000 EUR 1000 EUR 1000
Turnover 36 060 27 763 133 171
Increase (+) or decrease (-) in stocks of
finished goods and work in progress 2 151 1 207 1 776
Other operating income 395 203 1 199
Raw materials and services -26 674 -17 929 -87 510
Staff expenses -6 010 -5 593 -22 714
Depreciation -653 -688 -2 766
Other operating expenses -3 718 -3 339 -13 776
Operating profit 1 551 1 624 9 380
Share of results of associated undertakings 22 4 157
Financial income and expenses 477 -277 265
Result before appropriations and taxes 2 050 1 351 9 802
Income taxes -1 431 -874 -2 894
Change in deferred tax liability 374 388 0
Minority interest 0 1 -1
Result for the period under review 993 866 6 907
Balance sheet 31.3.03 31.3.02 31.12.02
EUR 1000 EUR 1000 EUR 1000
Assets
Fixed assets and other non-current assets
Intangible assets 1 272 1 457 1 157
Tangible assets 13 874 13 956 13 987
Financial assets 473 375 495
Stocks and current assets
Stocks 36 690 31 282 33 920
Receivables 13 124 11 393 12 358
Cash in hand and at banks 7 732 10 914 11 950
Total 73 165 69 377 73 867
Shareholders equity and liabilities
Shareholders equity
Share capital 3 500 3 500 3 500
Other equity 31 520 29 095 35 072
Minority interest 3 1 3
Creditors
Non-current 16 262 13 370 10 930
Current 21 880 23 411 24 362
Total 73 165 69 377 73 867
Receivables at 31 March 2003 include deferred tax assets of EUR 608
thousand (31 March 2002, EUR 767 thousand, 31 December 2002, EUR 438
thousand). Non-current creditors at 31 March 2003 includes a
deferred tax liability of EUR 896 thousand (31 March 2002, EUR 1,068
thousand, 31 December 2002 EUR 952 thousand).
Consolidated cash flow statement
1-3/03 1-3/02 1-12/02
Business operations: EUR 1000 EUR 1000 EUR 1000
Operating profit 1 551 1 624 9 380
Depreciation and value adjustment 653 688 2 766
Other adjustment items 128 -47 0 4
Cash flow before change in working capital
2 332 2 265 12 146
Change in working capital:
Increase (-)/decrease (+) in current
interest-free receivables -600 2 254 913
Increase (-)/decrease(+) in stocks -2 770 -1 125 -3 763
Increase (-)/decrease(+) in current
interest-free creditors 2 058 1 470 3 240
Cash flow from operations before
financial items and income taxes 1 020 4 864 12 536
Interest received 477 -277 211
Interest paid 0 0 -844
Other financial income and expenses 0 0 330
Income taxes paid -1 431 -874 -4 047
Net cash flow from operations 66 3 713 8 186
Pledges Given, Contingent and Other Liabilities
31.3.03 31.3.02 31.12.02
EUR 1000 EUR 1000 EUR 1000
1. For own debt
Debts for which mortgages have been pledged as collateral
Loans from credit institutions 13 070 13 529 13 838
Mortgages given on land and buildings 3 866 3 826 3 866
Chattel mortgages given 2 893 2 893 2 893
Mortgages given as pledges, total 6 759 6 719 6 759
2. Leasing commitments 1 979 2 125 2 143
3. Contingent liabilities on behalf of Group companies
Guarantees given on behalf of
Group companies 1 165 219 1 221
4. Liabilities arising from derivative contracts
4.1 Nominal values
Currency derivatives
Options 1 760 2 254 1 475
Forward contracts 11 536 7 431 12 128
4.2 Market values
Currency derivatives
Options 3 -5 11
Forward contracts 180 2 342
5. Other contingent liabilities
Guarantees given on behalf of others 695 1 253 803
Repurchase commitments 6 438 7 136 6 557
Other liabilities 0 465 0
Total 7 133 8 853 7 360
Key indicators 31.3.03 31.3.02 31.12.02
R&D expenditure, EUR million 1,0 0,6 3,2
Fixed asset investments, EUR million 0,6 0,6 2,5
as % of turnover 1,8 2,1 1,9
Average number of staff 536 493 520
Back orders, EUR million 41,4 22,1 32,1
Equity ratio, % 47,9 47,0 52,4
Earnings per share, EUR 0,14 0,12 0,99
Shareholders equity per share, EUR 5,00 4,65 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 1-3/03 1-3/02 1-12/02 5
EUR million EUR million EUR million
Ponsse Group 55,4 25,4 142,0
Quarterly information 1-3/02 4-6/02 7-9/02 10-12/02 1-3/03
EUR 1000 EUR 1000 EUR 1000 EUR 1000 EUR 1000
Turnover 27 763 30 831 27 509 47 068 36 060
Operating profit 1 624 2 399 1 411 3 946 1 551
Result before appropriations
and taxes 1 351 2 780 1 546 4 125 2 050
The figures in the Interim Report are unaudited.
Vieremä, 16 April 2003
PONSSE OYJ
Tommi Ruha
President, CEO
Further information: President, CEO Tommi Ruha, tel +358 (0)17 768
4621, CFO Mikko Paananen, tel +358 (0)17 768 4648 and www.ponsse.com
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