GROWTH IN SALES CONTINUES
- Net sales were EUR 30.3 million showing a first quarter growth
of 21% over last year. Operating profit was EUR 0.9 million (EUR
1.2 million).
- Production capacity of trucks was boosted close to the target
level. Delays in deliveries were significantly reduced.
- The shortages in subcontracted materials that troubled the
operations during the second half of 2006 subsided significantly.
The operating profit improved from EUR 0.4 million in the last
quarter of 2006 to EUR 0.9 million in the first quarter of 2007.
- Product success continued on the market and the order book
strengthened further.
- Rocla and Transpoint, part of the Finnish State Railways Group,
concluded a long-term rental and service agreement according to
which Transpoint outsources its truck fleet to Rocla. This
service agreement is one of Rocla´s biggest ever.
- Rocla´s Humanic reach truck won the first prize of the Fennia
design competition, The Fennia Grand Prize, in February 2007.
BUSINESS ORGANIZATION AND REPORTING
The integration process of Rocla´s warehouse trucks and automated
guided vehicles businesses will be concluded within 2007.
Tailored automated guided vehicles will be replaced by
standardized deliveries and the operating principles of the order
to delivery process of warehouse trucks will be adopted. The
company is managed as a one product line business and
consolidated reporting is based on the reporting of one business
segment as of the beginning of 2007. The automated guided
vehicles company Rocla Robotruck Oy was merged with its parent
company Rocla Oyj at the turn of the year.
GENERAL DEVELOPMENT
Rocla started off the new fiscal year with a record-level order
book. The subcontracting and component delivery problems that
hampered deliveries during 2006 were for the most part brought
under control towards the end of the first quarter of this year.
The boosting of truck assembly capacity speeded up through-put
and cut down delivery times. The catching up with the delivery
shortcomings of 2006 required efforts that, combined with the
general cost and price developments of the business, held back
profit development to an unsatisfactory level. Despite this the
result rose above the level of the last quarter of 2006.
NET SALES, OPERATING RESULT AND ORDER BOOK
The key business indicators of Rocla developed as follows:
Meur 1-3 1-3 Change 1-12
2007 2006 2006
Net sales 30.3 25.1 20.8% 104.4
Operating result 0.9 1.3 -31.2% 1.5
Orders received 25.2 22.7 11.2% 87.6
Order book at
end of period 27.8 17.8 56.1% 26.8
MARKETS
The good market demand for warehouse truck that prevailed in 2006
carried over into the first quarter of 2007. Rocla's sales
developed as expected across all distribution channels, i.e. the
Rocla customer service organization, dealer network and contract
manufacturing.
In the first quarter Rocla concluded one of its biggest rental
and service agreements ever with Transpoint Oy Ab, a member of
the Finnish State Railways Group. Similar agreements have been
concluded earlier with i.e. Hartwall, DHL and Metsä Tissue. The
Transpoint trucks will be replaced by Rocla operated rental
trucks. The delivery includes Rocla warehouse trucks and CAT
counter-balance trucks as well as driver training. The value of
this long-term agreement rises to several million euros.
The Humanic truck, rewarded as the most impressive product at the
Sklad trade fair in Moscow in the fall of 2006, won the Grand
Prize of the Finnish Fennia Prize design competition in February
2007. In the same competition that was entered by some 70
products, Rocla was also awarded honorary mention for its TP20ac
truck.
RESULTS
Net sales in the first quarter of 2007, EUR 30.3 million, rose
one fifth above sales in the first quarter the year before (EUR
25.1 million). The operating result, on the other hand, weakened
and was EUR 0.9 million (EUR 1.3 million).
The tough market competition imposes constraints to price hikes.
The increases made in early 2007 will have delayed effects on
results that come only through the build-up of new order backlog.
The good market situation has also caused cost escalations.
Prices on raw materials and subcontracting have risen clearly. In
addition materials costs grew because of the needs to locate new
suppliers in order to make up for delays in deliveries. Expenses
for materials and supplies grew by 24% in the first quarter while
the increase in net sales was 21%.
The customer service concept in local markets has changed the
earnings model of Rocla in comparison with previous years. The
share of rental and maintenance agreements in net sales is
significant and keeps growing. The need for skilled mechanics is
urgent in this situation. Rocla has recruited new service
personnel and makes continued investments in their training. At
the same time the customer service process is continuously
developed utilizing IT-technology.
Consolidated profit before taxes was EUR 0.5 million (EUR 1.2
million) and net profit for the period EUR 0.3 million (EUR 0.8
million).
PROFITABILITY
Consolidated return on investment, ROI, was 6.3% p.a. (10.9%) in
the first quarter of 2007. Return on equity, ROE, was 6.0% p.a.
(14.2%).
Earnings per share, EPS, in the first quarter were 0.09 euros as
compared with 0.22 euros in the same period a year ago.
