PKC Group Plc INTERIM REPORT 8 August 2013 8.15 a.m.
PKC GROUP’S INTERIM REPORT 1-6/2013:
SOLID PERFORMANCE CONTINUED
APRIL - JUNE 2013 HIGHLIGHTS
- Revenue decreased 4.0% on the comparison period (4-6/2012), totalling EUR 235.1 million (EUR 244.8 million).
- EBITDA before non-recurring items was EUR 20.6 million (EUR 22.9 million) and 8.8% (9.3%) of revenue.
- EBITA** was EUR 16.1 million (EUR 19.2 million) and 6.8% (7.8%) of revenue. During the report period PPA depreciation and amortisation totalled EUR 2.8 million (EUR 4.0 million).
- Operating profit before non-recurring items was EUR 13.3 million (EUR 15.2 million) and 5.6% (6.2%) of revenue.
- Diluted earnings per share were EUR 0.28 (EUR 0.46).
- Cash flow after investments was EUR 1.1 million (EUR 5.2 million).
JANUARY - JUNE 2013 HIGHLIGHTS
- Revenue decreased 5.4% on the comparison period (1-6/2012), totalling EUR 460.3 million (EUR 486.8 million).
- EBITDA before non-recurring items was EUR 39.4 million (EUR 43.2 million) and 8.6% (8.9%) of revenue.
- EBITA** was EUR 30.3 million (EUR 35.3 million) and 6.6% (7.3%) of revenue. During the report period PPA depreciation and amortisation totalled EUR 5.7 million (EUR 7.1 million).
- Operating profit before non-recurring items was EUR 24.6 million (EUR 28.2 million) and 5.3% (5.8%) of revenue.
- Diluted earnings per share were EUR 0.42 (EUR 0.78).
- Cash flow after investments was EUR 1.3 million (EUR 28.3 million).
REVENUE AND OPERATING PROFIT ESTIMATES FOR 2013
- PKC Group’s outlook: PKC Group estimates its full year 2013 revenue to be lower than in 2012 and estimates its comparable operating profit excluding non-recurring items not to reach 2012 level. In 2012 PKC’s revenue was EUR 928.2 million and comparable operating profit excluding non-recurring items was EUR 51.5 million.
| KEY FIGURES | 4-6/13 | 4-6/12 | Change % | 1-6/13 | 1-6/12 | Change % | 1-12/12 | ||
| EUR 1,000 (unless otherwise noted) | |||||||||
| Revenue | 235,099 | 244,804 | -4.0 | 460,261 | 486,771 | -5.4 | 928,178 | ||
| EBITDA* | 20,597 | 22,883 | -10.0 | 39,365 | 43,238 | -9.0 | 82,954 | ||
| % of revenue | 8.8 | 9.3 | 8.6 | 8.9 | 8.9 | ||||
| EBITA** | 16,068 | 19,162 | -16.1 | 30,302 | 35,314 | -14.2 | 65,358 | ||
| % of revenue | 6.8 | 7.8 | 6.6 | 7.3 | 7.0 | ||||
| Operating profit* | 13,261 | 15,195 | -12.7 | 24,576 | 28,191 | -12.8 | 51,478 | ||
| % of revenue | 5.6 | 6.2 | 5.3 | 5.8 | 5.5 | ||||
| Non-recurring items | 1,265 | 1,018 | 24.3 | 6,654 | 1,279 | 420.3 | 8,027 | ||
| Operating profit | 11,996 | 14,177 | -15.4 | 17,923 | 26,912 | -33.4 | 43,451 | ||
| % of revenue | 5.1 | 5.8 | 3.9 | 5.5 | 4.7 | ||||
| Profit before taxes | 9,368 | 13,991 | -33.0 | 14,078 | 24,464 | -42.5 | 34,946 | ||
| Net profit for the report period | 6,042 | 9,731 | -37.9 | 9,151 | 16,626 | -45.0 | 23,999 | ||
| Earnings per share (EPS), EUR | 0.28 | 0.46 | -39.1 | 0.42 | 0.78 | -46.2 | 1.12 | ||
| Cash flow after investments | 1,109 | 5,206 | -78.7 | 1,313 | 28,305 | -95.4 | 63,673 | ||
| ROI,% | 18.0 | 23.0 | 16.7 | ||||||
| Gearing, % | 45.2 | 57.9 | 34.4 | ||||||
| Average number of personnel | 19,553 | 20,998 | -6.9 | 19,544 | 21,478 | -9.0 | 20,590 | ||
| * before non-recurring items | |||||||||
| ** operating profit before PPA depreciation and amortisation and non-recurring items | |||||||||
MATTI HYYTIÄINEN, PRESIDENT & CEO:
“PKC’s business continued to develop steadily during the second quarter. Revenue increased by 4% and operating profit before non-recurring items improved by 17% on the previous quarter to EUR 13.3 million. Operating profit before non-recurring items increased in both segments, although the losses at the Brazilian unit continued to burden the profitability of Wiring Systems business.
Truck production volumes in the second quarter grew substantially in North America and Brazil in comparison to the previous quarter. Although growth in North America was significant, the actual production volumes fell short of the comparison period of the previous year. The production volumes achieved in Europe were slightly higher than in the previous quarter, but they still fell short of the comparison period of last year. Some signs of recovery in the truck business are evident in Europe, which is why the production volume forecasts for the entire year have been revised upwards. It must be remembered, however, that the entire year’s production of heavy- and medium-duty trucks in Europe and, in North America, of heavy-duty trucks is expected to fall short of last year’s level. In Brazil, production volumes are forecasted to remain at the current level until the end of the year.
Marketing work in Wiring Systems continued actively, and during the period we organised several PKC Technology Days for existing and new customers. Relocations of production in Wiring Systems were implemented, and shutdowns of the Ukrainian and Irish factories continued as planned. Russian production in the Electronics business was terminated and relocated to China.
During the period, at an international exhibition in Shanghai the Electronics business unveiled the first testers from the new Chameleon product family, which are designed for the testing of mobile devices and other electronic equipment that uses touch-screen technology. This cost-effective and smart solution has aroused the interest of customers.
Our customers have been satisfied with PKC’s high-quality operations, which is why I would like to thank our personnel, who have done excellent work for our customers.
We shall actively continue with PKC’s long-term development, making every effort to take corrective actions where needed and to utilise the market’s growth potential to the full.”
MARKET OUTLOOK
European heavy and medium truck production in 2013 is estimated to decrease by about 6% compared to 2012. The overall economic uncertainty is estimated to keep the commercial vehicle demand in Europe at a lower level. However, the production volumes are estimated to increase due to transition to Euro 6 emission standard in the last quarter.
North American heavy duty truck production is estimated to decrease by 6%, medium duty truck production to increase 7% and light vehicle production to increase by 5% from 2012 level. It is estimated that the production volumes of heavy trucks will increase gradually throughout the second half of 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 revenue to be lower than in 2012 and estimates its comparable operating profit excluding non-recurring items not to reach 2012 level. In 2012 PKC’s revenue was 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-June 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 interim report will be arranged for analysts and investors today, 8 August 2013, at 10.00 a.m., at the address Event Arena Bank, Unioninkatu 20, Helsinki.
ATTACHMENT
PKC Interim Report Q2 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, Mexico, Poland, Russia, Ukraine and the USA. The Group's revenue in 2012 totalled EUR 928.2 million. PKC Group Plc is listed on NASDAQ OMX Helsinki Ltd.
