STOCK EXCHANGE RELEASE 30 Jul 2015
Pöyry PLC: Interim Report 1 January - 30 June 2015
PÖYRY PLC Interim Report 30 July 2015 at 8:30 a.m. EEST
OPERATING PROFIT INCREASED
HIGHLIGHTS JANUARY - JUNE 2015
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
The Group's order stock at the end of June was EUR 502.4 (482.4) million.
Comparable net sales were EUR 297.6 (285.2) million. The reported net sales in 2014 were EUR 303.5 million.
Operating profit increased to EUR 2.8 (-4.7) million. It was positive in all Business Lines except for the Regional Operations.
|Order stock at the end of period, EUR million||502.4||482.4||4.2||502.4||482.4||4.2||472.5|
|Net sales total, EUR million||150.9||152.2||-0.9||297.6||303.5||-1.9||571.2|
|Operating profit/loss, EUR million||0.2||-3.0||n.a.||2.8||-4.7||n.a.||-23.1|
|Operating margin, %||0.1||-1.9||0.9||-1.6||-4.0|
|Profit/loss before taxes, EUR million||-0.1||-3.0||n.a.||-0.9||-6.0||n.a.||-28.0|
|Earnings per share, basic, EUR||-0.02||-0.06||n.a.||-0.03||-0.12||n.a.||-0.40|
|Earnings per share, diluted, EUR||-0.02||-0.06||n.a.||-0.03||-0.12||n.a.||-0.40|
|Return on investment, %||4.3||-3.3||-9.9|
|Average number of personnel, full time equivalents (FTE)||5,091||5,659||-10.0||5,433|
All figures and sums have been rounded off from the exact figures, which may lead to minor discrepancies upon addition or subtraction.
ALEXIS FRIES, PRESIDENT AND CEO:
"Our performance during the reporting period developed positively. Comparable net sales and operative result improved. Our enhanced sales focus resulted in a stable order intake despite a larger project assignment in 2014 in Brazil, which affected the comparable figure. The structural adjustments which were initiated earlier this year, especially in Central Europe and in Brazil, have continued as planned. Our increasing activity rate indicates improving operational efficiency as we continue pushing for sales and developing project management performance.
Pöyry's comparable net sales in the first half of the year, excluding the business that was divested in Finland in June 2014, increased to EUR 297.6 (285.2) million. The figure increased in the Energy, Industry and Management Consulting Business Groups and remained stable in the Regional Operations.
Consolidated operating profit increased to EUR 2.8 (-4.7) million. The figure improved in all Business Lines, especially in the Regional Operations and in the Industry Business Group. In the reporting period, operating profit was impacted by one-time items totalling EUR -2 million, which were recorded under the Regional Operations. These mainly include additional project losses recognised on a project originating from the former Urban Business Group, as well as expenses related to on-going arbitration proceedings in Brazil.
Operating profit last year was burdened by one-time items totalling EUR -6 million and a write-off of the receivables from Venezuela amounting to EUR -14 million. The write-off and most one-time items were recorded in the Regional Operations and were related to project losses originating from the former Urban Business Group. In addition, operating profit included a gain of EUR +19 million from the divestment in Finland.
The Group's order prospects remained solid. The comparable order intake was stable year-on-year and several mid-sized projects were secured during the period. The figure improved clearly in the Energy Business Group, where new orders were recorded in Asia-Pacific and the Middle East, as well as in the Industry Business Group, where order intake was good in both the chemicals and bio-refining business and the pulp and paper sector. It also increased in the Management Consulting Business Group mostly due to a higher number of projects in the area of operational excellence services. Order intake declined in the Regional Operations, where the figure increased in Central Europe but decreased especially in Latin America.
Pöyry's order stock increased year-on-year to EUR 502.4 (482.4) million. It increased in the Management Consulting Business Group and particularly in the Industry Business Group, demonstrating the improving order intake since 2014. The figure was stable in the Energy Business Group and in the Regional Operations.
The Group's unallocated costs developed in line with expectations, as we continued to streamline our cost structures in the global support functions."
EVENTS AFTER THE REPORTING PERIOD
On 22 July 2015, Pöyry issued a press release announcing that in line with the strategy, it has sold all of its shares in Korea District Heating Engineering Co Ltd Ltd (KDHEC), based in South Korea, to KEPS Calista Private Equity Fund. The Parties agreed not to disclose the transaction price. Pöyry records a gain on sale of approximately EUR 5.4 million, which will be included in financial income and expenses. The transaction will have a positive impact on the cash flow of approximately EUR 10 million.
The complete January-June 2015 interim 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 interim report with tables.
Jukka Pahta, CFO
tel. +358 10 33 22629
INVITATION TO CONFERENCES TODAY ON 30 JULY 2015
Pöyry's January-June 2015 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 (EEST) 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 by the next working day on the same website.
To attend the conference call, please dial:
FI: +358 (0)9 2313 9201
SE: +46 (0)8 5052 0110
UK: +44 (0)20 7162 0077
US: +1 334 323 6201
Other countries: +44 (0)20 7162 0077
Conference ID: 953936
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 provide local services in our core markets. We deliver management consulting 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 and water. Pöyry has an extensive local office network employing about 6,000 experts. Pöyry's net sales in 2014 were EUR 571 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).
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