Order books reached a record high with a good future outlook.
The good business situation of Ponsse customers was reflected positively in all Ponsse’s business areas, and strong growth continued. Ponsse’s order flow during the third quarter totalled EUR 219.5 million, increasing the order books to a record-high level of EUR 402.3 million. While the availability of components remained very challenging, Ponsse were able to manufacture all Ponsse machines in their production programme. The quarter was a success in terms of growth, profitability and cash flows.
Currently, Russia, Northern Europe and the Americas are showing the highest demand. In practice, all market areas are growing well. Maintenance services continued their very strong growth, and demand for trade-in machines has been high. Cash flow was very strong during the third quarter.
The availability of parts and components continues to be a challenge due to high demand for machine and equipment manufacturing. The availability of components decreased during the quarter, with the largest challenges being associated with products in the semiconductor industry and the availability of hydraulic components. The imbalance between demand and supply has an impact not only through lower availability, but also through rising costs. What makes this challenging for Ponsse is that these increased costs cannot be wholly transferred directly to their customers. This is affected by the far-reaching order books in their production, the pricing of already agreed machine deals and their customers’ challenges in their business operations amidst increasing harvesting costs. The availability of parts and components will also be a challenge during the new quarter.
Ponsse’s personnel have worked remotely since the outbreak of the coronavirus pandemic, with the exception of production, sales and maintenance service personnel. Office employees at the Vieremä factory will continue to work remotely to protect the continuity of production. The Group´s euro-denominated operating result in 2021 is estimated to be significantly higher than in 2020. Source