ROCLA OYJ STOCK EXCHANGE RELEASE 07.02.2008
ROCLA OYJ FINANCIAL STATEMENTS BULLETIN 1.1.-31.12.2007
NET SALES GREW BY ONE FIFTH AND RESULTS IMPROVED
- Net sales grew by one fifth to EUR 124.9 million. Operating
profit improved to EUR 4.9 million (2006: EUR 1.5 million).
- Earnings per share were 0.57 euros (0.07 euros).
- Orders bookings during the year were EUR 98.2 million
(+12.2%) and the order book at the end of the year was EUR 24.2
million (EUR 26.8 million).
- Production capacity reached the 10,000 trucks a year level
enabling flexible adaptation to work load.
- Rocla launched its automated warehouse truck in December
2007. The product supports logistical functions that face a
shortage of labour and boosts the efficiency of materials
handling.
- The Board proposes the declaration of a dividend of 0.25
euros per share for the fiscal year 2007 corresponding to a
dividend ratio of 43.7%.
BUSINESS OPERATIONS, REPORTING AND MANAGEMENT
The integration process of Rocla warehouse trucks and automated
guided vehicles continued throughout 2007 according to plan and
was for the most part completed by the end of the year. There was
a shift from customized automated guided vehicles to standardized
automated trucks and the order to delivery process was integrated
with that of warehouse trucks. The Group is managed as a one
business entity and reports one business segment.
GENERAL DEVELOPMENT
The Rocla Group's fiscal year 2007 was clearly more successful
than the year before. The delivery delays that marked the
beginning of the year were eliminated thanks to reorganization of
production and increased automation. The shortages experienced in
the sourcing of materials and components were in the main brought
under control. The new product launches of the year were
successful and strengthened Rocla's ability to supply intelligent
materials handling solutions.
Increased automation in the product range serves the materials
handling efficiency of customers as a counterweight to increasing
personnel and materials costs as well as shortage of labour force.
The new automated truck is a prime example of this. This truck is
used for i.e. haulage of pallets, paper rolls and other goods
transfer between warehouses and production or as part of the
production process. Thanks to automation the goods move with
precision, safety and without interruptions.
NET SALES, OPERATING PROFIT AND ORDER BOOK
The key figures of Rocla's business developed as follows:
1-12 1-12
Meur 2007 2006 Change %
Net sales 124.9 104.4 19.6
Operating profit 4.9 1.5 232.3
Orders received 98.2 87.6 12.2
Order book at the
end of the period 24.2 26.8 -7.8
Exports and international operations generated 76.9 % of net sales
(70.3 %).
MARKETS
The demand for trucks grew exceptionally strongly on Rocla's main
markets in Europe particularly during the first three quarters of
the year. In Western Europe the annual growth rate of the market
was in the order of ten per cent but in Russia and the new EU-
countries growth was considerably stronger than that. In average
Rocla's warehouse truck orders matched market growth while
deliveries clearly exceeded the average figures of the business.
Growth was recorded in all distribution channels: customer
services in the local market, Rocla dealers and contract
manufacturing.
Rocla has booked a number of significant customer service
contracts in Finland. Major contracts concluded earlier with
Hartwall, DHL and Transpoint were followed by Tokmanni, as this
company decided to acquire the entire truck fleet and some 150
trucks for its new logistics centre in Mäntsälä from Rocla. On the
whole service operations in the domestic market reached a record
level in 2007. In Russia, where the strong market growth is
expected to continue, Rocla has invested in a major increase of
customer service resources in its subsidiary company.
RESULTS
Consolidated net sales, EUR 124.9 million, exceeded those of the
year before by 19.6% (EUR 104.4 million). Operating profit was EUR
4.9 million (EUR 1.5 million).
The improvement in results came from more efficient operations,
growth of deliveries and adjustments in market prices. The one-
fifth growth in net sales clearly exceeded cost increases. The
streamlining of operations combined with new product and service
concepts give a sound basis for continued improvement of
profitability.
Consolidated income before taxes was EUR 3.2 million (EUR 0.4
million) and the net income for the period EUR 2.4 million (EUR
0.3 million). In the last quarter of the fiscal year results did
not quite match the growth in net sales even though operational
profitability held the level of the preceding quarter. This was
due to some cost provisions entered in the last quarter.
PROFITABILITY
Return on investment, ROI, was 8.6% p.a. (3.3%). Return on equity,
ROE, was 9.4% p.a. (1.2%).
Earnings per share, EPS, were 0.57 euros (0.07 euros).
At the end of 2007 equity per share was 6.38 euros (5.88 euros).
