STOCK EXCHANGE RELEASE 4 May 2000
INTERIM REPORT JANUARY 1 - MARCH 31, 2000
JAAKKO PÖYRY GROUP'S NET SALES, ORDER STOCK AND PROFIT INCREASED
Net Sales and Earnings
The Jaakko Pöyry Group's net sales for the period January - March 2000 amounted to EUR 114.7 million (EUR 94.3 million in the same period 1999). The Group's operating profit was EUR 7.1 (5.7) million and profit after financial items EUR 6.4 (5.3) million. The Group's profit for the period under review was EUR 3.7 (2.9) million and earnings per share EUR 0.27 (0.22).
The net sales and operating profit increased in all business groups.
The Group's order stock amounted to EUR 357.6 million at the end of March. The order stock amounted to EUR 348.9 million at the end of December 1999. The order stock in the Forest Industry business group increased by EUR 6.2 million. The order stock in the other business groups was at the same level as at the end of last year.
The Group's liquidity remained good during the period under review. At the end of March, the Group's cash in hand and at banks totalled EUR 32.9 million and interest-bearing liabilities EUR 49.3 million, so interest-bearing net debts amounted to EUR 16.4 million. At the end of 1999 interest-bearing net debts amounted to EUR 11.7 million. The net debt/equity ratio, gearing, rose from 13.5 per cent at the end of the year to 19.3 per cent.
The agreement made in 1999 for insuring the Jaakko Pöyry Group's pension fund's liabilities in an outside insurance company became effective as of the beginning of 2000. The loans, EUR 4.3 million from the pension fund were repaid in the end of March.
The Group's capital expenditure for the report period totalled EUR 3.6 (6.5) million. The capital expenditure consisted mostly of costs related to computer software, systems and hardware.
The figures in the interim report are unaudited.
Following a reorganisation effective from the beginning of the year 2000, the Process Industry business group has been merged with the Energy business group.
The activities of the French engineering companies Beture-Environnement S.A. and Beture-Cerec S.A. have been integrated into the Energy and Infrastructure & Environment business groups. Acquired in December last year, these two companies have about 150 employees.
Efforts to develop the Group's structure and organisation will continue during the current year. In response to the continued globalisation of the forest products industry, the Forest Industry business group's local office network will be expanded further in North America and Central Europe. There are also plans to expand the operations of the Energy and Infrastructure & Environment business groups.
Share capital and shares
Jaakko Pöyry Group Oyj's Annual General Meeting on March 8, 2000 authorised the Board of Directors to invalidate 597 200 of the company's own shares and to reduce the company's share capital from EUR 12.0 million to EUR 11.5 million. The Annual General Meeting approved the Board of Directors' proposal to convert the company's share capital into euros and to raise it to EUR 13 670 286 through a bonus issue by transferring EUR 2.2 million from the legal reserve to the share capital. After the increase, the accounting par value of the company's shares is EUR 1.00. The amount of shares is 13 670 286.
The Annual General Meeting approved the Board of Directors' proposal that a dividend of 1999 of EUR 0.45 (0.34 for 1998) be paid per share, totalling EUR 6.2 million. The dividend was paid March 20, 2000.
The Annual General Meeting authorised the Board of Directors to raise the share capital by a new issue or by taking a convertible loan or by issuing option rights, so that based on the new issue, the convertible bonds and option rights, the share capital can be raised by a maximum of EUR 1.0 million by issuing for subscription a maximum of 1.0 million new shares. The authorisation is in force until March 8, 2001.
Jaakko Pöyry Group Oyj issued in 1998 a bond loan with warrants to all employees in the Group, with a total value of EUR 2.2 million. The bonds with warrants were wholly subscribed. The warrants carry subscription rights for a maximum of 1.3 million of the company's shares, with the subscription period beginning partly on April 1, 2000 and ending for all warrants on April 30, 2005.
The Annual General Meeting authorised the Board of Directors to acquire and convey the company's own shares to a maximum of 5.0 per cent of the company's share capital. The Board of Directors decided on May 3, 2000 to exercise the authorisations. The authorisations are in force until March 8, 2001.
The company's shares are quoted on the Helsinki and Stockholm Stock Exchanges. The average trading price during the report period was EUR 19.58, with a high of EUR 24.00 and a low of EUR 15.00. A total of 1.0 million of the company's shares (equalling 7.1 per cent of the total number of shares) were traded, corresponding to a turnover of EUR 18.9 million. On the Stockholm Stock Exchange, a total of 20 910 shares were traded with an average trading price of SEK 145.82. The Board of Directors decided on February 10, 2000 to delist the company's share from the Stockholm Exchanges. The last trading date will be May 31, 2000.
General economic prospects in the forest products industry are favourable. Forest industry companies' earnings have developed favourably, making investments more attractive both with regard to capacity increases and corporate acquisitions. The Forest Industry business group's order stock has grown. If certain pre-engineering projects move ahead as planned, the business group's earnings will improve compared with last year. The Forest Industry Consulting business group is benefiting from the general development within this sector. Current conditions will allow the business group to improve its earnings notably compared with last year's. Investment activity is expected to pick up in the energy sector in Asia, Eastern Europe and the Middle East, whereas in Western Europe investment activity will remain low due to overcapacity in energy production. The Energy business group's order stock and market position create a firm basis for stable development of the business group's operations. The order stock and market position of the Infrastructure & Environment business group have remained good. The business group's earnings are likely to remain at last year's level.
