Slump in profits registered by Ponsse in 2020

15.04.2021 − 

The pre-tax profit of Ponsse slumped by over 40 % in its business year 2020 to €39.6m. The operating result fell by over 15 % to €57.1m. The considerably lower key performance figures than last year are largely attributable to poor business development during the course of the first half-year. The reduction had already begun to emerge in the first quarter after the outbreak of the corona pandemic. It was for this reason that Ponsse had issued a profit warning a year ago on 18 March and opted against a forecast. Sales revenue for 2020 was 5 % down at €636.6m. Last year’s receipts of orders amounted to €581.7m.

After sales and deliveries of harvesters, harvester heads, and forwarders to Russia had dropped heavily in the first quarter and particularly in the second and machines had been unable to be completed due to the collapse of the supply chains, the market recovered in the second half-year. A contributing factor here was the brisk recovery in China after the lockdown to contain corona pandemic. The return of greater timber-harvesting activity in Russia and the ensuing increase in the need for forest machines also played a part. Later on in the second half of the year, the Finnish domestic market and other sales markets for new and, increasingly, used machines of importance for Ponsse recovered as well.

Tags of this news:

previous − Construction industry: shortages in material supply

US housing starts also decrease in February  − next