PKC Group Plc Half year financial report 10 August 2016 8.15 a.m.
PKC Group Half Year Financial Report January-June 2016
January-June 2016 highlights
- Revenue from continuing operations increased 4.3% on the comparison period (1-6/2015), totalling EUR 433.1 million (EUR 415.2 million).
- Comparable EBITDA from continuing operations increased 15.0% on the comparison period (1-6/2015), totalling EUR 33.3 million (EUR 28.9 million) and 7.7% (7.0%) of revenue.
- Net cash from operating activities was EUR -18.9 million (EUR -25.2 million) including discontinued operations during the comparison period.
PKC Group slightly adjusts its revenue outlook for 2016
- PKC Group estimates that with prevailing exchange rates 2016 revenue from continuing operations (i.e. excluding Electronics business) will be close to previous year level. PKC’s previous outlook for its revenue was to be at or above previous year level. PKC Group’s outlook for its comparable EBITDA remains unchanged to be higher than previous year level.
| Key figures (from continuing operations unless otherwise noted) | 1-6/16 | 1-6/15 | Change % | 1-12/15 |
| EUR 1,000 (unless otherwise noted) | ||||
| Revenue | 433,090 | 415,206 | +4.3 | 847,338 |
| EBITDA* | 33,253 | 28,916 | +15.0 | 59,528 |
| % of revenue | 7.7 | 7.0 | 7.0 | |
| Items affecting comparability | - | -5,943 | -8,782 | |
| Operating profit | 17,634 | 8,658 | +103.7 | 20,230 |
| % of revenue | 4.1 | 2.1 | 2.4 | |
| Earnings per share (EPS), EUR | 0.35 | 0.06 | +533.1 | 0.23 |
| Revenue by geographical locations | ||||
| Europe | 159,475 | 112,502 | +41.8 | 253,581 |
| North America | 233,326 | 279,611 | -16.6 | 539,078 |
| South America | 16,168 | 21,296 | -24.1 | 35,430 |
| APAC | 24,120 | 1,797 | +1,242.3 | 19,250 |
| Net cash from operating activities** | -18,883 | -25,167 | 14,813 | |
| Working capital** | 122,345 | 96,491 | 92,711 | |
| Net debt** | 91,202 | 32,168 | 49,375 | |
| ROCE, % ** | 10.6 | 10.9 | 9.9 | |
| Gearing, %** | 62.7 | 21.1 | 31.4 | |
| Equity ratio, %** | 27.3 | 32.6 | 29.0 | |
| Average headcount | 21,309 | 19,926 | +6.9 | 20,855 |
| * before items affecting comparability | ||||
| ** comparison periods include assets and liabilities of discontinued operations | ||||
Matti Hyytiäinen, President & CEO:
PKC's continuing operations developed favourably in the first half of the year and comparable EBITDA improved by 15% over the comparison period.
PKC’s market position continued to strengthen in China and remained stable in other truck markets. The number of trucks manufactured varied by region:
- In North America, demand for heavy-duty trucks continued to decline and, as a result, production volumes were 25% below the comparison period. Demand for medium-duty trucks continued to grow and production volumes increased by 10% over the comparison period.
- In Europe, production of heavy-duty trucks increased by about 14% over the comparison period, but for medium-duty trucks production volumes remained the same.
- In China, production of trucks increased over the comparison period, by about 16% for heavy-duty trucks and about 25% for medium-duty trucks.
- In Brazil, production volumes for heavy-duty trucks fell by about 30% from the comparison period.
Demand in the rolling stock market remained on a good level. During the period, we concluded a significant global partnership agreement with Bombardier Transportation, and its impact was evident in increasing volumes of orders at the end of the period. PKC has today published a press release related to a major order in rolling stock business.
PKC’s operating profit from continuing business operations developed favourably and increased over the comparison period by 103.7%, totalling EUR 17.6 million (EUR 8.7 million). The impact of volumes in China and the rolling stock segment and production arrangements in Europe improved operating profit. The Brazilian unit, which had been loss-making for a long time, achieved a positive result in June. On the other hand, operating profit in North America declined owing to a fall in production volumes and unfavourable product mix.
European production arrangements continued throughout the period. As a result of increasing demand, during the period we decided to increase production capacity for rolling stock products in Poland. In addition to the Drawsko Pomorski factory, the Białogard factory is also now focused on the production of rolling stock products. In connection with this, production at the Grodzisk Wielkopolski factory (Poland) was wound up and its business transferred to other European PKC factories.
The establishment of a joint venture with JAC of China is proceeding as planned. The joint venture is expected to begin operations in the turn of the year.
Owing to the markets and production arrangements, the first half of the year has been a busy time for our personnel all over the world. I would like to thank the skilled personnel of PKC for their positive input for the benefit of our customers and for the company.
Market outlook
In 2016 the production of heavy-duty and medium-duty trucks in Europe is expected to increase by about 6% and about 7% in China respectively compared to 2015. In 2016 the production of heavy-duty and medium-duty trucks in North America is expected to decrease by about 15% compared to 2015 and decrease is expected mainly to take place in heavy-duty trucks. In 2016 the production of heavy-duty and medium-duty trucks in Brazil is expected to continue to decrease. The demand for the rolling stock is expected to continue to grow steadily.
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
Press conference
A press conference on the half year financial report will be arranged for analysts and investors today, 10 August 2016, at 10.00 a.m., at the address Event Arena Bank, Unioninkatu 20, Helsinki
Attachment
PKC half year financial report January-June 2016
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 from continuing operations in 2015 totalled EUR 847 million. PKC Group Plc is listed on Nasdaq Helsinki.
