STOCK EXCHANGE RELEASE 24 Jul 2013
Pöyry PLC : Interim report 1 January - 30 June 2013
PÖYRY PLC Interim Report 24 July 2013 at 8:30 a.m.
REVENUES SHORT OF EXPECTATIONS - ORDER PROSPECTS PIPELINE SOLID
|Pöyry Group||4-6/ 2013|| 4-6/
|1-6/ 2013|| 1-6/
|Order stock at end of period, EUR million||555.7||644.1||-13.7||555.7||644.1||-13.7||547.7|
|Net sales total, EUR million||170.2||198.8||-14.4||336.5||408.3||-17.6||775.0|
| Operating profit,
|Operating margin, %||1.1||-0.6||1.5||-0.6||-2.4|
| Profit before taxes,
|Earnings per share, basic, EUR||-0.01||-0.05||n.a.||0.00||-0.12||n.a.||-0.43|
|Earnings per share, diluted, EUR||-0.01||-0.05||n.a.||0.00||-0.12||n.a.||-0.43|
|Return on investment, % (R12M)||4.1||-0.4||-5.7|
|Average number of personnel during period, calculated as full time equivalents (FTE)||5,987||6,816||-12.2||6,695|
All figures and sums have been rounded off from the exact figures which may lead to minor discrepancies upon addition or subtraction.
JANUARY-JUNE 2013 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the previous year.
- Pöyry has a solid pipeline of order prospects. Unexpected delays in corresponding contract awards have, however, impacted the development of revenues, particularly in the industry sector, where exceptionally large projects had been recorded during the first half of 2012. Hence, contrary to earlier estimates and announced on 19 July 2013, the Group's net sales are likely to fall short of 2012. Outlook for the Group's operating profit remains unchanged. Operating profit is expected to increase. Operating profit 2013 is compared to 2012 numbers which exclude restructuring costs.
- The Group's order stock totalled EUR 555.7 million. This is EUR 57.0 million lower than the comparable number after divestments in 2012 (612.7). Reported end-of-period 2012 order stock was EUR 644.1 million.
- Consolidated net sales amounted to EUR 336.5 million. This is EUR 58.2 million lower than the comparable number after divestments in 2012 (394.7). Reported first-half 2012 net sales were EUR 408.3 million.
- Operating profit amounted to EUR 5.0 million, 1.5 per cent of sales.
- Gearing was 89.3 per cent of which 8.6 percentage units relate to the changes in IAS 19 (revaluation of pension liabilities).
- Accounts receivables include positions which relate to certain public sector infrastructure projects in Venezuela, currently valued at around EUR 17 million, where the client is a public authority. The receivables have been described in the report of the Board of Directors for 2012 and there have not been any material changes during the first half of 2013.
- In the beginning of 2013 Pöyry's operations were organised along the following Business Lines: Energy Business Group; Industry Business Group; Regional Operations and Management Consulting Business Group. Corresponding pro forma figures for the years 2011 and 2012 have been restated accordingly.
- The Statement of Comprehensive Income and Statement of Financial Position 2012 have been restated in line with IAS 19. The corresponding variation analysis is published in the tables of the complete Interim Report.
CURRENT OUTLOOK FOR 2013
The Group's net sales in 2013 are likely to fall short of 2012. Operating profit is expected to increase. Operating profit 2013 is compared to 2012 numbers which exclude restructuring costs.
Outlook as published in the Financial Statements released 6 February 2013:
The Group's net sales in 2013 are expected to increase compared with 2012 and operating profit in 2013 is expected to increase compared with the operating profit excluding restructuring costs in 2012.
Comments by ALEXIS FRIES, PRESIDENT AND CEO:
"Pöyry has a solid pipeline of order prospects. Unexpected delays in corresponding contract awards have, however, impacted the development of revenues, particularly in the Industry sector, where exceptionally large projects had been recorded during the first half of 2012. Hence, contrary to earlier estimates, the Group's net sales are likely to fall short of 2012. Outlook for the Group's operating profit remains unchanged. Operating profit is expected to increase. Operating profit 2013 is compared to 2012 numbers which exclude restructuring costs.
Pöyry continues with its strategic evolution building on global leadership positions in its industrial and energy sectors and a focused regional approach. In key domestic markets, Pöyry delivers a large number of small to medium-sized projects across most sectors of engineering and consulting services.
Our cost-saving measures are developing on plan, with important milestones in terms of IT and finance outsourcing having been reached successfully. As indicated in the first quarter report, addressing low performing units is having a positive impact on the result.
Although current revenue development has fallen short of expectations, the order prospects pipeline is healthy and we remain committed to our strategic evolution."
This is a summary of the January-June 2013 Interim report. The complete 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 financial statement release with tables.
Additional information from:
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002
INVITATION TO CONFERENCES TODAY 24 JULY 2013
Pöyry's January-June 2013 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 at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland. The event will be hosted by Alexis Fries, 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 on the next working day on the same website.
To attend the conference call, please dial:
Finland: +358 (0)9 2313 9201
UK: +44 (0)20 7162 0077
US: +1 334 323 6201
Other countries: +44 (0)20 7162 0077
Conference ID: 934258
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 locally in our core markets. We deliver strategic advisory 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, water and real estate sectors. Pöyry has an extensive local office network employing about 6,500 experts. Pöyry's net sales in 2012 were EUR 775 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).
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