Considering the dilution effect of option-rights earnings per
share in the first quarter were 0.09 euros (0.21 euros).
BALANCE SHEET AND FINANCING
At the end of March 2007 the balance sheet total was EUR 82.0
million (EUR 72.2 million). At the end of 2006, the corresponding
figure was EUR 82.3 million. The main driver of growth in the
balance sheet over the past year was the increase in working
capital and especially the sales receivables following the growth
in net sales. The need for working capital was met by increasing
liabilities which in turn was reflected in the gearing ratio. At
the end of March 2007 the interest-bearing net debt of the Rocla
Group was EUR 37.5 million (at the end of March 2006 EUR 30.6
million), net gearing was 160.8% (127.5%) and the equity to
assets ratio 28.8% (33.6%).
PRODUCTION, INVESTMENTS AND PRODUCT DEVELOPMENT
The build-up of production capacity at the Järvenpää factory in
line with the MP10000 program has proceeded according to plan.
Production capacity will be further boosted by the installation
of a welding robot for the mast production line during the
ongoing fiscal year.
Gross investments in fixed assets in the first quarter of 2007
were EUR 1.1 million (EUR 1.9 million). Out of this EUR 0.5
million (EUR 0.3 million) were carried forward in the balance
sheet in line with IFRS accounting practices.
Rocla continues its dedicated product development of intelligent
truck solutions. The technology used in the warehouse truck range
will be updated during the course of 2007. The first upgraded
truck to be launched was T20ac pallet truck with a driver
platform. This truck was equipped with AC-technology. The
automated guided vehicle concept based on warehouse truck
technology will be launched at the end of this year.
PERSONNEL
In the first quarter of 2007 the average number of personnel was
493 (450). At the end of the first quarter Rocla had 499
employees (451), of whom 93 (80) worked outside Finland.
ANNUAL GENERAL MEETING
Financial statements
The AGM that was held on April 3 adopted the 2006 financial
statements and discharged those accountable from liability. In
line with the Board's proposal a dividend of 0.20 euros per share
was declared (0.20 euros). The record-date for the dividend was
April 10 and the pay-date April 17, 2007.
Board of Directors and Auditors
The number of Board Members was set at six. Ilkka Hakala, Eero
Karvonen, Frans Maarse and Niilo Pellonmaa were re-elected to the
Board. Jay N. Gusler and Vesa Puttonen were elected new Board
Members. At its first meeting the Board elected Niilo Pellonmaa
Chairman and Ilkka Hakala Deputy Chairman.
The certified accountants firm KPMG Oy Ab was elected auditor
with Lasse Holopainen, CA, as principal auditor.
Authorizations
The AGM authorized the Board to decide about acquiring 194,535
Rocla Oyj shares and a new share issue, the transfer of treasury
shares and/or the rendering of special rights as defined in the
Companies Act, Chapter 10, § 1. Based on the authorization the
Board may issue a maximum of 565,000 shares in one or several
tranches. Shares issued in a new share issue or based on special
rights are limited to the aforementioned maximum number. The
authorization is for a paid new share issue and it remains in
effect until the 2008 AGM.
SHARES, OPTIONS AND SHARE CAPITAL
Shares
In the first quarter of 2007 a total of 106,130 Rocla Oyj shares
were traded at the Helsinki Exchanges. This represents around
2.7% of the total number of shares. The highest share price in
the first quarter was 12.49 euros and the lowest 10.75 euros. The
average price was 11.62 euros and the closing price at the end of
March 11.45 euros.
The market capitalization of Rocla Oyj based on the closing share
price at the end of March, excluding treasury shares, was EUR
44.8 million (EUR 50.3 million).
Rocla Oyj holds 30,789 of its own shares which corresponds 0.8%
of the total number of the shares. The number is the same as at
year-end 2006.
Option rights
In the first quarter a total of 108,725 option-rights were
traded. The average trading price was 3.54 euros. One option
entitled the holder to subscribe one Rocla Oyj share in the
period April 24, 2002 - April 24, 2007. The subscription price
after the 2007 dividend was 7.60 euros. There were no
subscriptions in the first quarter of 2007.
The listing of the option-rights attached to the Rocla Oyj 1998
warrant bond ended on April 17, 2007. The right to share
subscriptions based on the option-rights ended April 24, 2007. In
April a total of 325,310 Rocla Oyj shares were subscribed based
on the option-rights. The subscriptions will increase Rocla's
equity by about EUR 2.5 million. The 1998 warrant bond, paid back
by the company in 2001, had a total of 400,000 option-rights
attached.
The shares subscribed in 2007 have the same rights as the old
shares and they will be publicly traded together with the old
shares as soon as they have been registered.
OWNERSHIP
There were no major changes in the ownership of Rocla Oyj in the
first quarter of 2007.
