Pöyry PLC Financial statement release 8 February 2017 at 8.30 a.m. EET
Further operational improvement
Key figures for October-December 2016
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
- Adjusted operating result increased to EUR 4.3 (2.7) million. Operating result was EUR -2.9 (0.1) million.
- Net sales were EUR 130.5 (144.5) million.
- Order intake increased compared to the corresponding period in the previous year.
Key figures for January-December 2016
- Adjusted operating result decreased to EUR 5.8 (9.4) million. It improved in the Management Consulting Business Group, but declined in the other business lines. Operating result was EUR -8.1 (4.0) million.
- Net sales were EUR 529.6 (575.3) million. They remained stable in the Management Consulting Business Group but decreased in the other business lines.
- The Group's order stock was EUR 442.5 (465.5) million.
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| 10-12/ | 10-12/ | Change, | 1-12/ | 1-12/ | Change, | ||||
| Pöyry Group | 2016 | 2015 | % | 2016 | 2015 | % | |||
| Order stock at the end of period, EUR million | 442.5 | 465.5 | -4.9 | 442.5 | 465.5 | -4.9 | |||
| Net sales total, EUR million | 130.5 | 144.5 | -9.7 | 529.6 | 575.3 | -7.9 | |||
| Operating result, EUR million | -2.9 | 0.1 | n.a. | -8.1 | 4.0 | n.a. | |||
| Operating margin, % | -2.2 | 0.1 | -1.5 | 0.7 | |||||
| Adjusted operating result, EUR million | 4.3 | 2.7 | 57.9 | 5.8 | 9.4 | -38.0 | |||
| Adjusted operating margin, % | 3.3 | 1.9 | 1.1 | 1.6 | |||||
| Result before taxes, EUR million | -4.0 | -0.9 | n.a. | -10.6 | 6.0 | n.a. | |||
| Earnings per share, basic, EUR | -0.09 | 0.00 | n.a. | -0.24 | 0.09 | n.a. | |||
| Earnings per share, diluted, EUR | -0.09 | 0.00 | n.a. | -0.24 | 0.09 | n.a. | |||
| Earnings per share, adjusted, EUR | 0.03 | 0.04 | -27.7 | -0.01 | 0.18 | n.a. | |||
| Gearing, % | 27.0 | 3.6 | |||||||
| Return on investment, % | -3.2 | 6.1 | |||||||
| Average number of personnel, full time equivalents (FTE) | 4,839 | 5,029 | -3.8 | ||||||
All figures and sums have been rounded off from the exact figures, which may lead to minor discrepancies upon addition or subtraction.
Martin à Porta, President and CEO:
"Our adjusted operating result increased compared to the same quarter in 2015, showing continued improvement in our operational business. Adjusted operating margin increased in the Energy and Management Consulting Business Groups, remained on a solid level in the Industry Business Group and declined in Regional Operations. Accordingly operating cash flow of the quarter excluding taxes improved compared to the corresponding period in the previous year. We also saw an increase in our order stock as an outcome from a more client focussed organisation.
There has been strong operational improvement in the organisation. Employee engagement has increased, resulting in better motivation and energy in our teams. I am also happy that we have been able to recruit some new key employees to different levels of our organisation. Together with the good progress on our new business management system, which better equips our employees, this will lead to increased margins in our projects. There are also encouraging signs that our new offerings in the areas of bioenergy, health and safety and operational excellence are getting good response from the market. All in all our sales efforts have resulted in better prospects and opportunities in the market. We believe we can materialise a number of these in order intake in the next few months."
Board of Directors' proposal for disposal of distributable funds
The Group's parent company Pöyry PLC's net result for 2016 amounted to EUR 4,383,237.51 and retained earnings were EUR 25,840,897.23. The total distributable earnings were EUR 30,224,134.74. The Board of Directors of Pöyry PLC will propose to the Annual General Meeting on 9 March 2017 that no dividend will be paid for the year 2016.
Financial outlook for 2017
The Group's adjusted operating result is estimated to improve.
Market outlook 2017
Uneven economic developments among the major economies are expected to continue in 2017. The growth in the Eurozone has been modest. There are indications of market recovery, but high unemployment may weaken consumer demand and slow down the improving economic growth. Despite some signs of an economic recovery in Brazil, the market situation is still tight. At the same time, growth in the U.S. and in the majority of Asian countries remains positive, fuelled by stronger domestic demand.
For the businesses relevant to Pöyry, the sector specific outlook remains mixed. In the forest product industry sectors, such as packaging and tissue, the outlook is good, whereas in the graphic paper industry the demand continues to decline. The energy market is facing structural changes in Europe.
Events after the reporting period
As part of its improved client focus, Pöyry concentrates its globally-focused competences and process know-how in Pulp, Paper & Board, Chemicals & Biorefining and Mining & Metals in one global Industry organisation. This enables us to develop smart solutions and new innovations in connected teams, addressing global megatrends such as bioeconomy, efficiency and digitalisation.
Pöyry is reinforcing its project implementation approach and global delivery model in project management, health and safety, engineering and construction management by bringing together its industry-related operations in Brazil, Finland and Germany from Regional Operations to the Industry Business Group.
Pöyry's financial reporting will continue to be based on the following four reporting segments: Management Consulting Business Group; Industry Business Group; Energy Business Group; and Regional Operations. Restated figures will be published before the 4 August 2017 publication of the half year financial report January - June 2017.
Corporate governance statement
Pöyry will publish its Corporate Governance Statement 2016 and its Annual Review 2016, including the financial statements and the Report of the Board of Directors, on 16 February 2017 at the latest. The Corporate Governance Statement will be published separately from the Annual Review, and will be published on the company's website at www.poyry.com (http://www.poyry.com).
Materials to the AGM
The Annual Review 2016 including the financial statements and the Board of Directors' report as well as other documents presented to the Annual General Meeting will be published on the company's website at www.poyry.com (http://www.poyry.com) on 16 February 2017 at the latest.
This is a summary of the January-December 2016 financial statement release. The complete financial statement release is enclosed with this stock exchange release 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:
Juuso Pajunen, CFO
Tel. +358 10 33 26632
Invitation to conference call today on 8 February 2017
The result will be presented in English at a conference for analysts, investors and the press at 1:00 p.m. Finnish time (EET). The conference will be held at Pöyry house, Jaakonkatu 3, Vantaa, Finland. The event will be hosted by Martin à Porta, President and CEO, and Juuso Pajunen, CFO. The participants who will attend the conference at Pöyry house have been requested to inform about their participation by 3 February 2017.
The participants can also join a conference call that will be arranged in conjunction with the conference. The conference call details can be found below.
A live webcast of the conference can be followed online on the company's website at www.poyry.com/investors (http://www.poyry.com/investors). 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 7479 0361
SE: +46 (0)8 5033 6574
UK: +44 (0)330 336 9105
US: +1 719 457 1036
Other countries: +44 (0)330 336 9105
Conference ID: 4421323
Due to the nature of the live webcast, we kindly ask those attending the conference call to dial in 5-10 minutes prior to the start of the event.
Pöyry is an international consulting and engineering company. We deliver smart solutions across power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry's net sales in 2016 were EUR 530 million. The company's shares are quoted on Nasdaq Helsinki (POY1V). Approximately 5,500 experts. 40 countries. 130 offices.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Pöyry Oyj via Globenewswire
