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PKC Group has reported second quarter revenue of €223.9 million, up by 8.7% compared to the same period last year. The changes in consolidation exchange rates increased the revenue by approximately 13%.
The company's Wiring Systems business segment EBITDA before non-recurring items increased by 22.2% on the comparison period, totaling €16.5 million and 7.9% of revenue. For the first six months of the year, revenue increased by 9.8% year-on-year to €450.4 million.
"In North America and Europe, production of heavy-duty trucks grew on the comparison period and on the first quarter of the current year. However, production volumes of medium-duty trucks in North America and in Europe declined in comparison with both the comparison period and first quarter. In Brazil, production volumes continued to decline in comparison with the comparison period but were higher than in the first quarter’s holiday season," said Matti Hyytiäinen, president and CEO. "PKC's operating profit before non-recurring items increased on the comparison period by 33.2% and was €8.1 million. In North America, the largest production unit in Acuna, Mexico was hit by a tornado in May, causing production stoppage that had negative impact on the unit’s profitability. In Europe, the ongoing production reorganisation continued to encumber profitability but progressed as planned apart from some production transfers that have been delayed due to customers’ approval processes. In Brazil, despite low production volumes, actions to improve operating profit are taking effect although operations remained loss-making. The medium term outlook for truck market in Brazil is weak and therefore we have decided to close Curitiba factory and consolidate all production to Campo Alegre factory.
"PKC 2018 strategy is proceeding. The acquisition of Groclin's Wiring & Controls business that was announced in February has been finalised and business shall be consolidated into PKC Group as of 1 July 2015. Customers and personnel have reacted positively to the acquisition. Also the establishment of Chinese joint venture with Huakai announced in March has proceeded quickly and it is estimated that the company starts operations in Q3/2015."
According to Hyytiäinen, the full-year production volume forecasts for trucks are slightly weaker than previous estimation in North America; but demand has stabilised. In Europe, the production volumes in the second half of the year are estimated to fall slightly short of first half's volumes, taking into account the holiday season production stoppages. In Brazil, production volume estimates have been further decreased.
PKC Group is a global partner, designing, manufacturing and integrating electrical distribution systems, electronics and related architecture components for the commercial vehicle industry, rolling stock manufacturers and other selected segments. The Group has production facilities in Brazil, China, Estonia, Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the USA. The Group's revenue in 2014 totalled EUR 829.5 million. PKC Group Plc is listed on Nasdaq Helsinki.