ORDER BOOK
At the beginning of 2007 the Rocla Oyj order-book stood at a
record-level of EUR 26.8 million. It was at that time about twice
the size of that a year earlier. The order book has continued to
build up in 2007. At the end of the first quarter its value was
EUR 27.8 million. At the same time a year ago it was EUR 17.8
million. The increase is 56.1%.
OUTLOOK
Demand for trucks and logistics services continues to look good
on Rocla´s key markets. The company is facing the challenge of
having to improve its profitability significantly. The rising
costs on raw materials and manufacturing cause a need for new
price increases in the nearest future as well as continued
streamlining of processes and effective cost control.
Consolidated net sales are expected to grow by over 10% this year
in comparison with last year and results are estimated to improve
from last year.
A major improvement of results requires that strategic changes
are made in the core business of the Rocla Group. Such changes
are in the making but their results require time to materialize.
Elements of these changes are i.e. expansion of the service
business, boosted efficiency in sourcing and the use of capital
and intelligent innovations of products and solutions. The new
automated truck concept set to enter the market towards the end
of the year is a case-in-point.
FINANCIAL DATA
ACCOUNTING PRINCIPLES
The interim report has been prepared according to IFRS standards.
However, all requirements of IAS 34 have not yet been adopted.
INCOME STATEMENT (Meur)
1-3/2007 1-3/2006 Change % 1-12/2006
NET SALES 30.3 25.1 20.8 104.4
Change in finished goods
and work in progress -0.3 0.4 2.3
Other operating
income 0.0 0.1 0.3
Materials and
services -18.7 -15.0 24.5 -65.9
Personnel expenses -5.8 -5.1 12.3 -21.2
Depreciation -1.8 -1.5 17.7 -6.6
Other operating
expenses -2.9 -2.7 7.9 -12.0
OPERATING PROFIT 0.9 1.3 -31.2 1.5
Financial expenses
(net) -0.4 -0.1 284.4 -1.1
PROFIT/LOSS BEFORE
TAXES 0.5 1.2 -59.3 0.4
Income taxes -0.1 -0.3 -61.7 -0.1
PROFIT/LOSS
FOR THE PERIOD 0.3 0.8 -58.4 0.3
Earnings per share,
euros 0.09 0.22 0.07
Earnings per share,
euros (diluted) 0.09 0.21 0.07
BALANCE SHEET (Meur) 3/2007 3/2006 12/2006
ASSETS
NON-CURRENT ASSETS
Intangible assets 7.1 6.8 7.2
Consolidated goodwill 2.1 2.1 2.1
Tangible assets 27.2 24.9 26.7
Receivables 0.2 0.4 0.1
NON-CURRENT ASSETS
TOTAL 36.6 34.3 36.2
CURRENT ASSETS
Inventories 21.7 19.5 21.4
Sales receivables and
other receivables 23.0 17.3 22.0
Cash and cash equivalents 0.6 0.9 2.7
CURRENT ASSETS
TOTAL 45.3 37.9 46.2
ASSETS TOTAL 82.0 72.2 82.3
EQUITY AND LIABILITIES
Share capital 3.9 3.9 3.9
Premium fund 4.6 4.2 4.6
Retained earnings 14.4 14.9 14.1
Net income for the period 0.3 0.8 0.3
EQUITY TOTAL 23.3 24.0 23.0
NON-CURRENT LIABILITIES
Interest-bearing debt 19.1 13.4 19.2
Deferred taxes 1.2 1.3 1.1
NON-CURRENT LIABILITIES
TOTAL 20.3 14.7 20.3
CURRENT LIABILITIES
Interest-bearing debt 18.9 18.1 17.1
Provisions 0.4 0.4 0.4
Non interest-bearing debt 19.0 14.9 21.5
CURRENT LIABILITIES
TOTAL 38.4 33.4 39.0
LIABILITIES TOTAL 58.6 48.2 59.3
EQUITY AND LIABILITIES
TOTAL 82.0 72.2 82.3
CHANGE IN EQUITY
A=Share capital, B=Premium fund, C=Translation differences
D=Current value fund, E=Retained earnings, F=Net income for the
period, G=Total
1-3/2007 A B C D E F G
Beginning 3.9 4.6 0.0 0.0 14.4 - 23.0
Income for the
