STOCK EXCHANGE RELEASE 27 Apr 2011
Order stock increased - net sales and operating profit improving towards the end of the year 2011
PÖYRY PLC Interim Report 27 April 2011 at 8:30 a.m.
|Pöyry Group|| 1-3/
|Order stock at end of period, EUR million||716.7||529.7||35.3%||526.2|
|Net sales total, EUR million||180.0||162.7||10.6%||681.6|
| Operating profit excluding
restructuring costs, EUR million
| Operating margin excluding
restructuring costs, %
|Operating profit, EUR million||6.4||-0.4||n.a.||5.8|
|Operating margin, %||3.5%||-0.2%||0.9%|
|Profit before taxes, EUR million||4.8||-0.6||n.a.||4.3|
|Earnings per share, basic, EUR||0.04||-0.02||n.a.||0.00|
|Earnings per share, diluted, EUR||0.04||-0.02||n.a.||0.00|
|Return on investment, % (R12M)||9.2%||0.1%||2.6%|
| Average number of personnel during
period, calculated as full time
All figures and sums have been rounded off from the exact figures which may lead to minor discrepancies upon addition or subtraction.
FIRST QUARTER HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the previous year.
- The Group's order stock totalled EUR 716.7 million (529.7) at the end of the first quarter of 2011.
- The order stock value is primarily due to significant orders in the Industry business group which include a major EPC contract from MWV Rigesa, Brazil for the Balance of Plant (BOP) of their paperboard mill expansion project.
- Consolidated net sales in the first quarter of 2011 increased by 10.6 per cent compared with the year before to EUR 180.0 million (162.7) reflecting the improving market environment especially in the businesses that operate in the private sector.
- Operating profit excluding restructuring costs was EUR 6.5 million (0.9) corresponding to 3.6 per cent (0.6) of sales.
- The increase in operating profit reflects the improving activity and successful restructuring measures especially in the Energy, Industry and Management Consulting business groups.
- Net cash before financing activities was EUR 14.1 million (-30.2).
- After the reporting period Pöyry PLC and Vattenfall AB signed a sale and purchase agreement whereby Pöyry PLC acquires parts of the engineering consulting business of Vattenfall Power Consultant AB. Completion of the transaction is expected to take place at the latest by the end of June 2011.
- After the reporting period Pöyry announced it has exercised the purchase option to acquire the Group's Head Office building in Vantaa, Finland for EUR 45.1 million with expected effective date of 31 December 2011.
OUTLOOK FOR 2011
Pöyry's businesses are predominantly driven by clients' new capital investments and most of the businesses are also inherently late in the cycle. It is difficult to predict the timing of clients' new investment decisions and project start-ups.
The Group's order intake in the first quarter of 2011 was high and based on the current strong order stock and outlook for new orders, the Group's net sales in 2011 are expected to improve clearly compared with 2010. The comparable operating profit for 2011 is expected to improve significantly from the operating profit, excluding restructuring costs, in 2010, taking into consideration the small numbers in the reference period.
Outlook concerning business groups:
The preconditions for net sales growth in 2011 are good except for Urban & Mobility where net sales are expected to remain stable compared with 2010. Comparable operating profit in 2011 is expected to improve significantly in the Energy, Industry, Water & Environment and Management Consulting business groups. Due to a slower than expected start to the year, operating profit in the Urban & Mobility business group is expected to decline compared with the operating profit before restructuring costs in 2010.
COMMENTS FROM HEIKKI MALINEN, PRESIDENT AND CEO:
"The year has started with clear signs of recovery especially in the pulp & paper sector in Latin America where a number of projects have moved to the implementation phase. As a result of the major pulp & paper orders won, which include the engineering and project management contracts for MWV Rigesa, Brazil, Montes del Plata, Uruguay, as well as Eldorado in Brazil, our order stock is now over EUR 700 million. This gives us a good start for the year.
In 2010 we revisited our strategy. As part of the strategy implementation we decided on substantial restructuring measures in Finland in late 2010. These profitability improvement actions have started to be visible in our operating profit. The group wide operational excellence programme proceeds according to plan with the aim of improving our efficiency and profitability. But the programme is not only about restructuring. We continue with our group wide development initiatives to enable accelerated profitable growth. We have put a lot of emphasis on sales which has already resulted in good reference projects. We are also continuing to manage our business portfolio actively. As an example of this we signed in April 2011 an agreement to acquire parts of the engineering consulting business of Vattenfall Power Consultant AB. For Pöyry, the acquisition is an important step in growing our energy business in Sweden. Completion of the transaction is expected to take place at the latest by the end of June 2011.
Based on the current order stock and outlook for new orders, the group's net sales in 2011 are expected to improve clearly compared with 2010. The comparable operating profit for 2011 is expected to improve significantly from the operating profit, excluding restructuring costs, in 2010, taking into consideration the small numbers in the reference period."
NEW DISCLOSURE PROCEDURE
Pöyry has adopted the new disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority. Hence, Pöyry's first quarter 2011 interim report is published enclosed to this stock exchange release. The report, which is attached to this release in pdf-format, is also available in full on the company's web site at www.poyry.com. Pöyry will follow this procedure in disclosing interim reports and financial statement releases in future.
Additional information from:
Heikki Malinen, President and CEO
tel. +358 10 33 21307
Jukka Pahta, CFO
tel. +358 10 33 26088
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002
INVITATION TO CONFERENCES TODAY 27 APRIL 2011
The first quarter 2011 result will be presented by CEO Heikki Malinen and CFO Jukka Pahta at the news conferences today as follows:
- A conference for analysts, investors and press in Finnish will be arranged at 12 p.m. Finnish time at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland.
- An international conference call and webcast in English will begin at 5:00 p.m. Finnish time (EET).
10:00 a.m. US EDT (New York)
3:00 p.m. GMT (London)
4:00 p.m. CET (Paris)
5:00 p.m. EET (Helsinki)
The webcast may be followed online on the company's website www.poyry.com. A replay can be viewed on the same site the following day.
To attend the conference call please dial
US: +1 334 323 6201
Other countries: +44 20 7162 0025
Conference id: 893893
Due to the live webcast, we kindly ask those attending the international conference call and webcast to dial in 5 minutes prior to the start of the event.
Pöyry is a global consulting and engineering company dedicated to balanced sustainability and responsible business. With quality and integrity at our core, we deliver best-in-class management consulting, total solutions, and design and supervision. Our in-depth expertise extends to the fields of energy, industry, urban & mobility and water & environment. Pöyry has 7,000 experts and the local office network in about 50 countries. Pöyry's net sales in 2010 were EUR 682 million and the company's shares are quoted on NASDAQ OMX Helsinki. (Pöyry PLC: POY1V).
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