BALANCE SHEET AND FINANCING
At the close of 2007 the balance sheet total was EUR 85.5 million
(EUR 82.3 million). The use of capital was more efficient than
before and the growth of the balance sheet was modest at 4% even
though net sales grew by almost 20%. Interest-bearing net debt was
EUR 36.6 million (EUR 33.5 million), net gearing 136.2% (145.9%)
and the equity to assets ratio 32.0% (28.4%).
Cash flow from operations before investments was EUR 6.0 million
(EUR 6.5 million) and before financing EUR 1.1 million (-EUR 3.3
million).
DEVELOPMENT, PRODUCTION AND INVESTMENT
Products and development
In December 2007 Rocla launched the serial production of its
automated warehouse truck. The truck is for the most part based on
standard components. In addition to the new automated truck
concept Rocla has also launched a number of new features in its
product families. The new pallet truck T20ac with an operator
platform was equipped with AC-drive. All Rocla tiller arm operated
warehouse trucks benefit from the launch of the new especially
user-friendly Rocla h2-tiller arm. Ergonomics and design are
increasingly important in the hectic operating environment of
materials handling. Rocla´s competence in this area was recognized
as the Humanic truck received the design competition first prize,
the Fennia Grand Prize, in February 2007. Around 70 top design
brands from Finland were entered in the competition.
An increasing portion of Rocla's development work is focused on
the development of service concepts. This work was further refined
during the year. One of the new products launched was an analyzing
service for indoor logistics.
Rocla´s gross investments in R & D in 2007 came to EUR 4.5
million, i.e. 3.6% of net sales (in 2006 correspondingly EUR 4.4
million and 4.2%).
Production
The MP-10000 plan of the Järvenpää Works has now materialized and
this boosted the annual production capacity to the targeted 10,000
truck level by the end of the year. This increase has been enabled
by investments and reorganizations of production as well as the
increased application of automation. Assembly lines were
introduced to part of the production to replace individual
assembly squares.
Investments
Gross investments in fixed assets came to EUR 4.8 million (EUR 5.9
million). Out of this total EUR 2.1 million (EUR 1.6 million) were
brought forward as stipulated in IFRS-rules.
MANAGEMENT
Tapio Rummukainen was appointed President and CEO by the Rocla Oyj
Board of Directors effective January 1, 2008. His predecessor
Jussi Muikku has made a commitment to serve the company until
March 31, 2008 to ensure that transition of responsibilities
proceeds smoothly.
Tapio Rummukainen heads a five-member operational management team.
Its members are Pentti Salonen, Products, Jukka Viinikainen,
Domestic Customer Services, Anselmi Immonen, Projects, Juha
Mikkonen, Group Services and Hilkka Webb, CFO.
The extended management team consists of the aforementioned as
well as Peter Möller, Country Manager Denmark, Konstantin Titov,
Country Manager Russia, Kyösti Sarkkinen, Mentoring and Maija
Karhusaari, Marketing.
PERSONNEL
During 2007 the Group had an average of 505 employees (467). At
the end of the year the number of employees was 521 (489) of whom
106 (87) worked outside Finland. Most of the personnel increase
comes from the boosting of customer service operations on the
local markets.
The prerequisites for the paying of a cash bonus to personnel were
fulfilled in the fiscal year 2007. The bonus proposal is some one
thousand euros per person and it will be confirmed by the Annual
General Meeting in March 2008.
ANNUAL GENERAL MEETING
Financial statements
The Annual General Meeting on April 3, 2007 adopted the 2006
financial statements and discharged those accountable from
liability. Following the Board's proposal a dividend of 0.20 euros
per share was declared (0.20 euros). The record-date for the
dividend payment was April 10, 2007 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. 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. Niilo Pellonmaa, Ilkka Hakala, Eero
Karvonen and Vesa Puttonen are independent Board Members in
relationship to the company and its major owners as specified in
the Corporate Governance recommendation for listed companies by
the Helsinki Exchanges (OMXH), the Central Chamber of Commerce and
the Federation of Industry and Employers in Finland.
The auditing firm KPMG Oy Ab was elected auditor with Lasse
Holopainen, CA, as auditor-in-charge.
Authorizations
The Annual General Meeting approved the Board's proposal
concerning the acquisition of 194,535 Rocla Oyj shares and a new
share issue, the transfer of treasury shares and/or the extension
of special rights as specified in the Companies Act Chapter 10 §
1. Based on this authorization the Board may issue a maximum of
565,000 shares in one or several tranches. The number of shares
issued in the new share issue or based on special rights is
limited to the aforementioned maximum share number. The
authorization is for a paid new share issue and it remains in
effect until the Annual General Meeting 2008. The authorization
has not been used.
