PKC Group Plc FINANCIAL STATEMENT RELEASE 14 February 2014 8.15 a.m.
PKC GROUP’S FINANCIAL STATEMENT RELEASE 1 January-31 December 2013:
STABLE MARKET SHARE DEVELOPMENT, BEST QUARTERLY CASH FLOW OF 2013
OCTOBER - DECEMBER 2013 HIGHLIGHTS
- Revenue decreased 0.9% on the comparison period (10-12/2012), totalling EUR 212.1 million (EUR 214.0 million).
- EBITDA before non-recurring items was EUR 13.9 million (EUR 17.2 million) and 6.6% (8.5%) of revenue.
- EBITA** was EUR 9.8 million (EUR 12.1 million) and 4.6% (5.7%) of revenue. During the report period PPA depreciation and amortisation totalled EUR 3.2 million (EUR 3.2 million).
- Operating profit before non-recurring items was EUR 6.7 million (EUR 8.9 million) and 3.1% (4.2%) of revenue.
- Diluted earnings per share were EUR 0.08 (EUR 0.03).
- Cash flow after investments was EUR 18.5 million (EUR 11.6 million).
JANUARY - DECEMBER 2013 HIGHLIGHTS
- Revenue decreased 4.8% on the comparison period (1-12/2012), totalling EUR 884.0 million (EUR 928.2 million).
- EBITDA before non-recurring items was EUR 70.3 million (EUR 83.0 million) and 8.0% (8.9%) of revenue.
- EBITA** was EUR 52.5 million (EUR 65.4 million) and 5.9% (7.0%) of revenue. During the report period PPA depreciation and amortisation totalled EUR 11.6 million (EUR 13.9 million).
- Operating profit before non-recurring items was EUR 40.9 million (EUR 51.5 million) and 4.6% (5.5%) of revenue.
- Diluted earnings per share were EUR 0.62 (EUR 1.12).
- Cash flow after investments was EUR 24.9 million (EUR 63.7 million).
- Dividend proposal is EUR 0.70 per share (EUR 0.70 per share).
PKC GROUP’S OUTLOOK FOR 2014
- PKC Group estimates that 2014 revenue and comparable EBITDA will be lower than in 2013. In 2013, PKC’s revenue was EUR 884.0 million and comparable EBITDA before non-recurring items was EUR 70.3 million.
- Revenue estimate is based on current business structure. Revenue will be affected by light vehicle build-outs in North America and by changes in exchange rates. As a result of the above, comparable EBITDA is expected to be lower than in 2013. Comparable EBITDA in 2014 will also be affected by reorganisation and program transfers in Europe and expenditures related to the implementation of PKC’s growth strategy.
| KEY FIGURES | 10-12/13 | 10-12/12 | Change % | 1-12/13 | 1-12/12 | Change % | |||
| EUR 1,000 (unless otherwise noted) | |||||||||
| Revenue | 212,109 | 213,960 | -0.9 | 883,986 | 928,178 | -4.8 | |||
| EBITDA* | 13,946 | 17,173 | -18.8 | 70,341 | 82,954 | -15.2 | |||
| % of revenue | 6.6 | 8.5 | 8.0 | 8.9 | |||||
| EBITA** | 9,813 | 12,137 | -19.1 | 52,461 | 65,358 | -19.7 | |||
| % of revenue | 4.6 | 5.7 | 5.9 | 7.0 | |||||
| Operating profit* | 6,661 | 8,888 | -25.1 | 40,873 | 51,478 | -20.6 | |||
| % of revenue | 3.1 | 4.2 | 4.6 | 5.5 | |||||
| Non-recurring items | 2,061 | 4,868 | -57.7 | 10,409 | 8,027 | 29.7 | |||
| Operating profit | 4,599 | 4,020 | 14.4 | 30,463 | 43,451 | -29.9 | |||
| % of revenue | 2.2 | 1.9 | 3.4 | 4.7 | |||||
| Profit before taxes | 1,942 | 697 | 178.4 | 21,562 | 34,946 | -38.3 | |||
| Net profit for the report period | 1,783 | 707 | 152.0 | 13,947 | 23,999 | -41.9 | |||
| Earnings per share (EPS), EUR | 0.08 | 0.03 | 140.9 | 0.62 | 1.12 | -44.5 | |||
| Cash flow after investments | 18,513 | 11,589 | 59.7 | 24,941 | 63,673 | -60.8 | |||
| ROI,% | 14.7 | 16.7 | |||||||
| Gearing, % | -1.1 | 34.4 | |||||||
| Average number of personnel | 18,946 | 19,566 | -3.2 | 19,206 | 20,590 | -6.7 | |||
| * before non-recurring items | |||||||||
| ** operating profit before PPA depreciation and amortisation and non-recurring items | |||||||||
MATTI HYYTIÄINEN, PRESIDENT & CEO:
PKC’s revenue was EUR 884.0 million and operating profit before non-recurring items EUR 40.9 million. The decrease in revenue was particularly affected by production volumes for heavy-duty trucks in North America falling short of the previous year’s level and the unfavourable exchange rate between the euro and the US dollar. European truck production remained at the level of the previous year despite the market boost caused by transition to Euro 6 standard in the last quarter of the financial year. Brazilian production volumes increased in comparison with the previous year. The revenue recorded was also affected by some product programmes for light vehicles and components reaching the end of their life cycles during the financial year.
