WORLD MARKETS - LOGGING
Ponsse returns to form Ponsse’s first quarter financials for 2014 position the company for a much brighter year compared to 2013 – they also signal a healthier forestry sector in general
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strengthening forestry market has led to a more handsome set of quarterly numbers from major Finnish cut-tolength manufacturer, Ponsse, which registered a 40% improvement in sales. More importantly for the immediate future of the sector and the company, the order books were more than 100% heavier. Net sales for the period were €86.9 million, which transpired into a €7.4 million operating result. The result before tax was €6.9 million and cash flow was €2.2 million. Earnings per share were €0.19 compared to zero in the corresponding period, while the equity ratio improved from 32.3% to 37.9%. The order books stood at €104.1 million at the end of the quarter compared to less than €50 million for the corresponding period. “The good outlook in the
forestry sector had a positive impact,” Ponsse President and Chief Executive Juho Nummela. “The demand for forest machines was at a good level during the first quarter. The order volume of new machines increased, and our order book continued to increase.” He said Russia, which remained an important market area for the group, was still at a “normal level” and the unstable situation in Ukraine had not had a substantial impact. The positive trend in North America meanwhile continued and the market was expected to “develop favourably”. Nummela said Central Europe had shown signs of recovery, while Sweden was still at a low level in terms of overall market development. Serial production of the Ponsse Scorpion range began at the Vieremä factory during the
period and demand continued to be active with feedback from the demonstration tours “extremely positive”. The demand for other product models was maintained at a good level as well to stimulate an active order intake. The service business continued to grow significantly, while used machine sales continued on a moderate growth trend. “Sales of new machines returned to the normal level from the weak comparable period and the net sales for the quarter were good for a first quarter,” Nummela said. “The stock of new products was at a level slightly higher than normal, while the capital tied up in raw materials and consumables increased slightly but the stock of trade-in machines was correspondingly at a good level.” The group’s Euro-denominated
Juho Nummela operating profit was expected to be significantly higher than in 2013. “Ponsse’s strongly renewed and competitive product portfolio and maintenance service solutions are having a positive effect on the company’s business operations,” Nummela said. “Thanks to the strong order books, the factory is able to produce forest machines at normal capacity. We estimate that the work situation of our customers will also continue to be normal. “Our investments in the buildings of the Vieremä factory, product development and maintenance services, development and renewal of production technology and product development will continue.”
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12 International Forest Industries | APRIL / MAY 2014
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