Ponsse reports significant financial losses in first half of year in Finland

Ponssen, a forest machine manufacturer based in Vieremä, Finland, reported a significant financial setback in the first half of the year, experiencing a loss of nearly €12 million from January to June. This marks a stark contrast to the same period last year when the company posted a profit of approximately €22 million. The earnings per share fell to a negative 42 cents during this period.

The losses were heavily influenced by a €19 million charge associated with the Full Service contract of Ponsse’s Brazilian subsidiary. This amount includes an actual loss of €8.4 million and changes in provisions totaling €10.2 million for fulfilling obligations. Ponsse is preparing for greater-than-expected losses related to this contract this year and next.

In terms of revenue, Ponsse reported €358 million from January to June, down €52 million from the previous year. The operating profit stood at €0.6 million, considerably lower than the nearly €27 million reported in the same period last year.

Last week, the company issued a profit warning, projecting that its euro-denominated operating profit will be significantly lower than last year’s figure of €47.2 million.

As of the end of June, Ponsse’s order backlog amounted to €210 million, which is approximately €84 million less than the previous year, remaining stable throughout the first half of the year. In its semi-annual review, the company indicated that high interest rates and a weak construction situation in Europe have adversely affected demand for forest machines.