Pöyry PLC Interim report 4 May 2016 at 8.30 a.m. EEST
Challenging start to the year
Key figures for January-March 2016
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
|Order stock at the end of period, EUR million||464.8||532.2||-12.7||465.5|
|Net sales total, EUR million||136.0||146.7||-7.3||575.3|
|Operating result, EUR million||-2.6||2.7||n.a.||4.0|
|Operating margin, %||-1.9||1.8||0.7|
|Adjusted operating result, EUR million||-0.6||3.1||n.a.||9.4|
|Adjusted operating result, % of net sales||-0.4||2.1||1.6|
|Result before taxes, EUR million||-3.0||-0.7||n.a.||6.0|
|Earnings per share, basic, EUR||-0.07||-0.01||n.a.||0.09|
|Earnings per share, diluted, EUR||-0.07||-0.01||n.a.||0.09|
|Earnings per share, adjusted, EUR||-0.03||0.00||n.a.||0.18|
|Return on investment, %||-3.8||6.4||6.1|
|Average number of personnel, full time equivalents (FTE)||4,904||5,105||-3.9||5,029|
All figures and sums have been rounded off from the exact figures, which may lead to minor discrepancies upon addition or subtraction.
New disclosure procedure in publishing financial outlook
Pöyry has updated its disclosure procedures in line with the applicable Finnish Securities Act. Hence, from 2016 onwards Pöyry will publish its full year market outlook and financial forecast in its interim reports and financial statement release. Earlier Pöyry published its full year market outlook and financial forecast only in its financial statement release.
Financial outlook for 2016 unchanged
The Group's adjusted operating result is expected to be positive.
Martin à Porta, President and CEO:
"It was a challenging start to the year. Compared to the strong first quarter in 2015, our net sales and profitability decreased. We did anticipate a soft first quarter, as the number of working days was less than in the previous year. Additionally there were unexpected losses in our Regional Operations in Switzerland which were a disappointment for us. We have taken the first immediate actions to rectify the situation and the recovery plan is underway.
Despite the shortcomings, there are also things in the first quarter that we can be satisfied with. The Industry Business Group was able to clearly improve its net sales and profitability. We were also able to secure several important orders across the different businesses and the prospects for new orders remained stable.
We have now communicated our operational framework to the senior management and execution has started accordingly. We are entering the next phase in developing our company. We will do everything to improve our competitiveness and to ensure that clients are always the main focus in all that we do. The three main aspects that will guide us over the next years are: simplifying and empowering our organisation, strengthening our core, and preparing to scale up.
Despite the challenging first quarter, we are confident that we are doing the right things and that we are able to improve step by step our performance. Thus we are maintaining our outlook that the Group's adjusted operating profit is expected to be positive in 2016."
Market outlook 2016
The economic and market outlook for 2016 remains challenging, however there are opportunities in specific segments of the market in Europe, in Asia and in North America. In addition, the quantitative easing programme of bond purchases launched by the European Central Bank in 2015 is aimed at creating conditions for regional and global recovery. Despite the slowing growth in China, the economic growth in the US and the UK is projected to remain robust.
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 reasonable. However, in the graphic paper industry the decline in structural consumption is set to continue. For energy and other industrial sectors relevant to Pöyry's businesses, the prospects are expected to be challenging. However, the prevailing uncertainties offer opportunities for operational excellence and advisory services. In Europe, growth remains fragile, delaying economic recovery and investment decisions.
The complete January-March 2016 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 4 May 2016
Pöyry's January-March 2016 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 Martin à Porta, 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.
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:
Conference ID: 4648360
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 2015 were EUR 575 million and the company's shares are quoted on Nasdaq Helsinki (Pöyry PLC: POY1V).