Latest guidance
The text below is an extract from Pöyry PLC's Stock Exchange Notice Interim report 1 January - 31 March 2008, which was disclosed on 22 April 2008.
Energy
The economic development in China, Russia and Latin America, combined with the expansion of the EU, create the basis for the demand for energy-related services. The EU's expanding energy legislation will continue to increase demand for management consulting services in the energy sector. In addition, environmental legislation, focused in particular on combating climate change, will boost demand for services related to renewable energy and power plant modernisation. The price of crude oil is not expected to decline much, which creates new business opportunities in the oil and gas sectors. In the thermal power sector, clients' actions will focus on diversifying the structure of their energy supply to secure the continued availability of energy. Nuclear power will acquire greater importance in diversifying the energy supply. Because of the partly overheated investment situation in the energy sector the implementation of certain projects may be postponed. The business group has a strong market position and a good order stock. The business group's operating profit will improve in 2008.
Forest Industry
Overall demand for engineering services is not expected to change much during 2008. Chemical pulp mill investments will mostly take place in South America, Asia and Russia. The focus of paper machine investments will be in the emerging markets of Asia and in some economies in transition. Because of overcapacity and cost pressures the challenging situation in the European and North American forest industry will continue. Demand for project implementation and local services will be promoted by new investments in biofuels and chemical industry. To improve the competitiveness of the forest industry, new solutions and actions will be needed to improve the efficiency of operations and overall productivity. Possible forest industry restructuring measures may result in increased demand for management consulting and investment banking services. The global market position of the business group is good and its order stock has increased.
The business group's operating profit will improve in 2008.
Infrastructure & Environment
Transportation system investments will increase in Eastern Europe, Asia and Latin America. The investment growth is supported by inputs in this sector by various financial institutions. Transportation system investments in Western Europe will remain stable. Climate change and environmental problems create a need for services in the water and environment sector. The strong growth of construction will continue in Russia. The volume growth in the Finnish construction market is levelling off during 2008. The business group's comprehensive service packages and its focus on specific competence areas will improve its competitiveness. The business group's order stock has increased and its market position is good. The business group's operating profit will improve clearly in 2008.
Group
The Group has a strong market position in all of its business areas. The order stock is good and has increased by EUR 11.5 million during the period under review. Consolidated net sales will increase in 2008. Profit before taxes will improve in 2008. The repercussions in other national economies of the uncertainty in the US economy may have a negative impact on investment demand during 2008.
Previous guidance
Guidance 1 February 2008 |
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