TULIKIVI CORPORATION FINANCIAL STATEMENTS RELEASE
10 February, 2014 at 2.00 p.m.
Financial Statements Release Jan-Dec 2013
- The Tulikivi Group’s fourth-quarter net sales totalled EUR 11.8 million (EUR 14.2 million Q4/2012), the operating result was EUR -1.8 (0.5) million and the profit before taxes was EUR -2.0 (0.3) million.
- The fourth-quarter operating result before non-recurring expenses was EUR 0.5 (0.5) million.
- For the full year 2013, net sales totalled EUR 43.7 (51.2) million, the operating result was EUR -4.3 (0.1) million and the result before taxes was EUR -5.3 (-0.8) million. The operating result in 2013 before non-recurring expenses was EUR -1.4 (0.1) million.
- Net cash flow from operating activities at the end of the year was EUR 2.6 (0.1) million.
- The company has good liquidity owing to the share issue undertaken during the financial year, which produced EUR 7.1 million.
- Year-end order books were at EUR 4.4 million (EUR 4.6 million on 31 December 2012).
- Future outlook: The demand for Tulikivi products is in part dependent on consumer confidence. The performance improvement programme started in 2013 includes sales and production efficiency measures and cost-saving measures, the results of which will begin to show in 2014. Full-year net sales are expected to be at the same level as in 2013, and the operating result is expected to be positive.
Summary of the financial statement release 01-12/2013. The full financial statement release is attached to this release.
Key financial ratios
|
1-12/ 2013 |
1-12/ 2012 |
Change, % |
10-12/ 2013 |
10-12/ 2012 |
Change, % |
|
| Sales, MEUR | 43.7 | 51.2 | -14.6 | 11.8 | 14.2 | -17.0 |
|
Operating profit/ loss, MEUR |
-4.3 | 0.1 | -7 318.6 | -1.8 | 0.5 | -482.0 |
|
Profit before tax, MEUR |
-5.3 | -0.8 | -575.1 | -2.0 | 0.3 | -798.6 |
|
Total comprehensive income for the period, MEUR |
-4.5 | -0.6 | -589.9 | -2.0 | 0.2 | -1 090.0 |
|
Earnings per share, Euro |
-0.11 | -0.02 | -0.04 | 0.00 | ||
|
Net cash flow from operating activities, MEUR |
2.6 | 0.1 | ||||
| Equity ratio, % | 38.1 | 35.2 | ||||
|
Net indebtness ratio, % |
59.3 | 112.9 | ||||
|
Return on investments, % |
-9.8 | 0.3 | -4.0 | 3.4 |
Comments by Heikki Vauhkonen, Managing Director:
The demand for Tulikivi’s products on the domestic and export markets in the fourth quarter was down on the previous year’s figures. In addition to the weak condition of the market caused by the economic situation, mild weather in the autumn and early winter adversely affected sales in the principal market areas.
Demand in the main export markets, Germany and France, was lower than usual. Sales in Russia, however, were on a positive trend in the fourth quarter. In the final quarter, demand continued to be weak in Sweden as well, which was particularly reflected in the demand for lining stones.
Despite the challenging market, demand is growing for the latest product ranges: saunas, design fireplaces and the new-generation Hiisi fireplace collection.
In Finland there was a decline in low-rise housing construction and in renovations, and this had an impact on the demand for fireplaces and interior stone products. In the fourth quarter, the shortfall in relation to the 2012 figures was greater than in the first early part of the year.
Tulikivi adjusted its production and its fixed costs in line with the lower net sales, and this improved the relative profitability of operations in the fourth quarter. Working capital decreased as a result and net cash flow from operating activities improved.
On 8 August 2013 Tulikivi issued a stock exchange release announcing a performance improvement programme which aims at increasing the annual operating result, before non-recurring expenses, by EUR 7 million by the end of 2015 from the 2013 level. Plans to rationalise production, reduce costs and boost sales have proceeded as previously reported. The codetermination negotiations launched in September concerning a reduction of a maximum of 90 employees were completed in early November. The performance improvement programme caused non-recurring expenses of EUR 2.3 million in the fourth quarter of 2013. The measures taken under the programme will have a positive impact on productivity from the beginning of 2014.
TULIKIVI CORPORATION
Board of Directors
Distribution: NASDAQ OMX Helsinki
Key media
www.tulikivi.com
Additional information: Tulikivi Corporation, FIN-83900 Juuka, Finland,
tel. +358 207 636 000, www.tulikivi.com
- Harri Suutari, Chairman of the Board, tel. +358 400 384 937
- Heikki Vauhkonen, Managing Director, tel. +358 207 636 555
