PKC sales grows

The total amount of depreciation was EUR 5.5 million (EUR 5.5 million). Consolidated operating profit was EUR 10.4 million (EUR 5.5 million negative)i.e. 7.3% (5.5% negative) of net sales. Comparable operating profit without non-recurring items was EUR 11.0 million (EUR 0.7 million negative), 7.7% (0.7% negative) of net sales. Profit for the report period amounted to EUR 4.4 million (EUR 7.4 million negative). Cash flows after investments were EUR 3.2 million negative (EUR 27.4 million positive). Registrations of heavy trucks declined in Europe (EU + EFTA) by about 16% in comparison to the first part of 2009. In June, however, registrations increased from the previous year for the first time in two years. The number of registrations for the whole year is estimated to be close to that of 2009, i.e.,approx. 168,000 vehicles. Production and sales volumes are still exceptionally low in Europe, only about half of the level of previous years. Deliveries of heavy trucks and new orders more than doubled in Latin America from the level of the first half of the previous year. The production volumes for the whole year are estimated to be about 120,000 vehicles (approx. 74,000 in 2009). In North America, registrations of heavy trucks increased during the first part of the year by about a fourth from the level of the first part of the previous year. The overall market is expected to settle at about 110,000-130,000 vehicles, thus surpassing the number of registrations of 2009, approx. 108,000 vehicles. In North America, the recreational vehicle deliveries of our customers increased during the first part of the year by about a third from the level of the first part of the previous year. Although PKC Group has no wiring harness production of its own in Asia, the increasing exportation to Asia by our customers supports the growth of PKC's production volumes. The increase in the truck orders received by our main customers in Europe and Latin America during the first part of the year, which is about a fifth over the delivery volumes of the corresponding period, can be considered as a sign of truck market recovery. During the first part of the year, agricultural tractor sales in Europe decreased by about a fifth from the corresponding period of the previous year and annual sales are expected to fall short of the 2009 sales by 10 to 15%. Instead, forestry equipment sales are expected to increase from the exceptionally weak comparison year. The moderate recovery of the global economy has increased the demand for PKC's Electronics business services. In Europe, industrial investments have still remained at a relatively low level. Instead, growth has continued strong especially in Asia. Due to the global growth in the electronics industry, there have been some problems in the availability of electronic components.