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STOCK EXCHANGE RELEASE 27 Jul 2011

Pöyry PLC: Interim report 1 January- 30 June 2011

 
 

PÖYRY PLC          Interim Report 27 July 2011 at 8:30 a.m.

 

OPERATING PROFIT CONTINUED TO IMPROVE - GROUP OUTLOOK FOR 2011 UNCHANGED

 

KEY FIGURES

Pöyry Group 4-6/
2011
4-6/
2010
Change,
%
1-6/
2011
1-6/
2010
Change,
%
2010
Order stock at end of period, EUR million 742.1 569.6 30.3 742.1 569.6 30.3 526.2
Net sales total, EUR million 195.3 171.7 13.7 375.3 334.4 12.2 681.6
Operating profit excluding
restructuring costs, EUR million
10.0 2.8 n.a. 16.5 3.8 n.a. 17.3
Operating margin excluding
restructuring costs, %
5.1 1.6   4.4 1.1   2.5
Operating profit, EUR million 7.2 0.0 n.a. 13.6 -0.4 n.a. 5.8
Operating margin, % 3.7 0.0   3.6 -0.1   0.9
Profit before taxes, EUR million 7.0 -0.7 n.a. 11.8 -1.3 n.a. 4.3
Earnings per share, basic, EUR 0.07 -0.02 n.a. 0.11 -0.04 n.a. 0.00
Earnings per share, diluted, EUR 0.07 -0.02 n.a. 0.11 -0.04 n.a. 0.00
Gearing, %       29.0 14.3   3.5
Return on investment,  % (R12M)       10.0 0.4   2.6
Average number of personnel during
period, calculated as full time
equivalents (FTE)
6,712 6,481 3.6 6,712 6,481 3.6 6,611

 

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

 

JANUARY-JUNE 2011 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the previous year.

 

- Order stock was on a strong level of EUR 742.1 million (569.6) at the end of June 2011. The order stock includes a major EPC contract announced in the first quarter of.
- Consolidated net sales in the first half of 2011 increased by 12.2 per cent compared with the year before to EUR 375.3 million (334.4).
- Operating profit excluding restructuring costs was EUR 16.5 million (3.8) corresponding to 4.4 per cent (1.1) of sales.
- Compared with the year before, operating profit improved significantly in the Energy, Industry and Management Consulting business groups as a result of improving activity and successful restructuring measures.
- Balance sheet remains strong. The inclusion of the Vantaa Head Office building in the balance sheet increased gearing to 29.0 percent (14.3).
- The accounts receivable includes an amount which relates to certain public sector infrastructure projects in Venezuela. Pöyry has further intensified collection activities of these receivables.
- In April 2011 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. The transaction was completed after end of the report period on 15 July and the newly established company SwedPower AB will be consolidated to Pöyry's reporting as from 1 July 2011.
- In June 2011 Pöyry divested its oil and gas business and it was excluded from Pöyry's financials as of 4 June 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. During the summer the uncertainty around the general economic outlook has increased, which may also impact investment activity in business segments that are relevant to Pöyry's operations.

 

Based on the Group's 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. In the Energy, Industry, Water & Environment and Management Consulting business groups the outlook is unchanged and their comparable operating profit in 2011 is expected to improve significantly. Due to a slower than expected first half of the year, the outlook for operating profit in the Urban & Mobility business group

 

COMMENTS FROM HEIKKI MALINEN, PRESIDENT AND CEO:
"The year 2011 started with clear signs of recovery especially in the pulp & paper sector in Latin America. Supported by the large EPC order from Brazil in the first quarter and steady order intake in the majority of our business segments in the second quarter our order stock increased to EUR 742.1 million at the end of June.

 

During 2011 we have moved ahead with implementing our strategy which was revisited in 2010. Improvement of the operational model in Finland has proceeded as planned and as the next step, the operational excellence programme has been initiated in Germany. In early June we sold our oil and gas business and in July we finalised the sale and purchase agreement to acquire parts of the engineering consulting business of Vattenfall Power Consultant AB. The business, focusing on hydro power, wind power and power networks as well as thermal power, was incorporated into a new company in Sweden called SwedPower AB. Active business portfolio management is one of Pöyry's strategic priorities to strengthen its competitive position in priority segments and geographies.

 

Based on the Group's 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."

 

DISCLOSURE PROCEDURES
Pöyry follows the new Standard 5.2b published by the Finnish Financial Supervision Authority in disclosing its interim reports and financial statement releases. This is a summary of the January-June 2011 interim report. The complete report is published as an enclosure to this company announcement and is available in full on the company's web site at www.poyry.com. Investors are advised to review the complete interim report with tables.

 

Pöyry has updated its practices regarding publishing information on new orders received. Significant new projects and orders received are mainly disclosed as corporate press releases to ensure consistent disclosure practices among the Group. Press releases may also be used to communicate smaller business transactions and other events related to Pöyry's business, which do not fulfil the criteria for a stock exchange release. Stock exchange release is used if a new order or other event is considered to contain such information that may have material effect on the value of Pöyry's share.

 

PÖYRY PLC
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 JULY 2011
The January-June 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. BST (London)
4:00 p.m. CEST (Paris)
5:00 p.m. EEST (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: 898267

 

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).

 

DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.poyry.com

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