SHARES, OPTION RIGHTS AND SHARE CAPITAL
During 2007 a total of 511,860 Rocla Oyj shares were traded at the
Helsinki Exchanges. This constitutes around 12% of the total
number of shares excluding treasury shares. The value of the Rocla
Oyj share turnover was 5,728,106 euros. The highest share price in
2007 was 12.5 euros and the lowest 10.0 euros. The average share
price was 11.19 euros and the closing price at the end of the year
11.10 euros.
At the end of the fiscal year market capitalization excluding
treasury shares was EUR 47.0 million (EUR 45.6 million).
Rocla Oyj holds 30,789 of its own shares, which equals 0.7% of the
number of shares and votes. This number is the same as a year ago.
Shares subscribed based on option rights
A total of 325,310 Rocla Oyj shares were subscribed based on the
option rights attached to the 1998 warrant bond. These
subscriptions took place in the period 10.4.-24.4.2007. The
subscription price was 7.60 euros. Following the subscriptions the
share capital grew by 325,310.00 euros and the premium fund by
2,147,046.00 euros. The increase in the share capital was
registered 9.5.2007. The new shares subscribed have the same
rights as the old shares and they were traded at the Helsinki
Exchanges together with the old shares as of 10.5.2007.
After the increase the share capital of Rocla Oyj is 4,264,788
euros and the total number of shares 4,264,788.
After the expiration of the execution period for the 1998 option
rights Rocla has no ongoing option programs.
OWNERSHIP
There were no other material changes in the ownership of Rocla Oyj
in 2007.
Rocla Oyj's ten biggest owners on 31.12.2007:
Owner Shares % %
of shares of votes
1. Etra-Invest Oy Ab 1,000,000 23.5 23.5
2. Mitsubishi Caterpillar 600,000 14.1 14.1
Forklift Europe B.V.
3. Mitsubishi Caterpillar 600,000 14.1 14.1
Forklift America Inc.
4. Aktia Capital Investment Fund 190,000 4.5 4.5
5. EVK-Capital Oy 180,000 4.2 4.2
6. Henki-Sampo Insurance Company 171,200 4.0 4.0
7. City of Turku Indemnity Fund 83,559 2.0 2.0
8. Sr Arvo Finland Value 60,209 1.4 1.4
9. Fennia Mutual Insurance Company 47,000 1.1 1.1
10. Niilo Pellonmaa 41,500 1.0 1.0
Total 10 biggest 2,973,468 69.7 69.7
Nominee-registered 533,895 12.5 12.5
Total 4,264,788 100.0 100.0
Board Member shareholdings
The Board Members and the President and CEO together with their
closely related parties and organizations controlled by them held
a total of 245,155 Rocla Oyj shares at the end of the year, which
represents around 5.7% of the share capital.
ORDER BOOK
The Group's order book at the end of the year totalled EUR 24.2
million (EUR 26.8 million). At this level the order book is 7.8%
smaller than that of the record-level at the beginning of 2007 but
it still remains good. The value of orders booked during the year
grew by 12.2% to almost EUR 100 million.
IMMINENT RISKS AND FACTORS OF UNCERTAINTY
The major strategic and operational risks of the Group´s business
activities are related to the management of business partnerships,
launches of new products and estimations of competitiveness, price
development of production factors and the obligations and
estimates brought on by long-term agreements. The risks related to
materials costs and availability of components largely depend on
the business cycle. These risks can be countered by developing the
sourcing procedure, something that Rocla devoted additional
resources to in 2007.
Currency risks are not prevalent in Rocla's operations because of
the broad-based use of the euro as invoicing currency. This also
pertains to North-American deliveries.
OUTLOOK
During the last months of the year demand for trucks levelled out
on Rocla's main markets. Future development is likely to follow
the international overall economic development. At the start of
2008 the order-book of the Rocla Group stands at a good level and
demand for trucks remains strong in Russia and other developing
markets. Based on these prospects demand for Rocla's basic product
range is expected to continue to grow. The significant long-range
service contracts concluded during recent years continue to
support growth of customer service operations. Based on the market
reception of the automated truck, launched at the turn of the
year, demand for automated solutions is estimated to strengthen
during the next few years. This estimate is also supported by the
shortage of labour experienced on the developed markets.
In 2008, net sales of the Rocla Group are estimated to grow and
results improve compared with the level of 2007.
THE BOARD´S PROPOSAL ON THE ALLOCATION OF PROFITS
The Board proposes to the 2008 Annual General Meeting that a
dividend of 0.25 euros per share (0.20 euros) be declared for a
total dividend payment of EUR 1.1 million based on the outstanding
number of company shares at the balance sheet date. No dividend is
paid on treasury shares. The Board's proposal reflects a dividend
payout ratio of 43.7%.