period 0.3 0.3
Other changes -0.0 0.0 0.0
End 3.9 4.6 0.0 0.1 14.4 0.3 23.3
1-3/2006 A B C D E F G
Beginning 3.9 4.2 0.1 0.1 14.9 - 23.1
Income for the
period 0.8 0.8
Other changes -0.0 0.0 0.0
End 3.9 4.2 0.0 0.1 14.9 0.8 24.0
1-12/2006 A B C D E F G
Beginning 3.9 4.2 0.1 0.1 14.9 - 23.1
Shares subscribed with
option-rights 0.0 0.3 0.4
Dividend payment -0.8 -0.8
Income for the
period 0.3 0.3
Transfer of
treasury shares 0.0 0.0 0.0
Other changes -0.1 -0.0 0.0
End 3.9 4.6 0.0 0.0 14.1 0.3 23.0
FUNDS STATEMENT 1-3/07 1-3/06 1-12/06
Cash flow from operations
Income for the period 0.3 0.8 0.3
Adjustments:
-Depreciation 1.8 1.5 6.6
-Financial income and
expenses 0.4 0.1 1.1
-Taxes 0.1 0.3 0.1
-Other adjustments -0.0 -0.1 0.0
Change in working capital -4.0 -0.3 0.2
Interests paid -0.4 -0.3 -1.5
Interests received 0.1 0.0 0.0
Taxes paid -0.1 -0.0 -0.3
NET CASH FLOW
FROM OPERATIONS -1.7 2.2 6.5
NET CASH FLOW
FROM INVESTMENTS -1.2 -1.5 -9.8
Cash flow from financing
Loans withdrawn 2.7 1.0 11.6
Loans repaid -1.2 -0.6 -2.8
Increase in equity 0.0 0.0 0.4
Sale of treasury shares 0.0 0.0 0.0
Payment of leasing debts -0.7 -0.6 -3.0
Dividends paid 0.0 0.0 -0.8
NET CASH FLOW
FROM FINANCING 0.7 -0.3 5.5
CHANGE IN LIQUID FUNDS -2.2 0.3 2.2
Liquid funds,
beginning of period 2.7 0.6 0.6
Liquid funds,
end of period 0.6 0.9 2.7
CONTINGENT COMMITMENTS (Meur)
03/07 03/06 12/06
For own debt:
Mortgages on real estate 0.5 0.5 0.5
Corporate mortgages 9.4 9.4 9.4
Other own commitments:
Leasing commitments 0.9 0.8 0.8
Rental commitments 0.0 0.3 0.0
Repurchase commitments 0.7 0.3 0.7
INCOME STATEMENT BY QUARTER
1-3 10-12 7-9 4-6 1-3
2007 2006 2006 2006 2006
NET SALES 30.3 30.8 22.5 26.0 25.1
Change in finished goods
and inventories -0.3 0.6 0.5 0.8 0.4
Other operating income 0.0 0.0 0.1 0.1 0.1
Materials and services -18.7 -20.0 -14.5 -16.4 -15.0
Personnel expenses -5.8 -5.9 -4.8 -5.4 -5.1
Depreciation -1.8 -1.7 -1.8 -1.6 -1.5
Other operating
expenses -2.9 -3.4 -2.7 -3.2 -2.7
OPERATING PROFIT 0.9 0.4 -0.6 0.5 1.3
Financial expenses
(net) -0.4 -0.2 -0.6 -0.2 -0.1
PROFIT/LOSS BEFORE
TAXES 0.5 0.2 -1.2 0.2 1.2
Income taxes -0.1 0.0 0.3 -0.1 -0.3
PROFIT/LOSS
FOR THE PERIOD 0.3 0.2 -0.9 0.1 0.8
EARNINGS PER SHARE,
euros 0.09 0.06 -0.24 0.03 0.22
EARNINGS PER SHARE,
diluted 0.09 0.06 -0.23 0.03 0.21
KEY RATIOS 3/2007 3/2006 12/2006
Net sales, Meur 30.3 25.1 104.4
Operating profit, Meur 0.9 1.3 1.5
% of net sales 2.9 5.1 1.4
Profit before taxes, Meur 0.5 1.2 0.4
% of net sales 1.6 4.6 0.4
Equity/share, euros 5.97 6.22 5.88
Equity/assets ratio, % 28.8 33.6 28.4
Return on equity, % p.a. 6.0 14.2 1.2
Return on
investment, % p.a. 6.3 10.9 3.3
Gross investment, Meur 1.1 1.9 5.9
Personnel,
average 493 450 467
Personnel,
end of period 499 451 489
OTHER DATA
Order book, Meur 27.8 17.8 26.8
Shares, 1,000,
average 3,909 3,857 3,860
Shares, 1,000,
diluted, average 4,024 4,014 4,014
Shares, 1,000,
end of period 3,909 3,860 3,909
Treasury shares are excluded from the total number of shares.
(The figures are unaudited)
FINANCIAL DISCLOSURE
The Interim Report for January-June will be published on July 17
2007.
Järvenpää, April 26 2007
ROCLA OYJ
Board of Directors
Jussi Muikku
President and CEO
For additional information, contact:
Jussi Muikku, President and CEO, phone +358 20 778 1370
Hilkka Webb, CFO, phone +358 20 778 1316
Distribution:
Helsinki Exchanges, The Main media