At a quick glance, revenue and order intake were below Eki’s forecast, while operating profit was above.
The CEO was by no means overly positive:
Economic uncertainty and challenges in the forest industry continued to impact the demand for PONSSE forest machines.
The company’s order book at the end of the review period was EUR 199.1 (282.3) million.
However, our order book is spread over a longer period, and the market slowdown is clearly visible. Our customers’ work situation is reasonably good in different parts of the world, but investment activity has decreased. The same situation can also be observed in the demand for used machines. The weakening market situation is reflected in the contraction of the order book and flow, which is why the Ponsse factory will have to adapt to the demand situation during the remainder of the year.
The Brazil case is also progressing
From an operating profit perspective, the Full Service agreement related to the operations of Ponsse’s Brazilian subsidiary had no impact on the third-quarter result. Provisions made during the first half of the year are being reversed as needed against potential losses from the agreement. During the past quarter, Full Service’s operational performance improved, and the reversal of provisions was smaller than expected. Compared to the previous situation, the past quarter was a good success for us.
edit: typos