Ponsse shows good financial results for the first 6 months of 2019.
Ponsse’s order books were very strong at the end of the period under review, totalling EUR 361.1 million. With the improving availability of components, manufacturing volumes at the Vieremä factory have been growing continuously. The challenges in starting the serial production of new products during the first quarter of the year have been resolved.
Ponsse indicates that the extensive damage caused by bark beetle in Europe is having an impact on the timber market. Felling related to preventing and mitigating forest damage is temporarily increasing the amount of harvested timber in Europe, which also has a short-term effect on international timber flows.
In the second quarter of the year, the company’s net sales were EUR 172.7 (149.0) million. The deliveries of new Ponsse machines were achieved as planned by the end of the second quarter. The Service businesses’ net sales continued to grow, and the market for trade-in machines also functioned well. There was good growth in the net sales of trade-in machines from the comparison period. International business operations accounted for 79.7 (78.4) per cent of net sales.
Profit for the second quarter amounted to EUR 17.5 (12.4) million. The operating result for the second quarter was 10.2 (8.3) percent. Strong invoicing combined with cost control had a positive impact on profitability. Cash flow during the period under review was EUR 2.7 (20.1) million, which was at a normal level considering the period.
The Vieremä factory and the manufacturing network surrounding Ponsse are working well. There are still some risks related to the availability of components, but the situation is constantly improving. Factory maintenance work during the summer was successful, and the operations of the factory started normally at the beginning of August. The Group's euro-denominated operating profit is expected to be slightly higher in 2019 than in 2018.
The trend of Ponsse’s investments will increasingly be in R&D and product technology and also developing the service network both in Finland and abroad. At the Vieremä factory there will be focus on the ramp-up of new products and increasing the capacity taking product quality and reliability into account. Source