The Jaakko Pöyry Group aims to achieve a return on investment (ROI) of 20.0 per cent or more and to improve earnings per share at an average rate of 15.0 per cent a year. Taking into account the Group's order stock, market position and the above-mentioned prospects, the Group will have every opportunity to achieve its goals.
Vantaa, May 3, 2000
Jaakko Pöyry Group Oyj
Board of Directors
Jaakko Pöyry Group Oyj
For additional information, please contact:
Mr. Erkki Pehu-Lehtonen, President and CEO,
tel. +358 9 8947 2999, +358 400 468 084
Mr. Teuvo Salminen, Executive Vice President,
tel. +358 9 8947 2872, +358 400 420 285
Mr. Edvard Krogius, Investor Relations,
tel. +358 9 8947 3002, +358 40 551 3388
Helsinki Stock Exchange
|Consolidated Statement of Income||1-3/2000||1-3/1999||1-12/1999|
|Other operating income||0.8||0.5||5.1|
|Share of associated companies' results||0.1||0.0||0.7|
|Depreciation and value decrease||-3.2||-2.8||-13.2|
|Proportion of net sales, %||6.2||6.0||6.9|
|Financial income and expenses||-0.7||-0.4||-1.9|
|PROFIT AFTER FINANCIAL ITEMS||6.4||5.3||25.3|
|Proportion of net sales, %||5.6||5.6||6.4|
|PROFIT BEFORE APPROPRIATIONS, TAXES AND MINORITY INTEREST||6.4||5.3||25.3|
|NET PROFIT FOR THE PERIOD||3.7||2.9||15.0|
|Consolidated Balance Sheet||March 31, 2000||March 31, 1999||Dec 31, 1999|
|Intangible and tangible assets||39.5||33.3||38.6|
|Investments, cash in hand and at banks||32.9||36.1||30.7|
|SHAREHOLDERS' EQUITY AND LIABILITIES|
|*) Interest bearing liabilities||49.3||48.5||42.4|
|Non-interest bearing liabilities||174.0||154.0||169.1|
|Contingent Liabilities||March 31, 2000||March 31, 1999||Dec 31, 1999|
|Pledged assets and mortgages for own debt|
|Mortgages, real estate||1.2||1.1||1.2|
|Mortgages on company assets||6.1||6.1||6.3|
|Mortgages, real estate||2.2||2.1||2.2|
|Rent and leasing obligations||58.6||57.5||61.7|
|Mortgages, real estate||3.8||3.7||3.8|
|Foreign exchange forward contracts, notional values||17.4||51.2||18.2|
|Earnings / share, EUR||0.27||0.22||1.11|
|Shareholders' equity / share, EUR||5.82||4.91||6.00|
|Return on investment, % p.a.||22.0||19.1||22.6|
|Return on equity, % p.a.||18.6||20.1||20.7|
|Equity ratio, %||33.6||32.9||36.5|
|Equity / Assets ratio, %||27.5||26.8||29.1|
|Net debt / Equity ratio (gearing), %||19.3||16.8||13.5|
|Order Stock, EUR Million||357.6||346.1||348.9|
|Capital expenditure, operating, EUR million||3.5||2.6||11.1|
|Capital expenditure in shares, EUR million||0.1||3.9||16.3|
|Personnel in group companies in average||4 462||4 155||4 222|
|Personnel in group companies at the end of the period||4 466||4 193||4 472|
|Personnel in associated companies at the end of the period||154||1 305||146|
|Key Figures for the Business Groups||1-3/00||1-3/99||1-12/99|
|Forest Industry Consulting||11.8||9.6||39.2|
|Infrastructure & Environment||25.9||22.8||97.3|
|Forest Industry Consulting||0.5||0.2||1.5|
|Infrastructure & Environment||2.1||1.6||7.6|
|Forest Industry Consulting||23.2||23.1||21.2|
|Infrastructure & Environment||89.9||94.2||91.8|
|NET SALES BY AREA|
|The Nordic countries||34.3||20.6||92.8|
|Key Figures for the Business Groups||1-3/98||4-6/98||7-9/98||10-12/98|
|Forest Industry Consulting||9.4||9.3||7.9||10.0|
|Infrastructure & Environment||10.0||11.4||10.0||12.5|
|Forest Industry Consulting||0.1||0.3||0.2||0.3|
|Infrastructure & Environment||0.7||1.3||0.8||1.0|
|Forest Industry Consulting||21.6||22.0||27.2||25.8|
|Infrastructure & Environment||20.5||24.8||25.8||26.3|
|Key Figures for the Business Groups||1-3/99||4-6/99||7-9/99||10-12/999|
|Forest Industry Consulting||9.6||10.0||9.3||10.3|
|Infrastructure & Environment||22.8||23.6||22.4||28.5|
|Forest Industry Consulting||0.2||0.0||0.3||1.0|
|Infrastructure & Environment||1.6||2.1||2.1||1.8|
|Forest Industry Consulting||23.1||22.4||19.8||21.2|
|Infrastructure & Environment||94.2||95.1||91.9||91.8|