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STOCK EXCHANGE RELEASE 29 Jul 2016

Pöyry PLC: Half year financial report 2016

Pöyry PLC          Half year financial report 29 July 2016 at 8.30 a.m. EEST

Q2 order intake stable, performance below expectations

Key figures for April-June 2016

(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)

  • Adjusted operating result decreased to EUR -1.1 (1.2) million. Operating result was EUR -1.7 (0.2) million.
     
  • Net sales were EUR 135.9 (150.9) million.
     
  • Order intake remained stable compared to corresponding period in the previous year.

 Key figures for January-June 2016

  • Adjusted operating result decreased to EUR -1.7 (4.3) million. It improved in Industry Business Group, but decreased in other Business Lines.  Operating result was EUR -4.2 (2.8) million.
     
  • Net sales were EUR 271.9 (297.6) million. They remained stable in the Industry Business Group, but decreased in other Business Lines.
     
  • The Group's order stock was EUR 457.8 (502.4) million.
      4-6/ 4-6/ Change, 1-6/ 1-6/ Change, 1-12/
Pöyry Group   2016 2015 % 2016 2015 % 2015
Order stock at the end of period, EUR million 457.8 502.4 -8.9 457.8 502.4 -8.9 465.5
Net sales total, EUR million 135.9 150.9 -9.9 271.9 297.6 -8.6 575.3
Operating result, EUR million -1.7 0.2 n.a. -4.2 2.8 n.a. 4.0
Operating margin, % -1.2 0.1   -1.6 0.9   0.7
Adjusted operating result, EUR million -1.1 1.2 n.a. -1.7 4.3 n.a. 9.4
Adjusted operating result, % of net sales -0.8 0.8   -0.6 1.4   1.6
Result before taxes, EUR million -1.8 -0.1 n.a. -4.8 -0.9 n.a. 6.0
Earnings per share, basic, EUR -0.04 -0.02 n.a. -0.11 -0.03 n.a. 0.09
Earnings per share, diluted, EUR -0.04 -0.02 n.a. -0.11 -0.03 n.a. 0.09
Earnings per share, adjusted, EUR -0.03 0.00 n.a. -0.07 -0.01 n.a. 0.18
Gearing, %       32.7 51.1   3.6
Return on investment, %       -2.9 4.3   6.1
Average number of personnel, full time equivalents (FTE)       4,900 5,091 -3.7 5,029

All figures and sums have been rounded off from the exact figures, which may lead to minor discrepancies upon addition or subtraction.

Financial outlook for 2016 unchanged

The Group's adjusted operating result is expected to be positive.

Martin à Porta, President and CEO:

"Our net sales and profitability decreased compared to the same quarter in 2015 due to insufficient performance in a number of business units. However, other business units show positive development compared to the previous year.  The order intake in the Energy Business Group and the Regional Operations increased compared to the same quarter in 2015, and there was an improved profitability within the Regional Operations Northern Europe. 

Our immediate focus is to turnaround the underperforming business units across the group by fully utilizing the strengths of our business portfolio among key clients in our main markets. The underlying focus on our clients is improving, and we already see an increase in promising order prospects for the rest of the year which we want to turn into order intake during the next quarters.  Additionally we see new opportunities and growth in selected markets and businesses, in particular in the energy sector.

Our operational framework is being implemented across the company. We are taking clear steps in simplifying and empowering our organisation, strengthening our core, and preparing to scale up.  Additionally, we are investing in our new business management system which will increase transparency in our operations and allow us to improve our processes in order to increase efficiency in the mid and long term. Our overall fixed costs remain too high for the current volume and will be reduced to a more sustainable level.

We are maintaining our outlook that the Group's adjusted operating result is expected to be positive in 2016."   

Market outlook 2016

The overall economic and market outlook for our sectors in 2016 remains challenging. In Europe the growth remains fragile, delaying economic recovery and investment decisions despite the quantitative easing programme of bond purchases launched by the European Central Bank in 2015. Economic growth is slowing down in China, but remains reasonable in the rest of the Asia. Growth in the US is projected to remain robust. In Brazil, there are slight signs of an economic recovery during the second part of the year.

For the businesses relevant to Pöyry, the sector specific outlook remains mixed. In the forest product industry sectors, such as packaging and tissue, the outlook is reasonable. However, in the graphic paper industry the decline in structural consumption is set to continue. For energy and other industrial sectors relevant to Pöyry's businesses, the prospects are expected to be challenging.

The complete January-June 2016 half year financial report is enclosed with this company announcement and is available in full on the company's website at www.poyry.com. Investors are advised to review the complete half year financial report with tables.

PÖYRY PLC

Additional information:
Jukka Pahta, CFO
Tel. +358 10 33 22629

Invitation to conferences today on 29 July 2016

Pöyry's January-June 2016 result will be presented at the following news conferences:

A conference for analysts, investors and press will be arranged at 12.00 p.m. Finnish time (EEST) at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland. The event will be hosted by Martin à Porta, President and CEO and Jukka Pahta, CFO.

An international conference call and webcast in English will begin at 5.00 p.m. Finnish time (EEST). The event will be hosted by Jukka Pahta, CFO.

  • 10:00 a.m. US EDT (New York)
  • 3:00 p.m. BST (London)
  • 4:00 p.m. CEST (Paris)

The webcast may be followed online on the company's website www.poyry.com. A recording will be made available by the next working day on the same website.

To attend the conference call, please dial:

  • FI:         +358 (0)9 6937 9590
  • SE:       +46 (0)8 5033 6538
  • UK:      +44 (0)20 3427 1908
  • US:      +1 646 254 3364
  • Other countries: +44 (0)20 3427 1908

Conference ID: 9439933

Due to the nature of 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 an international consulting and engineering company. We serve clients globally across the energy and industrial sectors and provide local services in our core markets. We deliver management consulting and engineering services, underpinned by strong project implementation capability and expertise. Our focus sectors are power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry has an extensive local office network employing about 6,000 experts. Pöyry's net sales in 2015 were EUR 575 million and the company's shares are quoted on Nasdaq Helsinki (Pöyry PLC: POY1V).

DISTRIBUTION:
Nasdaq Helsinki
Major media
www.poyry.com