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© vladimir veljanovski dreamstime.com Electronics Production | October 31, 2013

PKC reports decreasing revenues

After the first half of 2013, PKC is reporting of decreasing revenue and operating profit - partly due to extra expenses related to production transfers and ramp-up of new customer programs in Europe.
PKC's Truck production volumes during the first nine months fell short from last year’s comparison period in the company's main markets in North America and Europe. Actual production in Europe during the third quarter remained in the level of previous quarter. In North America truck production volumes began to fall contrary to forecasts in the third quarter and remained below previous quarter’s production volumes.

PKC’s revenue in the third quarter was EUR 211.6 million and operating profit before non-recurring items EUR 9.6 million. The weakening of operating profit margin is explained by extra expenses related to production transfers and ramp-up of new customer programs in Europe.

Operating profit also continued to be burdened by losses in Brazilian operations. In Brazil, production volumes for trucks continued to grow during the third quarter.

January - September 2013 highlights
  • Revenue decreased 5.9% on the comparison period (1-9/2012), totalling EUR 671.9 million (EUR 714.2 million).
  • EBITDA before non-recurring items was EUR 56.4 million (EUR 65.8 million) and 8.4% (9.2%) of revenue.
  • EBITA was EUR 42.6 million (EUR 53.2 million) and 6.3% (7.5%) of revenue. During the report period PPA depreciation and amortisation totalled EUR 8.4 million (EUR 10.6 million).
  • Operating profit before non-recurring items was EUR 34.2 million (EUR 42.6 million) and 5.1% (6.0%) of revenue.
  • Cash flow after investments was EUR 6.4 million (EUR 52.1 million).

In Electronics business, the measures improving cost-competitiveness and the increased share of ODM products in the product mix have improved segment’s operating profit this year. Sales activities for electronics business’s own products, which include testing products for mobile devices, other electronic equipment using touch-screen technology and lightning protection system devices, have been high during the third quarter and customer feedback has been promising.

"In September, we signed a Framework Agreement for Strategic Cooperation with Sinotruk for a joint venture company in China, which would manufacture wiring systems for Sinotruk and potentially other customers in China as well as for export. Sinotruk is one of the leading companies in heavy duty truck industry in China with a market share of about 15%. The intention of Sinotruk and PKC is to negotiate on the establishment of the joint venture company, so that it could start operations within the first half of 2014," said Matti Hyytiäinen, President & CEO.

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