Despite the difficult situation, demand picked up in nearly all markets.
The slight recovery of the markets and the good performance of Ponsse’s network increased the value of orders to EUR 161.2 (116.9) million during the third quarter. The order book remained at the second quarter’s level, being EUR 178.5 (326.4) million. The factory operated at full capacity throughout the quarter, apart from the summer holiday period.
Ponsse have adapted effectively to the pandemic, including remote working, and have been able to keep projects running effectively in all operations. The factory is fully on schedule, and their operations are developing strongly, driven by continuous improvement. Disruptions in the supplier network have decreased, apart from a few individual companies.
The existing order book allowed Ponsse to run the factory at full capacity after the holidays, which led to a record-high third quarter in their history. Net sales for the third quarter were high at EUR 155.0 (148.3) million. As operations picked up, the company had no temporary layoffs, and effective cost cuts enabled good profitability. Ponsse’s operating profit for the quarter was EUR 21.6 (16.2) million, giving an operating margin of 13.9 (10.9) per cent. Although net sales are slightly behind the previous year, profitability reached the previous year’s level after the first nine months of the year. This is largely attributable to the successful third quarter.
Despite their successes during the third quarter, Ponsse indicates that there are still significant uncertainties in the markets. Ponsse estimates the total market has decreased by approximately 20 per cent this year. The changed operating environment has a significant impact and the smaller order book no longer offers the same level of security to business cyclicality it has given in the past.
The factory will continue to run at full capacity in two shifts until the end of October. After this, the order book does not enable two shifts, and the factory will operate in one shift during November and December. Source