Ponsse reported tough trading conditions for the first six months of 2020.
Ponsse indicates the second quarter was highly challenging due to the coronavirus pandemic. Challenges that started from problems in the availability of components escalated rapidly into a demand crisis as a result of increased uncertainties in the markets. After the market situation deteriorated, the value of orders received during the second quarter was EUR 110.6 (168.8) million, and the order book decreased to EUR 179 million.
However, due to Ponsse’s fast response, they were able to adapt effectively to the unexpected situation. At the beginning of the coronavirus pandemic, problems in the availability of components were associated with European suppliers when their factories, especially in Northern Italy and Germany, were forced to close their doors. Ponsse’s preparations enabled them to run their production uninterrupted in one shift. Later in June, they raised the factory capacity back to its normal level. Apart from their production and maintenance personnel, Ponsse employees started to work remotely from the middle of March onwards.
The uninterrupted factory operations allowed Ponsse to maintain their net sales at a satisfactory level in the difficult situation. Ponsse’s net sales during the second quarter were EUR 131.9 (172.7) million. The coronavirus pandemic had a broad impact on the operations of their customers, and the net sales of service businesses and used machine operations decreased alongside the sale of new machines. The sales of used machines were low, especially at the beginning of the second quarter, and their stocks of used machines increased considerably during the period under review. Towards the end of the quarter, all their business areas started to clearly recover.
In this challenging operating environment, Ponsse will continue to normally invest in sales, maintenance and the availability of spare parts. Their investments in the development of products continue to produce good results. The factory in Vieremä is on schedule and in excellent shape. The satisfactory order book allows the factory to run in two shifts at a full capacity.
The uncertainties arising from the coronavirus pandemic have rapidly changed the operating environment and reduced demand for forest machines. The third quarter will be a challenge. It is important to increase the order book during this time to ensure normal operations, also next year.
Consolidated net sales for the period under review amounted to EUR 276.4 (315.8) million, which is 12.5 per cent less than in the comparison period. International business operations accounted for 76.0 (79.7) per cent of net sales. Net sales were regionally distributed as follows: Northern Europe 42.9 (37.7) per cent, Central and Southern Europe 22.8 (21.1) per cent, Russia and Asia 11.5 (16.3) per cent, North and South America 22.1 (24.5) per cent and other countries 0.7 (0.4) per cent. Source