GROUP FINANCIAL RESULTS Ursus in the first quarter 20152015-05-18

GROUP FINANCIAL RESULTS Ursus in the first quarter  2015






Ursus SA, the largest Polish manufacturer of branded tractors with over 120-year tradition of Polish agriculture mechanization, reported in the first quarter. 2015 years torrid growth and doubling of profits. The company is planning further development in connection with the widening of the offer and the prospect of implementation of the next tranche of the contract of sale of tractors to Ethiopia.



In the first quarter of 2015 years we achieved a sharp increase in revenues - by 141% - to the level of 79.4 million zł - and doubling operating profit to 4.3 million PLN, so we worked out 4.5 million zł net profit, an increase of 114% yoy. Our results show that the strategy of rebuilding the Polish brand Ursus excellent results - commented Charles Zarajczyk, President URSUS SA




After the record results of 2014 years, the company has started the new year with another record sales and improving profits. Consolidated Ursus group revenues in the first quarter of 2015 year amounted to 79.4 million zł – this means an increase of 141% yoy, mainly derivative  from the export sales increase by 407% yoy in connection with the execution of the contract with Ethiopia. By the end of the first quarter of this year the company has completed a  five out of six tranches of the first phase of the contract. From January to March 2015 year,  domestic sales reached 28.4 million zł, ie. This means an increase of 24% yoy, being the result of, inter alia, implementation of the agreement with ZTM for the supply of 38 trolleybuses. By the 15 of  May under the agreement, the company delivered 33 trolleybuses.




Results for the first quarter. 2015 years is a result of the implementation of the strategic objectives of the company. In the first quarter of 2015 years gross profit on sales amounted to 13.8 million zł, ie. 128% increase yoy and 17% margin at this level of profit. EBIT grew to 4.4 million zł zł as compared to 2.8 million in the first quarter of 2014. The EBIT margin was 5%, as compared to 8% in the same period last year - a derivative of one-off transport costs (3 million zł), related to the execution of the contract in Ethiopia. Transport costs are re-invoiced to METEC. Group net profit doubled in the first quarter. to 4.5 million zł zł as compared to 2.1 million in the same period of 2014.






Expanding the range of tractors


From 2013 we introduced 10 new products offer, including 8 tractor modelsand at the same time developed production, research and development base. Ursus successfully rebuilds and expands brand. In April this year we received approval for the electric bus EKOVOLT, allowing product sales to European Union countries. Consequently strengthen the brand's position in the traditional segments of Ursus and gain new markets both at home and abroad - underlines President Charles Zarajczyk.


From January 2013 to March 2015, the company introduced the 10 products, including 8 new tractor models with a capacity of 50-180 hp - the most popular tractors for small and medium-sized farms and for the forest industry, construction and utilities. At this year. the company plans to introduce to the offer next Ursus tractor model with 150 hp and development of the product offering of tractors with power range 50-60 hp version without cab.


Despite the decline in the registration of tractors in the country in the first quarter. 2015 the 19% (data of the Central Register of Vehicles and Drivers), the company recorded from January to April., A sharp rise in the share register Ursus tractors in the total number of registrations from 1.9% to 3.2%. The industry will support approved at the end of last year, the Rural Development Programme for 2014-2020. As part of the implementation of the Common Agricultural Policy of the European Union in 2014-2020 Poland will have to use a total of 42.4 billion euros, of which budget the Rural Development Programme for 2014-2020 amounts to EUR 13.5 billion. Funds from the subsidies under the 2014-2020 RDP should be running in the second half of 2015 years.


Ursus growing segment of buses, trolley buses and electric buses


Due to the growing demand for innovative and ecological means of communication Ursus plans to expand in the segment of buses, trolley buses and electric buses. To this end, in February this year. the new company Ursus BUS SA, in which Ursus has 60% of the shares, the remaining 40% took AMZ Kutno Sp. z oo


In April this year. produced by Ursus electric bus EKOVOLT received European approval certificate, which allows the sale of buses on the markets of the European Union. The vehicle is the result of the work of Polish engineers and designers from R & D center Ursus R & D in Lublin and cooperation with the Municipal Enterprise Komunikacyjne sp. Z oo in Lublin. The first user of electric buses will EKOVOLT city of Lublin.


Foreign cooperation


In the first quarter of 2015 years, the company focused on the further development of foreign sales in countries such as the Czech Republic, Slovakia, Hungary, Belgium, the Netherlands, Slovenia, Croatia and the markets in Scandinavia and Eastern.


The effects of foreign sales growth are also visible in markets outside Europe. In 2013 the Ursus SA He entered into an agreement with the Ethiopian company METEC for delivery in two phases a total of 3 thousand. tractors, equipment service centers and supply of spare parts. Revenues from the execution of the contract until 31 March. They amounted to 127.5 million zł. The total contract value is determined on the date of transaction is 90 million US dollars. Ursus currently preparing to implement the sixth tranche of the first phase of the contract. The implementation of the second part of the contract - the supply of 1.5 thousand. - Tractor depends on the decision of the Polish government and the granting by BGK for the company METEC for the purchase of Ursus tractors.


May 12 this year. URSUS company opened an assembly plant in the town of Adam in Ethiopia.


Assembly plant in Ethiopia allows the transfer of knowledge of Polish engineers to our African partners. It is particularly important to us in the implementation of the Ethiopian contract. Ursus Tractors were very well appreciated by our customers, and we see the willingness to cooperate on the part of the Ethiopian in the implementation of the second phase of the contract - said Karol Zarajczyk, CEO of Ursus SA


Ursus R & D


This year, Ursus plans to spend another 24 million zł for investment. The plan is to, inter alia, investment in equipment production plant in Lublin.




Mariusz Lewandowski

Tel: + 48 544 271 101

Mobile .: + 48 669 060 051


Company information:


Ursus SA is the largest Polish manufacturer of tractors and agricultural machinery brand for over 120-year tradition of Polish agriculture mechanization. The company offers a wide range of vehicles, machines and equipment manufactured for the needs of agriculture in the country and the world. Ursus products meet the expectations and needs of all generations of farmers, combining tradition with modernity Polish automotive industry and global quality. Ursus is the oldest national brand with a global reputation and potential for further development.


The company currently has three production plants in Dobre Miasto, in Opalenica and the largest in Lublin, where it employs more than 700 people. Ursus produces annually approx. 1.2 thousand tractors and agricultural machinery Several thousand sold in Poland and in the world.


The Group is one of the key investors in the Lublin region, where develops its manufacturing facilities and research and development laboratory. Ursus R & D is working with engineers from the Technical University of Lublin, and with the Military Technical Academy in Warsaw in the development of innovative technological solutions. The Board wants to use more than 120-year tradition of the brand and the potential of Polish engineers and designers to create in Lublin modern research and production center.


Ursus products reach to thousands of customers in Poland and abroad, including the Czech Republic, Belgium, the Netherlands and Pakistan. With 1.5 million tractors currently used in Poland, almost half, ie. Approx. 700 thousand. This brand Ursus tractors. In recent years, Ursus also belongs to the leading Polish exporters in Africa. In 2013,. - As part of the agreement between the Polish government and Ethiopian - Group entered into an agreement with METEC (Ethiopia) for the delivery of 3,000 tractors, equipment service centers, supply of spare parts for tractors and training.


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