PKC Group Plc Financial statement release 11 February 2016 8.15 a.m.
PKC Group Q4/2015:
Strategic projects advanced, EBITDA continued to improve
This release is a summary of PKC Group’s Interim Report January-December 2015. The complete report is attached to this release as a pdf-file. It is also available on the company website at www.pkcgroup.com.
October - December 2015 highlights
- Revenue increased 10.8% on the comparison period (10-12/2014), totalling EUR 231.8 million (EUR 209.2 million).
- EBITDA before non-recurring items increased 80.9% on the comparison period (10-12/2014), totalling EUR 15.6 million (EUR 8.6 million) and 6.7% (4.1%) of revenue.
- Wiring Systems business segment’s EBITDA before non-recurring items increased 65.2% on the comparison period (10-12/2014), totalling EUR 17.7 million (EUR 10.7 million) and 8.1% (5.5%) of revenue.
- Cash flow after investments was EUR 46.8 million (EUR 30.7 million).
January – December 2015 highlights
- Revenue increased 9.5% on the comparison period (1-12/2014), totalling EUR 908.0 million (EUR 829.5 million).
- EBITDA before non-recurring items increased 31.5% on the comparison period (1-12/2014), totalling EUR 63.9 million (EUR 48.6 million) and 7.0% (5.9%) of revenue.
- Wiring Systems business segment’s EBITDA before non-recurring items increased 29.1% on the comparison period (1-12/2014), totalling EUR 66.4 million (EUR 51.4 million) and 7.8% (6.7%) of revenue.
- Cash flow after investments was EUR -23.4 million (EUR 20.7 million) including acquisition cash outflow amounting to EUR 22.5 million.
Dividend proposal
- Dividend proposal is EUR 0.70 per share (EUR 0.70 per share).
PKC Group’s outlook for 2016
- PKC Group estimates that with prevailing exchange rates 2016 revenue will be at or above previous year level and comparable EBITDA will be higher than previous year level. Revenue and comparable EBITDA improvement is to take place in the second half of the year. In 2015, PKC’s revenue was EUR 908.0 million and comparable EBITDA before non-recurring items was EUR 63.9 million.
| Key figures | 10-12/15 | 10-12/14 | Change % | 1-12/15 | 1-12/14 | Change % |
| EUR 1,000 (unless otherwise noted) | ||||||
| Revenue | 231,753 | 209,247 | +10.8 | 908,041 | 829,516 | +9.5 |
| EBITDA* | 15,559 | 8,600 | +80.9 | 63,866 | 48,572 | +31.5 |
| % of revenue | 6.7 | 4.1 | 7.0 | 5.9 | ||
| Operating profit* | 6,952 | 1,558 | +346.1 | 31,646 | 21,384 | +48.0 |
| % of revenue | 3.0 | 0.7 | 3.5 | 2.6 | ||
| Non-recurring items | -1,227 | -11,739 | -89.6 | -8,973 | -28,362 | -68.4 |
| Operating profit (loss) | 5,725 | -10,181 | 22,674 | -6,978 | ||
| % of revenue | 2.5 | -4.9 | 2.5 | -0.8 | ||
| Profit (loss) before taxes | 4,660 | -11,160 | 18,288 | -10,528 | ||
| Earnings per share (EPS), EUR | 0.08 | -0.63 | 0.29 | -1.21 | ||
| Cash flow after investments | 46,798 | 30,737 | +52,3 | -23,372 | 20,699 | |
| ROCE, % | 10.8 | 7.7 | ||||
| Gearing, % | 31.4 | -5.6 | ||||
| * before non-recurring items | ||||||
Matti Hyytiäinen, President & CEO:
PKC’s financial year 2015 was a year of positive development, both financially and also in terms of the implementation of the growth strategy.
The company’s revenue and operating profit before non-recurring items increased. Revenue amounted to EUR 908.0 million (+9.5%) and operating profit before non-recurring items amounted to EUR 31.6 million (+48.0%).
2015 was full of events. It included expansion into rolling stock customer relationships through the acquisition of Kabel-Technik-Polska Sp. z o.o. and the establishment of a joint venture in China with Huakai specialising in the manufacture of electrical distribution systems. Production reorganisation proceeded in Europe and Brazil. The new wiring systems factories in Lithuania and Serbia speeded up and production in Brazil was consolidated into one factory.
PKC’s market position remained strong in all product and geographical areas of operation throughout the financial year. As a sign of this success, customers honoured PKC with several quality awards. PKC’s excellent customer service and reliability are based on the professionally-skilled personnel, who once again succeeded excellently in their work. For this I would like to express my warmest thanks to all those working at PKC.
This year we will continue with the implementation of our growth strategy. We will concentrate on strengthening our position and creating the prerequisites for growth globally with our rolling stock customers, and with our truck customers especially in China. Our strong balance sheet is enabling us to engage in growth projects. The key reorganisations in European production will gradually end during the year, with the exception of the closure of the Keila factory situated in Estonia which, as a result of customer projects, will not be carried out until Q1/17. Competence units will remain at Keila to serve European and South American business. The closure of the Keila factory will not result in additional non-recurring items.
In 2016, we expect the market environment to be fluctuating. The production of trucks in North America and Brazil is forecast to decline. In Europe, production volumes are expected to remain unchanged. In China, the production of trucks is expected to increase, and the positive nature of the market is being increased by the continuation in average price rises brought about by the increasing complexity of electrical distribution systems. The rolling stock market is expected to grow, and the order books of PKC’s rolling stock customers are on a good level. The demand for the products of the Electronics segment is estimated to remain at the current level at the most.
Market outlook
Wiring Systems Business
In 2016 the production of heavy-duty and medium-duty trucks in Europe is expected to be at the previous year’s level.
In 2016 the production of heavy-duty and medium-duty trucks in North America is expected to decrease by about 17%, and production of light vehicles to increase by about 2% compared to 2015.
In 2016 the production of heavy-duty and medium-duty trucks in Brazil is expected to continue to decrease.
In 2016 the production of heavy-duty and medium-duty trucks in China is expected to grow by about 5% compared to previous year’s level.
The demand for the rolling stock is expected to continue to grow steadily.
Electronics Business
The market demand for Electronics segment’s products is expected to remain on the current level at the most.
PKC Group Plc
Board of Directors
Matti Hyytiäinen
President & CEO
For additional information, contact:
Matti Hyytiäinen, President & CEO, PKC Group Plc, tel. +358 (0)400 710 968
Juha Torniainen, CFO, PKC Group Plc, tel. +358 (0)40 570 8871
Press conference
A press conference on the financial statement will be arranged for analysts and investors today, 11 February 2016, at 10.00 a.m., at the address Event Arena Bank, Unioninkatu 20, Helsinki.
Attachment
PKC financial statement release 2015
Distribution
Nasdaq Helsinki
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, rolling stock manufacturers and other selected segments. The Group has production facilities in Brazil, China, Estonia, Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the USA. The Group's revenue in 2015 totalled EUR 908.0 million. PKC Group Plc is listed on Nasdaq Helsinki.