FINANCIAL DATA
ACCOUNTING PRACTICES
The Financial Statements Bulletin for the period January-December
2007 is drafted based on the IAS 34 Interim Statement standard.
Rocla Oyj has adhered to the same accounting principles and
reporting standards as in the Financial Statements for 2006. The
key ratios presented have been computed based on the same
principles as the corresponding data presented in the latest
financial statements. The calculation principles for the key
ratios are presented on page 22 of the Financial Statements
section in the Annual Report of 2006.
The Financial Statements Bulletin is unaudited.
INCOME STATEMENT (Meur)
1-12/2007 1-12/2006 Change %
NET SALES 124.9 104.4 19.6
Change in finished goods
and work in progress -1.6 2.3
Other operating income 0.1 0.3
Materials and supplies -74.6 -65.9 13.2
Personnel expenses -24.1 -21.2 13.8
Depreciation -7.2 -6.6 9.8
Other operating expenses -12.7 -12.0 6.1
OPERATING PROFIT 4.9 1.5 232.3
Financial expenses (net) -1.7 -1.1 58.1
INCOME BEFORE TAXES 3.2 0.4 697.7
Income taxes -0.8 -0.1 539.9
INCOME FOR THE PERIOD 2.4 0.3 774.2
EARNINGS PER SHARE, euros 0.57 0.07
Earnings per share
(diluted) - 0.07
BALANCE SHEET (Meur) 12/2007 12/2006
ASSETS
NON-CURRENT ASSETS
Intangible assets 7.6 7.2
Goodwill 2.1 2.1
Tangible assets 30.5 26.7
Receivables 0.1 0.1
NON-CURRENT ASSETS TOTAL 40.3 36.1
CURRENT ASSETS
Inventories 23.9 21.4
Sales and other receivables 20.3 22.0
cash and cash equivalents 1.0 2.7
CURRENT ASSETS TOTAL 45.2 46.2
ASSETS TOTAL 85.5 82.3
EQUITY AND LIABILITIES
Share capital 4.3 3.9
Premium fund 6.8 4.6
Retained earnings 13.6 14.1
Income for the period 2.4 0.3
EQUITY AND LIABILITIES TOTAL 27.0 23.0
NON-CURRENT LIABILITIES
Interest-bearing debt 20.9 19.2
Deferred taxes 2.0 1.1
NON-CURRENT LIABILITIES TOTAL 22.9 20.3
CURENT LIABILITIES
Interest-bearing debt 16.9 17.1
Provisions 0.4 0.4
Non interest-bearing debt 18.3 21.5
CURRENT LIABILITIS TOTAL 35.6 39.0
LIABILITIES TOTAL 58.5 59.3
EQUITY AND LIABILITIES TOTAL 85.5 82.3
CHANGE IN EQUITY
A=Share capital, B=Premium fund, C=Translation differences
D=Current value fund, E=Retained earnings, F=Income for the
period, G=Total
1-12/2007 A B C D E F G
Beginning 3.9 4.6 0.0 0.0 14.4 - 23.0
Shares subscribed
based on options 0.3 2.1 2.5
Dividends -0.8 -0.8
Income for the period 2.4 2.4
Transfer of
Rocla Oyj shares
Other changes 0.0 0.0 0.0
End 4.3 6.8 0.0 0.0 13.6 2.4 27.0
1-12/2006 A B C D E F G
Beginning 3.9 4.2 0.1 0.1 14.9 - 23.1
Share subscriptions
based on options 0.0 0.3 0.4
Dividends -0.8 -0.8
Income for the period 0.3 0.3
Transfer of
Rocla Oyj 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
CONSOLIDATED FUNDS STATEMENT
1-12/07 1-12/06
Cash flow from operations
Income for the period 2.4 0.3
Adjustments:
-Depreciation 7.2 6.6
-Financial income and expenses1.7 1.1
-Taxes 0.8 0.1
-Other adjustments 0.0 0.0
Change in working capital -4.1 0.2
Interests paid -2.0 -1.5
Interests received 0.1 0.0
Taxes paid -0.0 -0.3
NET CASH FLOW FROM OPERATIONS 6.0 6.5
NET CASH FLOW FROM INVESTMENTS-4.9 -9.8
Cash flow from financing
Loans withdrawn 5.3 11.6
Loans repaid -7.4 -2.8
Increase in equity 2.5 0.4
Sale of treasury shares 0.0 0.0
Financial leasing debts paid -2.5 -3.0
Dividends paid -0.8 -0.8
NET CASH FLOW FROM FINANCING -2.9 5.5
CHANGE IN LIQUID FUNDS -1.8 2.2
Liquid funds, beginning
of period 2.7 0.6
Liquid funds, end
of period 1.0 2.7
RELATED PARTY INFORMATION
Business transactions with owner companies holding a significant
position of influence in the Group.
