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PKC GROUP'S INTERIM REPORT 1-3/2013: A GOOD PERFORMANCE IN A CHALLENGING MARKET SITUATION(OMX (English) Via Acquire Media NewsEdge) PKC Group Plc INTERIM REPORT 8 May 2013 8.15 a.m. PKC GROUP’S INTERIM REPORT 1-3/2013: A GOOD PERFORMANCE IN A CHALLENGING MARKET SITUATION JANUARY - MARCH 2013 HIGHLIGHTS -- Net sales decreased 6.9% on the comparison period (1-3/2012), totalling EUR 225.2 million (EUR 242.0 million). -- EBITDA before non-recurring items was EUR 18.8 million (EUR 20.4 million) and 8.3% (8.4%) of net sales. -- EBITA** was EUR 14.1 million (EUR 16.2 million)and 6.2% (6.7%) of net sales. During the report period PPA depreciation and amortisation totalled EUR 2.7 million (EUR 3.2 million). -- Operating profit before non-recurring items was EUR 11.3 million (EUR 13.0 million) and 5.0% (5.4%) of net sales. -- Diluted earnings per share were EUR 0.14 (EUR 0.33). -- Cash flow after investments was EUR 0.2 million (EUR 23.1 million). NET SALES AND OPERATING PROFIT ESTIMATES FOR 2013 -- PKC Group’s outlook (unchanged): PKC Group estimates its full year 2013 net sales to be lower than in 2012 and estimates its comparable operating profit excluding non-recurring items to reach 2012 level. In 2012 PKC’s net sales were EUR 928.2 million and comparable operating profit excluding non-recurring items was EUR 51.5 million . KEY FIGURES 1-3/13 1-3/12 Change % 1-12/12 EUR 1,000 (unless otherwise noted) Net sales 225,161 241,967 -6.9 928,178 EBITDA* 18,768 20,355 -7.8 82,954 % of net sales 8.3 8.4 8.9 EBITA** 14,050 16,152 -13.0 65,358 % of net sales 6.2 6.7 7.0 Operating profit* 11,316 12,996 -12.9 51,478 % of net sales 5.0 5.4 5.5 Non-recurring items 5,389 261 8,027 Operating profit 5,927 12,735 -53.5 43,451 % of net sales 2.6 5.3 4.7 Profit before taxes 4,710 10,474 -55.0 34,946 Net profit for the report period 3,109 6,895 -54.9 23,999 Earnings per share (EPS), EUR 0.14 0.33 -57.6 1.12 Cash flow after investments 204 23,099 -99.1 63,673 ROI,% 14.4 21.2 16.7 Gearing, % 32.4 52.1 34.4 Average number of personnel 19,535 21,955 -11.0 20,590 * before non-recurring items ** operating profit before PPA depreciation and amortisation and non-recurring items MATTI HYYTIÄINEN, PRESIDENT AND CEO: “PKC’s operating profit before non-recurring items totalled EUR 11.3 million (5.0%) during the first quarter. We can be satisfied to the level of net sales even though production volumes were lower than usually and there were a number of new product programs ramp-ups and production transfers in progress. In addition, strengthened Mexican peso burdened operating profit. I would like to express my thanks to the entire staff of PKC for the excellent work in a challenging market situation. In the first quarter the market conditions were very challenging in our main markets in Europe and North America. In the beginning of year 2013 we estimated that truck production volumes will remain at a low level, and on this basis we adjusted our production to the existing situation. Even though the actual truck production remained at a lower level than estimated and the demand visibility was weaker than usual, we decided to maintain sufficient production capacity in order to secure customer service and delivery capability in situations where the daily order quantities and the technical content of orders varied significantly. Due to high order volatility our production efficiency and net working capital management suffered. In Brazil the demand for trucks continued to grow and production volumes were more than 10% higher than in the previous quarter. We have been able to improve the operations in Brazil, but the business is still at a loss. Measures to improve profitability are continuing. The effects of implemented operations and production efficiency measures in PKC's Electronics business began to have effect and the operating profit improved significantly compared to the same period in 2012. The market situation of Electronics business has remained unchanged and is in the previous quarter’s level. PKC has announced that it will focus in the current financial year on a few key initiatives. The long-term strategic objectives have been published at the capital market day held after the report period. In order to identify the Asian markets’ growth opportunities I have relocated temporarily to Hong Kong and the discussions with the industry players in China indicate that there is demand for PKC's unique expertise. In addition to announced global production network optimizations, we have also decided to close the Ukraine plant operations and transfer production to Poland and Estonia due to the inflexible and time-consuming customs procedures between Ukraine and the EU border, which makes deliveries of customized wiring harnesses with short delivery time very difficult. We will also continue measures to improve cash flow and explore options to strengthen the financial position.” MARKET OUTLOOK European heavy and medium truck production is estimated to decrease in 2013 by about 10% compared to 2012. The general economic uncertainty is estimated to keep the commercial vehicle demand in Europe at a lower level especially during the first half of 2013. In the second half especially in the last quarter, the production volumes are estimated to increase due to transition to Euro 6 emission standard. North American heavy duty truck production is estimated to decrease by 6%, medium duty truck production to increase 8% and light vehicle production to increase slightly from 2012 level. It is estimated that the production volumes of heavy trucks will increase gradually throughout the year. Brazilian heavy duty truck production is estimated to increase by 21% and medium duty truck production by 54% compared to 2012. The governmental incentive program to support the purchase of new trucks is currently valid until the end of 2013. PKC’s market outlook is further impacted by some light vehicle and component programs that are near end-of-life-cycle and will be ramped-down in 2013. The demand of industrial electronic appliances is estimated to remain at the previous level. Volumes of renewable-energy and energy saving products including smart grid solutions are likely to increase. Also the demand in telecommunications sector is expected to increase slightly. PKC GROUP’S OUTLOOK PKC Group estimates its full year 2013 net sales to be lower than in 2012 and estimates its comparable operating profit excluding non-recurring items to reach 2012 level. In 2012 PKC’s net sales were EUR 928.2 million and comparable operating profit excluding non-recurring items was EUR 51.5 million. DISCLOSING PROCEDURES OF FINANCIAL REVIEWS PKC Group Plc follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority, and discloses relevant information related to its Interim Report with this release. PKC's Interim Report for January-March 2013 is attached to this release and is also available on company's website at www.pkcgroup.com. PKC GROUP PLC Board of Directors Matti Hyytiäinen President and CEO For additional information, contact: Matti Hyytiäinen, President & CEO, PKC Group Plc, +358 400 710 968 PRESS CONFERENCE A press conference on the interim report will be arranged for analysts and investors today, 8 May 2013, at 10.00 a.m., at the address Event Arena Bank, Unioninkatu 20, Helsinki. ATTACHMENT PKC Interim Report Q1 2013 DISTRIBUTION NASDAQ OMX Main media www.pkcgroup.com PKC Group is a global partner, designing, manufacturing and integrating electrical distribution systems, electronics and related architecture components for the commercial vehicle industry and other selected segments. The Group has production facilities in Brazil, China, Estonia, Finland, Germany, Ireland, Mexico, Poland, Russia, Ukraine and the USA. The Group's net sales in 2012 totalled EUR 928.2 million. PKC Group Plc is listed on NASDAQ OMX Helsinki Ltd. Copyright © 2013 OMX AB (publ). Copyright © 2013 OMX AB (publ) |