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
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
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.”
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
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
President and CEO
For additional information, contact:
Matti Hyytiäinen, President & CEO, PKC Group Plc, +358 400 710 968
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.
PKC Interim Report Q1 2013
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
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Copyright © 2013 OMX AB (publ)
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