TULIKIVI CORPORATION Interim report 1-3/2012
24.4.2012 at 15.30
Interim Report, January-March 2012
- The Tulikivi Group’s net sales were EUR 10.7 million (EUR 12.6 million, Q1/2011).
- The Group´s operating result was of EUR -1.4 (-1.5) million. Earnings per share amounted to EUR -0.03 (-0.04).
- Cash flow from operating activities before investments was EUR -3.5 (-2.2) million.
- Order books were at EUR 7.8 million on 31 March (EUR 9.7 million on 31 March 2011and EUR 5.7 million on 31 December 2011 ).
- Future outlook: Full-year net sales in 2012 are expected to be about the same as in 2011. The company has been carrying out a programme of centralisation and adjustment measures to create significant savings and they are expected to turn the operating result into a profit.
Summary of the interim report 1-3/2012. The full interim report is attached to this release.
Key financial ratios
|
1-3/ 2012 |
1-3/ 2011 |
Change, % |
1-12/ 2011 |
|
|
Sales, MEUR |
10.7 | 12.6 | -14.8 | 58.8 |
|
Operating profit/loss, MEUR |
-1.4 | -1.5 | 12.3 | -2.4 |
|
Profit before tax, MEUR |
-1.6 | -1.7 | 9.2 | -3.1 |
|
Total comprehensive income for the period, MEUR |
-1.2 | -1.3 | 7.7 | -2.4 |
|
Earnings per share/Euro |
-0.03 | -0.04 | 25.0 | -0.07 |
|
Net cash flow from operating activities, MEUR |
-3.5 | -2.2 | 1.4 | |
|
Equity ratio, % |
31.8 | 35.6 | 33.3 | |
|
Net indebt- ness ratio, % |
126.7 | 88.6 | 96.5 | |
|
Return on investments, % |
-12.3 | -12.7 | -4.8 |
Managing Director’s comments:
“After a difficult autumn in 2011, it is now easier to predict the demand for our products. The slight rise in consumer confidence is also helping to support consumers’ purchasing decisions. In the first quarter, demand in fireplace exports was better, especially in Central Europe.
On the Finnish market, the demand for fireplaces fell short of last year’s figures. In lining stone products, customers were again cautious, and this showed in the demand at the start of the year. In sauna products, net sales were in line with what was planned.. Our divestment from the utility ceramics and building stone businesses reduced net sales, by about EUR 0.6 million.
The Group’s measures to achieve cost savings of EUR 3 million have proceeded as planned. We also introduced a new enterprise resource planning (ERP) system at the start of the year. This has required some additional effort from the personnel, but there have been no significant extra costs.
Net sales for the full year are expected to be about the same as for last year. A contributory factor in this is the cooperation with Rautakesko Ltd, which began in March. At the start of the year, there was a change in the personnel responsible for sales in Russia and the Nordic countries.”
Net sales and result
The Group’s net sales amounted to EUR 10.7 million (EUR 12.6 million in Q1/2011). The figure for the first quarter in 2011 included EUR 0.6 million from discontinued businesses. Net sales of the Fireplaces Business were EUR 9.6 (11.4) million and of the Interior Stone Business EUR 1.1 (1.2) million.
Net sales in Finland accounted for EUR 6.5 (6.8) million, or 60.7 (54.0) per cent, of total net sales. Exports amounted to EUR 4.2 (5.8) million in net sales. The principal export countries were France, Germany, Russia, Sweden and Belgium.
The consolidated operating result was EUR -1.4 (-1.5) million. In accordance with the Group’s segment reporting, the operating result in the Fireplaces Business was EUR -0.8 (-0.9) million and in the Interior Stone Business EUR -0.2 (-0.2) million, while Other Items’ expenses were EUR -0.4 (-0.4) million.
The consolidated result before taxes was EUR -1.6 (-1.7) million, and net result was EUR -1.2 million (-1.3) million. Earnings per share amounted to EUR -0.03 (-0.04).
Financing and investments
Cash flow from operating activities before investments was EUR -3.5 (-2.2) million. Working capital increased by EUR 2.8 million in the period and came to EUR 9.7 million (EUR 9.2 million on 31 March 2011). Interest-bearing debt was EUR 26.4 (25.9) million. Financial expenses net were EUR 0.2 (0.2) million.
The Group’s investments in production, quarrying and development were EUR 0.8 (1.0) million. Research and development costs were EUR 0.5 (0.7) million, i.e. 4.7 (5.2) per cent of net sales. EUR 0.2 (0.2) million of this figure, after deduction of subsidies, was capitalised in the balance sheet. The focus in research and development work during the period was on the development of woodburning stoves and fireplace products.
Near-term risks and uncertainties
The Group’s near-term risks consist of unexpected negative fluctuations in the economy. Risks also include intensified price competition during a time of weak demand.
Events following the end of the period
Resolutions of the Annual General Meeting
The Tulikivi Corporation Annual General Meeting of 12 April 2012 resolved not to distribute any dividend on the 2011 financial year. The other decisions of the general meeting can be found in the separate release published in the date of the meeting.
Future outlook
Consumers in the company’s main markets are still very cautious and are considering their investment decisions carefully.
Net sales in 2012 are expected to be at about the same level as in 2011. The company has carried out centralisation and adjustment measures, and these will create significant savings and they are expected to turn the operating result into a profit.
TULIKIVI CORPORATION
Board of Directors
Matti Virtaala Chairman of the Board
Distribution: NASDAQ OMX Helsinki Ltd
Central Media
Additional information: Tulikivi Corporation, 83900 Juuka, +358 207 636 000
