PKC Group Plc Financial statement release 12 February 2015 8.15 a.m.
PKC Group Q4/2014:
Strong cash flow, lower comparable EBITDA and revenue
October - December 2014 highlights
- Revenue decreased 1.7% on the comparison period (10-12/2013), totalling EUR 208.5 million (EUR 212.1 million).
- EBITDA before non-recurring items was EUR 9.1 million (EUR 13.9 million) and 4.4% (6.6%) of revenue.
- EBITA** was EUR 4.2 million (EUR 9.8 million) and 2.0% (4.6%) of revenue. During the report period PPA depreciation and amortisation totalled EUR 2.1 million (EUR 3.2 million).
- Operating profit before non-recurring items was EUR 2.1 million (EUR 6.7 million) and 1.0% (3.1%) of revenue.
- Earnings per share were EUR -0.63 including the impact of EUR -11.7 million non-recurring items in operating profit (EUR 0.08).
- Cash flow after investments was EUR 30.7 million (EUR 18.5 million)
January – December 2014 highlights
- Revenue decreased 6.2% on the comparison period (1-12/2013), totalling EUR 829.2 million (EUR 884.0 million).
- EBITDA before non-recurring items was EUR 48.9 million (EUR 70.3 million) and 5.9% (8.0%) of revenue.
- EBITA** was EUR 29.8 million (EUR 52.5 million) and 3.6% (5.9%) of revenue. During the financial year PPA depreciation and amortisation totalled EUR 8.2 million (EUR 11.6 million).
- Operating profit before non-recurring items was EUR 21.7 million (EUR 40.9 million) and 2.6% (4.6%) of revenue.
- Earnings per share were EUR -1.21 including the impact of EUR -28.4 million non-recurring items in operating profit and of EUR 8.3 million additional taxes (EUR 0.63).
- Cash flow after investments was EUR 20.7 million (EUR 24.9 million).
- Dividend proposal is EUR 0.70 per share (EUR 0.70 per share).
PKC Group’s outlook for 2015
- PKC Group estimates that with prevailing exchange rates 2015 revenue will be close to previous year level, and that comparable EBITDA will be higher than in 2014. In 2014, PKC’s revenue was EUR 829.2 million and comparable EBITDA before non-recurring items was EUR 48.9 million. Revenue and EBITDA estimates are based on current business structure.
| Key figures | 10-12/14 | 10-12/13 | Change % | 1-12/14 | 1-12/13 | Change % | ||
| EUR 1,000 (unless otherwise noted) | ||||||||
| Revenue | 208,532 | 212,109 | -1.7 | 829,219 | 883,986 | -6.2 | ||
| EBITDA* | 9,137 | 13,946 | -34.5 | 48,865 | 70,341 | -30.5 | ||
| % of revenue | 4.4 | 6.6 | 5.9 | 8.0 | ||||
| EBITA** | 4,189 | 9,813 | -57.3 | 29,833 | 52,461 | -43.1 | ||
| % of revenue | 2.0 | 4.6 | 3.6 | 5.9 | ||||
| Operating profit* | 2,095 | 6,661 | -68.5 | 21,677 | 40,873 | -47.0 | ||
| % of revenue | 1.0 | 3.1 | 2.6 | 4.6 | ||||
| Non-recurring items | -11,739 | -2,061 | 469.5 | -28,362 | -10,409 | 172.5 | ||
| Operating profit(loss) | -9,644 | 4,599 | -309.7 | -6,685 | 30,463 | -121.9 | ||
| % of revenue | -4.6 | 2.2 | -0.8 | 3.4 | ||||
| Profit(loss) before taxes | -11,160 | 1,942 | -674.7 | -10,528 | 21,562 | -148.8 | ||
| Net profit (loss) for the report period | -14,992 | 1,783 | -941.0 | -29,051 | 13,947 | -308.3 | ||
| Earnings per share (EPS), EUR | -0.63 | 0.08 | -882.3 | -1.21 | 0.63 | -293.7 | ||
| Cash flow after investments | 30,737 | 18,513 | 66.0 | 20,699 | 24,941 | -17.0 | ||
| ROI,% | 5.3 | 14.7 | ||||||
| Gearing, % | -5.6 | -1.1 | ||||||
| Average number of personnel | 20,165 | 18,946 | 6.4 | 19,640 | 19,206 | 2.3 | ||
| * before non-recurring items | ||||||||
| ** operating profit before PPA depreciation and amortisation and non-recurring items | ||||||||
Matti Hyytiäinen, President & CEO:
PKC’s revenue was EUR 829.2 million. PKC’s market position remained strong in all central product and geographical operating areas throughout the financial year. The number of trucks manufactured in Europe and Brazil fell short of the level of the previous year. Due to decreased production volumes, our revenue in Europe and Brazil fell. In North America, the production volumes of trucks exceeded the volumes of the previous year. Despite the positive truck market, PKC’s revenue in North America remained at the level of the previous year, as revenue was decreased by some product programmes of light vehicles and components reaching the end of their lifecycle. The revenue for PKC’s Electronics segment decreased in comparison to the previous year due to weakened demand in the EMS product area.
PKC’s operating profit before non–recurring items was EUR 21.7 million. The operating profit was unsatisfactory as a result of significant losses sustained in Brazil. Furthermore, investment in implementing strategy added the company’s expenses in the financial year.
Cash flows from operations was at the level of previous financial year, totalling EUR 41.0 million. The company is free of net liabilities, with gearing at -5.6%.
I want to warmly thank all PKC employees for the fact that once again we have succeeded in serving our customers in an excellent fashion. Several recognitions we have received during the financial year are a token of this.
In 2015, we expect the market environment to be fluctuating. The production of trucks in North America is forecast to grow from the level of 2014. On the other hand, we forecast the production of trucks in Europe to remain at the level of the previous year at most and the production in Brazil to decrease from the level of previous year. The demand for the products of PKC’s electronics segment is estimated to remain at the current level.
Market outlook
Wiring Systems Business
In 2015 the production of heavy-duty and medium-duty trucks in Europe is expected to remain on previous year’s level at the most.
Production of heavy-duty trucks in North America is expected to increase by about 14%, production of medium-duty trucks to decline by about 3% and production of light vehicles to increase by about 1% compared to 2014.
In 2015 the production of heavy-duty and medium-duty trucks in Brazil is expected to be lower than previous year. The governmental incentive program to support the purchase of new trucks continues to be valid until further notice, although the terms have been weakened significantly. The weakened terms and both economic and political uncertainty in Brazil bear a considerable risk for Brazilian truck sales for 2015.
Electronics Business
The market demand for Electronics segment’s products is expected to remain at the current level.
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 January - December 2014 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, tel. +358 (0)400 710 968
Juha Torniainen, CFO, PKC Group Plc, tel. +358 (0)40 570 8871
Press conference
A press conference on the financial statement will be arranged for analysts and investors today, 12 February 2015, at 10.00 a.m., at the address Event Arena Bank, Unioninkatu 20, Helsinki.
Attachment
PKC financial statement release 2014
Distribution
Nasdaq Helsinki
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, Lithuania, Mexico, Poland, Russia, Serbia and the USA. The Group's revenue in 2014 totalled EUR 829.2 million. PKC Group Plc is listed on Nasdaq Helsinki.
