STOCK EXCHANGE RELEASE 18 Oct 2012
Pöyry reduces operating profit estimate for 2012
PÖYRY PLC Company Announcement 18 October 2012 at 2.50 p.m.
Based on current information, Pöyry Group's operating profit for 2012, excluding restructuring costs, is expected to decline significantly compared with 2011. In outlook given in connection with the January - June 2012 result in August the Group's operating profit was expected to decline from 2011. The Group's net sales outlook is unchanged and net sales in 2012 are expected to remain stable compared with 2011.
Due to disappointing results in the second and third quarter, the operating profit excluding restructuring costs for January - September 2012 is clearly lower than expected. Closures and divestments of low performing and non-core offices and business units in connection with the on-going strategic review of the business portfolio have a negative short-term impact on comparable operating profit. In the Urban business group also one-off project and credit losses, mainly outside the core markets, burden profitability. Lower than anticipated activity levels in certain markets, especially in the Energy business group, and weak sales, especially in the Management Consulting business group, have a negative impact on the business groups' operating profit. In the Industry business group the large projects are coming to an end while decisions on new larger orders are delayed. Consequently the full year 2012 operating profit estimate has been reduced further.
The operating profit outlook and comparison to 2011 both refer to figures excluding restructuring costs.
According to preliminary results, Pöyry's net sales in January - September 2012 were approximately EUR 584 million and operating profit, excluding restructuring costs, approximately EUR 10.5 million.
Pöyry will report its January - September 2012 results on 26 October 2012.
Pöyry continues with its on-going actions to improve operating profit. These actions include group-wide efficiency improvement programme, focusing on internal processes, support functions and associated costs. More detailed information on estimated financial impacts will be available later this year.
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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