Cash flow for the entire year was at a moderate level, EUR 24.9 million after investments. As a result of the positive cash flow and a directed share issue implemented during the financial year, the company is free of net debt, with gearing at 1.1% negative.
PKC’s market position remained strong in all geographical areas of operation throughout the financial year.
PKC’s Wiring Systems segment’s operating profit before non-recurring items fell short of that of the previous year owing to lower volumes in North America and the losses recorded at the Brazilian unit. Moreover, as a result of uneven order flows, our production efficiency suffered. During the financial year, several new production programmes ramp-ups and transfers of production were also ongoing.
PKC’s Electronics segment’s operating profit before non-recurring items improved significantly over the previous year as a result of the measures implemented during the financial year that streamlined the cost structure and of the growing share of ODM products in revenue.
In 2014, truck production volumes are expected to fall in Europe and Brazil and to increase in North America. The market demand for Electronics segment’s products is expected to remain at the present level.
In many ways, 2013 was challenging, and I would like to express my thanks to all PKC’s personnel for a job well done.
During 2014, we are continuing with the implementation of the strategy programme published in spring 2013 and PKC is on track to achieving the set strategic targets.
MARKET OUTLOOK
Production of heavy-duty trucks in Europe is expected to decline by 4% in 2014, and production of medium-duty trucks by 3% compared to the previous year. The Euro 6 emission standard that entered into force at the beginning of 2014 caused an increase in the demand for trucks at the end of 2013. Second half of 2014 volumes are expected to be higher than those of the first half.
Production of heavy-duty trucks in North America is expected to increase by 10%, production of medium-duty trucks by 5% and production of light vehicles by 2% compared to 2013. Quarterly production volumes for heavy-duty trucks are expected to increase steadily during the year.
Production of heavy-duty trucks in Brazil is expected to decline by 5%, and production of medium-duty trucks to increase by 24% compared to 2013. The governmental incentive program to support the purchase of new trucks continues to be valid until further notice, although the terms have been weakened somewhat.
The market demand for Electronics segment’s products is expected to remain at the present level.
PKC GROUP’S OUTLOOK FOR 2014
PKC Group estimates that 2014 revenue and comparable EBITDA will be lower than in 2013. In 2013, PKC’s revenue was EUR 884.0 million and comparable EBITDA before non-recurring items was EUR 70.3 million.
Revenue estimate is based on current business structure. Revenue will be affected by light vehicle build-outs in North America and by changes in exchange rates. As a result of the above, comparable EBITDA is expected to be lower than in 2013. Comparable EBITDA in 2014 will also be affected by reorganisation and program transfers in Europe and expenditures related to the implementation of PKC’s growth strategy.
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 financial statement release for 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 & CEO
For additional information, contact:
Matti Hyytiäinen, President & CEO, PKC Group Plc, +358 400 710 968
PRESS CONFERENCE
A press conference on the financial statement will be arranged for analysts and investors today, 14 February 2014, at 10.00 a.m., at the address Event Arena Bank, Unioninkatu 20, Helsinki.
ATTACHMENT
PKC financial statement release 2014
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, Mexico, Poland, Russia and the USA. The Group's revenue in 2013 totalled EUR 884.0 million. PKC Group Plc is listed on NASDAQ OMX Helsinki Ltd.
