Tuesday, August 9, 2022
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Ponsse has issued new performance guidance for its continuing operations. New guidance for 2022 included the company’s euro-denominated operating result in 2022 is expected to be on a par with the comparable operating result of its continuing operations in 2021 (EUR 50.0 million, 8.2 per cent of net sales).
The company’s relative profitability is expected to decrease significantly, however, due to divesting its Russian business, difficulties in the availability of parts and components, and heavy inflation.
Reporting and guiding of continuing operations
On 28 June 2022, the brand announced having signed the deed for the sale of all shares of OOO Ponsse, the subsidiary responsible for the company services in Russia and Belarus. Forestry technology wood specialists has further classified the sold functions as assets for sale and reported them as discontinued operations. As a result, company is from now reporting and guiding its continuing operations.
Previous guidance for 2022
In the performance guidance issued by the firm on 25 April 2022, the euro-denominated operating profit in 2022 was estimated to be significantly lower than in 2021 due to the disruption of imports to Russia, difficulties in the availability of parts and components, and heavy inflation.
Ponsse Plc specialises in the sale, production, maintenance and technology of cut-to-length method forest machines, and is driven by a genuine interest in its customers and their business operations. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customer needs.
The company was established by forest machine entrepreneur Einari Vidgrén in 1970 and has been a leader in timber harvesting solutions based on the cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The company’s shares are quoted on the Nasdaq Nordic List. In the tree-length method, logs are typically sawed in the order in which they are removed from the trunk. This, in turn, leads to lower line speed and lower efficiency.