STOCK EXCHANGE RELEASE 27 Apr 2018
Pöyry PLC: Business Review 1 January-31 March 2018
Pöyry PLC Business Review 1 January-31 March 2018, 27 April 2018 at 8.30 a.m. EEST
13% improvement in adjusted operating result and 17% increase in orderstock
Key figures for January-March 2018
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
Adjusted operating result increased to EUR 8.9 (7.8) million. Operating result was EUR 8.4 ( 7.1) million.
Net sales were EUR 131.5 (134.8) million. Net sales slightly declined on reported basis but increased by 1.9% compared to the corresponding period in the previous year when measured at comparable currencies.
Order stock increased by 17% vs. 31.12.2017 and 7% vs. 31.3.2017. Order stock was EUR 524 (490) million.
|Order stock at the end of period, EUR million||523.6||490.2||6.8||448.5|
|Net sales total, EUR million||131.5||134.8||-2.4||522.3|
|Operating result, EUR million||8.4||7.1||17.9||15.1|
|Operating margin, %||6.4||5.3||2.9|
|Adjusted operating result, EUR million||8.9||7.8||12.9||26.0|
|Adjusted operating margin, %||6.7||5.8||5.0|
|Net cash flow from operating activities, EUR million||-2.4||0.7||n.a.||38.2|
|Earnings per share, basic, EUR||0.09||0.08||13.0||0.07|
|Earnings per share, diluted, EUR||0.09||0.08||13.0||0.07|
|Earnings per share, adjusted, EUR||0.09||0.09||3.5||0.25|
|Return on Investment, %||18.2||15.9||8.8|
All figures in the accounts have been rounded and consequently, the totals of individual figures can deviate from the presented total figure. Figures in this business review release are not audited.
Martin à Porta, President and CEO:
The first quarter of 2018 provided a solid order intake in our key markets and enabled growth in our order stock. At the same time our transformation program continued to deliver results and we saw also continued improvement in profitability on a reported and adjusted basis.
Demand for our Industry Business Group services continued to be strong especially in Northern Europe and we saw also modest improvement in Latin America. Demand for our Energy services were increasing especially in Middle East and in Asia while the European energy market is transforming providing selected opportunities for consulting. The Infrastructure, Water and Environment Business Group has been well received by clients and the steady performance continues especially in Northern Europe. We have progressed in several old legal cases and we are confident that we can close some of them in near future.
Our transformation and empowerment programs continue to receive positive engagement and responses from our employees. We see the benefits of an improving atmosphere and culture throughout the organization.
Market outlook 2018
In general, market conditions are expected to continue with similar trends to the last 12 months. Growth in the Eurozone has continued, but remains fragile with the potential to change rapidly based on macroeconomic events. In Asia the markets relevant to our operations continue to be strong and offer opportunities, especially to our energy offering. The Middle-East shows continued high demand for desalination and new power capacity. Latin America is mixed, in Brazil we have seen four positive quarters in relation to GDP-growth but the economy is delicate. Whilst we continue to notice an increase in investment activity, these are yet to materialize as bigger projects. The North American market demand continues to be good but trade barriers set by USA and potential counter-measures create uncertainties in global markets.
Our industry business sector has continued to be strong especially in Europe, where activity is expected to remain strong. The outlook remains mixed for the other regions. The Energy market in Europe continues to provide a few selected opportunities and remains strong for our Management Consulting services for market design, modelling and due diligence work.
Financial outlook for 2018
The Group's adjusted operating result for 2018 is expected to improve (2017: 26.0 MEUR)