(Meur) 1-12/2007 1-12/2006
Sales to closely
related parties 55.8 38.6
Purchases from closely
related parties 11.7 9.0
The Board of Directors decided to extend the share premium reward
scheme for management from 2006 into 2007. In 2008 this system
will be replaced by other incentive programs.
CONSOLIDATED CONTINGENT COMMITMENTS (Meur)
12/07 12/06
For own debt:
Mortgages on real estate 0.5 0.5
Corporate mortgages 9.4 9.4
Other own commitments:
Leasing commitments 0.7 0.8
Rental commitments 0.0 0.0
Repurchase commitments 1.5 0.7
INCOME STATEMENT BY QUARTER
10-12 7-9 4-6 1-3 10-12 7-9 4-6 1-3
2007 2007 2007 2007 2006 2006 2006 2006
NET SALES 35.4 28.4 30.9 30.3 30.8 22.5 26.0 25.1
Change in finished goods
and inventories -1.7 0.6 -0.3 -0.3 0.6 0.5 0.8 0.4
Other operating
income 0.0 0.0 0.1 0.0 0.0 0.1 0.1 0.1
Materials and
supplies -19.3-17.8 -18.8 -18.7 -20.0 -14.5 -16.4-15.0
Personnel expenses -7.1 -5.2 -6.1 -5.8 -5.9 -4.8 -5.4 -5.1
Depreciation -1.8 -1.8 -1.8 -1.8 -1.7 -1.8 -1.6 -1.5
Other operating
expenses -4.0 -2.9 -2.9 -2.9 -3.4 -2.7 -3.2 -2.7
OPERATING PROFIT 1.5 1.4 1.1 0.9 0.4 -0.6 0.5 1.3
Financial expenses
(net) -0.5 -0.5 -0.4 -0.4 -0.2 -0.6 -0.2 0.1
INCOME BEFORE TAXES 1.0 0.9 0.8 0.5 0.2 -1.2 0.2 1.2
Income taxes -0.3 -0.2 -0.2 -0.1 0.0 0.3 -0.1 -0.3
INCOME FO THE
PERIOD 0.8 0.7 0.6 0.3 0.2 -0.9 0.1 0.8
EARNINGS PER SHARE
euros 0.19 0.16 0.14 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 FIGURES 12/2007 12/2006
Net sales, Meur 124.9 104.4
Operating profit, Meur 4.9 1.5
% of net sales 3.9 1.4
Income before taxes, Meur 3.2 0.4
% of net sales 2.6 0.4
Equity/share, euros 6.38 5.88
Equity/assets, % 32.0 28.4
Return on equity, % p.a. 9.4 1.2
Gross investments, Meur 4.8 5.9
Return on investment, % p.a. 8.6 3.3
Dividend/share, euros *) 0.25 0.20
Dividend/result, % *) 43.7 286.1
Effective dividend yield, % *) 2.3 1.7
Product development expenses, gross
total, Meur 4.5 4.4
total, % of net sales 3.6 4.2
Personnel,
average 505 467
Personnel,
end of period 521 489
*) The Board's proposal
OTHER DATA
Order book, Meur 24.2 26.8
Shares, 1,000
average 4,119 3,860
Shares, 1,000
diluted, average - 4,014
Shares, 1,000
end of period 4,234 3,909
Treasury shares are not included in the share numbers.
FINANCIAL DISCLOSURE IN 2008
The Rocla Oyj Annual General Meeting will be held on March 26,
2008 at 5 p.m. in Järvenpää, on the premises of the Adulta
training centre. The Annual Report for 2007 will be published in
week 11.
In 2008 Interim Reports will be published as follows:
24.4. First quarter
16.7. First two quarters
23.10. First three quarters
The Interim Reports are published in the form of Stock Exchange
Releases in Finnish and English on the Internet pages of the
Helsinki Exchanges (www.omx.com) and Rocla Oyj (www.rocla.com) .
Järvenpää, February 7, 2008
ROCLA OYJ
Board of Directors
Tapio Rummukainen
President and CEO
For additional information, contact:
Tapio Rummukainen, CEO, phone +358 20 778 1370
Hilkka Webb, CFO, phone +358 20 778 1316
DISTRIBUTION
Helsinki Exchanges
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