STOCK EXCHANGE RELEASE 29 Jun 2012
Pöyry reduces operating profit estimate for 2012
PÖYRY PLC Company Announcement 29 June 2012 at 2.45 p.m.
Based on current information, the Pöyry Group's operating profit for 2012, excluding restructuring costs, is expected to remain stable compared with 2011. Previously the comparable group operating profit was expected to improve clearly from 2011. The outlook for Group's net sales for the full year 2012 remains unchanged, and is expected to remain stable.
The main reasons behind the reduced outlook are:
Closure and divestments of low performing and non-core offices and business units
Recognized one time project and credit losses in Urban business group projects mainly outside of our core markets
Lower than anticipated activity levels in certain markets and especially in the Management Consulting business group
Pöyry continues the strategic review of its business portfolio, especially in the Urban business group. The previously announced operational excellence program aiming at improving the business units' performance will continue until end of 2012. The program also includes group-wide efficiency improvement measures, focusing on internal processes, support functions and associated costs that are expected to deliver significant annualized cost savings.
"The Company's financial performance has not been satisfactory, and we have taken necessary measures to adjust our costs to improve our efficiency and profitability. This work will continue through the targeted ongoing programs, aiming at reducing our cost base. We expect to gain significant improvements from these programs", says Henrik Ehrnrooth, President and CEO of Pöyry Group.
More details about the outlook will be issued in Pöyry's January-June interim report, which will be published on 27 July 2012.
Previous Group level outlook from Q1 interim report (25 April 2012):
Based on the current strong order stock and outlook for new orders, the Group's net sales in 2012 are expected to remain stable compared with 2011. The comparable operating profit for 2012 is expected to improve clearly from the operating profit, excluding restructuring costs, in 2011.
The outlook and comparison both refer to figures excluding restructuring costs.
Jukka Pahta, CFO
tel. +358 10 33 26088
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, transportation, water, environment and real estate. Pöyry has about 7,000 experts and a local office network in about 50 countries. Pöyry's net sales in 2011 were EUR 796 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).
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