[Gen-AI Analysis] PKC Group Oyj Business Report FY ended 2012 - MarkLines Automotive Information & Gen-AI Platform

PKC Group Oyj Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million euro)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of change (%)	Factors
Overall
Sales	928.2	550.2	68.7	-
Operating profit	43.5	34.5	26.1	-
Wiring Systems
Sales	858.8	477.2	80.0	1)
Operating profit	47.1	35.5	32.7	1)
Electronics
Sales	69.4	73.0	(4.9)	2)
Operating profit	0.8	2.4	(66.7)	2)

Factors

1) Wiring Systems
-Net sales increased for FY ended Dec. 31, 2012 along with the acquisition of AEES companies (AEES), which took place in October, 2011.

-The comparable profitability weakened from 7.4% (FY ended Dec. 31, 2011) to 5.5% (FY ended Dec. 31, 2012) due to the losses of the Brazilian unit resulting from low production volumes and costs related to the reorganisation of manufacturing.

2) Electronics
-Net sales and Operating profit declined due to decreased demand of design and manufacturing services (ODM) of production and service devices for telecommunication industry.

Recent Development Outside Finland

-Asia's, especially China's, commercial vehicle markets are undergoing structural change, driven forward by the new emission regulations. As a result, the technological content in commercial vehicles is growing and diversifying considerably. Electrical distribution systems solutions are also becoming significantly more complex. The Company has excellent competitive potential to expand its business operations in Asia both to its current customers and to Asia's leading truck manufacturers, including China.

Certification

-The Company announced that all of the Group's factories are certified in accordance with requirements of the ISO/TS16949 quality standard for the automotive industry excluding factory in Traverse City, Michigan (the U.S.), which is certified in accordance with requirements of ISO9001 standard. In addition all of the Group's factories, except factories in Campo Alegre (Brazil) and Sao Bento do Sul (Brazil), are certified in accordance with the ISO14001 environmental standard and all factories operate in accordance with the ISO9001 quality standard. (From a press release on August 9, 2012)

Outlook for FY ending Dec. 31, 2013

-The Company estimates its full year 2013 net sales to be lower than in 2012 and estimates its comparable operating profit excluding non-recurring items to reach 2012 level.

R&D

R&D Expenditures

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	8.0	6.9	5.7
% of sales　(%)	0.9	1.3	1.8
Employees in product development	165	143	120

Investment Activities

Capital Expenditures

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	16.0	101.6	8.6
% of sales　(%)	1.7	18.5	2.7

-The Company announced that its gross capital expenditure for January-June 2012 totalled 10.1 million euros (previous year: 19.5 million euros). The capital expenditure consisted mainly of production machinery and equipment. Research and development costs totaled 4.1 million euros (previous year: 3.2 million euros). (From a press release on August 9, 2012)