PÖYRY PLC Interim Report 29 October 2013 at 8:30 a.m.
OPERATING PROFIT BURDENED BY PROJECT LOSSES - ORDER PROSPECT PIPELINE REMAINS SOLID
KEY FIGURES
| Pöyry Group | 7-9/ 2013 | 7-9/ 2012 | Change, % | 1-9/ 2013 | 1-9/ 2012 | Change, % | 1-12/ 2012 |
| Order stock at end of period, EUR million | 557.6 | 595.1 | -6.3 | 557.6 | 595.1 | -6.3 | 547.7 |
| Net sales total, EUR million | 153.7 | 176.0 | -12.7 | 490.2 | 584.3 | -16.1 | 775.0 |
| Operating profit, EUR million | 0.6 | -1.3 | n.a. | 5.6 | -3.7 | n.a. | -18.8 |
| Operating margin, % | 0.4 | -0.7 | 1.1 | -0.6 | -2.4 | ||
| Profit before taxes, EUR million | -0.9 | -2.6 | n.a. | 1.8 | -5.4 | n.a. | -22.0 |
| Earnings per share, basic, EUR | 0.02 | -0.05 | n.a. | 0.02 | -0.16 | n.a. | -0.43 |
| Earnings per share, diluted, EUR | 0.02 | -0.05 | n.a. | 0.02 | -0.16 | n.a. | -0.43 |
| Gearing, % | 95.9 | 69.9 | 59.9 | ||||
| Return on investment, % (R12M) | 3.3 | -0.7 | -5.7 | ||||
| Average number of personnel during period, calculated as full time equivalents (FTE) | 5,933 | 6,762 | -12.3 | 6,695 |
All figures and sums have been rounded off from the exact figures which may lead to minor discrepancies upon addition or subtraction.
JANUARY-SEPTEMBER 2013 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the previous year.
- Pipeline of order prospects remains solid. Unexpected delays in corresponding contract awards have, however, impacted the development of revenues, particularly in the industry sector. Measures were initiated in connection with low activity levels in certain Finnish Business Units, where statutory negotiations are progressing. Outlook for the Group's operating profit remains unchanged. Operating profit is expected to increase. Operating profit 2013 is compared to 2012 numbers which exclude restructuring costs.
- The Group's order stock totalled EUR 557.6 million. This is EUR 10.9 million lower than the comparable number after divestments in 2012 (568.5). Reported end-of-period 2012 order stock was EUR 595.1 million.
- During the reporting period Pöyry received an important contract in the Kingdom of Saudi Arabia amounting to EUR 40 million.
- Consolidated net sales amounted to EUR 490.2 million. This is EUR 75.5 million lower than the comparable number after divestments in 2012 (565.7). Reported January-September 2012 net sales were EUR 584.3 million.
- Operating profit amounted to EUR 5.6 million, 1.1 per cent of sales. The Group's operating profit was burdened by project losses recorded in the third quarter amounting to approximately EUR 7 million mainly originating from a project in Austria.
- Gearing was 95.9 per cent of which 8.6 percentage units relate to the changes in IAS 19 (revaluation of pension liabilities).
- Accounts receivable include positions which relate to certain public sector infrastructure projects in Venezuela, currently valued at around EUR 17 million, where the client is a public authority. The receivables have been described in the report of the Board of Directors for 2012 and there have not been any material changes during 2013.
- In the beginning of 2013 Pöyry's operations were organised along the following Business Lines: Energy Business Group; Industry Business Group; Regional Operations and Management Consulting Business Group. Corresponding pro forma figures for the years 2011 and 2012 have been restated accordingly.
- The Statement of Comprehensive Income and Statement of Financial Position 2012 have been restated in line with IAS 19. The corresponding variation analysis is published in the tables of the complete Interim Report.
Comments by ALEXIS FRIES, PRESIDENT AND CEO:
"Pöyry continues to have a solid pipeline of order prospects. Unexpected delays in corresponding contract awards have, however, impacted the development of revenues, particularly in the Industry sector, where exceptionally large projects had been recorded during the first half of 2012. Outlook for the Group's operating profit remains unchanged. Operating profit is expected to increase. Operating profit 2013 is compared to 2012 numbers which exclude restructuring costs.
During the reporting period Pöyry received an important contract in the Kingdom of Saudi Arabia amounting to EUR 40 million. The Group's operating profit was burdened by project losses recorded in the third quarter amounting to approximately EUR 7 million mainly originating from an on-going project in Austria. Management has initiated measures improving project management performance and control.
Pöyry continues with its strategic evolution building on global leadership positions in its industrial and energy sectors and a focused regional approach. In key domestic markets, Pöyry delivers a large number of small to medium-sized projects across most sectors of engineering and consulting services.
Our cost-saving measures are developing on plan, with important milestones in terms of IT and finance outsourcing having been reached successfully. As indicated in the second quarter report, addressing low performing units is having a positive impact on the result. Measures were initiated in connection with low activity levels in certain Finnish Business Units.
Although current revenue development has fallen short of expectations, the order prospects pipeline continues to be solid and healthy. We remain committed to our strategic evolution."
This is a summary of the January-September 2013 Interim report. The complete 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 financial statement release with tables.
PÖYRY PLC
Additional information from:
Jukka Pahta, CFO
tel. +358 10 33 22629
INVITATION TO CONFERENCES TODAY 29 OCTOBER 2013
Pöyry's January-September 2013 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.
11:00 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 on the next working day on the same website.
To attend the conference call, please dial:
Finland: +358 (0)9 2313 9201
UK: +44 (0)20 7162 0077
US: +1 334 323 6201
Other countries: +44 (0)20 7162 0077
Conference ID: 934258
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 locally in our core markets. We deliver strategic advisory 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, water and real estate sectors. Pöyry has an extensive local office network employing about 6,500 experts. Pöyry's net sales in 2012 were EUR 775 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).
DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.poyry.com
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Pöyry Oyj via Thomson Reuters ONE
