Ponsse’s Interim Report for 1 January – 30 September 2024
In July-September Ponsse PLC net sales amounted to EUR 169,3 (169,2) million and operating profit totalle EUR 18,5 (6,5) million, equalling 11,0 (3,9) per cent of net sales.
January-September:
- Net sales amounted to EUR 526.9 (579.0) million
- Operating profit totalled EUR 19.1 (33.4) million, equalling 3.6 (5.8) per cent of net sales
- Net result was EUR 0.3 (22.4) million
- Earnings per share were EUR 0.01 (0.80)
- Order books stood at EUR 199.1 (282,3) million at the end of period under review
- Cash flow from business operations was EUR 36.5 (-4.8) million
- Equity ratio was 55.1 (54.8) per cent at the end of period under review
- Ponsse published a profit guidance on 9 August 2024: The company’s euro-denominated operating profit is estimated to be significantly lower in 2024 than in 2023 (EUR 47.2 million).
President and CEO Juho Nummela:
Economic uncertainty and challenges in the forest industry continued to affect the demand for PONSSE forest machines. During the past quarter, the busy season of trade fairs and customer events around the world brought a momentary boost to order flows. In the third quarter, we achieved a normal level of order flow compared to the corresponding quarters and orders received were a pleasant EUR 157.9 million. The company's order book at the end of the period was EUR 199.1 (282.3) million.
However, our order book is spread over a longer period and there are clear signs that the market is calming down. Our customers' working conditions are reasonably good around the world, but investment activity has declined. The same situation can be observed in the demand for used machines. The weakening market situation is reflected in a reduction in the order book and order flow, which means that the Ponsse factory will have to adjust to the demand situation during the rest of the year. The operational performance of the factory is excellent and the availability of parts is generally good.
Ponsse's net sales for the current quarter amounted to EUR 169.3 (169.2) million. We were able to deliver new machines to our customers very well, and invoicing of new machines was strong. By contrast, the turnover from used machine sales and service sales was on a downward trend. Epec continues to suffer from the general slowdown in the machine manufacturing industry and from the destocking of some of its customers' high inventory levels.
Our relative profitability for the quarter was an excellent 11.0 (3.9) percent. A near-normal level of turnover, combined with development of productivity, improved our situation. Our productivity has moved in the right direction, but we are not yet on target with the development of costs. From an operating profit perspective, the Full Service losses related to the operations of Ponsse's Brazilian country organisation have not impacted the result of the third quarter. Provisions made in the first half of the year are reversed against potential losses on the contract where necessary. During the past quarter, Full Service's operational performance improved and the provision reversal was lower than expected. Compared to the previous situation, the past quarter was a success for us.
The company's cash flow was EUR 36.5 (-4.8) million. Our stock of used machines was high, but otherwise the situation eased in terms of capital tied up in inventories. Our sales network is constantly working to boost the sale of used machines.
During the past quarter, Ponsse was actively engaged in different market areas and our customer focus delivered results. In response to customer needs, we will continue to make controlled investments in product technology and digital services to ensure a competitive product offering in all operating environments. Our new, area-based, global operating model is working increasingly well and will strengthen our competitiveness.
